Interim Report January – September 2014
July – September
- Net sales fell by about 40% to SEK 1,639k (2,750k).
- Comprehensive income was a loss of SEK 5,545k (loss: 2,740k).
- Comprehensive income per share totaled SEK -0.25 (-0.17).
- Cash flow from operating activities during the period was SEK -4,537 (-3,286k).
- Cash and cash equivalents including short-term investments amounted to SEK 12,003k (7,470k) at the end of the period. Short-term investments amounted to SEK 5,000k (3,000k).
January – September
- Net sales fell by about 10% to SEK 6,153k (6,856k).
- Loss after financial items was SEK 14,187k (loss: 10,600k).
- Comprehensive income was a loss of SEK 14,187k (loss: 10,539k).
- Comprehensive income per share totaled SEK -0.66 (-0.75).
- Cash flow from operating activities during the period was SEK -16,516k (-10,966k).
Events after the end of the period
In November, Genovis filed a lawsuit against Promega Corporation for patent infringement. The suit relates to Promega’s product IdeS Protease, which Genovis believes infringes US Patent No. 7 666 582. Genovis has an exclusive global license to the patent, which expires in 2022 and covers Genovis’ product FabRICATOR®. The lawsuit includes an injunction to prevent Promega from producing, using, selling or offering for sale the infringing product, as well as damages. The suit was filed in the United State District Court of Delaware.
Comments from CEO Sarah Fredriksson
After several years of developing new innovative concepts, we have been pleased to see the enthusiasm with which our products have been received in the market. Our customers have published more than 50 scientific publications and have seen strong sales growth. As we now encounter competition from a major player in the market that affects our revenue stream, it is important to act. Genovis has chosen to pursue a legal process that requires both resources and energy, but is necessary for Genovis to retain its intellectual property rights intact. Moreover, product development is the result of considerable time, effort and creativity. Our insurance covers most of the cost of this process.
The loss of income can be attributed in part to the fact that our distributors have now completely stopped stocking our products, which has had an impact on revenue compared with the same quarter last year. The shift from distribution to direct sales is essentially completed and all distribution agreements in the US and Europe will be terminated in three months.
The business is fully focused on the objectives for the year. In August we improved our service by opening web-based direct sales and we expanded production so that we can soon produce all products as endotoxin-free laboratory reagents. All development projects at Genovis and GeccoDots are on track and in November/December we expect to be able to launch from new products in both companies.
CEO, Genovis AB
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 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 Consensus is Certified Adviser for the Company, t: 46 (0)31-745 50 00