INTERIM REPORT JANUARY – MARCH 2013
- Net sales increased by 102 percent to SEK 1,906k (944k).
- Loss after financial items was SEK 3,957k (loss: 4,008k).
- Comprehensive income was a loss of SEK 3,946k (loss: 3,970k).
- Comprehensive income per share basic and diluted totaled SEK -0.33 (-0.57).
- Cash flow from operating activities during the period was SEK -4,429k (-2,871k).
- Cash and cash equivalents at the end of the period amounted to SEK 1,543k (3,959k).
- Genovis was allocated SEK 1.575 million in research support from VINNOVA (the Swedish Agency for Innovation Systems). VINNOVA chose to support the project “Nanoparticles in movement as contrast agents in medical ultrasound.”
- Genovis signed an agreement worth about USD 100,000 for a project for a major pharmaceutical company. The project will adapt Genovis’ products from the protein engineering portfolio to the customer’s technology platform.
- With the authorization of the 2012 Annual General Meeting, the Board of Directors of Genovis decided to conduct a rights issue for existing shareholders. The company will raise about SEK 13.8 million before issue expenses, which are expected to be SEK 600,000, if the rights issue is fully subscribed.
Comments from CEO Sarah Fredriksson
Net sales during the first quarter increased by more than 100 percent compared with the same quarter last year, which is gratifying since we want to continue to maintain a strong pace in sales and business growth. The average order value increased by 42 percent and the number of orders increased by 40 percent. We are pleased that we continue to reach completely new customers. Consolidated expenses increased by 19 percent compared with the first quarter of 2012; the increase is mainly due to increased marketing expenses as well as increased payroll costs. When comparing expenses on a consolidated basis with the preceding quarter, Q4 2012, however, they decreased by about 16 percent, mainly due to significantly lower royalty costs, and because we invested in more long-term marketing efforts during the fourth quarter.
During the first quarter we signed an agreement for a development project with a major pharmaceutical company. The one-year project is worth about USD 100,000 for Genovis. Recording of revenues will begin in the second quarter. The project will adapt Genovis’ products from the protein engineering portfolio to the customer’s technology platform. We look forward to starting the project, which in turn can have a positive impact and strengthen sales in the medium term.
In late March we also learned that VINNOVA, the Swedish Agency for Innovation Systems, chose to support a project in the nano portfolio with about SEK 1.6 million. The project has already been running for about 18 months and resulted in a new method for creating contrast for ultrasound. The contrast occurs when nanoparticles move in tissue. This small movement can be perceived with ultrasound. We developed this completely new and unique method together with Associate Professor Tomas Jansson’s research group at the Faculty of Engineering, Lund University (LTH). This grant from VINNOVA provides an injection of capital, inspiration and encouragement, while facilitating and strengthening our partnership with the research group at LTH.
Sarah Fredriksson, CEO
For more information, please contact: Sarah Fredriksson, CEO, Genovis AB Tel: 46 (0)46 -101235 firstname.lastname@example.org
Genovis’ business concept is to develop, produce and market innovative technologies that facilitate and enable development of new treatment methods and diagnostics for customers in the medical device and pharmaceutical industries. The Group consists of Genovis AB and the subsidiary GeccoDots AB. Genovis develops and sells unique enzymes (protein engineering portfolio) in innovative product formats that facilitate development and quality control of and biological drugs. GeccoDots uses nanotechnology to produce a new type of contrast agent that is used in medical imaging.
Genovis shares are listed on NASDAQ OMX First North, and Thenberg Fondkommission is Certified Adviser for the Company, t: 46 (0)31-745 50 00