YEAR-END REPORT JANUARY-DECEMBER 2016

Summary: fourth quarter 2016

• Net sales rose by about 58 percent to SEK 5,511k (3,499k).

• Expenses for the period declined to SEK 8,206k (10,790k).

• Comprehensive income basic and diluted excluding legal fees/reimbursement from the insurance company1) amounted to a loss of SEK 1,923k (loss: 3,056k). Recognized comprehensive income for the period was a loss of SEK 2,383k (loss: 3,104k).

• Comprehensive income per share, basic and diluted, excluding legal fees/reimbursement from the insurance company1) as well as non-recurring costs2 totals SEK -0.03 (-0.08). Recognized comprehensive income per share totaled SEK -0.04 (-0.08).

• Cash flow from operating activities was SEK -2,074k (-3,940k).

• Genovis has entered into a license agreement with Life Technologies, a wholly owned subsidiary of Thermo Fisher Scientific, and will launch GlyCLICK™, a unique new method for labeling antibodies, in the spring.

• Genovis has signed an agreement with Penser Bank AB for its services as Certified Advisor.

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

Summary: full-year 2016

• Net sales rose by about 40 percent to SEK 18,542k (13,268k).

• Expenses for the twelve-month period amounted to SEK 39,531k (42,517k)

• Operating result excluding legal fees/reimbursement from the insurance company1) and non-recurring costs2) amounted to a loss of SEK 7,168k (loss: 12,926k). Recognized operating loss for the full year was SEK 14,769k (loss: 19,824k).

• Comprehensive income basic and diluted excluding legal fees/reimbursement from the insurance company1) and non-recurring costs2) amounted to a loss of SEK 7,417k (loss: 13,030k). Recognized comprehensive income for the full year was a loss of SEK 15,018k (loss: 19,928k).

• Comprehensive income per share, basic and diluted, excluding legal fees/reimbursement from the insurance company1) as well as non-recurring costs2 totals SEK -0.16 (-0.43). Recognized comprehensive income per share, basic and diluted, totaled SEK -0.32 (-0.66).

• Cash flow from operating activities was SEK -16,075k (-16,117k).

• Cash and cash equivalents including short-term investments amounted to SEK 4,281k (2,052k) at the end of the twelve-month period.

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.

Strong sales growth and expanded product portfolio

In 2016 Genovis’ sales were off to a flying start. We can now conclude that sales have grown for nine quarters and 2016 ended as strongly as it began. During the fourth quarter sales surged 58 percent for an increase of 40 percent on an annualized basis, providing an increase in sales of SEK 5,274k. We can also note that our gross margin is at a high stable level.  

Growth has been organic during both the quarter and the full year, with sales growing as a result of our established strategy of working with direct sales on our prioritized markets in the US and Europe.  

This growth is driven by increased demand throughout the industry, which has a need to simplify and improve analytical methods and new antibody formats. We have seen all of our product categories grow throughout the year and new product launches have immediately generated sales.  

We are determinedly working to continuously develop and expand our product portfolio and our geographic presence. In 2016, we launched two products according to plan, both of which generated revenue.  

In October we entered into a license agreement with Life Technologies, a wholly owned subsidiary of Thermo Fisher Scientific, to launch GlyCLICK™, a unique new technology for labeling antibodies. This expansion of our portfolio with a completely new type of product has enabled development of a new and additional business area. The agreement with Life Technologies is a clear stamp of approval for the quality of  

Genovis’ expertise and technology. GlyCLICK has already attracted interest from our customers and the product is planned to be available for sale at the beginning of the second quarter, after some of its components were affected by delivery delays. Our ambition to introduce our portfolio on some strategically important markets in Asia remains unchanged. Intensive efforts are currently being dedicated to identifying the right partner. We are considering expertise, as well as the existing portfolio and network of contacts, so that we have a natural path forward to new customers.  

As we look ahead, we see continued demand for our products, especially from global pharmaceutical companies that are increasingly focused on biologics. The need for effective and reliable analytical methods will therefore continue to be strong. Genovis has established itself as a potential partner for several of these companies. We are a respected brand in the industry and today we are well-positioned to continue to deliver and develop our knowledge into more products and expand to more markets with new and existing customers. 

Fredrik Olsson

CEO

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 February 27, 2017.

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 Penser Bank is the Company’s Certified Advisor, t: 46(0) 8 463 83 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.