INTERIM REPORT OF BIOHIT 1.1. - 30.6.200
BIOHIT PLC. STOCK EXCHANGE RELEASE 15.8.2000 at 10:00 1 (7)
INTERIM REPORT OF BIOHIT 1.1. - 30.6.2000
During the reporting period Biohit invested heavily in international
marketing and increasing the efficiency of production. The gross
investments increased by MFIM 20.7 million compared with the
equivalent period last year. Acquisitions and the construction of the
new production premises accounted for the major part of the
investments. The investments reinforce further Biohit's position as a
biotechnology and high tech company. Biohit's product range
encompasses currently liquid handling products as well as diagnostic
tests and test systems which are used by research, health care and
industrial laboratories.
Net Sales
The net sales of the Biohit Group for January-June totalled to MFIM
65.4 (MFIM 61.7 for the corresponding period in 1999). The net sales
were generated primarily by liquid handling products and their
disposable tips. In the business area of diagnostics the test panel
for screening the risk for gastric cancer and peptic ulcer was
finished during the reporting period.
Result
The operating loss totalled to MFIM 0.8 (MFIM 5.5 profit in 1999). The
result was burdened by an increase in fixed costs which consisted
primarily of expenses related with the international marketing efforts
as well as of the development expenses of diagnostic products and
preparation to commence the production and marketing of these
products.
The loss before extraordinary items totalled to MFIM 1.0 (MFIM 5.0
profit in 1999) for the period.
The MFIM 0.7 income taxes have been accounted for on the basis of the
profit for the period.
Financial Situation
The financial position of the Biohit Group continues to be strong and
liquidity good. The equity ratio increased from 66.0% at year-end 1999
to 66.3%. Due to the acquisitions carried out and the investments made
to the production premises in Kajaani the liquid assets of the Company
decreased from MFIM 50.0 to MFIM 30.5 during the second quarter.
Investments
The gross investments for the period totalled to MFIM 23.8 (MFIM 3.1).
Investments to the new production premises were MFIM 8.8 during the
reporting period. The total cost of the project including machinery is
approx. MFIM 20.0 of which the support to be received from the
Ministry of Trade and Industry is approx. MFIM 5.0. The production
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premises are expected to be finished in September-October 2000.
Investments in machines and equipment totalled to MFIM 4.2 of the
gross investments.
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. The purchase price for
the shares of Vangard International, Inc. was MFIM 8.5.
Biohit acquired on May 15, 2000 the entire share capital of the
Finnish company Oy Finio Ab and, as a result, 51 % of the Russian
Finnbio Ltd., which acts primarily as the distributor of Biohit
products in the Russia and other CIS-countries. Biohit Plc. has
previously owned 5% of the shares of Finnbio Ltd. As a result of the
acquisition the shares and votes of Biohit increased to 56%. The
purchase price of the shares of Oy Finio Ab totalled to MFIM 1.1.
More detailed information on the acquisitions can be found in the
Interim Report for 1-3/00.
Research and Development
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. During the reporting period the pepsinogen I and
II, the gastrin-17 and the helicobacter pylori -tests were finished.
Biohit's monoclonal antibody tests (pepsinogen I and II, gastrin-17)
for screening the risk of gastric cancer and peptic ulcer have proven
to be highly specific also in immunohistochemistry. This expands the
area of use of the Company's monoclonal antibodies, e.g., to
pathological laboratories. Prior to this the Company has had for sale
24 monoclonal antibodies applicable to immunohistochemistry.
In addition, the quick test for determining lactose intolerance and
the anti-dsDNA antibody test for detecting, e.g., systemic lupus
erythematosus (SLE) were finished during the reporting period. Biohit
markets also the anti-gliadin IgG, anti-gliadin IgA and the anti-
transglutaminase antibody tests for the detection of celiac disease.
During the reporting period the range of tests for diagnosing celiac
disease was complemented with an endomysium IgA -test.
Sales and Marketing
In the area of liquid handling the Company commenced the international
introduction of the electronic Biohit Remote Control (BRC) -pipette
module. The product is a front-end for different automated liquid
handling instrumentation and robots, and the manufacturers of the said
instruments form the customer basis for the product.
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In its development of liquid handling products Biohit has paid special
attention to the ergonomic aspects of pipettors, which contribute
significantly, e.g., to reducing the risk of work-related upper limb
disorders. During the reporting period Biohit won an assessment
competition of pipettors arranged by a major U.S. company operating
within the medical industry. The main criterion in the competition was
the ergonomics of the pipettor. As a result, it is likely that this
will have a positive effect on the deliveries of Biohit's pipettors.
In the area of liquid handling Biohit provides as part of its product
and marketing strategies maintenance, accredited calibration as well
as training services through the Group companies and distributor
network. During the reporting period Biohit concluded, e.g., in France
and the U.K. significant maintenance and calibration agreements.
In the business area of instruments Biohit Plc. concluded on August 3,
2000 with the U.S. company Bio-Tek Instruments, Inc. an agreement on
the basis of which Bio-Tek Instruments, Inc. will already during fall
2000 begin to deliver to Biohit instruments employing the vertical
measurement principle together with their accessories. These
instruments will be used in research, industrial and diagnostic
laboratories for the analysis of samples. Co-operation with Bio-Tek
Instruments, Inc. enables Biohit Plc. to offer, in accordance with its
business plan, complete analyzing systems for its customers worldwide.
The systems will be comprised of liquid handling products, diagnostic
tests, instruments used for analyzing the test results as well as
maintenance and training services.
Prospects for Year 2000
Biohit estimates that the Group net sales for year 2000 will increase
according to the targets set, i.e., with approx. 20% compared with the
previous year. The net sales will be generated primarily by the sales
of liquid handling products. As a result of the increase in the sales
volume, it is estimated that the profitability of the sales of liquid
handling products will to a certain extent increase. The new
production premises in Kajaani are expected to increase the efficiency
of production and have a positive impact on profitability.
Investments in international marketing and the development of the
products belonging to the business area of diagnostics will burden the
result for 2000 more than forecast. It is estimated that the net
income for the latter six months of the year is higher than during
January-June. However, the net income for 2000 is forecast to be lower
than during 1999.
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Group Income Statement
1-6 2000 1-6 1999 Change Change 1-12 1999
MFIM MEUR MFIM MFIM % MFIM
Net sales 65.4 11.0 61.7 3.7 6 122.2
Operating expenses 66.2 11.1 56.2 10.0 18 114.3
Operating profit/loss -0.8 -0.1 5.5 -6.3 -115 7.9
Financial expenses
(net) 0.2 0.0 0.5 -0.3 -60 3.0
Profit/loss before
extraordinary items -1.0 -0.1 5.0 -6.0 -120 4.9
Extraordinary items 0.0 0.0 0.0 0.0 0 2.0
Profit/loss before
taxes -1.0 -0.1 5.0 -6.0 -120 6.9
Profit/loss for the
period -1.8 -0.3 5.0 -6.8 -136 4.1
Group Balance Sheet
30.6.2000 30.6.1999 31.12.1999
Assets MFIM MEUR % MFIM % MFIM %
Fixed assets 62.2 10.4 41 54.4 34 52.5 36
Inventories and
financial assets
Inventories 20.0 3.4 13 15.0 9 14.1 10
Receivables 38.5 6.5 26 31.3 20 37.3 25
Liquid funds 30.5 5.1 20 59.0 37 42.9 29
Total assets 151.2 25.4 100 159.7 100 146.8 100
Liabilities and
shareholders' equity
Shareholders' equity
Share capital 12.8 2.1 8 12.4 8 12.4 8
Share premium fund 88.6 14.9 58 84.2 53 84.2 58
Accumulated
Profits / losses -1.8 -0.3 0 0.7 0 0.0 0
Capital loans 8.7 1.5 6 8.8 5 8.6 6
Minority interest 0.7 0.1 0 0.3 0 0.3 0
Provisions 0.0 0.0 0 2.7 2 0.1 0
Long-term liabilities 14.6 2.5 10 25.3 16 17.0 12
Short-term
liabilities 27.6 4.6 18 25.3 16 24.2 16
Total liabilities and
shareholders' equity 151.2 25.4 100 159.7 100 146.8 100
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1-6/00 1-6/99 Change Change-% 1-12/99
Investments, gross,
MFIM 23.8 3.1 20.7 668 7.6
Staff, average 194 181 13 7 184
30.6.2000 30.6.1999 31.12.1999
Mortgages and shares pledged
for liabilities, MFIM
Loans from financial
institutions 19.0 26.2 20.9
Corporate mortgages 20.1 20.1 20.1
Pledges given 0 0.4 0.4
Total 20.1 20.5 20.5
Other commitments, MFIM 0 1.1 1.2
Leasing commitments, MFIM 22.1 18.6 21.8
Ratios per share
Earnings per share, FIM -0.14 0.48 0.24
Shareholders' equity
per share, FIM 7.87 7.93 7.88
Derivative Contracts
The Group does not have any off balance sheet financial instruments.
Interest on Capital Loans
The unrecorded interest accrued on capital loans on June 30, 2000
totalled to MFIM 1.9 and on December 31, 1999 to MFIM 1.7.
The figures of the Interim Report are unaudited.
Biohit will publish the following Interim Report for 2000 on November
8.
Helsinki, August 15, 2000
Board of Directors of Biohit Plc.
Biohit Plc.
Helena Hentola
Information Management
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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
http://www.biohit.com
Distribution: Helsinki Exchanges
The Financial Supervisory Authority
Press
Overview on Biohit
Biohit, operating in the areas of biotechnology and high technology,
manufactures liquid handling products, their accessories and
diagnostic test systems, which are based on numerous innovations, for
use in research, health care and industrial laboratories. Currently,
the range of electronic and mechanical liquid handling products of
Biohit is the widest in the world. Biohit is also the global market
leader of electronic pipettors with an approx. 70% share of world
markets. In the area of diagnostics Biohit develops, manufactures and
markets monoclonal antibodies for the detection of different types of
cancer. The Company has also finished a test panel, e.g., for
screening the risk of gastric cancer and peptic ulcer and for the
diagnosis of lactose intolerance. It has been estimated that the
market potential for the diagnostic tests of the Company protected by
patents and patent applications totals to USD 5.0 billion. As a result
of the diagnostic tests, which together with the other product lines
of the Company form complete analyzing systems, Biohit Biohit is also
developing into a biotechnology company with strong growth potential.
The net sales of the Biohit Group in 1999 totalling to MFIM 122.2 was
22 % and the profit before extraordinary items (MFIM 4.9) 81 % higher
than in the previous year. As a result of the directed share issue
carried out in June 1999 the Company received approx. MEUR 9.0 in new
capital and listed on the New Market -list of Helsinki Exchanges.
Future Prospects of Biohit
Since its founding in 1988 Biohit, operating in the areas of
biotechnology and high technology, has established itself on world
markets with its innovative, high technology liquid handling products.
The patent protection (patents and patent applications) of Biohit's
existing and future products both in Finland and abroad has formed a
solid and safe basis for the global co-operation and future growth as
a high technology and biotechnology company.
Biohit possesses a strong international marketing network and co-
operates with many multinational companies such as bioMérieux, Johnson
& Johnson and 3M. Biohit is a high technology company offering liquid
handling devices and instruments, which has developed with its
diagnostic tests and related devices also into a biotechnology
company. As a result of years of work the Company has successfully
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penetrated its most important market areas through its subsidiary
network. In 1999 already 62% of the net sales was generated by the
subsidiaries. During the first half of 2000 73 % of net sales was
generated by subsidiary companies. The main users of Biohit's products
are different types of research, industrial and health care
laboratories. Moreover, the companies previously mentioned as well as
others, complement with Biohit's products and technologies their own
product ranges and diagnostic analyzing systems.
Biohit's innovative products, which have been developed by utilizing
various fields of science and technologies including biotechnology,
have a market potential of USD billions.
The value of the total market for mechanical and electronic liquid
handling devices (pipettors) and their disposable tips is approx. MUSD
500 annually. According to Biohit's estimate the market potential may
even exceed MUSD 1500 when taking into consideration Biohit's new
technologies and innovations as well as the new potential market
segments for the future products. Moreover, the maintenance and
accredited calibration services offered by the Company reinforce the
competitive position of Biohit as well as increase the market
potential and size of the traditional markets.
It has been estimated that the market potential for Biohit's
diagnostic products, which are based on biotechnology, is USD 5.0
billion. Biohit's test panel (pepsinogen I- and II-, gastrin-17 and
helicobacter pylori -tests) for screening the risk of gastric cancer
and peptic ulcer together with the tests for diagnosing lactose
intolerance and celiac disease are evaluated clinically. The
evaluations produce research results required, e.g., for the approval
and registration purposes for the products. Prior to receiving
approvals these tests, which are protected by patents and patent
applications, can be sold for research use without approvals and after
receiving the approvals also for clinical use through the different
marketing channels.
