Half-Yearly Report January-June 2023

Continued strong growth in both enzyme and antibody business 

April – June 2023

• Net sales totaled SEK 29,463 (21,093) thousand, with a growth rate of 40%. Growth is 30%, adjusted for currency effects.  
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 7,687 (2,109) thousand.
• Operating profit (EBIT) totaled SEK 5,981 (221) thousand.
• Profit for the period totaled SEK 15,219 (672) thousand.
• Earnings per share totaled SEK 0.23 (0.01).
• Comprehensive income for the period totaled SEK 16,843 (811) thousand.
• Cash flow from operating activities was SEK 1,917 (184) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 114,198 (77,369) thousand.

January – June 2023

• Net sales totaled SEK 100,739 (53,667) thousand, with a growth rate of 88%. Growth is 76%, adjusted for currency effects. Organic growth adjusted for license revenues in the first quarter from Selecta Biosciences is 41%, and 30% when also adjusted for currency effects. 
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 52,776 (13,827) thousand.
• Operating profit (EBIT) totaled SEK 49,380 (10,327) thousand. Adjusted for income and expenses related to the license to Selecta Biosciences in the first quarter, EBIT is SEK 10.5 million.
• Profit for the period totaled SEK 58,783 (12,991) thousand.
• Earnings per share totaled SEK 0.90 (0.20).
• Comprehensive income for the period totaled SEK 61,186 (13,896) thousand.
• Cash flow from operating activities was SEK 48,272 (-1,437) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 114,198 (77,369) thousand.

Comments from Fredrik Olsson, Chief Executive Officer

In the second quarter, we continue to show strong growth in the business. We grew revenue by 40% compared with the corresponding quarter last year and show growth in both the enzyme and the antibody business. Our strong growth in the core business, where enzymes in analytics grew by 43% and the antibody business by 24%, reflects our increasingly broad range of products that continue to be developed in close dialogue with our customers and our investment in the commercial organization.

We see a continuation of the strong development in the US and Europe, while Asia remains weaker due to generally subdued customer activity in China. In general, we have good activity in our business and demand is widely distributed across our growing product portfolio. We perceive a gradual increase in the focus on inflammation and immunological diseases in the pharmaceutical industry, where several technologies in our offering are relevant. Moreover, we see an increase in investments in next-generation mRNA technologies and note that our products are being used and evaluated in several mRNA projects.

During the quarter we launched two new enzymes and licensed our first enzyme for the genomics market. IgMBRAZOR™ is a proprietary enzyme that cleaves IgM antibodies with high efficiency and precision, and ImpARATOR™ broadens our offering in glycan analysis. The first orders for both products were delivered to customers in June and initial feedback has been positive. For our genomics enzyme, we have initiated the transfer of technology from the inventors and started work on developing the production process. Our plan is to start the commercialization of the enzyme in early 2024. In May, encouraging preclinical data on ASCGT were presented within the framework of our collaboration with Selecta.

The strategic strengthening of our commercial organization, which was carried out last year, along with good momentum in our product development, have positioned us well for the future. Sales growth is strong despite a general weakening of the macroeconomy, which has also affected parts of our industry, where access to venture capital for biotech companies is currently challenging.

The second quarter was characterized by a flurry of activity ahead of our move to new, specially designed premises that offer improved opportunities for scaling up and continued growth in the business. We continued to invest in infrastructure and in the beginning of the third quarter we initiated our relocation. We have protected the operational capability of certain parts of the business to ensure our ability to deliver during the relocation period. The move is expected to be completed by the beginning of the fourth quarter.

I am of course extremely pleased with our performance for both the second quarter and the first half of the year. We have almost doubled our revenue compared with the previous year, while increasing our operating profit fivefold. At the same time that we are investing for our future growth with new premises, and while continuing to pursue a highly active product development strategy, we are also maintaining a strong cash position that provides opportunities for further aggressive investments.

The start of the third quarter continues to show good customer activity and I look forward to further developing and growing our business in new premises together with my colleagues at Genovis – who continue to do a fantastic job of helping our customers in their quest to develop the medicines of the future.

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 24-08-2023 08:00 CET.