BIOHIT PLC. STOCK EXCHANGE RELEASE 8.11.2000 at 10:00 1 (7)
INTERIM REPORT OF BIOHIT 1.1. - 30.9.2000
The net sales of the Biohit Group, operating in the areas of
biotechnology and high technology, increased by 15% compared with the
previous year and totalled to MFIM 100.0. Biohit's investments in
research & development, in increasing productivity and its efficiency,
and international marketing resulted in losses at the Group level. The
gross investments for the period totalled to MFIM 32.2 (MFIM 3.9
during the corresponding period last year). The Group operating loss
totalled to MFIM 1.2. The cash flow provided by operating activities
was approx. MFIM 3.0 positive during the reporting period.
The net sales of the Biohit Group for January-September totalled to
MFIM 100.0 (MFIM 87.2 for the corresponding period in 1999), i.e.,
demonstrating a growth of 15% compared with the previous year. The net
sales were generated primarily by liquid handling products and
disposables used in liquid handling. The growth of net sales met the
targets set and was affected, on its part, by the acquisitions carried
out during the reporting period in the U.S. and Russia.
The profit before goodwill amortizations totalled to MFIM 3.0 million
(MFIM 9.2 for the corresponding period in 1999). The operating loss
for the period totalled to MFIM 1.2 (MFIM 5.2 profit). However, the
cash flow provided by operating activities was approx. MFIM 3.0
positive during the reporting period.
Compared with the previous year, the loss was caused by an increase in
fixed costs which consisted primarily of expenses related with
international marketing efforts in the area of liquid handling, as
well as of research & development expenses and preparation to commence
the production and marketing of the diagnostic products.
The loss before extraordinary items totalled to MFIM 1.3 (MFIM 5.0
profit in 1999).
The MFIM 1.3 income taxes have been accounted for on the basis of the
profit for the period.
The liquidity of the Biohit Group continues to be good. The equity
ratio was 67.2 %. Primarily due to investments made in the new
production premises in Kajaani and the MFIM 2.0 repayment of the
capital loans, the liquid assets of the Company decreased from MFIM
30.5 to MFIM 19.5 during the third quarter. The approx. MFIM 5.0
support to be received from The Ministry of Trade and Industry for the
new production plant in Kajaani as well as the MFIM 4.5 interest-free
loan for 10 years and the MFIM 2.0 million indemnity to be received
from the City of Kajaani will have a positive effect on the financial
The gross investments for the period totalled to MFIM 32.2 (MFIM 3.9).
Investments in acquisitions in the U.S. and Russia were MFIM 9.6
during the second quarter. 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.
Biohit acquired on May 15, 2000 the entire share capital of the
Finnish company Oy Finio Ab. As a result of the acquisition the shares
and votes of Biohit Plc. in the Russian Finnbio Ltd. increased to 56%.
The construction of the new production premises in Kajaani was
completed during the reporting period. During the reporting period the
overall expenses of the project after the support totalled to MFIM
13.9 of which the share of the building was approx. MFIM 12.5 and that
of machinery and equipment MFIM 1.4. Other investments in machinery
and equipment totalled to MFIM 7.3. Investments in immaterial rights
were MFIM 1.3.
Research and Development
In the business area of liquid handling Biohit continued during the
reporting period to invest in the development of new pipettor
generations. This development work is based on the Company'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.
The Company finished during the reporting period the entire electronic
ePET -pipettor range, which is especially targeted, in terms of price,
performance and software, for the needs of research laboratories.
Biohit has also developed the electronic ViscoPet for use with viscous
liquids which are difficult to pipette.
During the reporting period Biohit has continued the development of
OEM-products for complementing the product ranges and diagnostic
systems of other companies. For example, Biohit has developed for
Beckman Coulter an electronic Biohit HbA1c pipettor. Moreover, the
Remote Control (RC) -unit developed by Biohit serves the development
work of automatic instruments of other companies and those of Biohit.
The Company has also continued to develop further the disposable
pipettors tips and their production.
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 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 Helicobacter
pylori (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%, i.e., the test panel finds
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.
International Sales and Marketing
The value of the total market for mechanical and electronic liquid
handling devices (pipettors) and their disposable tips totals to
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 global market potential for Biohit's
diagnostic tests totals to USD 5 billion. Biohit is currently
commencing the marketing of its diagnostic tests through its seven
subsidiaries and numerous distributors, as well as negotiations
concerning co-operation with large multinational companies, e.g., in
Japan and Canada. In certain Asian and Near Eastern countries Biohit
is negotiating with the Ministries of Health on the deliveries of
Biohit's diagnostic test systems.
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. began during the
reporting period the deliveries of instruments employing the vertical
measurement principle to Biohit. These instruments are used in
research, industrial and health care laboratories for the analysis of
samples. Co-operation with Bio-Tek Instruments, Inc. enables Biohit to
offer, in accordance with its business plan, complete analyzing
systems for its customers worldwide. The analyzing systems are
comprised of liquid handling products, diagnostic tests, instruments
used for analyzing the test results as well as maintenance and
Biohit's new production plant was finished according to plans in
Kajaani during the reporting period. The floor area of the building
totals to 3,226 square meters and the cubical content to 19,600 cubes.
All of Biohit's approx. 80 employees working in Kajaani relocated to
the new premises. The new production plant enables Biohit to locate
all its activities in Kajaani to one site as well as the production of
pipettors, their disposable tips and plastics related with the
business areas of diagnostics and instruments. The new premises enable
at least to triple the current production volume of pipettors and
Prospects for the Remaining Part of 2000
Biohit estimates that the Group net sales for year 2000 will increase
by approx. 15% compared with the previous year. The net sales for 2000
will still be primarily generated by the sales of liquid handling
Investments in international marketing and expenses related with the
research & development of the diagnostics products burden the result
for 2000 more than forecast. It is estimated that the result for 2000
will be somewhat negative and the net cash flow provided by operating
Group Income Statement
1-9 2000 1-9 Change Change 1-12 1999
MFIM MEUR MFIM MFIM % MFIM
Net sales 100.0 16.8 87.2 12.8 15 122.2
Operating expenses 91.0 15.3 72.7 18.3 25 101.7
goodwill amortization 6.0 1.0 5.3 0.7 13 7.2
Amortization on goodwill 4.2 0.7 4.0 0.2 5 5.4
Operating profit/loss -1.2 -0.2 5.2 -6.4 -123 7.9
Financial expenses (net) 0.1 0.0 0.2 -0.1 -50 3.0
extraordinary items -1.3 -0.2 5.0 -6.3 -126 4.9
Extraordinary income 0.0 0.0 0.0 0.0 0 2.0
Profit/loss before taxes -1.3 -0.2 5.0 -6.3 -126 6.9
Profit/loss for the
period -2.8 -0.5 3.4 -6,2 -182 4.1
Group Balance Sheet
30.9.2000 30.9.1999 31.12.1999
Assets MFIM MEUR % MFIM % MFIM %
Fixed assets 67.1 11.3 45 52.1 35 52.5 36
Inventories 22.0 3.7 15 15.1 10 14.1 10
Receivables 40.0 6.7 27 28.4 19 37.3 25
Liquid funds 19.5 3.3 13 54.7 36 42.9 29
Total assets 148.6 25.0 100 150.3 100 146.8 100
Share capital 12.8 2.2 9 12.4 8 12.4 8
Share premium fund 88.6 14.9 60 84.2 56 84.2 58
profits / losses -2.3 -0.4 -1 -0.8 0 0.0 0
Capital loans 6.7 1.1 4 8.5 6 8.6 6
Minority interest 0.8 0.1 0 0.4 0 0.3 0
Provisions 0.0 0.0 0 0.0 0 0.1 0
Long-term liabilities 12.6 2.1 8 21.0 14 17.0 12
liabilities 29.4 5.0 20 24.6 16 24.2 16
Total liabilities and
shareholders' equity 148.6 25.0 100 150.3 100 146.8 100
1-9/00 1-9/99 Change Change-% 1-12/99
MFIM 32.2 3.9 28.3 726 7.6
Staff, average 209 183 26 14 184
30.9.2000 30.9.1999 31.12.1999
Mortgages and shares pledged
for liabilities, MFIM
Loans from financial
institutions 17.9 25.0 20.9
Corporate mortgages 20.1 20.1 20.1
Pledges given 0 0.3 0.4
Total 20.1 21.6 20.5
Other pledges, MFIM 0 1.2 1.2
Leasing commitments, MFIM 25.0 17.5 21.8
Ratios per share
Equity ratio, % 67.2 63.9 66.0
Earnings per share, FIM -0.23 0.31 0.24
per share, FIM 7.84 7.81 7.88
Average no. of shares 12,549,790 11,041,097 11,354,957
No. of shares at the
end of the period 12,643,377 12,264,537 12,264,537
The Group does not have any off balance sheet financial instruments.
Interest on Capital Loans
The unrecorded interest accrued on capital loans on Sept. 30, 2000
totalled to MFIM 2.0 and on Dec. 31, 1999 MFIM 1.7.
The figures of the Interim Report are unaudited.
Helsinki, November 8, 2000
Board of Directors of Biohit Plc.
Overview on Biohit
Biohit, operating in the areas of biotechnology and high technology,
develops, manufactures and markets liquid handling products and
accessories as well as diagnostic test systems for use in research,
health care and industrial laboratories.
In the business area of liquid handling Biohit's main products are
electronic and mechanical pipettors and their disposable tips.
Currently, Biohit's range of electronic and mechanical pipettors is
the widest in the world. Biohit is also the global market leader of
electronic pipettors with an approx. 70% share of the world markets.
In the business area of diagnostics Biohit develops, manufactures and
markets test kits based on the enzyme immunoassay (EIA) -method and
monoclonal antibodies for the screening of different types of disease.
Biohit's diagnostic product range includes, e.g., a unique test panel
for screening the risk of gastric cancer and peptic ulcer from blood
samples, and tests for the detection of lactose intolerance, celiac
disease and systemic lupus erythematosus (SLE).
In order to be able to offer total solutions (analyzing systems) for
its customer base, Biohit's product range includes, in addition to
liquid handling products and diagnostics, instruments used for the
analysis of test results. Moreover, Biohit offers as a part of its
product and marketing strategy maintenance, calibration and training
services through the Group companies and its distributors.
Biohit's production plants are located in Kajaani and Helsinki. The
sales and marketing subsidiaries abroad are located in France,
Germany, Italy, Japan, Russia, the U.K. and the U.S. Biohit's
distributor network including altogether over 200 members and covers
approx 50 countries.
Biohit's B-shares have been quoted on the New Market (NM) -list of the
Helsinki Exchanges since June 1999.
Information Management & 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