BIOHIT PLC. STOCK EXCHANGE RELEASE 14.2.2001 AT 9:00 1 (12)
FINANCIAL STATEMENT BULLETIN OF BIOHIT PLC. 1.1. - 31.12.2000
The net sales of the Biohit Group increased by 18% compared with the
previous year and totalled to MFIM 144.2. The gross investments for
the period totalled to MFIM 42.0 (MFIM 7.6 in 1999). Biohit's
investments in research & development, in increasing productivity and
its efficiency, and international marketing resulted in losses at the
Group level. The Group operating loss totalled to MFIM 2.8. The cash
flow provided by operating activities was MFIM 7.2 positive in 2000.
The net sales of the Biohit Group increased by 18% compared with the
previous year, i.e., from MFIM 122.2 to MFIM 144.2. The growth was
generated primarily by the sales of liquid handling products and their
disposables. Foreign sales accounted for 96%, as has been the case
also in earlier years. 53% of net sales were generated from European
countries, 19% from the Americas and the remaining 28% primarily from
The operating loss for the reporting period totalled to MFIM 2.8 (MFIM
7.9 profit in 1999). The operating profit before goodwill amortization
totalled to MFIM 2.8 (MFIM 13.2) and loss per share FIM 0.37 (FIM 0.24
The cash flow provided by operating activities was MFIM 7.2 positive
Compared with the previous year the result was burdened by an increase
in fixed costs, which was primarily due to additional investments in
the international marketing organization and the research and
development of diagnostics. In 2000 Biohit began the marketing of the
diagnostic products and made preparations for large-scale
The net financial expenses totalled to MFIM 0.6 (MFIM 3.0). The
decrease of MFIM 2.4 compared with 1999 was primarily due to the MFIM
1.6 interests accrued on the capital loans by 31.12.1999, and which
were recorded in 1999.
The profit before extraordinary items totalled to MFIM 3.4 (MFIM 4.9)
and loss before taxes MFIM 2.0.
The extraordinary income consisted primarily of the MFIM 1.4 profit
received from the sales of the shares of Wolf Laboratories Ltd.
The liquidity of the Biohit Group is good. Despite the decrease in the
result the cash flow provided by operating activities were MFIM 7.2
positive. The liquid assets decreased from MFIM 42.9 to 17.9 and was
due to acquisitions in the U.S. and Russia (MFIM 10.3), investments in
the production premises in Kajaani (MFIM 21.6) and MFIM 3.6 repayment
of capital loans and their interest. The financial position was
improved by the MFIM 4.5 interest-free loan and MFIM 2.0 damages paid
by the City of Kajaani.
The gearing ratio changed from 66.0% at year end 1999 to 66.9%.
The gross investments of the period totalled to MFIM 42.0 (MFIM 7.6),
for which a MFIM 5.0 investment support has been received from the
Ministry of Trade and Industry. In 2000 the new production plant was
finished in Kajaani. The total expenses of MFIM 21.6 were comprised of
MFIM 17.8 investments in the building and MFIM 3.8 in machinery and
equipment. Other investments in machinery and equipment totalled to
MFIM 8.2. Investments in immaterial assets were MFIM 1.9 and MFIM 10.3
Main Events of the Reporting Period
Research and Development
In the area of liquid handling Biohit continued to invest in the
development of new pipettor generations. The new products are
described in more detail under the section on liquid handling. This
development work is based on Biohit's strategy in which new market
segments have been identified. These segments differ from each other
in terms of the area of application, performance and price. In the
area of diagnostics the development of the test panel for screening
the risk of gastric cancer and peptic ulcer, as well as other tests,
proceeded according to plans. In fall 2000 Biohit's test panel passed
successfully the clinical evaluation carried out at the Jorvi Hospital
in Finland. Also the test for determining lactose intolerance and
systemic lupus erythematosus (SLE) were successful in clinical
The research and development expenses of the Biohit Group
totalled to MFIM 10.1 (MFIM 7.5), i.e., 7.0% (6.2%) of the net sales.
The liquid handling products and the disposable pipettor tips are
manufactured according to the ISO 9001 quality system standards in the
Kajaani and Helsinki plants. The main production plant is located in
Kajaani whereas the Helsinki production unit serves as a pilot plant.
The diagnostic tests are also produced in Helsinki.
Biohit's new facilities for the assembly of liquid handling products
and injection molding of plastics were taken into use in Kajaani in
fall 2000. The injection molding department produces precision molded
plastic components, pipettor parts and disposable pipettor tips.
Investments were made especially in the automation of injection
molding, materials handling and production. The new premises enable at
least to quadruple the current production volume of liquid handling
products and plastics. As to the production of diagnostics a new clean
room unit, which will replace the current pilot production, will be
finished in Helsinki in March 2001.
Biohit focuses solely on those business areas in which it possesses a
reliable multidisciplinary scientific base, technological expertise
and inventions protected by patents.
The comprehensive patent protection in Finland and abroad, which has
resulted form Biohit's aggressive patenting policy, as well as
different agreements, have formed a solid and reliable basis for
Biohit's growth and co-operation with other companies on the global
level. Biohit's patents, the high quality of products and accurate
deliveries have resulted in the continuation of long-term co-operation
with multinational companies such as Becton Dickinson, bioMérieux,
Johnson & Johnson and 3M. Also for this reason, the seven sales and
marketing subsidiaries of Biohit abroad have continued their growth
and favorable development. Likewise, the distributor network comprised
of approx. 60 main distributors worldwide has increasingly invested in
the sales and marketing of Biohit's products. Biohit will continue to
pay special attention on the development and protection of its
multidisciplinary immaterial assets also in the future.
At the end of 2000 Biohit possessed altogether 34 patents of which 20
were Finnish, 10 U.S. and 4 European. In 2000 Biohit was awarded the
following Finnish patents in the business area of liquid handling: FI
104885, FI 105782 and FI 105783. In the business area of diagnostics
Biohit was awarded the following Finnish patents: FI 104737 and FI
106212. In accordance with its aggressive patenting policy Biohit
filed numerous patent applications in 2000 in Finland, most European
countries, Japan, Russia and the U.S.
International Sales and Marketing
The customer base of Biohit consists of leading laboratories of
research institutes, universities, those of medical and biotechnology
companies and hospitals in the world. Also, the food industry and
environmental control laboratories are important customers for Biohit.
In addition, Biohit has numerous OEM-customers for which Biohit
manufactures on the basis of its technologies tailor-made products.
Multinational companies such as Becton Dickinson, bioMérieux, Johnson
& Johnson and 3M complement their own product ranges and diagnostic
systems with Biohit's OEM-products.
The international co-operation and customer service network for
Biohit's liquid handling products, diagnostics, instruments and
systems consists of:
1.Subsidiary companies of Biohit Plc. in France, Germany, Italy,
Japan, Russia, the U.K. and the U.S. The companies are located on
Biohit's most important market areas and they act as sales and
marketing units for Biohit's products as well as offer maintenance,
calibration and training services locally. In addition to Biohit
products, the units engage in the sales of OEM- and private label -
2. Biohit's 60 main distributors, which together with their local
distributors form a network of 450 members covering 70 countries.
3. The global distribution networks of Biohit's most important OEM-
and private label -customers.
During 2000 Biohit invested especially in the reinforcement of its
marketing network in the U.S. and Russia. Moreover, Biohit entered
into negotiations with several significant co-operation partners in
order to commence the international launch of the diagnostic and
instrument product ranges as well as complete analyzing systems. In
2000 Biohit began to offer more extensive maintenance services in its
foreign subsidiaries for Biohit-labelled pipettors and also for those
manufactured by other companies. In connection with this, Biohit
continued to develop and harmonize the international maintenance
network for its liquid handling products.
Corporate Arrangements in 2000
Biohit Systems, Inc., the U.S. subsidiary of Biohit Plc., acquired on
April 25, 2000 the entire share capital of the U.S. company Vangard
International, Inc., which has acted as a distributor of Biohit's
products. As a result of the acquisition Biohit Plc. received all
business activities of Vangard International, Inc. including the sales
and marketing of Biohit products in the U.S. Through the acquisition
Biohit clarified and reinforced the sales and marketing as well as the
maintenance and calibration services for its products in the U.S.
It was decided on December 14, 2000 that Locus genex Oy, the
subsidiary company of Biohit Plc. specializing in the development of
diagnostics, will be integrated more closely with the Biohit Group.
The extraordinary general meeting of Locus genex Oy decided on Dec.
14, 2000 to place the company in voluntary liquidation after which the
company will be dissolved and all business operations transferred to
Biohit Plc. The purpose of the reorganization is to transfer the
business areas of liquid handling, instruments and diagnostics under
one company and brand name and in this way gain more efficiency in the
marketing and distribution of the said products. The reorganization
will also eliminate overlapping activities and cut administrative
expenses. The aim is to complete the reorganization by the end of
Biohit Plc. acquired on Dec. 29, 2000 44% of the Russian company
Finnbio Ltd., which acts primarily as the distributor of Biohit
products in Russia and other CIS-countries. As a result of the
acquisition Biohit's ownership of the shares and votes increased to
100%. Prior to the acquisition Biohit's shares and votes totalled to
56%, which resulted from Biohit acquiring 100% of the Finnish company
Oy Finio Ab on May 15, 2000.
Biohit Plc. sold on Dec. 29, 2000 its majority share, i.e., 51% of the
U.K. company Wolf Laboratories, Ltd. The majority share was acquired
by the minority shareholders at the time. Wolf Laboratories Ltd. has
acted in the U.K., e.g., as the distributor of Biohit products as well
as the laboratory products of other manufacturers. The purpose of the
transaction was to clarify the Biohit Group structure so that the
Group companies will concentrate on the manufacture and sales of
Biohit products. Wolf Laboratories Ltd. will continue after the
transaction, together with Biohit's U.K. subsidiary Biohit Ltd., as
the local distributor for Biohit products in the U.K.
In May 2000 Biohit Ltd. established together with Stuart Mead a
company specializing in the maintenance of pipettors. Biohit Ltd. owns
50% of the said company.
In the area of liquid handling Biohit continued to invest in the
development of new pipettor generations. This development work is
based on Biohit's liquid handling product strategy in which new market
segments have been identified. These segments differ from each other
in terms of the area of application, performance and price.
In its development of liquid handling products Biohit has paid special
attention on the safety and ergonomic aspects of pipettors, which
contribute, e.g., to reducing the risk of work-related upper limb
In 2000 Biohit finished the development of the new eLINE, ePET and
ViscoPet pipettor ranges. The development work followed Biohit's
product strategy to segment the pipettor market according to the
different needs of customers and their cost sensitivity.
The eLINE is a new generation of electronic pipettors, which offers
the latest technology in the field of hand-held liquid handling
devices. The range was designed to meet the most demanding pipetting
applications offering, thus, e.g., eleven liquid handling protocols
for the various needs of today's laboratories. The microprocessor-
controlled system and the novel construction of the eLINE pipettors
enable maximum liquid handling performance with high levels of
accuracy and precision. The ergonomic design of the eLINE together
with the unique electronic tip ejection are examples of Biohit's
continuous efforts to improve further the ergonomy and competitiveness
The eLINE received an honorary award on Feb. 1, 2001 in the Pro
Finnish Design 2001 competition arranged by Design Forum Finland, and
the product was subsequently displayed at the Pro Finnish Design 2001
Exhibition. The first models of the eLINE will be launched in February
In 2000 Biohit finished and launched the entire ePET -pipettor range,
which is a cost effective alternative to electronic pipetting. The
range is especially targeted, in terms of price, performance and
software, for the needs of research laboratories. The ePET can perform
all the basic pipetting functions, e.g. dispensing and diluting, and
it is intended as a more ergonomical alternative to the high priced
end of mechanical pipettors.
Biohit also finished and launched the electronic ViscoPet pipettor,
which has been specifically designed to meet the requirements of those
laboratories in which it is necessary to pipette viscous liquids with
high levels of accuracy. The use of special long-reach Viscotip
capillaries makes the ViscoPet particularly suitable for the needs of
laboratories processing food and dairy products.
In the area of electronic liquid handling Biohit continued the
development of OEM-products, which complement the product ranges and
diagnostic systems of other companies. For example, Biohit developed
for Beckman Coulter an electronic HbA1c pipettor. Moreover, the Remote
Control (RC) -unit developed by Biohit, which is a front-end for
different automated liquid handling instrumentation and robots, serves
the development work of automatic instruments of other companies and
that of Biohit. Biohit continued also to develop further the
disposable pipettors tips and their production with new and efficient
injection molding tools and robots.
The calibration laboratory for liquid handling devices of Biohit Plc.
was accredited on March 20, 2000 as a result of the evaluation made by
the Finnish Accreditation Service (FINAS), a member of the European
Cooperation for Accreditation (EA). The accreditation of the
calibration for liquid handling products performed in the production
plants in Helsinki and Kajaani reinforces Biohit's market position as
one of the leading manufacturers of liquid handling devices. There
exist only two accredited calibration laboratories in the world of
companies manufacturing liquid handling devices of which Biohit's
laboratory is the most accurate within the following scope of
The Scope of Accreditation and Measurement Capability of the
Calibration Laboratory of Biohit Plc.
Scope of Accreditation
Quantity Measurement range Measurement
Volume 0.1 - 5.0 ul 0.015 ul
10 ul 0.025 ul
50 ul 0.080 ul
100 ul 0.100 ul
200 ul 0.100 ul
500 ul 0.520 ul
1000 ul 0.520 ul
5000 ul 3.600 ul
As a result of the accreditation Biohit is able to offer to its
customers worldwide calibration certificates for liquid handling
devices, which are based on national and international, traceable
measurement standards. The traceable calibration certificates form
already now an important part of the reliable analysis services
provided by laboratories. As a result of the accreditation, Biohit
is able to fulfil the international traceability requirements set
for liquid handling devices. The number of Biohit's accredited
calibration laboratory is K041.
In the business area of diagnostics the development of the test panel
for screening the risk of gastric cancer and peptic ulcer proceeded
according to plans. In 2000 the Pepsinogen I and II, the Gastrin-17
and the Helicobacter pylori (H.pylori) -tests were finished.
In fall 2000 Biohit's test panel passed successfully the clinical
evaluation carried out at the Jorvi Hospital in Finland. During the
evaluation 100 patients underwent gastroscopy and the microscopic
examination of the biopsies taken from the mucous membrane of the
stomach. Various types of gastric diseases were diagnosed in approx.
40% of the patients selected to participate in the study. The serum
Pepsinogen I and Gastrin 17 -concentrations and the H. pylori -
antibodies were determined from the blood samples of the patients by
using Biohit's test panel. When the results produced by Biohit's test
panel were compared with the diagnoses made on the basis of the
gastroscopy and biopsies, it was found that the sensitivity of the
test panel was over 90%. This means that the test panel is able to
find nearly all those patients who have been diagnosed ill on the
basis of the results of the gastroscopy and analysis of the biopsy
samples. Furthermore, the test panel was able to classify correctly,
with a specificity of 90%, those patients who did not suffer from a
gastric disease or the disease was mild.
Biohit's monoclonal antibody tests (Pepsinogen I and II, Gastrin-17)
for screening the risk of gastric cancer and peptic ulcer proved to be
highly specific also in immunohistochemistry. This expands the area of
use of the Biohit's monoclonal antibodies, e.g., to pathological
laboratories. Prior to this Biohit has had for sale 25 monoclonal
antibodies applicable to immunohistochemistry. In the area of
phytoestrogens Biohit continued to develop monoclonal antibodies for
Enterolactone and Genistein.
In 2000 the clinical evaluations continued for Biohit's quick test for
determining lactose intolerance and the telomere antibody test for
detecting systemic lupus erythematosus (SLE). During the financial
year the range of tests for diagnosing celiac disease was complemented
with an endomysium IgA -test.
In 2000 Biohit commenced the processes of obtaining official approvals
in Europe (CE marking), in the U.S. (approval by Food and Drug
Administration) and Japan. After receiving the approvals Biohit's
diagnostic products can be sold also for clinical use on these market
In order to serve its customer base also with complete analyzing
systems, which are comprised of liquid handling products, diagnostics,
instruments, software and service, Biohit began the purchases of
private label -liquid handling and microplate instruments from the
U.S. Bio-Tek Instruments, Inc. in accordance with the contract
concluded in August 2000.
In 2000 Biohit began the sales and marketing of state-of-the-art
microplate readers and washers. The instruments with integrated
keyboard, LCD-display, interface and extensive menu-driven software
can serve as stand-alone instruments or as part of a larger laboratory
information management system (LIMS) when connected to a host device,
such as a PC.
Although Biohit's readers and washers are intended for a wide range of
assays they are delivered with pre-programmed protocols for Biohit's
diagnostic tests, e.g. for Pepsinogen-I, Gastrin-17 and Helicobacter
pylori. This ensures ease-of-use, optimal operation and verified test
reporting and results.
Development of the Price of Biohit's B-Share
In 2000 the turnover of Biohit's B-share at the Helsinki Exchanges was
EUR 27,106,757.46 and 3,646,849 in pieces. The highest price was EUR
13.50, the lowest EUR 4.20 and the average price EUR 7.43. The closing
price at the end of 2000 was EUR 6.20. In 2000 the number of
shareholders increased by 50% to over 4,000.
Increases in Share Capital
On the basis of the first subscription period by the personnel options
1.1.-1.4.2000 the personnel of Biohit subscribed altogether 378,840 B-
shares of the total of 400,000. The subscription price was FIM 12.50
per share. As a result of the subscriptions the total number of shares
rose to 12,643,377 pieces. The share capital increased by EUR
64,402.86 to EUR 2,149,374.09. The premium fund increased by EUR
Administration and Personnel
During the reporting period the following persons have been member of
the Board of Directors of Biohit Plc. Professor Reijo Luostarinen as
the Chairman and Osmo Suovaniemi, M.D., Ph.D. and Professor Mårten
Wikström as members. Pekka Salonoja, the Chairman of the Board of Erja-
Kiinteistöt Oy Pekka Salonoja acted as a member until April 6, 2000.
Osmo Suovaniemi has acted as the President & CEO.
SVH Pricewaterhouse Coopers Oy have acted as Authorized Public
Accountants and Hannele Selesvuo as the Authorized Public Accountant.
The considerable investment made in 2000 earlier in research and
development, production and the global co-operation and customer
service network will have a positive impact on profitability as of
The net sales of Biohit Group for 2001 is anticipated to demonstrate a
growth of at least 20%. The major part of the net sales is forecast to
be generated by the sales of liquid handling products. Furthermore, it
is forecast that diagnostics, instruments and systems composed of
liquid handling products, diagnostics and instruments will produce a
significant increase in the net sales and profitability for 2001.
Group Income Statement
1-12 2000 Change 1-12 1999
MFIM MEUR % MFIM
Net sales 144.2 24.2 18 122.2
Operating expenses -147.0 -24.7 29 -114.3
Operating profit -2.8 -0.5 -135 7.9
(net) -0.6 -0.1 -80 -3.0
extraordinary items -3.4 -0.6 -169 4.9
Extraordinary income 1.4 0.2 -30 2.0
Profit before taxes -2.0 -0.3 -129 6.9
Profit for the -3.7 -0.6 -190 4.1
Group Balance Sheet
MFIM MEUR % MFIM %
Non-current assets 67.6 11.4 47 52.5 36
Inventories 22.5 3.8 15 14.1 10
Receivables 38.4 6.4 26 37.3 25
Cash and cash
equivalents 17.9 3.0 12 42.9 29
Total assets 146.4 24.6 100 146.8 100
Share capital 12.8 2.1 9 12.4 8
Share premium fund 88.6 14.9 61 84.2 58
profits/ losses -3.7 -0.6 -3 0.0 0
Capital loans 6.7 1.1 5 8.6 6
Minority interest 0.3 0.1 0 0.3 0
Provisions 0.0 0.0 0 0.1 0
Long-term 16.6 2.8 11 17.0 12
liabilities 25.1 4.2 17 24.2 16
equity 146.4 24.6 100 146.8 100
1-12/00 Muutos Muutos-% 1-12/99
Fixed assets 42.0 34.4 453% 7.6
Employees, average 222 38 21% 184
Mortgages and shares pledged
for liabilities, MFIM
Loans from financial
institutions 16.5 20.9
Corporate mortgages 20.1 20.1
Pledged shares, book value 0.0 0.4
Total 20.1 20.5
Other long-term liabilities 4.5 0.0
Mortgages 4.5 0.0
Other short-term liabilities 0.2 0.0
Corporate mortgages 0.6 0.0
Other commitments, MFIM
Pledged shares, book value 0.0 0.8
Pledged securities 0.0 0.4
Total 0.0 1.2
Leasing commitments, MFIM 25.2 21.8
Ratios per share
Earnings per share, FIM -0.37 0.24
per share, FIM 7.73 7.88
The Group does not have any off balance sheet financial instruments.
Interest on Capital Loans
The unrecorded interest accrued on capital loans totalled to MFIM 2.1
on Dec. 31, 2000 and on to MFIM 1.7 on Dec. 31, 1999.
Proposal for the Distribution of Profit
The Group does not have distributable earnings. The Board of Directors
proposes that no dividends be paid.
The figures of the Interim Report are unaudited.
Helsinki, February 14, 2001
Board of Directors of Biohit Plc.
Information Management and Communications
Additional information: Osmo Suovaniemi, President & CEO, tel: +358-9-
773 861, direct: +358-9-773 86 250, mobile:
+358-50 556 5605, fax: +358-9-773 86 205.
Distribution: Helsinki Exchanges
The Financial Supervisory Authority