Q-Med's turnover up by 71%

Q-MED's TURNOVER UP BY 71% 1999 in brief * Turnover increased by 71% to SEK 144 million (84). * Operating income was SEK 18 million, 46% better than the previous year (12). * Earnings per share increased by 100% to SEK 0.86 (0.43). * New approvals: Deflux for stress urinary incontinence and Perlane for facial contouring. * Agreement signed with Ixion Biotechnology. Per Olof Wallström, Managing Director, comments on the financial statements as follows: "The increase in sales for the year is primarily attributable to our aestethics operations, which increased by 84% to SEK 125 million. The increase is due both to healthy growth in existing markets such as Brazil, Italy, Germany and France and to the establishment of new markets, where sales of Restylane in South Korea have developed positively. In order to get our new products on to the market we are investing aggressively, and this applies to research and development, clinical trials and documentation. These costs increased by 215%. Despite the strong expansion we can present an operating income which is 46% better than the previous year. During the year we signed an agreement with an American biotechnology company - Ixion Biotechnology, Inc. - concerning cooperation within the field of cell therapy for the treatment of diabetes. The project is still at the development stage and gives Q-Med a great deal of knowledge about cells' behaviour in NASHA gels. In March we are launching two new products within facial aesthetics, Restylane Fine Lines and Perlane. At the end of the year we estimate that we will have our new product for osteoarthritis, Durolane, approved for sales in Europe. The funds generated by the new share issue in connection with Q-Med's listing on the O-list of the OM Stockholm Stock Exchange have given us the financial strength required to move ahead at the pace we desire." Attached: Report on operations 1999 Queries should be addressed to Per Olof Wallström, Managing Director, on +46(0)18-474 90 00 or +46(0)70-974 90 70. Q-Med AB (publ) REPORT ON OPERATIONS 1999 * Q-Med reports a net turnover of SEK 143.7 million (84.0) for 1999, an increase of 71%. Sales of aestethic products increased by 84% to SEK 124.8 million (67.9). The number of employees increased from 77 to 110. * Large investments were made in research and development. Due to the great sales expansion, operating income was 46% better than the previous year and amounted to SEK 18.2 million (12.5). Operating income before R&D expenses was SEK 41.4 million (19.8), an increase by 109%. Net income amounted to SEK 15.7 million (7.7), which means that earnings per share increased by 100% to SEK 0.86 (0.43). * On December 6 the Q-Med share was introduced on the O-list of the OM Stockholm Stock Exchange. In connection with the introduction a new share issue was carried out, which generated SEK 258 million net for Q-Med. * In September Deflux was approved (CE-marked) for the indication of stress urinary incontinence in women. In November CE-approval was obtained for Perlane, Q-Med's product for facial contouring. * An agreement was reached with Ixion Biotechnology concerning cooperation on the transplantation of stem cells with the aim of curing insulin- demanding diabetes. Q-Med's NASHA gel will act as a protective barrier and encapsulating medium for the cells. * The cash flow from the current year's operations remained positive at SEK 14.1 million (14.1). SEK 28.1 million (38.6) was invested in new premises and production equipment. The new share issue at the end of the year meant that liquid funds amounted to SEK 250.6 million (2.8) at December 31, 1999. The equity/assets ratio amounted to 82.6% (44.9). * No dividend is proposed. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/18/20000218BIT00210/bit0001.doc The full report http://www.bit.se/bitonline/2000/02/18/20000218BIT00210/bit0002.pdf The full report