CONTINUED SALES GROWTH
January – March
- Net sales rose by about 32% to SEK 3,808k (2,886k).
- Comprehensive income improved by SEK 1,552k to SEK -3,454 (loss: 5,006k).
- Comprehensive income per share, basic and diluted, improved by SEK 0.14 to SEK -0.09 (-0.23).
- Cash flow from operating activities was SEK -2,498k (-4,854k).
- The Board of Directors of Genovis AB (publ) has resolved on a rights issue subject to approval by the Annual General Meeting on May 12, 2016
- Genovis signed a strategic cooperation agreement with Alphalyse A/S that will provide access to Alphalyse’s expertise in mass spectrometry, while Alphalyse will have the opportunity to offer its customers analyses based on Genovis’ unique enzymes for antibodies and other pharmaceutical proteins.
Comments from Fredrik Olsson, Chief Executive Officer
Once again it is extremely encouraging to report continued sales growth. The first quarter of 2016 is our single best quarter ever, and sales surged by 32 percent compared with the same period last year. This is the sixth consecutive quarter that we demonstrate continued strong growth. The investments we made in our sales organization, both in the US and Europe, continue to produce results and I am particularly pleased that sales for all enzyme lines are growing compared with the corresponding period last year. Gross margin remained at a satisfactory level of about 90 percent.
The number of new customers and orders increased during the quarter compared with the same period last year and I expect continued growth of the customer base in 2016 through increased sales and marketing initiatives.
We are also driving growth by broadening our product portfolio. We intend to continue expanding our product selection during the year and focus expansion of the product portfolio on our existing markets. We will also expand into new markets where our unique enzymes have not yet been used, but where we see clear potential.
In the first quarter, we signed a strategic cooperation agreement with Alphalyse, a company that specializes in protein analysis by mass spectrometry. The agreement enables us both to market our products and to receive information about new market opportunities for our enzymes. We will continue to build partnerships with more stakeholders in the markets where we are active to increase the exposure of our enzymes and thereby further increase sales.
In April, we launched a new product, GingisREX™, our first enzyme that is not limited to analysis of antibodies, but is also suitable for analysis of proteins in general. We received orders for the product right from the day of the launch and our extended distribution network enabled us to send the products to customers immediately after the launch.
Based on developments during the first quarter and the initiatives that we will implement during the year, I expect continued strong sales growth in 2016.
Genovis is a global company that offers enzyme products that facilitate development and quality control of biologics to customers in the pharmaceutical and medical technology industries. The Company markets several enzyme products (“SmartEnzymes”) in innovative product formats all over the world.
The organization consists of Genovis AB and the wholly owned subsidiary Genovis Inc. in the US. Genovis Inc. handles all sales of enzyme products on the North American market and Genovis AB handles sales in the rest of the world. Genovis shares are listed on Nasdaq First North Stockholm and Consensus is the Company’s Certified Adviser, t: +46(0) 31 745 50 00.
This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.