Genovis Release: New Products And Sharply Increased Sales
• Net sales rose by about 45% to SEK 2,886k (1,984k).
• Comprehensive income fell by SEK 1,168k to SEK -5,006k (-3,838k).
• Comprehensive income per share, basic and diluted, improved by SEK 0.04 to SEK -0.23 (-0.19).
• Cash flow from operating activities was SEK -4,854k (-6,213k).
• Genovis launched a new enzyme product that is being marketed under the name GingisKHAN™ for customers primarily in the pharmaceutical industry for characterization of antibody-based drugs.
• Genovis launched a new service concept through which customers can order antibody fragmentation with “Smart Enzymes,” thereby opens a new market niche for the company's products.
• In January 2015 the wholly owned subsidiary Genovis Inc. was registered in the state of Delaware in the US to increase its presence in the North American market.
Launch of demanded product and best sales figures ever
During the past quarter we received our first confirmation that our new sales strategy, pipeline and focus on our customer offering are producing results. Our sales jumped 45 percent during the first quarter compared with the same period last year. If we look solely at current sales of goods and services, and not at reimbursement for development projects, this represents a 73-percent increase compared with last year.
Sales in the US increased by 51 percent and in Europe by 29 percent. This strong performance can be explained in part by exchange rate effects on the US market, but is mostly an actual increase in sales. We see continued growth in the number of new customers, while the number of individual orders increased by 68 percent compared with the same period last year.
Costs rose by 30 percent, in part due to costs associated with staffing and startup costs for our sales organization in the US. Genovis Inc. has an office in Boston and a warehouse in San Diego. The business is off to a flying start and today we can provide our US customers with full support and 24-hour delivery. The largest cost increase compared with the same period in 2014 is primarily the result of expenses related to the lawsuit against Promega, which has had a negative impact on earnings. However, Genovis has an insurance policy to ensure that we minimize our legal costs in this case.
As part of the development of our pipeline, in March we launched GingisKHAN™, the first of several new enzymes. This enzyme has been in demand in the market and has an estimated market potential of USD 10 million. GingisKHAN is an enzyme that splits an antibody very rapidly at a specific location in the molecule. The product complements FabRICATOR® and FabULOUS®, but can also be used in studies of intact Fab and Fc fragments. This is important for Genovis’ customers in analyses such as in crystallization, studies of bispecific antibodies and for studies of the three-dimensional structure of antibodies. We received the first orders on the same day as the launch and we are excited about our continued work with the launch this spring.
Based on the trend during the first quarter, it would seem that the strategic decisions we made last year are now paying off. We will continue to develop our sales initiatives and launch three more products during the year, with the aim of increasing the number of customers and maintaining sales at a high level.
Sarah Fredriksson
President & CEO
For more information, please contact:
Sarah Fredriksson, CEO, Genovis AB
Tel: 0046 (0)46 -101235
sarah.fredriksson@genovis.com
ABOUT GENOVIS
Genovis’ business concept is to develop, produce and market innovative technologies that facilitate and enable development of new treatment methods and diagnostics for customers in the medical device and pharmaceutical industries. The Group consists of Genovis AB and the subsidiary GeccoDots AB. Genovis develops and sells unique enzymes in innovative product formats that facilitate development and quality control of and biological drugs. GeccoDots uses nanotechnology to produce a new type of contrast agent that is used in medical imaging.
Genovis shares are listed on NASDAQ Stockholm First North, and Consensus is Certified Adviser for the Company, t: 46 (0)31-745 50 00
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• Comprehensive income fell by SEK 1,168k to SEK -5,006k (-3,838k).
• Comprehensive income per share, basic and diluted, improved by SEK 0.04 to SEK -0.23 (-0.19).
• Cash flow from operating activities was SEK -4,854k (-6,213k).
• Genovis launched a new enzyme product that is being marketed under the name GingisKHAN™ for customers primarily in the pharmaceutical industry for characterization of antibody-based drugs.
• Genovis launched a new service concept through which customers can order antibody fragmentation with “Smart Enzymes,” thereby opens a new market niche for the company's products.
• In January 2015 the wholly owned subsidiary Genovis Inc. was registered in the state of Delaware in the US to increase its presence in the North American market.
Launch of demanded product and best sales figures ever
During the past quarter we received our first confirmation that our new sales strategy, pipeline and focus on our customer offering are producing results. Our sales jumped 45 percent during the first quarter compared with the same period last year. If we look solely at current sales of goods and services, and not at reimbursement for development projects, this represents a 73-percent increase compared with last year.
Sales in the US increased by 51 percent and in Europe by 29 percent. This strong performance can be explained in part by exchange rate effects on the US market, but is mostly an actual increase in sales. We see continued growth in the number of new customers, while the number of individual orders increased by 68 percent compared with the same period last year.
Costs rose by 30 percent, in part due to costs associated with staffing and startup costs for our sales organization in the US. Genovis Inc. has an office in Boston and a warehouse in San Diego. The business is off to a flying start and today we can provide our US customers with full support and 24-hour delivery. The largest cost increase compared with the same period in 2014 is primarily the result of expenses related to the lawsuit against Promega, which has had a negative impact on earnings. However, Genovis has an insurance policy to ensure that we minimize our legal costs in this case.
As part of the development of our pipeline, in March we launched GingisKHAN™, the first of several new enzymes. This enzyme has been in demand in the market and has an estimated market potential of USD 10 million. GingisKHAN is an enzyme that splits an antibody very rapidly at a specific location in the molecule. The product complements FabRICATOR® and FabULOUS®, but can also be used in studies of intact Fab and Fc fragments. This is important for Genovis’ customers in analyses such as in crystallization, studies of bispecific antibodies and for studies of the three-dimensional structure of antibodies. We received the first orders on the same day as the launch and we are excited about our continued work with the launch this spring.
Based on the trend during the first quarter, it would seem that the strategic decisions we made last year are now paying off. We will continue to develop our sales initiatives and launch three more products during the year, with the aim of increasing the number of customers and maintaining sales at a high level.
Sarah Fredriksson
President & CEO
For more information, please contact:
Sarah Fredriksson, CEO, Genovis AB
Tel: 0046 (0)46 -101235
sarah.fredriksson@genovis.com
ABOUT GENOVIS
Genovis’ business concept is to develop, produce and market innovative technologies that facilitate and enable development of new treatment methods and diagnostics for customers in the medical device and pharmaceutical industries. The Group consists of Genovis AB and the subsidiary GeccoDots AB. Genovis develops and sells unique enzymes in innovative product formats that facilitate development and quality control of and biological drugs. GeccoDots uses nanotechnology to produce a new type of contrast agent that is used in medical imaging.
Genovis shares are listed on NASDAQ Stockholm First North, and Consensus is Certified Adviser for the Company, t: 46 (0)31-745 50 00
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