Year-end Report January - December 2021

October – December 2021    

• Net sales rose by 112% to SEK 42,060 (19,850) thousand. About SEK 20 million relates to licensing agreements with Selecta Bioscience. Growth is 108%, adjusted for currency effects.
• Gross profit rose by 97% to SEK 39,024 (19,761) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 23,361 (6,196) thousand.
• Operating profit jumped SEK 17,291 thousand and totaled SEK 21,895 (4,604) thousand.
• Comprehensive income for the period improved by SEK 16,828 thousand and totaled SEK 23,175 (6,347) thousand.
• Comprehensive income per share totaled SEK 0.35 (0.10).
• Cash flow from operating activities was SEK 37,368 (-672) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 81,315 (44,118) thousand.
• Magnus Långberg has been hired as the new CFO for the group; his most recent position was at Hemocue AB. Before that he worked at companies such as QPharma and BD Medical.
• Genovis has entered into an exclusive licensing agreement with Selecta Bioscience Inc. to develop and promote a novel patent pending antibody-cleaving enzyme, Xork™, as a potential pretreatment prior to the administration of gene therapy and for autoimmune diseases. Under the terms of the multi-year agreement, Genovis will receive USD 6 million in advance payment and early milestone payments, and is entitled to up to USD 598 million in development, regulatory and commercial milestone payments. Genovis will also receive double-digit royalties on sales of Xork.

January – December 2021

• Net sales rose by 52% to SEK 93,018 (61,030) thousand. Growth is 56%, adjusted for currency effects. About SEK 20 million relates to licensing agreements with Selecta Bioscience.
• Gross profit improved by 44% to SEK 85,600 (59,370) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 30,314 (8,573) thousand.
• Operating profit improved by SEK 21,403 thousand and totaled SEK 24,543 (3,140) thousand.
• Comprehensive income for the period improved by SEK 24,856 thousand and totaled SEK 26,828 (1,973) thousand.
• Comprehensive income per share, basic and diluted, totaled SEK 0.41 (0.03).
• Cash flow from operating activities was SEK 45,411 (3,755) thousand.

Comments from Fredrik Olsson, Chief Executive Officer

We show strong growth for the fourth quarter, driven in part by revenue related to the license business in Gene Therapy, as well as from a recovery in our core business in Analytics, where we saw higher customer activity in all geographic markets.

Revenue from Gene Therapy increased almost six times compared with the corresponding quarter last year and totaled about SEK 20 million, mainly attributable to license revenue from our collaboration agreement with Selecta Bioscience.

We are also pleased to see that enzyme sales in Analytics grew by 35%, reflecting the improved market situation we experienced during much of the quarter as a result of eased restrictions, with customers able to return to work in laboratories to a greater extent.

Sales in our antibody business showed a weaker trend compared with the corresponding period last year, mainly because they relate to service operations with lengthy projects, where shifts in revenue between individual quarters are not uncommon. Several development programs are currently underway for products that complement the enzyme business in gene therapy, where the first products, which were launched in 2021, were well received by our customers.

We launched two new products during the fourth quarter, which means that we launched an impressive six products in the enzyme business in 2021. Both products were well received, which confirms our ability to pay close attention to the market in order to guide our product development and create value for our customers. Continuing to broaden the product portfolio is one of our key strategic goals for both current and future application areas for our enzyme technology. We have also expanded our antibody offering with products for research in Alzheimer’s Disease and will add additional products during 2022.

Despite periods of challenges in different parts of the business in 2021, we can once again report yet another year of strong growth and it is particularly rewarding to note that we achieved our best earnings to date. Our focus on customers and on new applications for our enzyme technology is the basis of our success. In the short term, uncertainties persist regarding Covid-19 developments, but in the longer term, Genovis’ growth opportunities remain intact. We have built up a good cash base, which enables us to be enterprising and invest in Genovis' continued growth journey.

Our successes in 2021 lay an excellent foundation for expansion as a result of license revenue and a strong expansion of the product offering through six launched products. The final quarter of the year was therefore characterized by additional bold initiatives through the expansion of our organization. We are now implementing several strategic initiatives within both the sales and business development organizations. In addition to a new vice president of global sales and marketing, at the beginning of 2022 the sales organization was strengthened with sales representatives in local markets to increase our opportunities to be even closer to our customers. In Europe, we began with a presence in the UK and we intend to expand to more geographic markets during the year. In Asia, beginning in January, for the first time we have our own sales staff in the strategically important Shanghai region in China. We also added resources for our strategic efforts in business development in order to take advantage of more opportunities in new application areas, licensing and potential acquisition opportunities in the future. At the beginning of 2022 we strengthened the commercial organization in San Diego with the aim of expanding our products and services for the antibody business.

I would like to close by thanking the Board of Directors and shareholders for their support and commitment over the past year. I would also like to warmly thank my colleagues at Genovis, who have done an amazing job of handling a challenging year with great dedication, for which reason I look forward with confidence to 2022.

Reports

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 08-02-2022 08:00 CET.