Net sales totaled SEK 944k (455k), which is an increase of 107% compared with the first quarter of 2011.
Loss after financial items was SEK 4,008k (loss: SEK 3,469k).
Loss after tax was SEK 3,970k (loss: 3,458k).
Earnings per share totaled SEK -0.06 (-0.08).
Cash and cash equivalents at the end of the period amounted to SEK 3,959k (1,008k).
Genovis’ nanoparticle project has been published in the prestigious Journal of Nuclear Medicine.
On March 20, the Annual General Meeting adopted a proposal for a rights issue to existing shareholders in which two (2) existing shares entitle the holder to subscription for one (1) new share at a subscription price of SEK 3.50/ share. The rights issue, which is fully guaranteed, will raise SEK 12.1 million for Genovis. The AGM also resolved on a private placement to LMK Ventures AB, which can raise an additional SEK 5m for the Company.
Changes in Board of Directors
Two new directors were elected at the Annual General Meeting, Peter Ragnarsson and Erik Walldén.
Change in share capital
On March 20, 2012, the AGM resolved to reduce share capital by SEK 24,925,363.2 which means a new par value of SEK 0.04.
Events after the end of the period
Change number of shares
On March 20, 2012, the AGM resolved to reduce the number of shares in the Company by consolidating the shares in the ratio 1:10, which entails that every ten shares will be consolidated into one share. As a result of the change, share capital shall amount to a minimum of two million four hundred thousand Swedish kronor (SEK 2,400,000) and a maximum of nine million six hundred thousand Swedish kronor (SEK 9,600,000) and the number of shares shall be a minimum of six million (SEK 6,000,000) and a maximum of twenty-four million (24,000,000).
The record date for consolidation was April 10.
Spring has gotten off to a good start for Genovis. The trend from last year continues, with a strong increase in sales of products from the protein engineering portfolio. Meanwhile, development of the nano portfolio has made great strides. Several scientific papers have been published illustrating the benefits of Genovis’ nanoparticles, and we are following our development plan toward a launch in the third quarter of this year.
One year ago, we launched new product concepts from the protein engineering portfolio: FragIT, DeGlycIT and FragIT kits. The new products are intended to simplify and standardize work for our customers, making it easier for them to scale up their processes. They are marketed at a higher price per test, but save working hours for the customer. We are now beginning to see results and so far we can say that customers want the new products and the number of products sold in that category will increase more than the average increase for all products. During the quarter we increased sales from the protein engineering portfolio by about 150% compared with the same quarter last year and revenues from the new products now account for 35% of income from the protein engineering portfolio.
We are planning the next launch in the protein engineering portfolio for June. The time is now right for a high-throughput product that makes it possible to handle hundreds of samples quickly and reliably. We have plenty of work left to do in the market. We want to reach more customers in our target market and develop product concepts that can help to increase volumes with existing customers. It is an exciting challenge to try to reach as many of our potential customers as possible. To do so we are expanding our marketing campaigns in terms of both quantity and new formats, and I expect 2012 expenses to increase 15% as a result of these initiatives. We are pleased that we are being helped along by our customers, who are publishing the excellent results they achieve with our products. Recognition by customers also facilitates the process of finding the right partners that can expand our marketing activities to more geographic areas than those we are covering today. The process is ongoing and is obviously a high-priority strategic measure.