INTERIM REPORT OF BIOHIT 1.1.-31.3.2002
BIOHIT PLC. STOCK EXCHANGE RELEASE 8.5.2002 AT 10:00
INTERIM REPORT OF BIOHIT 1.1.-31.3.2002
The net sales of the Biohit Group totalled MEUR 6.5 (MEUR 6.3 1-
3/2001). Biohit continued investing strongly in research and
development and especially in the production and international
marketing of diagnostics. The operating loss before goodwill
amortization for the period was MEUR 0.3 (MEUR 0.5 profit) and the
loss for the period was MEUR 0.6 (MEUR 0.1 profit). The cash flow from
operating activities was MEUR 0.2 positive (MEUR 0.6).
Net Sales
The net sales of the Biohit Group for the reporting period totalled
MEUR 6.5 (MEUR 6.3), i.e., demonstrating a 2.5 % growth. The net sales
were generated primarily by the sales of liquid handling products,
their disposable tips as well as maintenance services. Primarily a
decrease in the sales in the U.S. market slowed down the growth of the
Group net sales.
Profit
The operating loss before goodwill amortization was MEUR 0.3 (MEUR 0.5
profit). The operating loss was MEUR 0.5 (MEUR 0.3 profit), and the
loss for the period MEUR 0.6 (MEUR 0.1 profit). The income taxes of
MEUR 0.1 have been accounted for on the basis of the result for the
period. However, deferred tax assets relating to the taxable losses
has not been accounted for.
Investments made in the launch of the diagnostic business continued to
weaken the Group result. These upfront investments are very typical
for biotechnology companies. Since the products are finished and the
application procedures of approvals by authorities and the
establishment of sales channels have proceeded favorably, it is
expected that the investments made will in the future have a positive
effect on the development of the Group result.
Balance Sheet
As a result of the dissolution of Locus genex Oy, the subsidiary
company specializing in diagnostics, the balance sheet of March 31,
2002 includes a tax liability of MEUR 1.2 under short-term liabilities
and a deferred tax receivable of MEUR 1.1 under receivables.
Liquidity
The cash flow provided by operating activities during the reporting
period was approx. MEUR 0.2 positive (MEUR 0.6). The Group's liquid
assets totalled MEUR 2.2 (MEUR 3.0) at the end of the reporting
period. The equity ratio was 63.1 % (67.3 %) at the end of the
reporting period.
Investments
The gross investments of the reporting period totalled MEUR 0.7 (MEUR
0.7). The major part of the investments consisted of machinery and
equipment improving the efficiency of production, molds and patent
costs.
Personnel
The average number of personnel totalled 301 during the reporting
period (269 during the corresponding period in 2001), of which 181
were employed by the parent company (155 in 2001) and 120 by the
subsidiaries (114 in 2001). The increase in personnel resulted from
investments made in 2001 in research & development, production, as
well as personnel increases in subsidiaries made to strengthen
internation sales.
Main Events of the Reporting Period
Liquid Handling
In the area of liquid handling Biohit continued to broaden its eLINE-
range. During the reporting period Biohit launched the single-channel
model for the ultra-micro volume range of 0.2 - 10 ul and the four
place charging carousel. The new generation electronic eLINE-range was
developed for most demanding liquid handling applications. The
microprocessor-control and novel construction enable maximum liquid
handling performance with very high levels of accuracy and precision.
The ergonomical design of the eLINE together with electronic tip
ejection reduce considerably the risk of work-related upper limb
disorders.
Diagnostics
The evaluations of the test panel for determining H. pylori -infection
and atrophic gastritis and for screening the risk of gastric cancer
and peptic ulcer from blood samples (the GastroPanel) continued
according to plans. The multicenter study carried out in the cities of
Helsinki, Seinäjoki, Tampere and Vantaa was finished in Finland during
the reporting period. Over 20 evaluations were in progress abroad on
the most important market areas. It is estimated that the majority of
these evaluations will be completed in 2002. The results of the
evaluations completed so far have been positive.
The receipt of sales revenues from diagnostics has been delayed, e.g.,
due to the fact that the ISO 9001 -quality system has been extended to
cover also the business area of diagnostics. Moreover, Biohit's
diagnostic products conform also with the quality requirements set by
the ISO 13485 -standard. As a result, Biohit's diagnostic tests can be
labelled with the CE-mark (IVD directive 98/97/EY) and can, thus, be
sold in Europe for both diagnostic and research use. In the U.S. the
GastroPanel can be sold for service laboratories without the FDA-
approval. Biohit is currently applying for FDA clearance. Equivalent
approvals by authorities have been filed in Japan, China and Russia.
Additional information on the GastroPanel is provided in this release
under the heading Overview of Biohit.
In the area of diagnostics Biohit was awarded the following European
patent for the GastroPanel: EP 0804737 (Method for Screening the Risk
of Gastric Cancer).
Annual General Meeting
The Annual General Meeting (AGM) of Biohit Plc. decided on March 27,
2002 to approve the financial statements for 2001 of the Biohit Group
and the parent company as presented.
The AGM decided, in accordance with the proposal by the Board of
Directors, that no dividends be paid for the financial year and the
loss of EUR 107,381.11 for 1.1.-31.12.2001 be transferred to the
retained profit/loss account.
The AGM decided to discharge the members of the Board of Directors and
the Managing Director from liability for the fiscal year 2001.
Furthermore, the AGM decided that the number of the members of the
Board of Directors is five. The AGM appointed Arto Alanko, M.D.,
Ph.D., prof. Reijo Luostarinen, prof. Hannu Seristö, Osmo Suovaniemi,
M.D., Ph.D. and academy prof. Mårten Wikström as the Board members.
Moreover, the AGM appointed authorized public accountant
PricewaterhouseCoopers Oy as the auditor.
Finally, the AGM decided to change the decision made by the
extraordinary general meeting on December 30, 1998 on the rights of
option of the personnel. The AGM decided to extend the subscription
time of Biohit's shares on the basis of the second phase of the 1999
option program until September 30, 2002 instead of the original April
1, 2002.
Increases in Share Capital
As a result of the subscription of shares made on the basis of the
1999 option program and the option program targeted to Jencons
Scientific Ltd., the share capital of Biohit increased during the
reporting period by EUR 17,722.50 (104,250 shares) to EUR 2,167,096.59
(12,747,627 shares). The share premium of EUR 227,557.50 has been
recorded in the premium fund.
Equity Turnover and Price Development
The turnover of Biohit's B-shares on the NM-list of the Helsinki
Exchanges was EUR 896,405 and the number of shares 240,908. The
highest price was EUR 4.40 and the lowest EUR 3.25. The average price
was EUR 3.72.
Prospects for 2002
Biohit estimates that the net sales for 2002 will primarily be
generated by the sales of liquid handling products and it is estimated
that the net sales will increase at least in accordance with the level
of the first quarter. It is anticipated that the result for year 2002
will be positive if the sales of liquid handling products will recover
especially in the U.S., and significant GastroPanel deliveries will
commence at the end of the year.
Group Income Statement
1-3 1-3 1-12
2002 2002 Change Change 2001
MEUR MEUR MEUR % MEUR
Net sales 6.5 6.3 0.2 2 25.5
Operating expenses -6.4 -5.5 0.9 17 -23.0
Depreciation excluding
goodwill amortization -0.4 -0.3 0.1 29 -1.3
Operating profit/loss
before goodwill
amortization -0.3 0.5 -0.8 -150 1.2
Amortization on
goodwill -0.2 -0.2 0.0 0 -1.0
Operating profit/loss -0.5 0.3 -0.9 -267 0.2
Financial expenses
(net) 0.0 0.0 0.0 0 -0.2
Profit/loss before
extraordinary items -0.5 0.3 -0.9 -285 0.1
Extraordinary income 0.0 0.0 0.0 0 0.0
Extraordinary expenses 0.0 0.0 0.0 0 0.0
Profit/loss before
taxes -0.5 0.3 -0.9 -294 0.1
Profit/loss for the
period -0.6 0.1 -0.7 -723 -0.2
Group Balance Sheet
31.3.2002 31.3.2001 31.12.2001
MEUR % MEUR % MEUR %
Assets
Non-current assets 11.6 45 11.5 46 11.4 46
Current assets
Inventories 4.1 16 4.0 16 4.3 17
Receivables 7.6 30 6.5 26 6.8 27
Cash and cash
equivalents 2.2 9 3.0 12 2.5 10
Total assets 25.5 100 25.0 100 25.0 100
Liabilities and
shareholders'
equity
Shareholders'
equity
Share capital 2.2 9 2.1 9 2.2 9
Share premium
fund 15.1 59 14.9 59 14.9 60
Accumulated
profits/losses -1.5 -6 -0.4 -2 -0.8 -3
Capital loans 1.2 5 1.2 5 1.2 5
Minority interest 0.1 0 0.1 0 0.1 0
Long-term
liabilities 2.0 8 2.6 11 2.1 8
Short-term
liabilities 6.4 25 4.5 18 5.3 21
Total liabilities
and shareholders'
equity 25.5 100 25.0 100 25.0 100
1-3/02 1-3/01 Change Change-% 1-12/01
Investments, gross MEUR 0.7 0.7 0.0 -2 2.1
% net sales 11.6 11.0 8.7
Employees, average 301 269 32 12 289
Pledges given, commitments and contingencies
31.3.2002 31.3.2001 31.12.2001
Loans for which pledges MEUR MEUR MEUR
have been given
Loans from financial
Institutions 1.7 2.6 1.9
Corporate mortgages 3.4 3.4 3.4
Other long-term liabilities 0.8 0.8 0.8
Mortgages 0.8 0.8 0.8
Leasing commitments 4.2 4.2 4.0
Interest on Capital Loans
The unrecorded interest accrued on capital loans on 31.3.2002 totalled
MEUR 0.4 and on 31.12.2001 MEUR 0.4.
31.3.2002 31.3.2001 31.12.2001
Ratios
Equity ratio, % 63.1 67.3 65.7
Earnings per share, EUR -0.05 0.01 -0.02
Shareholders' equity
per share, EUR 1.24 1.31 1.28
Average number of shares 12,688,280 12,643,377 12,643,377
Number of shares at the
end of the period 12,747,627 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, May 8, 2002
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.
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 (the GastroPanel), 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%.
GastroPanel
The GastroPanel is currently used in Finland at the Jorvi Hospital and
certain service laboratories, and in numerous research laboratories
abroad. The production premises for diagnostics, which were completed
in 2001, enable the production of test kits for approx. 800,000
GastroPanel examinations per year. The additional production capacity
reserved enables to increase, if necessary, the production 2-3 fold in
approx. six months. The price of the test kit offered to laboratories
is on the average EUR 15 / one GastroPanel- examination.
All Biohit's subsidiaries and independent distributors are engaged in
the marketing and sales of the GastroPanel. Biohit also strives to
engage in strategic alliances with multinational diagnostic and
medical companies. The following presentation aims to serve as an aid
for assessing the meaning of GastroPanel for enhancing medicine,
reducing health care costs and its market potential.
GastroPanel and Evidence-Based Medicine
GastroPanel promotes the accurate diagnosis of diseases of the mucosa
of the stomach resulting in preventive and targeted treatment
(evidence-based medicine):
1) Dyspepsia, i.e., pain or discomfort in the upper part of the
stomach (prevalence of dyspepsia approx. 30% of world population).
a) Functional dyspepsia (over half of all dyspeptic cases): The
results of the GastroPanel and gastroscopy indicate that the mucosa of
the stomach is normal.
b) Organic disease underlying dyspepsia. Possible reasons: Gastric
cancer, peptic ulcer or reflux disease (prevalence of reflux symptoms
over 20% of the global population).
2) Diagnosis of H. pylori -infection (over 50% of the population) and
atrophic gastritis (approx. half of H. pylori - infected) and risk
assessment of gastric cancer (prevalence approx 0,1%) and peptic ulcer
(prevalence approx 10%).
3) Corpus atrophy causes the deficiency of vitamin B12, which may
increase the risk of dementia, depression and polyneuropathies. The
deficiency of vitamin B12 is one cause for the increase in the level
of homocysteine in the body, which is a risk factor for
atherosclerosis and heart and brain strokes. As many as 30% of the
elderly (over 65 years of age) may suffer from the lack of vitamin
B12.
Benefits of the GastroPanel
- Simple, serum-based test, which is suitable for general
practitioners and health care centers
- Non-invasive, risk-free, comfortable for the patient
- Rapid: Results available the same day when the sample has been taken
- GastroSoft: An easy means for the interpretation of the test results
- Directs gastroscopies to patients requiring rapid treatment
- Promotes early screening and commencing treatment rapidly
- Promotes preventive medicine
- Reduces trial treatments and related problems
- Enables to reach a correct diagnosis rapidly
- Promotes evidence-based medicine
- Improves the level of health care and quality of life
- Reduces health care costs
The GastroPanel developed and patented by Biohit enables the diagnosis
of H. pylori -infection and atrophic gastritis as well as the
assessment of risks related with these diseases and the need for
additional examinations and treatment. This facilitates the early
diagnosis of gastic cancer and peptic ulcer and their prevention.
Moreover, the early diagnosis of atrophic gastritis and treatment
contributes to the prevention of diseases related with the deficiency
of vitamin B12. Preventive action and targeted treatment based on a
correct diagnosis enable to avoid trial treatments and direct, e.g.,
patients at risk of gastric cancer to additional examinations and
therapy at a sufficiently early stage. It has been estimated that the
use of the GastroPanel for screening purposes and as a routine
laboratory examination could annually result in at least EUR hundreds
of millions in savings for the health care system in Finland.
Biohit Plc.
Helena Hentola
Corporate 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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