Diaxonhit : 2015 Mid-Year Results

• 6% groth of in vitro diagnostic products sales
• Improved operating result at constant euro-dollar exchange rate
• €1.7 M impact on cost of goods sold related to the stronger dollar, partially compensated by a €1.1 M gain in currency exchange
• Strong financial situation with €11.6 M in cash and cash equivalents, enabling the company to maintain investments in R&D and commercial development

PARIS, Sept. 24, 2015 (GLOBE NEWSWIRE) -- DIAXONHIT (Alternext: ALEHT, FR0004054427), a French leader in specialty in-vitro diagnostics for transplantation, infectious diseases and cancer, announced its financial results for the 6 months ended June 30, 2015.

“Again, the 6% increase of our sales highlights, in a globally declining French market, the strength of DIAXONHIT’s positioning in specialty in vitro diagnostics and reinforces our innovation strategy with the current launches of AlloMap and BJI InoPlex.” Commented Loïc Maurel, President of DIAXONHIT’s Management Board. “H1 2015 profitability was affected by the strengthening of the US dollar against the euro despite foreign exchange instruments set up by our Group, as purchase costs of our distribution products increased over the period. At constant exchange rates, our results would have improved, in line with the trend initiated in 2014. Given this situation and with a strong cash position at € 11.6 million, we will continue to adapt and accelerate the diversification of our product sourcing as well as the development of our sales in dollars with a test dedicated to the US market in thyroid cancer.”

Comments on H1 2015 results

During the first semester of 2015, sales of DIAXONHIT’s diagnostic products were up 6% compared to the first half of 2014. In a French diagnostics market down about 5%, the relevance of DIAXONHIT’s positioning in specialty in vitro diagnostics enabled this growth. Supplemented mainly by a milestone payment of USD 500,000 received from Allergan, total revenues are maintained at € 16.0 million, offsetting the end of the partnership with Allergan in December 2014.

In accordance with Company’s expectations, operating expenses decreased overall by € 0.6 million compared to the first half of 2014 :

• R&D expenses were reduced, in connection with the end of the partnership with Allergan;
• Marketing and selling expenses rose in line with efforts to launch BJI InoPlex and AlloMap;
• Administrative costs increased slightly, mainly due to an accounting reclassification of expenses from selling to administration and the implementation of a new management tool.

Operating profitability is nevertheless affected by the significant strengthening of the US dollar against the euro, which resulted in an increase of the purchase cost of distribution products by approximately € 1.7 million. Operating profit thus declined by € 1.5 million to € -3.4 million. However, this decline was offset by financial gains generated by instruments put in place by the Company to reduce the effects of currency fluctuations. As a result, net income stood at - € 2.3 million, down only € 0.3 million compared to the first half of 2014.

Using the average exchange rate for the first half of 2014, the purchase cost of distribution products would have been lower by approximately € 1.7 million during the first semester of 2015, which would have resulted in an operating profit of - € 1.6 million, an improvement of 14% compared to the same period of 2014. This reflects the continuous efforts to control operational expenses.

With a strong cash position of € 11.6 million, DIAXONHIT intends to maintain its investments in marketing and R&D in order to further develop and launch commercially its proprietary products that represent the future of the group.

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