INTERIM REPORT OF BIOHIT 1.1.-30.6.2001
BIOHIT PLC. STOCK EXCHANGE RELEASE 8.8.2001 AT 10:00 1 (7)
INTERIM REPORT OF BIOHIT 1.1.-30.6.2001
The result of the Biohit Group became positive contrary to the
previous year and totalled to MEUR 0.1 (MEUR 0.3 loss 1-6/2000). The
Group net sales totalled to MEUR 12.3. Biohit continued investing
strongly in international marketing and research and development. As a
result, the average number of personnel increased by 45% compared with
the previous year. The net cash flow from operating activities was
MEUR 0.7 positive.
Net Sales
The net sales of the Biohit Group for the reporting period totalled to
MEUR 12.3 (MEUR 11.0), i.e., demonstrating a 12% growth. The net sales
continued to be generated primarily by the sales of liquid handling
products, their disposable tips as well as maintenance services.
Profit
The profit before amortization on goodwill was MEUR 0.8 (MEUR 0.4) The
operating profit was MEUR 0.3 (MEUR 0.1 loss), and the profit for the
period MEUR 0.1 (MEUR 0.3 loss). The income taxes of MEUR 0.2 have
been accounted for on the basis of the profit for the period. The
profitability of the liquid handling business has remained good. This,
on its part, has rendered possible the investments in the development
of the diagnostics business.
Balance Sheet
The business operations of Locus genex Oy, the subsidiary company to
be dissolved and specializing in diagnostic products, were transferred
to Biohit Plc. on May 1, 2001. It has been calculated that the
dissolution has a positive corporate tax impact of MEUR 0.7 on the
Group, which is deferred in the consolidated financial statements over
the remaining amortization period of 5 years of the goodwill relating
to Locus genex. With regard to the dissolution, the balance sheet of
June 30, 2001 includes a tax liability of MEUR 1.2 under short-term
liabilities and a deferred tax receivable of MEUR 1.2 under
receivables.
Liquidity
The liquidity of the Biohit Group is good. The net cash flow provided
by operating activities during the reporting period was approx. MEUR
0.7 positive. The Group's liquid assets totalled to MEUR 2.4 at the
end of the period. The equity ratio was 65.2% at the end of the
reporting period.
Investments
The gross investments of the reporting period totalled to MEUR 1.3
(MEUR 4.0). The clean room unit enabling the mass production of
diagnostic tests together with related equipment as well as machinery
2 (7)
and equipment intended for increasing other production capacity
constituted the major part of the investments.
Personnel
The average number of personnel totalled to 281 during the reporting
period (194 during the corresponding period in 2000), of which 167
were employed by the parent company (139) and 114 by the subsidiaries
(55). The increase in personnel resulted from investments made in 2000
in research & development, production, acquisitions in the U.S. and
Russia as well as personnel increases in subsidiaries.
The purpose of these measures is to reinforce the sales and servicing
of Biohit's current products as well as to prepare to commence the
sales of diagnostic tests, instruments and complete analyzing systems.
Main Events of the Reporting Period
Liquid Handling
In the area of liquid handling Biohit began the launch of the new
electronic eLINE -pipettor range. The first models were introduced in
February after which the launch was continued in Europe and the U.S.
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-
control and novel structure 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 ability to
continuously improve the ergonomy and competitiveness of pipetting.
The eLINE received an honorary mention in February 2001 in the Pro
Finnish Design 2001 competition arranged by Design Forum Finland.
In the area of liquid handling Biohit was awarded one Japanese patent
(JP 3168296) and three Finnish patents (FI 107025, FI 107026 ja FI
107027) during the reporting period.
Diagnostics
In the area of diagnostics the evaluations of the test panel for
determining Helicobacter pylori -infection and atrophic gastritis as
well as for screening the risk of gastric cancer and peptic ulcer
continued. During the reporting period a multicenter study covering
the cities of Helsinki, Seinäjoki, Tampere and Vantaa was begun in
Finland. Evaluations were in progress in Germany, in the U.K. and
Ireland. One evaluation was completed during the reporting period in
Italy with good results. On the basis of the results a multicenter
study will be carried out in Italy. Individual evaluations were
carried out in France and Iraq. Finally, arrangements for commencing
3 (7)
evaluations in Japan, the U.S., China, Russia and the Philippines were
initiated.
During the reporting period the sales of the test panel mentioned
previously began in Italy. Moreover, in Canada authorities issued
product licenses for Biohit's Pepsinogen I, Gastrin-17 and
Helicobacter pylori -test kits. This enables Biohit to commence the
marketing and sales of these products for clinical use in Canada.
In the U.K. Immunology Quality Services evaluated with favourable
results Biohit's anti-dsDNA ELISA -test kit for the diagnosis of
systemic lupus erythematosus (SLE). The evaluation demonstrated that
the sensitivity, specificity and precision of the test were good.
The European Commission granted Biohit an approx. MEUR 0.2 support for
the development of monoclonal antibodies and test kits for
phytoestrogens. The development work commenced in May 2001 and it will
last until April 2004. The work is part of a Europe-wide project, the
purpose of which is to study the role of dietary phytoestrogens in the
prevention of certain types of cancer.
During the reporting period the new production premises for
manufacturing diagnostic products were finished at the Helsinki
office. As a result of the completion of the clean room unit, it is
possible to enter from the pilot production of diagnostic tests to
their mass production.
In August 2001 Biohit will commence to offer paid laboratory services,
which received a permission from the State Provincial Office of
Southern Finland, Department for Social and Health Affairs on May 8,
2001. The purpose of the laboratory services is to collect patient
samples, first in Finland and later in Biohit's subsidiaries, e.g.,
from health care centers, occupational health service centers, other
medical centers as well as regional and central hospitals. Biohit's
test panel will be used to determine the Pepsinogen I and II and
Gastrin-17 concentrations and H.pylori antibodies in the blood
samples. Moreover, the concentrations of vitamin B12 and homocysteine
will be determined as well as telomere DNA antibodies for the
diagnosis of systemic lupus erythematosus (SLE). In addition, the
biopsies taken in connection with gastroscopy will be used to diagnose
lactose intolerance and carry out further examinations, e.g., to
confirm the diagnosis of gastric cancer and peptic ulcer. Biohit's
service laboratory will also engage in the research and development of
diagnostic tests and the analysis of different types of patient data.
The objective of Biohit's laboratory services is to promote the
diagnostic tests and analyzing systems and, as a result, to encourage
the users of laboratory services provided by Biohit and other paid
service laboratories to commence themselves laboratory testing with
analyzing systems purchased from Biohit. This serves as a means to
promote decentralized laboratory diagnostics, which is performed close
to the doctor and patient. This, on its part, is a prerequisite for
4 (7)
time and cost savings in reaching correct diagnoses and related rapid
and highly specific treatment (evidence based medicine).
Finally, the ISO 9001 -quality system certification of Biohit Plc. was
extended to cover also the area of diagnostics as a result of the
audit conducted by Det Norske Veritas.
Equity Turnover and Price Development
The turnover of Biohit's B-shares on the NM-list of the Helsinki
Exchanges was EUR 3,341,783 (541,531 pieces) during the reporting
period. The highest price was EUR 7.20 and the lowest EUR 4.95. The
average price was EUR 6.17.
Prospects for 2001
The net sales of the Biohit Group for 2001 are anticipated to
demonstrate a growth of approx. 15% compared with the previous year.
The result for 2001 is forecast to be positive. The major part of the
net sales for 2001 continues to be generated by the sales of liquid
handling products and maintenance services. On the basis of the
positive feedback received from customers and co-operation partners it
is estimated that in the future the sales of diagnostic products will
have a significant impact on the growth of net sales and
profitability.
The launch of instruments and new liquid handling products has
proceeded as expected. It is estimated that the sales of the said
products and analyzing systems composed of liquid handling products,
diagnostics and instruments will provide a stable basis for the growth
of the net sales and profit in the future. The growth is expected to
be enhanced on its part by the fact that the products meet the quality
criteria set by authorities, e.g., in the EU area with regard to the
CE-marking. This fact and, in addition, other approvals by
authorities, e.g., the licenses granted by Canadian health care
officers, are estimated to have a positive impact especially on the
demand for the diagnostic products also for clinical use.
Group Income Statement
1-6 1-6 1-12
2001 2000 Change Change 2000
MEUR MEUR MEUR % MEUR
Net sales 12.3 11.0 1.3 12 24.3
Operating expenses 11.0 10.0 1.0 9 22.4
Depreciation excluding
goodwill amortization 0.6 0.7 -0.1 -10 1.4
Amortization on
goodwill 0.5 0.5 0.0 7 1.0
Operating profit/loss 0.3 -0.1 0.4 324 -0.5
Financial expenses
(net) 0.0 0.0 0.0 -6 0.1
Profit/loss before
extraordinary items 0.3 -0.1 0.4 247 -0.6
5 (7)
Extraordinary income 0.0 0.0 0.0 0 0.3
Profit/loss before
taxes 0.3 -0.1 0.4 247 -0.3
Profit/loss for the
period 0.1 -0.3 0.3 118 -0.6
Group Balance Sheet
30.6.2001 30.6.2000 31.12.2000
MEUR % MEUR % MEUR %
Assets
Non-current assets 11.6 45 10.4 41 11.3 47
Current assets
Inventories 4.5 18 3.4 13 3.8 15
Receivables 7.2 28 6.5 26 6.5 26
Cash and cash
equivalents 2.4 9 5.1 20 3.0 12
Total assets 25.7 100 25.4 100 24.6 100
Liabilities and
shareholders'
equity
Shareholders'
equity
Share capital 2.1 8 2.1 8 2.1 9
Share premium
fund 14.9 58 14.9 59 14.9 61
Accumulated
profits/losses -0.4 -2 -0.3 -1 -0.6 -3
Capital loans 1.2 5 1.5 6 1.1 5
Minority interest 0.1 0 0.1 0 0.1 0
Long-term
liabilities 2.4 10 2.5 10 2.8 11
Short-term
liabilities 5.4 21 4.6 18 4.2 17
Total liabilities
and shareholders'
equity 25.7 100 25.4 100 24.6 100
1-6/01 1-6/00 Change Change-% 1-12/00
Investments, gross MEUR 1.3 4.0 -2.7 -68 7.1
Employees, average 281 194 87 45 222
6 (7)
Pledges given, commitments and contingencies
30.6.2001 30.6.2000 31.12.2000
Loans for which pledges MEUR MEUR MEUR
have been given
Loans from financial
institutions 2.4 3.2 2.8
Corporate mortgages 3.4 3.4 3.4
Other long-term liabilities 0.8 - 0.8
Mortgages 0.8 - 0.8
Leasing commitments 3.9 3.7 4.2
Interest on Capital Loans
The unrecorded interest accrued on capital loans on June 30, 2001
totalled to MEUR 0.4 and on Dec. 31, 2000 to MEUR 0.4.
30.6.2001 30.6.2000 31.12.2000
Ratios
Equity ratio, % 65.2 66.5 66.9
Earnings per share, EUR 0.00 -0.02 -0.06
Shareholders' equity
per share, EUR 1.31 1.32 1.30
Average number of shares 12,643,377 12,502,482 12,573,123
Number of shares at the
end of the period 12,643,377 12,643,377 12,643,377
Derivative Contracts
The Group does not have any off balance sheet financial instruments.
The figures of the Interim Report are unaudited.
Helsinki, August 8, 2001
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 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.
7 (7)
In the 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
diagnosing H.pylori -infection and atrophic gastritis as well as for
screening the risk of gastric cancer and peptic ulcer from blood
samples, as well as tests for the detection of lactose intolerance and
systemic lupus erythematosus (SLE).
In order to be able to offer complete 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 distributors.
Biohit's production plants are located in Kajaani and Helsinki. The
sales and marketing subsidiaries are located in France, Germany,
Italy, Japan, Russia, the U.K. and the U.S. Biohit's distributor
network covers altogether approx. 450 members and 70 countries.
Moreover, many multinational companies, such as Beckman Coulter,
Becton Dickinson, bioMérieux, Johnson & Johnson and 3M complement
their diagnostic systems with Biohit's electronic liquid handling
products. As to Group net sales, 96% are generated outside of Finland,
and the degree of domestic production is approx. 95%.
Biohit Plc.
Helena Hentola
Information Management & Communications
Additional information: Osmo Suovaniemi, President & CEO, tel: +358-9-
773 861, direct: +358-9-773 86 250, mobile:
+358-40 745 5605, fax: +358-9-773 86 205.
http://www.biohit.com
Distribution: The Helsinki Exchanges
The Financial Supervisory Authority
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