Interim Report January-June 2010

​Consolidated earnings amounted to SEK 1,641k  (SEK 270k) 

Consolidated operating loss amounted to SEK 5 076k (SEK 6,216k 

Consolidated net loss amounted to SEK thousands, 5,127k (SEK loss: 6,340k) 

Earnings per share for the period amounted to SEK –0.12 SEK (SEK -0.50) 

Comprehensive income for the period amounted to SEK - 5 127k (SEK - 6,342k) 

Cash flow from current operations SEK -3,800k  (SEK -7,482k) 

Cash flow after investment operations SEK -3,800k  (SEK -7,695k)

Second quarter highlights

In May Genovis’ rights issue closed, with a subscription rate of 68% and existing shareholders subscribing to 88% of the total proceeds.  The rights issue raised SEK 16.5m for Genovis before issue expenses, which means an increase in the number of shares from 24,589,839 to 41,121,877 and an increase in share capital from SEK 9,835,935.5 to SEK 16,448,750.8.

In April Genovis received SEK 600,000 in research support for the Sentinel Node project from LMK Industri AB. The Sentinel Node project, a collaborative effort with the Department of Radiophysics at Lund University Hospital, is based on a brand new generation of nanoparticles with combined magnetic, radioactive, and fluorescent properties for MRI/PET imaging. The Swedish Research Council previously granted Genovis a four-year position for an industry-based doctoral student for the Sentinel Node project.

In June Genovis launched a new product, Mass Spec Kit. The product, which is a combination of the enzymes IgGZERO and FabRICATOR, is mainly used in the development and production of antibody-based drugs. The Mass Spec Kit provides customers with improved, more cost-effective quality control. The product is also faster and safer than existing technologies. The launch of the Mass Spec Kit is primarily aimed at R&D operations and quality control at biotech and pharmaceutical companies that develop and produce antibody-based drugs.

Comments from the CEO

At the end of the period, net sales per rolling 12 months increased by approximately 150% compared with the same time last year and revenues for the period increased by 110% compared with the same period in 2009. I am cautious about placing too much value on percentages when volumes are low, but I can conclude that this growth represents a stable trend. It is gratifying that our products are appreciated and that the proceeds in the form of research grant support for our development in imaging has increased considerably. The customer base is growing and currently consists of four of the top ten pharmaceutical companies, several biotech companies, and academic clients.

I presented our product Mass Spec Kit at two conferences in the United States: Immunology 2010 in Baltimore and Antibody Engineering and Design in Boston.  At the conference in Boston Centorcore, part of global Johnson & Johnson, presented studies in which they used FabRICATOR as research reagent. It was especially rewarding that the results showed that the enzyme FabRICATOR (IdeS) is specific with high enzymatic activity which is in line with our studies. The response to the presentations has been positive and the launch of the product is now underway in cooperation with our distributors. The product was developed in conjunction with specialists in mass spectrometry (MS) at Lund University and is a direct result of requests from our customers. Development of additional products in Genovis’ protein engineering portfolio proceeded according to plan during the period and will be launched in the autumn.

In late April I participated at the first consortium meeting in the EU-funded LUPAS project. Genovis’ role in the project is to help create nanostructures and to analyze and project future market potential and commercial opportunities. Initial results and future research strategy were discussed at the meeting. Genovis’ Sentinel Node research project is also proceeding according to plan. Optimization of the nanostructures’ various functions and dosing for detection of lymph nodes in the preclinical phase is underway. It is gratifying to note that we received additional financial support for the project in the spring.

Sarah Fredriksson, CEO 

Find out more, contact: Sarah Fredriksson, CEO, Genovis AB Tel: +46 46 10 12 35 sarah.fredriksson@genovis.com

Genovis is a biotech company on the leading edge of nanotechnology and nanoparticles. The company’s patented nano-induced magnetic transfer (NIMT®) technology was developed to facilitate effective preclinical research for the life science industry. Genovis shares are listed on Nasdaq OMX First North and Thenberg & Kinde Fondkommission is our certified adviser.