INTERIM REPORT OF THE BIOHIT GROUP 1 JANUARY TO 30 SEPTEMBER 2010
BIOHIT OYJ STOCK EXCHANGE RELEASE ON 5 NOVEMBER 2010 AT 9:30 AM
INTERIM REPORT OF THE BIOHIT GROUP 1 JANUARY TO 30 SEPTEMBER 2010
SUMMARY
January-September 2010:
- Net sales EUR 28.9 million (EUR 25.1 million 1-9/2009)
- Operating profit EUR 0.4 million (operating profit EUR 0.3 million)
- Profit before taxes EUR 0.4 million (loss EUR 0.0 million)
- Share of net sales accounted for by international operations 96.2% (96.0%)
- Earnings per share EUR 0.00 (EUR -0.02)
July-September 2010:
- Net sales EUR 9.6 million (EUR 8.1 million)
- Operating profit EUR 0.4 million (operating profit EUR 0.1 million)
- Loss before taxes EUR 0.1 million (loss EUR 0.1 million)
- Share of net sales accounted for by international operations 95.7% (95.6%)
- Earnings per share EUR -0.01 (EUR -0.01 )
JUSSI HEINIÖ, PRESIDENT AND CEO
“Trends in our net sales exceeded expectations during the first part of the
year. Growth during the review period was 15.1%, with net sales growth in the
third quarter reaching up to 18.2%. The recovery of the North American and Asian
market areas had a particularly favourable impact on the net sales trend. The
new locations opened during the first part of the year boosted sales growth in
Asian market areas.
Sales of electronic and mechanical pipettes have grown during the third quarter
in particular, and we expect this trend to continue throughout the rest of the
year. All in all, the market outlook combined with changes made to our steering
mechanisms has created a firm foundation for continued growth and we expect the
liquid handling business to reach its growth targets.
The diagnostics business has focused on launching the Acetium capsule and
commercialising diagnostic kits. So far, the promotion of diagnostic test kits
has centred on Finnish markets, which will be of key significance in yielding
references for an international launch. Marketing of the Acetium capsule has
likewise focused on Finland, where the product has been favourably received.
However, in order to further expand sales, we must make substantial investments
in marketing and building up a distribution network - a task we are currently
working on. Due to its fairly moderate growth rate in 2010, we do not expect the
diagnostics business to reach its net sales growth targets.
In addition to a number of one-off items, the Group's operating result has been
burdened by expenses associated with the launch of the Acetium capsule and
considerable outlays on bolstering our sales and marketing organisation in Asia.
The Group's operating result has therefore remained at the same level as in
2009.“
THE GROUP'S KEY FIGURES
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| | 7-9/ | 7-9/ | Change | 1-9/ | 1-9/ | Change | 1-12/ | 1-12/ |
| | 2010 | 2009 | % | 2010 | 2009 | % | 2009 | 2008 |
--------------------------------------------------------------------------------
| Net sales, | 9.6 | 8.1 | 18.2 | 28.9 | 25.1 | 15.1 | 35.4 | 35.1 |
| MEUR | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 0.4 | 0.1 | 148.0 | 0.4 | 0.3 | 13.0 | 1.2 | 1.3 |
| profit/loss| | | | | | | | |
| MEUR | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 3.8% | 1.8% | | 1.3% | 1.4% | | 3.4% | 3.7% |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss| -0.1 | -0.1 | -73.7 | 0.4 | -0.0 | 950.1 | 0.7 | 1.0 |
| before | | | | | | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss| -0.2 | -0.2 | -23.8 | 0.1 | -0.2 | 124.8 | 0.4 | 0.9 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Investments| 0.4 | 0.5 | -14.6 | 1.9 | 1.7 | 12.1 | 2.4 | 1.2 |
| gross, MEUR| | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 4.5% | 6.3% | | 6.7% | 6.9% | | 6.9% | 3.5% |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| R&D | 0.6 | 0.4 | 37.8 | 1.8 | 1.7 | 7.9 | 2.4 | 2.0 |
| expenditure| | | | | | | | |
| MEUR | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 5.8% | 4.9% | | 6.2% | 6.6% | | 6.8% | 5.8% |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Average | 403 | 376 | 7.2 | 407 | 368 | 10.4 | 370 | 369 |
| number of | | | | | | | | |
| personnel | | | | | | | | |
--------------------------------------------------------------------------------
| Number of | 428 | 368 | 16.3 | 428 | 368 | 16.3 | 383 | 360 |
| personnel | | | | | | | | |
| at end of | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 44.3 | 45.6% | | 44.3% | 45.6% | | 46.8% | 46.5% |
| ratio, % | % | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | -0.01| -0.01 | -23.8 | 0.00 | -0.02 | 124.8 | 0.03 | 0.07 |
| per share, | | | | | | | | |
| EUR | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 0.99 | 0.94 | 5.3 | 0.99 | 0.94 | 5.3 | 0.99 | 0.97 |
| share, EUR | | | | | | | | |
--------------------------------------------------------------------------------
| Average | 12,9 | 12,93 | 0.0 | 12,93 | 12,93 | 0.0 | 12,93 | 12,937,|
| number of | 37,6 | 7,627 | | 7,627 | 7,627 | | 7,627 | 627 |
| shares | 27 | | | | | | | |
| during the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Number of | 12, | 12,937| 0.0 | 12,937| 12,937| 0.0 | 12,937| 12,937 |
| shares at | 937, | ,627 | | ,627 | ,627 | | ,627 | ,627 |
| end of | 627 | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
REPORTING
Biohit reports on its business segments, which are the liquid handling and the
diagnostics businesses. In addition, the company reports its net sales by main
market areas.
NET SALES AND RESULT
July-September
In the third quarter, net sales were up 18.2% on the corresponding period of
2009 and amounted to EUR 9.6 million (EUR 8.1 million). In the July-September
period, international operations accounted for 95.7% of net sales (95.6%).
Operating profit for the third quarter amounted to EUR 0.4 million (operating
profit EUR 0.1 million) and loss before taxes to EUR 0.1 million (loss EUR 0.1
million). Earnings per share were EUR -0.01 (EUR -0.01).
Net sales growth continued during the third quarter, and at an even greater rate
than during the first part of the year. Although lower than average net sales
during the comparison period accentuated this growth, it is still significant
when compared to comparable periods during the years before the recession.
Profitability improved, even though the operating result was burdened by an
increase in fixed costs, such as those incurred through marketing Acetium.
January-September
In the review period, the Biohit Group's net sales were up 15.1% on the
corresponding period of 2009, totalling EUR 28.9 million (EUR 25.1 million).
International operations accounted for 96.2% of net sales (96.0%)
Operating profit for the review period amounted to EUR 0.4 million (operating
profit EUR 0.3 million) and profit before taxes to EUR 0.4 million (loss EUR 0.0
million). Earnings per share were EUR 0.00 (EUR -0.02).
Trends in net sales growth during the review period exceeded expectations. Net
sales in the comparison period were lower than usual, which has accentuated
growth. Net sales have grown in all the main market areas, particularly Asia and
North America.
Profitability during the review period was weakened by expenses associated with
the Acetium capsule launch and bolstering the sales and marketing organisation.
The result for the review period was improved by currency exchange gains
allocated to financial items.
Key figures by segment, January-September
Sales and maintenance of liquid handling products accounted for 94.7% of net
sales during the reporting period. The net sales of the liquid handling business
amounted to EUR 27.4 million (EUR 23.9 million) and the net sales of the
diagnostics business to EUR 1.5 million (EUR 1.3 million). The liquid handling
business grew by 14.9% and the diagnostics business by 20.2%.
The operating profit of the liquid handling business amounted to EUR 2.4 million
(EUR 1.9 million), while the operating loss of the diagnostics business totalled
EUR 2.0 million (operating loss EUR 1.5 million).
Due to several new product launches, the diagnostics business has experienced a
front-loaded increase in fixed costs in relation to net sales.
Group net sales by business segment
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
| | 2010 | 2009 | | 2010 | 2009 | % | 2009 |
| | MEUR | MEUR | % | MEUR | MEUR | | MEUR |
--------------------------------------------------------------------------------
| Liquid Handling | 9.1 | 7.7 | 18.4 | 27.4 | 23.9 | 14.9 | 33.6 |
--------------------------------------------------------------------------------
| Diagnostics | 0.5 | 0.4 | 13.7 | 1.5 | 1.3 | 20.2 | 1.8 |
--------------------------------------------------------------------------------
| Total | 9.6 | 8.1 | 18.2 | 28.9 | 25.1 | 15.1 | 35.4 |
--------------------------------------------------------------------------------
Consolidated operating result by business segment
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
| | 2010 | 2009 | | 2010 | 2009 | % | 2009 |
| | MEUR | MEUR | % | MEUR | MEUR | | MEUR |
--------------------------------------------------------------------------------
| Liquid Handling | 1.1 | 0.6 | 79.1 | 2.4 | 1.9 | 28.5 | 3.2 |
--------------------------------------------------------------------------------
| Diagnostics | -0.7 | -0.4 | -56.5 | -2.0 | -1.5 | -32.0 | -2.0 |
--------------------------------------------------------------------------------
| Total | 0.4 | 0.1 | 148.0 | 0.4 | 0.3 | 13.0 | 1.2 |
--------------------------------------------------------------------------------
Group's net sales in the main market areas
--------------------------------------------------------------------------------
| Net sales, | 7-9/ | 7-9/ | Change | 1-9/ | 1-9/ | Change | 1-12/ |
| MEUR | 2010 | 2009 | % | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
| Europe | 4.7 | 4.5 | 6.1% | 14.9 | 14.1 | 6.1% | 19.4 |
--------------------------------------------------------------------------------
| America | 2.0 | 1.7 | 21.5% | 5.9 | 4.7 | 26.0% | 6.2 |
--------------------------------------------------------------------------------
| Asia | 1.6 | 0.9 | 75.7% | 4.5 | 3.1 | 48.0% | 4.7 |
--------------------------------------------------------------------------------
| Other | 1.2 | 1.1 | 13.9% | 3.6 | 3.3 | 7.9% | 5.1 |
--------------------------------------------------------------------------------
| Group, | 9.6 | 8.1 | 18.2% | 28.9 | 25.1 | 15.1% | 35.4 |
| total | | | | | | | |
--------------------------------------------------------------------------------
The impact of currency exchange rates
Net sales grew by 15.1% during the review period. When calculated using
comparable exchange rates, net sales growth amounted to 11.7%. Exchange rate
fluctuations did not have a material impact on the operating result. Biohit
reports the currency exchange impacts of intra-Group items in financial items.
During the review period, exchange rate fluctuations allocated to financial
items improved the result by EUR 0.5 million.
BALANCE SHEET
On 30 September 2010, the balance sheet total was EUR 29.1 million (EUR 26.7
million) and the equity ratio was 44.3% (45.6%).
FINANCING
Cash flow during the reporting period was EUR 0.0 million (EUR 0.4 million). Net
cash flow from operating activities amounted to EUR 1.7 million (EUR 2.2
million). At the end of the review period, consolidated liquid assets totalled
EUR 2.3 million (EUR 2.2 million on 30 September 2009 and EUR 2.0 million on 31
December 2009). Current ratio was 1.4 (2.3). The fall in the current ratio is
temporary and is due to the transfer of a EUR 4.05 million convertible bond,
which was issued in 2005 and which matured in October 2010, from non-current to
current liabilities. The convertible bond has been restructured since the close
of the review period.
RESEARCH AND DEVELOPMENT
Research and development expenditure during the reporting period amounted to EUR
1.8 million (EUR 1.7 million), representing 6.2% of net sales (6.6%). EUR 0.4
million (EUR 0.3 million) in development expenditure was capitalised during the
period.
INVESTMENTS
Gross investments during the reporting period totalled EUR 1.9 million (EUR 1.7
million). Investments were primarily made in production technology in Kajaani,
increasing the production capacity of disposable pipette tips.
PERSONNEL
The average number of Group personnel during the reporting period was 407 (368
in the corresponding period of 2009 and 372 in 2008). Of these, 189 were
employed by the parent company (173 in 2009, 173 in 2008) and 218 by
subsidiaries (195 in 2009, 199 in 2008). The number of personnel has increased
at Asian units in particular.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
The major change in Biohit's short-term risks and uncertainty factors concerns
the restructuring of the company's EUR 4.05 million convertible bond. After the
close of the review period, the bond was restructured in accordance with
previously published plans and the lenders have subscribed for the bond in its
entirety. The restructuring of the convertible bond, combined with favourable
trends in net sales, has improved the company's liquidity. However, liquidity is
still burdened by increased costs associated with launching the Acetium capsule
and expanding Biohit's international operations.
Cash flow generated by the liquid handling business continues to be the primary
source of financing for the diagnostics business. Accelerating growth in the
diagnostics business is therefore imperative in order to ensure solid
operational foundations for both businesses. Long-term failure to meet growth
expectations in the diagnostics business might also result in a EUR 2.6 million
impairment of goodwill associated with diagnostics products. The company has,
however, engaged in determined efforts to bolster the diagnostics business not
only with the launch of new products, such as the revamped ColonView examination
(for assessing the risk of colorectal cancer) and the Acetium capsule, but also
by refining its product commercialisation plans and prioritising certain market
areas. Biohit therefore estimates that there has been no significant increase in
neither the risks associated with the development of the diagnostics business
nor any other previously reported risks.
A rise in raw material prices - particularly in the case of plastics - and the
increased cost of components has burdened the profitability of the liquid
handling business. Biohit seeks to hedge itself against these risks and their
negative impact on profit margins by employing contractual terms, boosting
production efficiency, and transferring costs to product prices.
As a significant portion of Biohit's business is conducted in currencies other
than the euro, the strengthening of the euro's external value has a negative
impact on the company's profitability. The company hedges itself against
currency risks by making procurements in currencies other than the euro and
planning the Group's cost structure so that a significant share of fixed costs
are in non-euro currencies.
OUTLOOK FOR 2010
Biohit's customer base is making increased investments in R&D and the market
outlook is decidedly more positive for both the liquid handling and diagnostics
businesses. Market recovery has been evident in the liquid handling business,
especially in areas outside Europe and primarily in North America and Asia.
Biohit expects favourable trends in the Group's total net sales to continue for
the rest of the year.
Demand in the liquid handling business has grown in the electronic and
mechanical pipette product families in particular, with third-quarter growth
higher than growth during the early part of the year. Biohit expects this trend
to continue for the rest of the year. These favourable trends are a result of
the expansion of the distribution network in Asian countries and closer
cooperation with key partners.
Growth in the diagnostics business is also forecast to continue for the rest of
the year. Full-year growth is, however, expected to be more moderate than
estimated and to fall short of the original targets. The majority of net sales
growth is expected to come from increased sales of Biohit's diagnostics tests.
The company estimates that its full-year result before taxes will be slightly
better than in 2009.
MAIN EVENTS OF THE REPORTING PERIOD
Liquid handling business
Biohit's liquid handling business develops, manufactures and markets laboratory
equipment and accessories for the pharmaceutical, food and other industries.
Biohit's products are also used in research institutions, universities and
hospitals. The product range includes mechanical and electronic pipettes as well
as disposable tips. While the majority of the products are marketed under the
Biohit brand, the company also manufactures customised OEM (Original Equipment
Manufacturer) products that complement the diagnostic test and analysis systems
of many global companies. In addition, the company offers maintenance,
calibration and training services for liquid handling products through its
distributor network.
The trend in the sales of the liquid handling business was favourable in all
product groups during the review period. Pipette sales continued to grow during
the third quarter. Asia in particular saw further growth, but sales in North
America also picked up compared to the comparison period.
Biohit focused especially on the marketing and sales of disposable pipette tips
during the review period. In addition, the company expanded its own sales
network in growing Asian markets and bolstered its distribution network in, for
example, Turkey, Italy, Spain and Australia. The company has also firmed up its
cooperation with its major partners and made outlays on end-customer marketing.
During the review period, the company focused on building a Group-wide strategy.
Part of this includes the reorganisation of the steering model for the liquid
handling business as from June. Since early July, the make-up of the Management
Team has been reorganised and its areas of responsibility have been redefined in
line with the company's processes in order to enhance business control. The new
business plans will be mobilised throughout the Group. The goal is to develop
the company's business in a truly international direction by utilising the
Group's own resources and extensive network of subsidiaries and matrix
organisation.
Diagnostics business
Biohit's diagnostics business develops, manufactures and markets tests and
analysis systems for the diagnosis and prevention of diseases of the
gastrointestinal tract. The tests and systems are based on innovations and
reliable research data. The company's product range includes the GastroPanel
examination and the ColonView quick tests for primary healthcare; lactose
intolerance and Helicobacter pylori quick tests for specialised healthcare; and
instruments and analysis systems for laboratories. The company also markets
GastroPanel laboratory packages. In addition to GastroPanel test kits, this
package includes liquid handling products, instruments, software as well as
installation, training and maintenance services. The GastroPanel laboratory
concept is geared towards facilitating the efficient introduction of GastroPanel
examinations. Biohit's service laboratory also offers analysis services for the
company's tests as well as determinations of acetaldehyde concentration in
foodstuffs
and alcoholic beverages.
(http://www.biohit.com/diagnostics/determination-of-acetaldehyde)
Biohit has also developed the prescription-free Acetium capsule to reduce
carcinogenic acetaldehyde in the gastrointestinal tract. The International
Agency for Research on Cancer (IARC), which forms part of the World Health
Organisation (WHO), has classified acetaldehyde included in and generated
endogenously from alcoholic beverages as a Group I carcinogen, that is, a
substance that causes cancer. The capsule was developed in cooperation with
researchers at the University of Helsinki and Biohit's scientific advisors.
Acetium is recommended for those suffering from damage to the gastric mucosa
(atrophic gastritis) and the resulting anacidic stomach, caused by either a
Helicobacter pylori infection or an autoimmune disease. The capsules are also
recommended for those taking anti-acid medication (Proton Pump Inhibitors, H2
blockers) (www.biohit.com/acetium).
Sales growth in the diagnostics business was up by 20.2% on the 2009 comparison
period, and was mainly generated by sales of test kits.
During the review period, Biohit introduced a new version of its ColonView
examination, which traces faecal occult blood. The new packages contain two
tests in the same cassette, which makes the analysis process even easier.
ColonView is a sensitive test that is specific to human blood, which makes it
ideal for colorectal cancer screening programmes, and also for use by health
centres, private practitioners and occupational healthcare. The ColonView
examinations offer an easy and cost-effective way of finding patients who have
faecal occult blood and therefore a greater than average risk of having
colorectal cancer or its pre-stages. It also provides information on other
potential diseases of the gastrointestinal tract that are associated with
intestinal bleeding.
During the review period, Biohit started pharmacy sales of Acetium capsules in
Finland. The product was launched for consumers at the end of May and its sales
have as yet not had a significant impact on the net sales for the review period.
Launch-related costs have also weakened the operating result for the period.
In addition to consumer advertising, the company's focus during the launch phase
has been on product availability in pharmacies. Acetium capsules are distributed
nationwide through Tamro Oyj, one of Finland's leading pharmaceutical
wholesalers, and are already available from 600 pharmacies across the country.
However, if the set growth expectations are to be achieved, it is necessary to
make continuous outlays on marketing targeted at both professionals (physicians,
pharmacists) and consumers. (See also www.biohit.com/diagnostics Product
Brochures and “About Biohit”: appendices 1 and 2)
ADMINISTRATION
Professor Osmo Suovaniemi, MD, PhD, founder of Biohit and its long serving
President and CEO, stepped down from his position in June. The company's Board
of Directors appointed Jussi Heiniö, 48, LLM, as the new President and CEO as of
10 June 2010. Heiniö has been in Biohit's employ since 1997 and for the past six
years served as VP of Administration and Legal Affairs and deputy CEO. Osmo
Suovaniemi has not, however, left the company. He will serve on Biohit's Boards
of Scientific Advisors and continue to take an active role in the development of
business strategies and innovations. He will also continue as a member of Biohit
Oyj's Board of Directors.
The amendments to Biohit Oyj's Articles of Association, which were decided on by
the AGM of 23 April 2010, came into effect on 14 May 2010. In accordance with
these amendments, the term of the recently elected seventh member of the Board
of Directors, Ainomaija Haarla, also began on the same date.
During the review period, the Board of Directors of Biohit Oyj named Jukka
Ant-Wuorinen, M.Sc. (Econ.) vice chairman of the Board. Professor Reijo
Luostarinen continues as chairman.
Changes in the Management Teams
In accordance with the Group's new strategy, the make-up of the Diagnostics
Management Team was altered as of 1 October 2010.
Members of the new Management Team are: Jussi Heiniö (President & CEO), Yrjö
Wichmann (General Director of Diagnostics), Lea Paloheimo (Product Life Cycle
Management), Terhi Lampén (Sales and Marketing), Kalle Härkönen (Operations),
Seppo Riikonen (Quality and Risk Management), Tiina Hankonen (Finance, ICT and
HR) and Josefin Hoviniemi (Communications).
The new strategy seeks to bolster business control and develop the company's
operations in a truly international direction by utilising the Group's own
resources and extensive network of subsidiaries.
Biohit has two Management Teams. The Diagnostics Management Team focuses on the
diagnostics business and its development, while the Liquid Handling Management
Team focuses on the liquid handling business and its development, as well as
Group-level administration. The Liquid Handling Management Team was reorganised
at the beginning of July.
New office in Asia
At the beginning of the review period, Biohit opened a representative office in
Singapore to support sales in growing Asian markets.
SHARES AND SHAREHOLDERS
Biohit Oyj's shares are divided into series A and series B shares. There are
2,975,500 series A shares and 9,962,127 series B shares to a total of 12,937,627
shares. Series A shares confer 20 votes per share and series B shares 1 vote per
share. However, the dividend paid for Series B shares is higher than that paid
for Series A shares by two (2) per cent of its nominal value. Supposing that the
market capitalisation value for series A and B shares is equal, the total market
capitalisation value at the end of the period was EUR 30.4 million (EUR 18.5
million on 30 September 2009).
Biohit Oyj's series B shares are quoted on NASDAQ OMX Helsinki in the Small
cap/Healthcare group under the code BIOBV.
--------------------------------------------------------------------------------
| BIOBV/NASDAQ OMX Helsinki | 1-9/2010 | 1-9/2009 |
--------------------------------------------------------------------------------
| High, EUR | 4.91 | 1.9 |
--------------------------------------------------------------------------------
| Low, EUR | 1.50 | 1.27 |
--------------------------------------------------------------------------------
| Average, EUR | 3.49 | 1.55 |
--------------------------------------------------------------------------------
| Closing price, EUR | 2.35 | 1.43 |
--------------------------------------------------------------------------------
| Total turnover, EUR | 30,866,555 | 2,174,667 |
--------------------------------------------------------------------------------
| Total turnover, no. of shares | 8,838,544 | 1,722,756 |
--------------------------------------------------------------------------------
Shareholders
At the end of the review period on 30 September 2010, the company had 4,750
shareholders (3,555 on 30 September 2009). Private households held 73.11%
(72.87%), companies 23.25% (23.67%) and public sector organisations 2.81%
(3.03%). 0.73% (0.53%) of shares were in foreign ownership or registered in a
nominee's name.
Further information about the shares, major shareholders and management's
shareholdings is available on the company's website at www.biohit.com/investors.
Convertible bonds
On 3 August 2010, under the authorisation granted by the General Meeting, Biohit
Oyj's Board of Directors decided to issue a convertible bond of EUR 4.05 million
to Finnish institutional investors. The bond was issued on 28 October 2010,
after the close of the review period. The fixed coupon rate of the bond is 6.5%.
The term of the loan is five years. The bond will not be publicly traded.
This new bond replaced Biohit Oyj's earlier convertible bond of the same size,
which matured in October 2010. The issue is part of a set of measures aimed at
optimising the company's long-term financing plan.
The issue was chiefly organised by Pohjola Corporate Finance Oy.
MAJOR EVENTS AFTER THE CLOSE OF THE PERIOD
Since the close of the review period, Biohit Oyj has expanded its diagnostics
business offering to include acetaldehyde determination services. Biohit has
invested in both technology and expertise so that the carcinogenic acetaldehyde
contained
in, for example, foodstuffs and alcoholic beverages can be measured. Companies
in the food and drink industry will now be able to send product samples to
Biohit for analysis, thereby enabling them to offer safer products to their
customers. Biohit believes that its assay services will also be used by a
variety of research institutions, supervisory authorities and possibly even
consumers. Guidelines for sending samples are available at:
http://www.biohit.com/diagnostics/determination-of-acetaldehyde.
In addition to its assay services, Biohit is also commercialising its BioFood
innovation. BioFood can significantly reduce - or even completely remove - the
acetaldehyde contained in, for example, beer, wine, strong alcoholic beverages
and yoghurts. BioFood's core target customer group comprises companies in the
food and drink industry: using BioFood in conjunction with Biohit's assay
services will open up new avenues for product development.
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with the IAS 34 standard.
Biohit Oyj has applied the same accounting principles in preparing this interim
report as for its financial statements of 2009. The IFRS standards that came
into effect in 2010 did not affect the accounting principles.
All the figures in the interim report have been rounded up or down, due to which
the sums of figures may deviate from the sum total presented.
The figures in this interim report have not been audited.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
| | 2010 | 2009 | % | 2010 | 2009 | % | 2009 |
| | MEUR | MEUR | | MEUR | MEUR | | MEUR |
--------------------------------------------------------------------------------
| Net sales | 9.6 | 8.1 | 18.2 | 28.9 | 25.1 | 15.1 | 35.4 |
--------------------------------------------------------------------------------
| Other operating | 0.0 | 0.1 | -50.1 | 0.1 | 0.1 | -0.4 | 0.2 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Increase/decrease | 0.3 | -0.0 | 986.5 | -0.4 | -0.1 | 336.6 | -0.3 |
| in inventories of | | | | | | | |
| finished goods | | | | | | | |
| and in work in | | | | | | | |
| progress | | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -2.0 | -1.6 | 27.7 | -5.4 | -4.5 | 19.1 | -6.5 |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4.0 | -3.4 | 17.6 | -12.4 | -11.0 | 13.1 | -14.9 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -0.4 | -0.4 | 3.2 | -1.3 | -1.3 | -4.7 | -11.0 |
--------------------------------------------------------------------------------
| Other operating | -3.1 | -2.5 | 20.3 | -9.2 | -8.0 | 14.6 | -1.7 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 0.4 | 0.1 | 148.0 | 0.4 | 0.3 | 13.0 | 1.2 |
| profit/loss | | | | | | | |
--------------------------------------------------------------------------------
| Financial income | -0.1 | 0.1 | -243.6 | 0.6 | 0.3 | 59.8 | 0.4 |
--------------------------------------------------------------------------------
| Financial | -0.4 | -0.3 | 35.9 | -0.6 | -0.7 | -19.3 | -0.9 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | -0.1 | -0.1 | -73.7 | 0.4 | -0.0 | 950.1 | 0.7 |
| before taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -0.1 | -0.1 | 0.4 | -0.3 | -0.2 | 71.9 | -0.3 |
--------------------------------------------------------------------------------
| Profit/loss for | -0.2 | -0.2 | -23.8 | 0.1 | -0.2 | 124.8 | 0.4 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Translation | -0.2 | 0.1 | -488.1 | -0.0 | -0.1 | 89.4 | -0.1 |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Total | -0.4 | -0.1 | -335.0 | 0.0 | -0.4 | 110.8 | 0.3 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
Biohit Oyj's earnings are attributable to the equity holders of the parent
company in their entirety, as there are no minority interests.
--------------------------------------------------------------------------------
| Earnings per share calculated from | 1-9 | 1-9 | 1-12 |
| earnings attributable to equity | 2010 | 2009 | 2009 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Earnings per share, undiluted *, EUR | 0.00 | -0.02 | 0.03 |
--------------------------------------------------------------------------------
*) The convertible bond is not dilutive in respect of earnings per share in the
financial years 2010 and 2009.
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| | 30 Sep 2010 | 30 Sep 2009| Change | 31 Dec 2009 |
| | MEUR | MEUR | % | MEUR |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Goodwill | 2.6 | 2.6 | 0.0 | 2.6 |
--------------------------------------------------------------------------------
| Intangible assets | 2.8 | 2.5 | 12.7 | 2.3 |
--------------------------------------------------------------------------------
| Tangible assets | 6.7 | 6.0 | 11.3 | 6.5 |
--------------------------------------------------------------------------------
| Receivables | 0.0 | 0.0 | -117.4 | 0.0 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1.8 | 2.0 | -8.8 | 1.9 |
--------------------------------------------------------------------------------
| Total non-current | 14.0 | 13.1 | 6.4 | 13.4 |
| assets | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Inventories | 5.2 | 5.3 | -0.6 | 5.1 |
--------------------------------------------------------------------------------
| Trade and other | 7.6 | 6.2 | 23.6 | 6.9 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Financial assets | 0.6 | 0.5 | 8.1 | 0.4 |
| recognised at fair | | | | |
| value through profit | | | | |
| or loss | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 1.7 | 1.7 | 1.2 | 1.6 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Total current assets | 15.1 | 13.6 | 10.9 | 14.0 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 29.1 | 26.7 | 8.7 | 27.4 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Equity attributable to | | | | |
| the equity holders of | | | | |
| the parent company | | | | |
--------------------------------------------------------------------------------
| Share capital | 2.2 | 2.2 | 0.0 | 2.2 |
--------------------------------------------------------------------------------
| Fund for the | 12.4 | 12.4 | 0.0 | 12.4 |
| investment of | | | | |
| non-restricted equity | | | | |
--------------------------------------------------------------------------------
| Translation | -0.3 | -0.3 | -1.2 | -0.3 |
| differences | | | | |
--------------------------------------------------------------------------------
| Retained earnings | -1.5 | -2.1 | 30.8 | -1.5 |
--------------------------------------------------------------------------------
| Total equity | 12.8 | 12.1 | 5.4 | 12.7 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 0.0 | 0.0 | 100.0 | 0.0 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Pension obligations | 0.1 | 0.1 | 43.9 | 0.1 |
--------------------------------------------------------------------------------
| Total interest-bearing | 4.5 | 7.9 | -43.8 | 3.9 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 0.7 | 0.7 | -8.0 | 0.7 |
--------------------------------------------------------------------------------
| Total non-current | 5.3 | 8.7 | -39.8 | 4.6 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Trade payables | 2.1 | 1.4 | 49.7 | 1.4 |
--------------------------------------------------------------------------------
| Total interest-bearing | 5.0 | 0.9 | 466.2 | 5.1 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 3.9 | 3.6 | 9.7 | 3.5 |
--------------------------------------------------------------------------------
| Total current | 11.0 | 5.9 | 88.0 | 10.0 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 16.3 | 14.6 | 11.5 | 14.6 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 29.1 | 26.7 | 8.7 | 27.4 |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity on 30 Sep 2010
--------------------------------------------------------------------------------
| MEUR | Share | Translation| Fund for | Retained | Equity |
| | capital | | the | earnings | |
| | | differences| investment | | |
| | | | of | | |
| | | | non-restri | | |
| | | | cted | | |
| | | | equity | | |
--------------------------------------------------------------------------------
| Equity on 1 Jan | 2.2 | -0.3 | 12.4 | -1.5 | 12.7 |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Total | | 0.0 | | 0.1 | 0.0 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Equity on 30 | 2.2 | -0.3 | 12.4 | -1.5 | 12.8 |
| September 2010 | | | | | |
--------------------------------------------------------------------------------
Consolidated statement of changes in equity on 30 September 2009
--------------------------------------------------------------------------------
| MEUR | Share | Translation| Fund for | Retained | Equity |
| | capital | | the | earnings | |
| | | differences| investment | | |
| | | | of | | |
| | | | non-restri | | |
| | | | cted | | |
| | | | equity | | |
--------------------------------------------------------------------------------
| Equity on 1 Jan | 2.2 | -0.2 | 12.4 | -1.9 | 12.5 |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Total | | -0.1 | | -0.2 | -0.3 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Equity on 30 Sep | 2.2 | -0.3 | 12.4 | -2.1 | 12.1 |
| 2009 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1-9/2010 | 1-9/2009 | 1-12/2009 |
| | MEUR | MEUR | MEUR |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING | | | |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 0.4 | -0.0 | 0.7 |
--------------------------------------------------------------------------------
| Adjustments | 1.3 | 1.7 | 2.2 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| CHANGE IN WORKING CAPITAL | -0.2 | 1.1 | 0.6 |
--------------------------------------------------------------------------------
| Interest and other financial | -0.2 | -0.4 | -0.5 |
| items paid | | | |
--------------------------------------------------------------------------------
| Interest received | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Realised exchange rate gains and | 0.5 | 0.0 | 0.2 |
| losses | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -0.1 | -0.2 | -0.4 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 1.7 | 2.2 | 2.8 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTMENTS | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -1.2 | -1.6 | -2.0 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Investments and capital gains | -0.2 | 0.0 | 0.1 |
| from investments in funds and | | | |
| deposits, net | | | |
--------------------------------------------------------------------------------
| Net cash flow from investments | -1.4 | -1.6 | -1.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | | |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Proceeds from loans | 1.2 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Loan repayments | -1.5 | -0.2 | -0.6 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -0.3 | -0.2 | -0.6 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in cash | 0.0 | 0.4 | 0.3 |
| and cash equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 1.6 | 1.3 | 1.3 |
| start of the period | | | |
--------------------------------------------------------------------------------
| Effects of exchange rates on cash | 0.1 | 0.0 | -0.0 |
| and cash equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end | 1.7 | 1.7 | 1.6 |
| of the period | | | |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
There have been no noticeable changes in related party transactions during the
review period.
COLLATERAL, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
--------------------------------------------------------------------------------
| | 30 Sep 2010 | 30 Sep 2009 | 31 Dec 2009 |
| | MEUR | MEUR | MEUR |
--------------------------------------------------------------------------------
| Liabilities for which | | | |
| mortgages have been lodged as | | | |
| collateral | | | |
--------------------------------------------------------------------------------
| Loans from financial | 3.4 | 3.4 | 3.4 |
| institutions | | | |
--------------------------------------------------------------------------------
| For which collateral has been | | | |
| lodged | | | |
--------------------------------------------------------------------------------
| - Corporate mortgages | 2.3 | 2.3 | 2.3 |
--------------------------------------------------------------------------------
| - Mortgages on real estate | 2.0 | 1.9 | 2.0 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other liabilities | 0.1 | 0.2 | 0.1 |
--------------------------------------------------------------------------------
| For which collateral has been | | | |
| lodged | | | |
--------------------------------------------------------------------------------
| - Mortgages on real estate | 0.8 | 0.8 | 0.8 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Rental and lease agreements | 4.5 | 4.6 | 5.0 |
--------------------------------------------------------------------------------
| For which collateral has been | | | |
| lodged | | | |
--------------------------------------------------------------------------------
| - Corporate mortgages | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
Helsinki, 5 November 2010
Biohit Oyj
Board of Directors
Further information:
Jussi Heiniö, President and CEO
Tel: +358 (0) 9 773 861
jussi.heinio@biohit.com
Distribution:
NASDAQ OMX Helsinki Oy
Central storage facility (www.oam.fi)
Press
www.biohit.com
About Biohit Oyj:
Biohit Oyj is a globally operating Finnish biotechnology company that was
established in 1988. The company's mission is to improve human health and
quality of life. The company follows a goal-directed and long-term innovation
and patenting strategy.
Biohit works with scientific communities to produce new technologies, products
and services based on research results and innovations that can be used to
develop safe and cost-effective liquid handling solutions for laboratory work as
well as diagnostic tests for the early detection and prevention of diseases of
the gastrointestinal tract.
Biohit has two business segments: liquid handling and diagnostics. Liquid
handling products include electronic and mechanical pipettes, disposable tips as
well as pipette maintenance and calibration services for research institutions,
healthcare and industrial laboratories.
The diagnostics business comprises products and analysis systems for the early
diagnosis and prevention of gastrointestinal diseases, such as the blood-sample
based GastroPanel examinations for the diagnosis of stomach illnesses and
associated risks, quick tests for the diagnosis of lactose intolerance and H.
pylori infection in connection with gastroscopy, and the ColonView examination
for the early detection of intestinal bleeding that indicates a risk of
colorectal cancer. Acetium reduces the amount of carcinogenic acetaldehyde in an
anacidic stomach. (Appendix 1 and 2)
The Biohit Group employs around 400 people. The company is headquartered in
Helsinki, Finland, and has subsidiaries in France, Germany, the UK, Russia,
India, China, Japan and the USA. The company also has a representative office in
Singapore. Biohit's products are also sold through about 450 distributors in 70
countries.
Since 1999, Biohit's Series B share has been quoted on NASDAQ OMX Helsinki in
the Small cap/Healthcare group and is traded under the code BIOBV.
Read more at www.biohit.com
Appendix 1
If a person suffers from occasional or chronic indigestion, heartburn, or upper
abdominal pain (dyspepsia), possible gastric mucosa damage or dysfunction
(atrophic gastritis) cannot be detected by a 13C‑urea breath test for
Helicobacter pylori infection or by a stool antigen test, nor by simple antibody
testing. In order to avoid potentially serious treatment errors, it is not
advisable to use these tests either for health check-ups in asymptomatic
individuals (atrophic gastritis causes conditions such as achlorhydria and is
usually asymptomatic) or for diagnosing dyspepsia or Helicobacter pylori
infection, for the following medical and ethical reasons:
“The 13C-urea breath test, stool antigen test, and antibody tests do not detect
mildly symptomatic or, most frequently, asymptomatic atrophic gastritis caused
by Helicobacter pylori infection or autoimmune disease, nor its associated
risks, which include gastric and oesophageal cancer as well as malabsorption of
vitamin B12, iron, magnesium, calcium, and certain drugs. Calcium deficiency
causes osteoporosis. Vitamin B12 deficiency may cause Alzheimer's disease,
dementia, depression, or peripheral nervous system damage, as well as a high
concentration of homocysteine, which in turn is thought to be an independent
risk factor for vascular calcification, myocardial infarction and stroke. The
absorption of dipyridamole, some iron compounds and antifungals (fluconazole,
itraconazole), thyroxine, and atazanavir is considerably reduced in the
achlorhydric stomach as a result of atrophic gastritis. The risk of pneumonias
and intestinal infections, which may even be fatal in the elderly (e.g.
giardiasis, malaria, Clostridium difficile), has been found to be significantly
higher in the achlorhydric stomach. - None of the three Helicobacter pylori
tests discussed provides information about excessive gastric acid production,
which may cause complications such as ulcerative oesophagitis and Barrett's
oesophagus in patients with gastro-oesophageal reflux disease. The complications
are often asymptomatic and may lead to oesophageal cancer if untreated.
Helicobacter pylori gastritis can also progress to atrophic gastritis of the
antrum, which increases the risk of peptic ulceration and stomach cancer.
Furthermore, the 13C‑urea breath test and stool antigen test may yield as much
as 50% false negative results for Helicobacter pylori infection when the patient
has atrophic gastritis, MALT lymphoma or bleeding peptic ulcers, or is currently
on antibiotics or PPI therapy.”
The GastroPanel test used for health check-ups in asymptomatic individuals or
for the diagnosis of dyspepsia or Helicobacter pylori infection does not involve
the serious medical and ethical problems described above (1). Therefore, from
the standpoint of patient safety, the GastroPanel is always useful for
confirming that a patient does not have mildly symptomatic or, most frequently,
asymptomatic atrophic gastritis in the gastric corpus or antrum (or both) before
prescribing proton-pump inhibitors (PPIs) for dyspepsia or PPIs and
antimicrobial drugs for Helicobacter pylori eradication. PPIs and antimicrobial
drugs do not address the risks related to atrophic gastritis, like stomach or
oesophageal cancer or deficiency of vitamin B12 and calcium. The sooner atrophic
gastritis is diagnosed and the patient is referred to gastroscopy and other
examinations, the more successfully the diseases associated with atrophic
gastritis can be prevented and treated, and the more health care costs can be
reduced (2,3).
The prevention of cancer is one of the most important objectives for both the
individual and the entire society. Gastric cancer and oesophageal cancer have a
very poor prognosis. No more than five to ten per cent of patients with one of
these cancers are alive five years after the diagnosis. Attempts to improve the
prognosis have included regular endoscopies of the oesophagus or stomach in the
hope of early diagnosis and treatment of cancer. The Finnish invention Acetium,
available at six hundred pharmacies in Finland, offers the first opportunity for
possible prevention of these cancers (www.biohit.com/Acetium).
Acetium capsules are recommended for people who 1) have an achlorhydric or
hypochlorhydric stomach due to atrophic gastritis in the gastric corpus, 2) have
a chronic Helicobacter pylori infection, or 3) need to use antacids (PPIs or H2
blockers). Acetaldehyde is formed in their stomachs as a result of microbial
activity. Achlorhydric stomach, Helicobacter pylori infection, and smoking are
the most important risk factors for gastric cancer. In addition, achlorhydric
stomach and smoking are independent risk factors for oesophageal cancer. Part of
the acetaldehyde in tobacco smoke dissolves in saliva in the smoker's mouth and
is conveyed from there to the stomach.
The International Agency for Research on Cancer (IARC) of the World Health
Organization has classified acetaldehyde, which is contained in alcoholic
beverages and formed endogenously (in the digestive tract), as a Group I
carcinogen. This puts it in the same category as asbestos, tobacco, and benzene,
for example. Acetaldehyde exposure is linked to approximately 4 million new
cases of cancer worldwide each year, nearly 40 percent of all cancers (4).
1. Sipponen P, Salaspuro M, Härkönen M. (2008) Atrofinen gastriitti.
Biomerkkiainetutkimus ja atrofinen gastriitti - tärkeä mahalaukun syövän ja B12
vitamiinipuutoksen riskitila. Yksityislääkäri 3, 99-106. (in Finnish) (Atrophic
gastritis. Biomarker testing and atrophic gastritis - a significant risk
condition for gastric cancer and vitamin B12 deficiency). Article previously
published in abridged form in the Finnish Medical Journal (Sipponen P, Härkönen
M, Salaspuro M. (2008) Atrofinen gastriitti jää liian vähälle huomiolle. Suomen
Lääkärilehti 2008;63:1428-3 (in Finnish) (Atrophic gastritis not receiving
enough attention)
2. Suovaniemi O. GastroPanel dyspepsian, helikobakteeri-infektion ja
atrofisen gastriitin ja siihen liittyvien riskien turvallisen tutkimus- ja
hoitokäytännön kehittämiseen, Offprint Yksityislääkäri 2006; 5. (available in
English: GastroPanel for the development of safe examination and treatment
praxis for dyspepsia, Helicobacter pylori infection, atrophic gastritis and the
related risks.)
3. Suovaniemi O. GastroPanel- tutkimus dyspepsian turvallisen ja
kustannustehokkaan hoidon kehittämiseen. Yksityislääkärilehti 2009; 4: 94-98 (in
Finnish) (The GastroPanel examination for developing safe and cost-effective
treatment of dyspepsia)
4. Salaspuro M. Asetaldehydi - maailman yleisin karsinogeeni,
Erikoislääkäri. 2010;20:36-39 (in Finnish) (Acetaldehyde - the most common
carcinogen in the world, Membership journal of the Finnish Association of
Medical Specialists)
Appendix 2
In primary care (health centres and occupational health care), it would be
beneficial to use the GastroPanel and ColonView examinations as follows for
health check-ups of asymptomatic patients; diagnosis of dyspepsia, Helicobacter
pylori infection, and atrophic gastritis; colon cancer risk assessment; and
management of risks related to Helicobacter pylori infection and atrophic
gastritis as well as colorectal cancer prevention:
1. As primary examinations for dyspepsia (occurs in about one-third of the
population), Helicobacter pylori infection (occurs in 20-70% depending on age),
and gastro-oesophageal reflux disease (in about 20% of the population) in health
centres and occupational health care, as well as in
2. employee health screening and
3. health check-ups of asymptomatic individuals (e.g. at five-year intervals
below
45 years of age and at three-year intervals thereafter), since atrophic
gastritis (2-12% of adult population depending on age), which causes gastric and
oesophageal cancer, is nearly always asymptomatic and was a rare incidental
finding in gastroscopy before the advent of GastroPanel. Nearly one-third of the
complications from gastro-oesophageal reflux disease may be asymptomatic. These
complications include ulcerative oesophagitis and Barrett's oesophagus, which
may lead to oesophageal cancer if untreated. GastroPanel warns of the risk of
these conditions. Similarly, ColonView is a sensitive examination specific to
human blood that can reveal the risk of colon cancer in its early stage, when
successful treatment is still possible. Symptoms at this stage are nearly always
absent, or may manifest only as upper abdominal dyspepsia, particularly in the
elderly. (The widely used Hemoccult test is not specific to human blood.)
The GastroPanel examination from a blood sample and the ColonView examination
(from stool samples on three consecutive days) are therefore recommended for use
in health centres and by occupational health physicians, both for health
check-ups of asymptomatic patients and for primary dyspepsia and Helicobacter
pylori infection diagnostics. This could uncover usually asymptomatic atrophic
gastritis, and the associated risk of cancer and so on, as well as the risk of
colon cancer that is often asymptomatic in its early stage. These are some of
the examinations that employers should consider requesting in addition to other
basic examinations in their occupational health care contracts.
For further investigation of dyspepsia to complement the GastroPanel and
ColonView tests, Biohit also offers diagnostic tests for benign irritable bowel,
i.e. irritable bowel syndrome (IBS calprotectin test); celiac disease, which
causes deficiencies in vitamin B12 and other nutrients (celiac panel); and
ulcerative colitis and Crohn's disease (IBD panel). Food allergies may be
associated with conditions such as ulcerative or irritable bowel or celiac
disease, as well as atrophic gastritis caused by autoimmune disease, rheumatoid
arthritis, and SLE. Biohit also offers a unique, patented test for the diagnosis
of SLE and its differential diagnosis from rheumatoid arthritis. In addition to
other examinations at the time of every gastroscopy, it would be advantageous to
rule out or confirm lactose intolerance and Helicobacter pylori infection using
Biohit's Quick Tests for biopsy specimens (www.biohit.com/Diagnostics). This
would reduce costly trial treatments and unnecessary examinations, promote
targeted care, and conserve scarce public resources, while also fending off many
preventable illnesses that become increasingly prevalent in aging populations
and can be severe and costly to society
(www.biohit.com/Diagnostics/Product-brochures).
Additional information:
Professor Osmo Suovaniemi, MD, PhD
Member of the Board
Tel. +358 (0)9 773 861
Osmo.suovaniemi@biohit.com
