Earnings Release • May 15, 2018
Earnings Release
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Gentian Diagnostics AS is a medical diagnostics company listed on Merkur Market, Oslo Stock Exchange with the ticker "GENT-ME".
Gentian is headquartered in Moss, Norway, with a representative office in China and distribution subsidiaries in Sweden and USA.
Gentian designs, develops and markets in vitro diagnostic reagents (IVD) based on its proprietary NanosenseTM technology. The goal is to offer efficient and accurate reagents within the areas of kidney disease, cardiac disease, inflammation and veterinary medicine. The NanosenseTM technology will enable users to move assays from low volume immunology platforms to fully automated, high throughput instruments with shorter turnaround times, better workflow and improved cost efficiency. The subsidiary PreTect AS develops and manufactures molecular diagnostic tests to detect oncogenic activity in cervical samples. The products PreTect SEE and PreTect HPV Proofer contribute to earlier detection of cervical cancers.
Comparative numbers for Gentian 1Q 2017 in ()
Total operating revenue ended at MNOK 11.2 (MNOK 6.4) for 1Q18.
Sales revenue in 1Q18 ended at MNOK 9.6 (MNOK 4.8), a 100 % increase compared to 1Q17.
Geographic split:
| MNOK | 1Q18 | 1Q17 |
|---|---|---|
| US | 0,4 | 0,3 |
| Europe | 6,1 | 3,5 |
| Asia | 3,1 | 1,0 |
| Total | 9,6 | 4,8 |
Other operating revenue ended at MNOK 0.6 (MNOK 0.7) for 1Q18. SkatteFUNN funding ended at MNOK 1.0 (MNOK 0.9) for 1Q18.
COGS ended at MNOK 2.3 (MNOK 1.1) in 1Q18, which represents 23 % (24 %) of sales revenue. COGS % for the quarter is as expected, but significant variations from quarter to quarter are likely to continue.
Total operating expenses before capitalization of R&D expenses ended at MNOK 12.7 (MNOK 12.2) in 1Q18.
Operating costs include total salary and social expenses of MNOK 8,4 (MNOK 7.2) and other expenses of MNOK 4.2 (MNOK 5.0) for 1Q18. The increase is according to the planned acceleration of activities.
Total operating expenses after capitalization of R&D expenses ended at MNOK 12.0 (MNOK 10.0) in 1Q18.
R&D expenses amounted to 31 % (33 %) of total operating expenses before capitalization for 1Q18.
Operating loss before depreciation and amortization (EBITDA) ended at MNOK -3.1 (MNOK -4.7) for 1Q18.
Net financial income/expense ended at MNOK 0.1 (MNOK 0.2) for 1Q18.
Net loss ended at MNOK -3.9 (MNOK -5.4) for 1Q18.
Cash and cash equivalents as of 31.03.2018 were MNOK 140,6 (MNOK 160,9). Of this, MNOK 1.6 is placed in a collateral account for currency trading, and MNOK 0.3 is currently held in a deposit account. The remaining cash balance, a total of MNOK 138.7, is placed in both savings accounts and current accounts.
Accounts receivables as of 31.03.2018 were MNOK 7.2 (MNOK 3.3).
Inventory as of 30.03.2018 were MNOK 12.3 (MNOK 9.2).
Cash flow from operating activities ended at MNOK -5.5 (MNOK -7.9) for 1Q18.
Cash flow from investment activities ended at MNOK -0.8 (MNOK -3.2) 1Q18. Included in investment activities are capitalization of R&D expenses, which in 1Q18 amounted to MNOK 0.7 (MNOK 2.3).
Cash flow from financial activities ended at MNOK 0.0 (MNOK 96.0) for 1Q18.
Cystatin C sales increased by 23% from 4Q17. The growth is equally driven by OEM sales to China and worldwide distribution. cCRP showed the same growth rate, but from a lower base. fCAL turbo increased by 10% from the high 4Q17 level. Gentians distribution company in Sweden achieved a major milestone when it made its first sales of 3rd party products during the quarter.
Progress in the clinical studies for Gentian's new plasma Calprotectin assay, GCAL continued in 1Q18. The objective of these projects is to demonstrate that the new product may have a potential to be superior in diagnosing and monitoring sepsis, severe inflammations and infections, and inflammatory diseases like rheumatoid arthritis. There are currently 11 studies in progress or under planning related to GCAL and the Company will report on the outcome of these studies as the results are made public.
The optimization of ultrasensitive assays for cardiovascular diseases, and prototype studies of assays for monitoring therapy of HIV infections are ongoing.
Gentian expects growth in fCAL, Cystatin C and cCRP to continue. In addition, the company will continue its endeavor to establish clinical evidence for the use of GCAL in sepsis and inflammation.
Within R&D, Gentian expects to progress into the verification phase for our cardiovascular marker G-1001. The company also is preparing for new commercial launches in 2019 and 2020.
After the end of 1Q18, Gentian announced that Proof-of-Concept was achieved for measuring hemoglobin and plasma ferritin from the same whole-blood sample. Fully commercialized this can be a significant improvement in detecting insufficient iron storage in blood donors on-site, as well as monitoring iron deficiency at General Practitioners offices and following up results from iron supplement treatment.
There are no additional events to report after the balance sheet date.
20 largest shareholders in Gentian Diagnostics AS as of 31.03.2018 according to VPS:
| Shareholder | Number of shares | % |
|---|---|---|
| Holta Life Sciences AS | 2 028 502 | 14,49 % |
| Salix AS | 1 353 945 | 9,67 % |
| Safrino AS | 1 350 000 | 9,65 % |
| Storebrand Vekst | 805 634 | 5,76 % |
| Vatne Equity AS | 760 000 | 5,43 % |
| Silvercoin Industries AS | 602 394 | 4,30 % |
| Vingulmork Predictor AS | 535 710 | 3,83 % |
| Verdipapirfondet DNB SMB | 484 900 | 3,46 % |
| Statoil Pensjon | 400 131 | 2,86 % |
| Portia AS | 375 000 | 2,68 % |
| Bård Sundrehagen | 357 010 | 2,55 % |
| Strawberry Capital AS | 300 300 | 2,15 % |
| Cressida | 235 000 | 1,68 % |
| Spar Kapital Investor | 234 000 | 1,67 % |
| Norda ASA | 231 720 | 1,66 % |
| OM Holding AS | 209 000 | 1,49 % |
| MARSTAL AS | 202 000 | 1,44 % |
| DnB NOR MARKETS | 200 000 | 1,43 % |
| Altitude Capital AS | 187 386 | 1,34 % |
| Mutus AS | 187 210 | 1,34 % |
| Employee Shareholders | 170 666 | 1,22 % |
| Other Shareholders | 2 785 785 | 19,90 % |
| Total Shares | 13 996 293 | 100,00 % |
| Statement of Comprehensive Income Gentian Group | |||
|---|---|---|---|
| 2018 | 2017 | 2017 | |
| (figures in NOK thousands) | Q1 | Q1 | 01.01-31.12 |
| Operating Revenue | |||
| Sales revenue | 9 645 | 4 756 | 27 845 |
| Royalties | - | 48 | 96 |
| Other operating revenue | 596 | 704 | 2 908 |
| SkatteFUNN - tax deduction | 1 008 | 854 | 4 139 |
| Total Operating Revenue | 11 249 | 6 362 | 34 989 |
| Operating Expenses/Costs | |||
| Cost of goods sold | -2 263 | -1 139 | -7 263 |
| Operating costs | -12 702 | -12 246 | -46 446 |
| Capitalization | 661 | 2 281 | 5 534 |
| Total Operating Expenses/Costs | -14 304 | -11 104 | -48 175 |
| EBITDA | -3 055 | -4 742 | -13 186 |
| Depreciation | -946 | -784 | -3 016 |
| EBIT | -4 001 | -5 526 | -16 202 |
| Financial income/expense | 121 | 197 | 1 032 |
| Net Profit | -3 880 | -5 329 | -15 170 |
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| (figures in NOK thousands) | 31.03 | 31.12 | 31.03 |
| Assets | |||
| Non-Current Assets | |||
| Property, plants and equipment | 4 879 | 5 097 | 4 677 |
| Capitalized development costs | 16 502 | 16 357 | 14 236 |
| Other intangible assets | 13 520 | 13 641 | 14 004 |
| Loan to other companies | - | - | 725 |
| Financial assets | 1 947 | 1 949 | 1 870 |
| Total Non-Current Assets | 36 848 | 37 043 | 35 512 |
| Current Assets | |||
| Inventory | 12 282 | 11 092 | 9 209 |
| Accounts receivables | 7 192 | 6 809 | 3 285 |
| Other receivables | 6 943 | 5 283 | 6 890 |
| Cash and cah equivalents | 138 631 | 145 003 | 159 077 |
| Derivatives | - | - | - |
| Total Currents Assets | 165 049 | 168 187 | 178 461 |
| Total Assets | 201 896 | 205 230 | 213 974 |
| Equity and Liabilities | |||
| Equity | |||
| Net profit (Loss) | 3 880 | 15 170 | 5 329 |
| Other equity | -196 428 | -211 645 | -211 629 |
| Equity | -192 548 | -196 475 | -206 300 |
| Non-Current Liabilities | |||
| Interest-bearing loans and dept | -436 | -466 | - |
| Total Non-Current Liabilities | -436 | -466 | - |
| Current liabilities | |||
| Accounts payable | -3 772 | -3 549 | -3 686 |
| Public dept | -1 321 | -1 694 | -1 133 |
| Accrued expenses | -3 819 | -3 046 | -2 854 |
| Derivatives | - | - | - |
| Bank overdraft | - | - | - |
| Total Current Liabilities | -8 912 | -8 288 | -7 674 |
| Total Equity and Liabilities | -201 896 | -205 230 | -213 974 |
| Cash Flow Statement | |||
|---|---|---|---|
| 2018 | 2017 | 2017 | |
| (figures in NOK thousands) | 31.03 | 31.12 | 31.03 |
| Cash Flow from Operating Activities | |||
| Net profit (loss) | -3 880 | -15 172 | -5 329 |
| Depreciation | - 946 |
- 3 016 |
- 784 |
| Change Inventory | -1 190 | -3 546 | -1 663 |
| Change Accounts Receivables | -383 | -3 954 | -430 |
| Change Accounts Payables | 223 | 29 | 167 |
| Change in other short-term receivables/ liabilities | -1 260 | 953 | -1 406 |
| Net Cash Flow from Operating Activities | -5 545 | -18 673 | -7 877 |
| Cash Flows from Investment Activities | |||
| Acquisition of Property, plant and equipment | -93 | -1 357 | -224 |
| Investment in intangible assets | -661 | -5 534 | -2 281 |
| Investment in other companies | - | - | - |
| Loan to other companies | - | - | -725 |
| Other changes in financial items | - | - | - |
| Net Cash Flow from Investment Activities | -753 | -6 891 | -3 230 |
| Cash Flow from Financial Activities | |||
| New debt | - | 466 | - |
| Downpayment of loans | -30 | - | - |
| Change in Bankoverdraft | - | - | - |
| Cash flows from share issues | - | 96 069 | 96 069 |
| Dividend payment | - | - | - |
| Net Cash Flow from Financial Activities | -30 | 96 535 | 96 069 |
| Net Change in Cash and Cash Equivalents | -6 328 | 70 971 | 84 961 |
| Cash flow from last period | 146 951 | 75 958 | 75 958 |
| Currency adjustment | -46 | 23 | 11 |
| Net Cash and Cash Equivalents | 140 578 | 146 951 | 160 930 |
| Statement of Changes in Equity | |||||
|---|---|---|---|---|---|
| Share Capital | Share Premium | Other Reserves | Other Equity | Total Equity | |
| As of 31st December 2016 | 1 113 915 | 128 359 331 | 1 467 131 | -15 399 041 | 115 541 336 |
| Net profit (loss) | -15 169 906 | -15 169 906 | |||
| Proceeds from share issue | 285 714 | 99 714 291 | 100 000 005 | ||
| -3 931 089 | -3 931 089 | ||||
| Share Issue Cost | |||||
| Other changes in equity | 35 018 | 35 018 | |||
| As of 31st December 2017 | 1 399 630 | 224 142 533 | 1 467 131 | -30 533 929 | 196 475 365 |
| Net profit (loss) | -3 880 195 | -3 880 195 | |||
| Proceeds from share issue | - | ||||
| Share Issue Cost | - | ||||
| Other changes in equity | -47 001 | -47 001 | |||
| As of 31st March 2018 | 1 399 630 | 224 142 533 | 1 467 131 | -34 461 126 | 192 548 168 |
| Quarterly figures are unaudited | |||||
The interim report for Q1 2018 has been prepared in accordance with IAS 34 Interim Reporting. The accounting policies applied in the interim report corresponds to what was used in preparing the annual financial statements for 2017.
The Company uses currency rates given by DNB ASA.
There are currently two projects where the Gentian Group is capitalizing R&D expenses.
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