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Interim Report January-March 2023

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Record earnings and strong growth in all areas of the business

January-March 2023

  • Net sales totaled SEK 71,276 (32,574) thousand, with a growth rate of 119%. Growth is 107%, adjusted for currency effects. Net sales include USD 4 million in license revenues from Selecta Biosciences. Organic growth adjusted for license revenues from Selecta Biosciences is 41%, and 30% when also adjusted for currency effects. 
  • Gross profit totaled SEK 67,098 (29,419) thousand.
  • Operating profit before depreciation and amortization (EBITDA) totaled SEK 45,089 (11,717) thousand.
  • Operating profit (EBIT) totaled SEK 43,399 (10,105) thousand. Adjusted for income and expenses related to the license to Selecta Biosciences, EBIT is SEK 4.5 million.
  • Profit for the period totaled SEK 43,564 (12,317) thousand.
  • Earnings per share totaled SEK 0.67 (0.19).
  • Comprehensive income for the period totaled SEK 44,343 (13,083) thousand.
  • Cash flow from operating activities was SEK 46,355 (-1,622) thousand.
  • Cash and cash equivalents at the end of the period totaled SEK 115,397 (78,119) thousand.

Comments from Fredrik Olsson, Chief Executive Officer

We started the first quarter of the year with record-breaking sales, making it our single best quarter ever. Revenue increased by 119%, driven by gene therapy license revenue, and at the same time we delivered our best quarter ever for the core business.

Growth in our core business was 41%, where enzymes in analytics grew by 38% and the antibody business by 60%, which is the single best quarter for each segment respectively to date. We mainly saw strong development in both the US and Europe, while Asia was slightly weaker due to sluggish customer activity in China. In general, we see continued robust activity in our business.

During the quarter, we launched a further developed product based on our GlySERIAS enzyme, which continued to show solid sales growth at the beginning of the year. Our product development continues to have good momentum with additional product launches planned during the year. Our collaboration with Selecta Biosciences in gene therapy is following the established development plan and preclinical data will be presented at ASCGT in May. Our sales and marketing team continued to create good activity in our markets, aided by strong support from development and production, as well as application and support.

In April, we acquired the patent rights to a new enzyme for analyzing DNA. This is our first enzyme in genomics with applications in research, diagnostics and forensics. During the year, we will work on developing applications with the enzyme together with partners for future commercialization.

To further strengthen our local presence and commercial capability in China, we have initiated a collaboration with ArcticZymes Technologies. Both companies have unique enzymes with high customer value for the global Life Science industry and together they open up opportunities for a stronger commercial organization and development in the Chinese market.

In the second half of the year, we will move the business to new, specially designed premises that offer improved opportunities for continued growth and scaling up of the business. At the beginning of the year, we started investing in equipment and furnishings, which will continue in the second quarter with the move planned for the third quarter.

I am of course extremely pleased with our performance at the beginning of the year. It is particularly satisfying that all parts of the core business show strong growth and that we have maintained a good gross margin despite increased raw material costs. Much of the increase in the total cost base compared with the previous year is linked to the licensing deal with Astellas, with respect to both incentives and royalty to inventors.

With an outstanding performance, a strong start to the year and good customer activity, I look forward to Genovis' continued growth journey. I would like to thank my colleagues at Genovis who work hard every day to find the optimal solution to the challenges that our customers face.

This disclosure contains information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 16-05-2023 08:00 CET.

For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: +46 (0)70-276 46 56 fredrik.olsson@genovis.com

Genovis’ business concept is to apply its knowledge and customer driven innovation to design and provide 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. (US). Genovis shares are listed on Nasdaq First North Growth Market and Erik Penser Bank is the Company’s Certified Adviser, certifiedadviser@penser.se, tel: +46 (0)8-463 83 00.

Published reports can be downloaded from the Genovis website: https://investor.genovis.com/en/financial-reports/

This 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.

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