INTERIM REPORT OF THE BIOHIT GROUP 1.1.-
BIOHIT OYJ STOCK EXCHANGE RELEASE 5.11.2003 AT 10:00
INTERIM REPORT OF THE BIOHIT GROUP 1.1.- 30.9.2003
The net sales of the Biohit Group totalled MEUR 18.9 (MEUR 18.9 1-
9/2002). The operating profit before goodwill amortization was MEUR
0.1 (MEUR 0.2). The loss for the period was MEUR 0.6 (MEUR 1.1).
Biohit focused on the development of the international sales of liquid
handling products and the development of new products.
Net Sales
The net sales of the Biohit Group totalled MEUR 18.9 (MEUR 18.9). The
net sales were generated primarily by the sales of liquid handling
products, their disposable tips, and maintenance services. The growth
of the net sales was primarily hindered by the strong value of the
euro compared to the U.S. dollar. The launch of diagnostics has been
slower than expected due to, e.g., the preparations made and on-going
registration procedures in the U.S., Japan, China and India.
Result
The operating profit before goodwill amortization for the period was
MEUR 0.1 (MEUR 0.2). The EBITDA margin improved by 29% compared with
the corresponding period last year and was MEUR 1.3 (MEUR 1.0).
The operating loss totalled MEUR 0.2 (MEUR 0.7) and the loss for the
period was MEUR 0.6 (MEUR 1.1). The decision made on the third
quarter of 2002 to prolong the goodwill amortization period related to
Locus Genex Oy from seven to twenty years improves the comparable
operating profit by MEUR 0.3 during the reporting period. Altogether
TEUR 150 have incurred as legal expenses during Q3.
The income taxes (MEUR 0.2) have been accounted for on the basis of
the result for the period. However, the deferred tax assets relating
to the tax losses have not been accounted for.
Balance Sheet
Total assets on the balance sheet totaled MEUR 22.3 (MEUR 22.7). The
equity ratio on 30.9.2003 was 64.3% (69.2%).
Liquidity
The cash flow provided by operating activities developed favorably
during the reporting period and was MEUR 0.5 (MEUR 0.6). The liquid
assets at the end of the reporting period totalled MEUR 1.2 (MEUR
1.0).
Investments
The gross investments of the reporting period totalled MEUR 0.9 (MEUR
1.3). The major part of the investments consisted of machinery and
equipment to improve the automatization of production.
Personnel
The average number of personnel totalled 298 during the reporting
period (306 during the corresponding period in 2002), of which 174
were employed by the parent company (185 in 2002) and 124 by the
subsidiaries (121 in 2002). The reduction in the number of personnel
in the parent company resulted from increasing the efficiency of
operations.
Main Events of the Reporting Period
In the business area of liquid handling Biohit concluded the following
major agreements.
Biohit concluded an OEM-agreement with the U.S. company Hamilton for
the electronic ePET pipettor range.
During the reporting period Biohit concluded a private label agreement
for the production of electronic pipettors for the U.S. company Tyco
Healthcare Group LP.
Moreover, Biohit concluded an OEM-agreement with the U.S. company
MicroTyping Systems for electronic pipettors. As a result, Biohit has
thus far concluded sales agreements with two companies belonging to
the Johnson & Johnson Group.
During the reporting period Biohit launched new tip boxes and the
Refill System for the tips of liquid handling products. The tip boxes
are available both as presterilized or non-sterilized. The Refill
System is environmentally friendly as the packaging is totally
recyclable.
Biohit took into use the new automated production line for pipettor
tips. The line enables the manufacture of RNA-, DNA- and pyrogen-free
products. The production method enables also the manufacture of the
aforementioned Refill Systems.
Biohit continued to develop further the maintenance, calibration and
training services offered by its subsidiaries and distributors. The
calibration laboratories of Biohit S.A (in France) and Biohit Ltd. (in
the United Kingdom) were accredited by COFRAC (Comité francais
d´accreditation) and UKAS (United Kingdom Accreditation Service),
respectively.
In the area of liquid handling Biohit was awarded the European patent
EP 0837731 for the invention: Method for Correcting a Liquid
Dispensing Error, and a Liquid Handling Deviceö.
In October Biohit concluded with the U.S. company 3M a three-year
additional agreement for the sales of electronic pipettors and
pipettor tips.
Diagnostics
Biohit continued the evaluations of the GastroPanel, i.e., the test
panel for determining Helicobacter pylori -infection and atrophic
gastritis and for screening the risk of gastric cancer and peptic
ulcer from blood samples.
GastroSoft, the program interpreting the results of the GastroPanel,
has been developed further. GastroSoft enables to diagnose H. pylori
infection and assess the probability of atrophic gastritis located in
the antrum, corpus or both. The program further enables to determine
the risk factors for gastric cancer and peptic ulcer. On the basis of
the results provided by GastroSoft it is possible to assess the levels
of vitamin B12 and homocysteine, treat the H. pylori infection and
evaluate the need for gastroscopy and biopsy examinations.
Moreover, the program provides
an indication of possible reflux disease and Barretts disease, which
may
lead to oesophageal cancer.
By the end of the reporting period eighteen clinical evaluations
related with the GastroPanel had been completed. Fourteen had been
made in Europe, three in Asia and one in North America. The number of
patients studied in the evaluations totalled 3,408. The results of the
said evaluations have thus far been published internationally in
scientific articles and abstracts. The research results indicate that
the GastroPanel examination is as useful as gastroscopy and
biopsy examinations in the
evaluation of atrophic gastritis and related risks (please refer to
www.biohit.com, section: Products/Diagnostics).
At the end of the reporting period altogether twenty-four evaluations
were in progress of which fourteen in Europe, four in Asia, two in
North America, one in South America, two in Africa, and one in the
Near East. The number of patients to be studied in these on-going
evaluations totals 19,424. By the end of the reporting period
agreements had been made to commence four new evaluations: two in
Europe, one in North America and one in South America.
In September Biohit concluded a distribution agreement with the U.S.
company Techlab Inc. The agreement enables the sales of the
GastroPanel, the GastroSoft, Biohits other diagnostic tests,
monoclonal antibodies and instruments for research use and service
laboratories in the U.S. as well as for clinical and research use in
Canada.
The GastroPanel was taken into use in service laboratories in the
following countries: Finland, France, Germany, Italy, Portugal, Spain,
Sweden, the U.K and the U.S. During the reporting period Biohit
received the possibility for receiving patient reimbursement from the
Social and Insurance Institution of Finland for the test kits of the
GastroPanel. The fee for one GastroPanel examination totals EUR 70-100
of which the share of test kits delivered by Biohit is approx. EUR 20.
It can be assessed that at least 20 million persons worldwide would
benefit from the annually performed GastroPanel examination.
During the reporting period Biohit continuted the preparation of new
distribution agreements for the GastroPanel test kits. Biohit has
focused especially on concluding new distribution agreements in South
America, the Near East, India and China. These are countries in which
70-90% of the population suffer from H. pylori infection and
consequent atrophic gastritis.
The purpose of the representative office established by Biohit in
Shanghai is to promote the registration and sales of Biohits products
in China.
Equity Turnover and Price Development
The turnover of Biohits B-shares on the NM-list of the Helsinki
Exchanges was during the reporting period EUR 1,015,021, and the
number of shares traded 674,870. The highest price was EUR 1.78 and
the lowest EUR 1.22. The average price was EUR 1.50.
Prospects for 2003
Biohit estimates that net sales for 2003 will remain at the same level
as in 2002. Biohit expects that the net sales for 2003 will be
generated in whole from the sales of liquid handling products. Biohit
estimates that the business area of diagnostics will begin to generate
sales in 2004.
Biohit estimates that the development of the result for the last
quartal (Q4) will correspond with the level of the reporting period.
Group Income Statement
1-9 1-9 1-12
2003 2002 Change Change 2002
MEUR MEUR MEUR % MEUR
Net sales 18.9 18.9 0.0 0 25.4
Operating expenses -17.6 -17.9 0.3 2 -24.4
Ebitda 1.3 1.0 0.3 29 1.0
Depreciation without
goodwill amortization -1.2 -1.1 -0.1 -2 -1.5
Operating profit before
goodwill amortization 0.1 -0.2 0.3 164 -0.6
Goodwill amortization -0.3 -0.6 0.3 46 -0.6
Operating profit / loss -0.2 -0.7 0.5 72 -1.2
Financing expenses (net) -0.2 -0.2 0.0 6 -0.3
Profit/ loss before
extraordinary items -0.4 -0.9 0.5 57 -1.5
Extraordinary income 0.0 0.0 0.0 0 0.0
Extraordinary costs 0.0 0.0 0.0 0 0.0
Profit / loss before taxes -0.4 -0.9 0.5 57 -1.5
Profit / loss for the period -0.6 -1.1 0.5 46 -1.8
Net sales and profit/loss for periods, quarterly
2003 2002
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net sales 6,1 6,3 6,4 6,4 6,1 6,3 6,5
Operating profit
before goodwill
amortization 0,2 0,0 0,0 -0,4 0,1 0,1 -0,3
Profit / loss for -0,1 -0,3 -0,3 -0,7 0,0 -0,4 -0,6
the period
30.9.2003 30.9.2002 31.12.2002
Assets MEUR % MEUR % MEUR %
Non-current assets
Intangible assets 3.8 17 4.3 19 4.2 19
Tangible assets 6.3 28 6.5 29 6.4 29
Financial assets 0.0 0 0.2 1 0.2 0
Current assets
Inventories 4.2 19 3.9 17 3.6 16
Receivables 5.6 25 5.3 24 5.3 24
Deferred tax
assets 1.2 6 1.5 6 1.3 6
Cash and cash
equivalents 1.2 4 1.0 5 1.4 6
Total assets 22.3 100 22.7 100 22.4 100
Liabilities and
shareholders
equity
Shareholders equity
Share capital 2.2 10 2.2 10 2.2 10
Share premium 15.4 69 15.4 67 15.4 69
Funds
Accumulated losses -3.4 -15 -2.1 -9 -2.8 -13
Capital loans 1.2 6 1.2 5 1.2 6
Minority interest 0.1 0 0.1 0 0.1 0
Long term
liabilities 2.6 12 2.4 11 2.5 11
Short-term
liabilities 4.2 18 3.5 16 3.8 17
Total liabilities
and shareholders
equity 22.3 100 22.7 100 22.4 100
1-9 1-9 1-12
2003 2002 2002
Cash flow from operating
activities:
Profit / loss before
extraordinary items -0.4 -0.9 -1.5
Adjustments 1.6 1.9 2.4
Change in net working -0.3 -0.2 -0.1
capital
Interest and other -0.3 -0.2 -0.2
financing items paid
Interests received 0.1 0.0 0.1
Income taxes paid -0.2 -1.2 -1.2
Net cash flow from 0.5 -0.6 -0.5
operating activities
Net cash flow from
investing activities:
Investment in tangible and -1.0 -1.5 -1.7
intangible assets
Grants received 0.0 0.1 0.1
Proceeds from the sales of 0.1 0.0 0.0
other investments
Net cash flow from -0.9 -1.4 -1.6
investing activities
Net cash flow from
financing activities:
Proceeds from issuance of 0.0 0.6 0.6
common stock
Increase in long term debt 0.7 0.4 0.9
Repayment of long-term debt -0.5 -0.4 -0.5
Net cash flow from 0.2 0.6 1.0
financing activities
Net increase (+) / decrease -0.2 -1.4 -1.1
(-) in cash and cash
equivalents
Cash and cash equivalents 1.4 2.4 2.5
at the beginning of the
period
Cash and cash equivalents 1.2 1.0 1.4
at the end of the period
1-9/03 1-9/02 Change Change-% 1-12/02
Investments, gross
fixed assets MEUR 0.9 1.3 - 0.4 -30 1.6
% net sales 4.7 7.1 6.2
Employees average 298 306 -8 -3 303
30.9.2003 30.9.2002 31.12.2002
MEUR MEUR MEUR
Mortgages and shares pledged
for liabilities
Loans from financial
institutions 2.3 1.7 2.1
Corporate mortgages 3.4 3.4 3.4
Pledges on leaseholds 1.5 0.0 1.5
Other long-term liabilities 0.8 0.8 0.8
Mortgages 0.8 0.8 0.8
Leasing commitments 3.3 4.2 4.1
30.9.2003 30.9.2002 31.12.2002
Ratios
Equity ratio, % 64.3 69.2 66,9
Earnings per share, EUR -0.04 -0.08 -0,14
Shareholders equity per 1.10 1.20 1,15
share, EUR 12.937.627 12.790.763 12.827.781
Average number of shares
Number of shares at the end 12.937.627 12.937.627 12.937.627
of the period
Interest on Capital Loans
The unrecorded interest accrued on capital loans totalled MEUR 0.5 on
September 30, 2003 and MEUR 0.5 on December 31, 2002.
Derivative contracts
The Group does not have any off balance sheet financial instruments.
The figures of the Interim Report are unaudited.
Helsinki, November 5, 2003
Board of Directors of Biohit Oyj
Overview on Biohit
Biohit develops, manufactures and markets liquid handling products and
accessories as well as diagnostic test systems for use in research,
health care and industrial laboratories.
Reliable basic and applicable research work together with numerous
patented innovations in Finland and abroad form the basis for the
development of Biohits products. Currently Biohit possesses 29
patents and 10 patent applications in Finland. The innovation and
patent strategy applied by Biohit has promoted international
competitiveness and co-operation. The mission of Biohit is to enhance
through its innovations the health and welfare of people.
Currently, Biohits range of electronic and mechanical pipettors is
the widest in the world. Biohit is the global market leader of
electronic pipettors which enhance safety at work. The electronic
pipettors developed and manufactured by Biohit complement, e.g., the
diagnostic test systems of three companies belonging to the Johnson &
Johnson Group and 3M.
The size of the global market for different liquid handling products,
i.e., mechanical and electronic pipettors and their tips, totals
approx. USD 0.6 0.7 billion. As to mechanical pipettors, the annual
growth rate of the market is approx. 10%. It has been estimated that
as the awareness of work-related upper limb disorders and patient
safety increases, the share of electronic pipettors of the overall
pipettor markets will gradually increase.
In the area of diagnostics Biohit has developed a test panel, the
GastroPanel and the GastroSoft computer program, for diagnosing and
screening H.pylori infection and atrophic gastritis as well as for
assessing the risk of gastric cancer and peptic ulcer from blood
samples. GastroPanel can replace gastroscopy as an initial method when
examining patients suffering from stomach pain and discomfort.
Atrophic gastritis refers to an inflammation, damage and
malfunction present
in the stomach.
It has been estimated that approx. 25% of the global population will
suffer from atrophic gastritis during their lifetime. Over 10%
of the population will suffer from peptic ulcer, and approx. 0.1 1.0
% from gastric cancer. Atrophic gastritis located in the corpus of the
stomach may result in the malabsorption of vitamin B12 from nutrition.
Especially in the case of the elderly, the malabsorption may cause,
e.g., dementia, peripheral neural damages and an increase in the level
of homocysteine in the body. The latter, on its part, is a risk factor
for atherosclerosis and heart attacks and strokes. Atrophic gastritis
is
nearly always cause by H. pylori infection, of which approx. half of
the global population suffer from. If diagnosed early, in an
asymptomatic stage, atrophic gastritis can be treated.
Approx. one third of the global population will during their lifetime
suffer from dyspepsia, which refers to the occasional or
continuous pain or
discomfort in the upper part of the stomach. GastroPanel can serve as
an initial method for diagnosing the causes of dyspepsia and the
status of the mucosa of the stomach prior to
gastroscopy and biopsy examinations. Furthermore, GastroPanel
enables to determine the risk of gastric cancer, peptic ulcer or the
risk of Barretts oesophagus, which is a result
long lasted reflux disease and increases the risk of oesophageal
cancer. Approx. 25% of the population suffers from the reflux disease.
Biohit also offers in the area of
diagnostics the following tests: a serum-based test for the diagnosis
of systemic lupus erythematosus (SLE), test based on biopsy samples
for the determination of lactose intolerance, and 30 monoclonal
antibodies for the diagnosis of different types of disease from tissue
samples. In Finland approx. 20% of the population suffer from lactose
intolerance. In certain other countries the prevalence may be as high
as 90%. As to SLE, which is related to the differential diagnosis
of rheumatic diseases,
the global prevalence is approx. 0.1 0.4%. As to the entire global
population approx. 2% suffer from rheumatic diseases.
The aforementioned diagnostic tests developed and manufactured by
Biohit can be considered unique. The tests can, in the first place, be
viewed as a means to promote the research work performed in the field
of their use. Secondly, the tests can be considered to promote so-
called Evidence-Based Medicineö, which refers to drawing up a correct
diagnosis and, subsequently, commencing targeted treatment based on
the diagnosis made.
In order to be able to offer complete analyzing systems for its
customer base, Biohits product range includes, in addition to liquid
handling products and diagnostics, instruments and programs 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.
Biohits production plants are located in Kajaani and Helsinki. The
sales and marketing network of Biohit covers numerous distributors
worldwide, as well as subsidiaries in France, Germany, Italy, Japan,
Russia, the U.K. and the U.S., and a representative office in China.
Biohit has expanded its production of liquid handling products in
China and India. Biohit exports 97% of its production, and the degree
of domestic production is 95%.
Biohit Oyj
Helena Hentola
Corporate Communications
Additional information: Osmo Suovaniemi, Professor, President & CEO,
tel: +358-9-773 861, direct: +358-9-773 86
250, mobile: +358-40 745 5605, fax: +358-9-
773 86 205, osmo.suovaniemi@biohit.com.
http://www.biohit.com
Distribution: Helsinki Exchanges
Financial Supervisory Authority
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