Half-Yearly Report January – June 2019
April–June in brief
- Net sales rose by about 34 percent to SEK 11,509 (8,578) thousand.
- Operating result before depreciation and amortization (EBITDA) improved by SEK 2,986 thousand and totaled SEK 2,390 (loss: 596) thousand.
- Operating result (EBIT) improved by SEK 3,553 thousand to SEK 1,628 (loss: 1,925) thousand.
- Comprehensive income for the periodimproved by SEK 3,173 thousand to SEK 1,380 (loss: 1,793) thousand.
- Comprehensive income per share, basic and diluted, improved by SEK 0.05 to SEK 0.02 (-0.03).
- Cash flow from operating activities was SEK 145 (80) thousand.
- Genovis signed a collaboration agreement with Thermo Fisher Scientific for the development of new methods for automatic sample handling and analysis of biopharmaceuticals based on chromatographic and mass spectrometric analytical methods (LC-MS).
- Genovis signed a distribution agreement with FUJIFILM Wako Pure Chemical for the markets in Japan, Singapore and Taiwan. The agreement includes distribution of current and future SmartEnzymes.
- Genovis launched SialEXO® 23 for improved glycan analysis. SialEXO 23 is a specific enzyme that can be used to study glycan profiles in biological drugs.
- Genovis has hired Johny Humaloja to serve as CFO. Humaloja assumed the position in August and is responsible for financial management and ongoing financial reporting at Genovis.
Half year in brief
- Net sales rose by about 58 percent to SEK 23,440 (14,825) thousand.
- Gross profit for the period improved by SEK 9,247 thousand to SEK 23,309 (14,062) thousand.
- Operating result EBIT improved by SEK 6,863 to SEK 3,571 (loss: 3,292) thousand.
- Comprehensive income for the six-month period improved by SEK 6,160 thousand and totaled SEK 2,971 (loss: 3,189) thousand.
- Comprehensive income per share, basic and diluted, improved by SEK 0.10 to SEK 0.05 (loss: 0.05).
Events after the end of the half year
Genovis received an order for SmartEnzymes that will be used in the manufacturing process for a biological drug. The order amounts to about SEK 13 million This is a new application for the company’s products. The order is the result of the positive outcome of an evaluation study conducted at a global biopharma company in early 2019. The customer now intends to use Genovis’ enzyme for production of a drug candidate for a phase 1 clinical study.
Comments from Fredrik Olsson, Chief Executive Officer
The Company’s strong growth continued during the second quarter. Sales rose by 34 percent compared with the same period the previous year. Operating profit continued to move in the right direction and improved by about SEK 3.5 million compared with the second quarter of 2018. Over a rolling twelve-month period, our sales volume passed SEK 43 million, and operating profit during the same period was about SEK 6 million.
Production, product development and the marketing organization have all been extremely active, at the same time that we successfully achieved several key milestones for Genovis’ future development.
Our collaboration agreement with Thermo Fisher has generated activities in both product development and our marketing organization during the second quarter. We have participated in several marketing activities organized by Thermo Fisher where we had the opportunity to showcase our products. In addition, we jointly initiated product development projects primarily aimed at automatic quality analysis. For example, during the summer we had instrumentation from Thermo Fisher installed in Lund in order to be able to maintain the pace of the projects and develop new solutions for efficient quality analysis for the biopharma market.
During the period we initiated collaboration with Fujifilm for sales, marketing and distribution of our products in Japan, Singapore and Taiwan. Their marketing organization now has our material and I am confident that we will have continued growth opportunities in the Asian markets going forward.
In terms of operations, the quarter has been influenced by continued expansion of the business at every level. An important step was taken in association with the expansion of our production facility with modern new premises, which were also taken into operation during the second quarter. We have invested in modern new production equipment that will be able to offer increased productivity and flexibility with retained high product quality for our customers. We will continue to invest in our production facility in the coming quarters to meet the increased demand for our current product portfolio, as well as future product launches. Investments have affected our cash flow according to plan during the second quarter. At the beginning of the third quarter, we further expanded our total area to enable continued expansion of our operations.
In August we received our largest single order to date. The order is linked to the previously announced evaluation of Genovis’ enzyme in a new application. Our product was evaluated as part of a process in the production of a biological drug and the order is the result of a successful evaluation study conducted at a global biopharma company. Unlike our current main market in quality analysis, where our enzymes are used to determine whether a drug has desired or expected properties, our product will now be used as a step in the actual production process for a biological drug in phase 1 trials. This means that our products must meet increasingly stringent quality requirements, at the same time that we need to increase production capacity, since volume requirements and safety are crucial in bioprocess applications. We have acquired the necessary capacity for this initial order and if the bioprocess business area continues to develop favorably, we will make additional investments in production capacity.
I am both pleased and proud of the years of effort that my colleagues have dedicated to building the Genovis brand and a whole array of quality products that are now proving to have high customer value even in the production of biological drugs.
We have demonstrated continual strong annual sales growth on a twelve-month basis for almost five years with retained margins and we have now achieved an operating profit for four consecutive quarters. I look forward to working with my fabulous colleagues to help our customers in their efforts to develop tomorrow’s medications and to continue to build Genovis for the future.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 email@example.com
Genovis’ business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Stockholm and Erik Penser Bank is the Company’s Certified Adviser, firstname.lastname@example.org, T: +46 (0)8-463 83 00.
This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on August 28, 2019.
This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.