INCREASED SALES AND SIGNIFICANTLY IMPROVED EARNINGS

July – September

• Net sales increased by 38% to SEK 4,627k (3,358k).

• Comprehensive income was a loss of SEK 1,059 (loss: 6,470k).

• Comprehensive income per share totaled SEK -0.02 (-0.18).

• Cash flow from operating activities was SEK -3,003k (-2,698k).

• Cash and cash equivalents including short-term investments amounted to SEK 6,599k (6,145k) at the end of the period.

Events after the end of the period

Genovis has entered into a license agreement with Life Technologies, a wholly owned subsidiary of Thermo Fisher Scientific, and is launching a unique new technology for labeling antibodies. 

January – September

• Net sales rose by about 33% to SEK 13,030k (9,770k).

• Expenses excluding legal fees1) and non-recurring costs2 declined by SEK 853k to SEK 19,086k (19,939k). Recognized expenses for the period amounted to 31,325k (31,646k).

• Operating result excluding legal fees/reimbursement from the insurance company1) and non-recurring costs2) amounted to a loss of 5,331k (loss: 9,801k). Recognized operating loss for the period was SEK 12,472k (loss: 16,652k).

• Comprehensive income basic and diluted excluding legal fees/reimbursement from the insurance company1) and non-recurring costs2) amounted to a loss of 5,493k (loss: 9,974k). Recognized comprehensive income for the period was a loss of SEK 12,634k (loss: 16,825k).

• Comprehensive income per share, basic and diluted, excluding legal fees/reimbursement from the insurance company1) as well as non-recurring costs2 totals SEK -0.13 (-0.58). Recognized comprehensive income per share basic and diluted totaled SEK -0.29 (-0.61).

1)Legal fees and reimbursement from the insurance company are attributable to the settled patent dispute in the US.

2)Non-recurring costs relate to 2015 and amount to a total of SEK 6,036k.

Comments from CEO Fredrik Olsson 

I am pleased to report that the past quarter is Genovis’ best single quarter to date in terms of earnings. It is a clear sign that our strategic work with unique, high-quality products for pharmaceutical companies with a focus on biopharmaceuticals represents a market of the future and that Genovis is now well-positioned in this market. The third quarter demonstrates continued strong organic growth in the product portfolio and we can conclude that Genovis’ revenue has increased for the eighth consecutive quarter compared with the corresponding period the previous year. Gross margin remains high and stable in the third quarter at 93 percent and sales increased across the board in every product category. In all, sales surged 38 percent compared with the previous year.

We are extremely pleased with and proud of the licensing agreement with Life Technologies, a subsidiary of Thermo Fisher Scientific, which was signed in early October. It is a clear stamp of quality that a world-leading industry colleague wants to collaborate with Genovis to introduce a new technology for labeling antibodies. As further confirmation in this collaborative effort, Life Technologies is recommending selling and marketing the product through Genovis – high praise for the value of our accumulated customer base and how customers perceive us as a company in this market. Our customer list includes all of the major pharmaceutical companies, representing both recognition of the customer value of our products, as well as our ability to reach out to a global pharmaceutical market.

The new product, GlyCLICK™, opens up a parallel business area for us and focuses on the same customer base that we currently have – pharmaceutical companies that develop biological drugs. I therefore expect that adoption by the market will be facilitated since these customers are already aware of Genovis and recognize our quality, service and knowledge. Our initial market strategy is to establish the product on the preclinical market to promote acceptance and confidence in the technology platform, thereby simplifying the step to clinical use where the value is of course much higher. It will be exciting to follow the growth of GlyCLICK™ moving forward.

Looking ahead, I see several signs of continued strong growth for Genovis. There are strong underlying driving forces in the development of biopharmaceuticals and in recent years we have seen several of the major pharmaceutical companies clearly position their product portfolios based on biologics, especially antibodies where Genovis is already well-established. New antibody formats such as antibody drug conjugates (ADC) and bispecific antibodies will further grow the market. During development and production of these various biologicals cost effective and safe analytical methods will be very important moving forward, och Genovis will be an important player in this segment.

I would like to take this opportunity to thank all our employees and shareholders for a highly successful quarter.

For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 fredrik.olsson@genovis.com

This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on November 23, 2016.

ABOUT GENOVIS

Genovis is a global company that offers enzyme products that facilitate development and quality control of biologics to customers in the pharmaceutical and medical technology industries. The Company markets several enzyme products (“SmartEnzymes”) in innovative product formats all over the world.

The organization consists of Genovis AB and the wholly owned subsidiary Genovis Inc. in the US. Genovis Inc. handles all sales of enzyme products on the North American market and Genovis AB handles sales in the rest of the world. Genovis shares are listed on Nasdaq First North Stockholm and Consensus is the Company’s Certified Adviser, t: +46(0) 31 745 50 00.

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.