AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Biocartis Group NV

Interim / Quarterly Report Sep 2, 2021

3919_ir_2021-09-02_0b72c225-2b38-4cf1-87db-f21646b86cca.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

FINANCIAL REPORT HT 2021 BIOCARTIS GROUP NV

BIOCARTIS' MISSION IS TO OFFER RAPID & EASY MOLECULAR DIAGNOSTICS SOLUTIONS AIMED AT ENABLING FASTER & MORE ACCURATE

TREATMENT DECISIONS FOR PATIENTS ACROSS THE GLOBE

m

Kinish

IdyllaTM

A revolutionary, fully automated system that makes molecular testing convenient and exceptionally fast. Suitable for any lab.

$\mathbf{1}$ Message from the CEO
2. Responsibility statement
3. Business review of the first half of 2021
4. Principal risks related to the business activities
5 1 Condensed consolidated interim financial statements for the period ended 30 June 2021
6. Notes to the condensed consolidated interim financial statements
7. Review report of the auditor
8. Disclaimer and additional information
9. Glossary

$\mathbf 1$ . MESSAGE FROM THE CEO

Dear Shareholder. Dear Stakeholder,

After the very strong performance in H1 2021, both in terms of instrument placements as well as commercial cartridge volumes, the fire was obviously an unfortunate set-back. Although we cannot deny the fire has an impact, this event again showed the incredible resilience of our teams who have been working with relentless focus and dedication to limit the fall-out.

I am proud to announce that we currently expect a smooth restart of the ML2 line by the second half of September 2021. This is also important considering the recent launch of the Idylla™ SARS-CoV-

2/Flu/RSV Panel, the upgrade of our existing Idylla™ SARS-CoV-2 Test (CE-IVD) that now also includes Flu A/B and RSV. Ahead of a delayed flu season, this Panel is well positioned to quide healthcare providers in this complex landscape of respiratory infections in 2022.

Furthermore, I am very excited to announce a possible break-through in our cartridge manufacturing with the ongoing evaluation of a new simplified, cost-efficient cartridge design which is expected to significantly lower manufacturing costs for a selection of our Idylla™ assays. Together with the ongoing development of a new technology on Idylla™ which aims to personalize Idylla™ assays while reducing development time and cost, this could prove to be a pivotal development towards sustainable growth in the years to come."

Herman Verrelst CFO Biocartis

$2.$ RESPONSIBILITY STATEMENT

The undersigned hereby declare that to the best of their knowledge: a) the condensed consolidated interim financial statements for the six-months' period ended 30 June 2021, which have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union, give a true and fair view of the net equity, financial position and results of the Company and the companies included in the consolidation, and b) give a true and fair view of the main events and the impact thereof on the condensed consolidated interim financial statements c) give a true and fair view of the main risks and uncertainties with respect to the remaining months of the fiscal year, and the main transactions with related parties and the impact thereof on the condensed consolidated interim financial statements.

Herman Verrelst CEO

Christian Reinaudo Chairman

$\overline{\mathbf{3}}$ . BUSINESS REVIEW FOR THE FIRST HALF OF 2021

KEY HIGHLIGHTS H1 2021

  • 156k commercial Idvlla™ cartridges sold, almost twice as high as in H1 2020 (+96%):
  • Q1 2021 marked by 70% growth, followed by an even stronger +136% in Q2 2021:
  • Robust growth in oncology across all regions: solid contribution from infectious diseases, comparable to the H2 2020 volumes against the backdrop of declining global COVID-19 testing volumes.

  • 189 new Idylla™ placements in H1 2021 (101 in H1 2020) mainly driven by demand in European and distributor markets as well as by content partners;

  • Installed base of 1,770 Idylla™ instruments end of H1 2021;
  • Average annualized cartridge consumption per Idylla™ instrument during H1 2021 was 209, in part reflecting high utilization for infectious disease testing.
  • Encouraging first market demand for the Idylla™ GeneFusion Assay (RUO);
  • First oncology assay US FDA submission for Biocartis with the 510(k) notification for the Idylla™ MSI Test for the detection of MSI and to aid in the differentiation between sporadic colorectal cancer and potential Lynch Syndrome:
  • FUR 1.4m grant from VLAIO (Flemish Agency for Innovation & Entrepreneurship), subject to the development of a new Idylla™ technology;
  • Post the reporting period, successful CE-IVD launch of the Idylla™ SARS-CoV-2/Flu/RSV Panel:
  • New partnership with SkylineDx for the development of SkylineDx's novel proprietary Merlin Assay on Idylla™ aimed at predicting a patient's risk of nodal metastasis in melanoma;
  • Expanded partnership with AstraZeneca announced to improve access to rapid and easy-to-use Idylla™ EGFR testing products at selected hospital sites in European and global distributor markets.

  • Total operating income amounted to EUR 23.1m compared to EUR 17.1m last year;

  • Product revenues increased by 62% from EUR 11.4m in H1 2020 to EUR 18.5m in H1 2021;
  • Total operating expenses (excluding cost of sales) of EUR 39.1m in H1 2021 increased from EUR 34.7m in H1 2020:
  • Cash and cash equivalents at 30 June 2021 amounted to FUR 85.0m.

COMMERCIAL HIGHLIGHTS

  • Commercial cartridge volume:
  • 156k commercial Idylla™ cartridges sold, almost twice as high as in H1 2020 (+96%);
  • Q1 2021 marked by 70% growth, followed by an even stronger +136% in Q2 2021;
  • Robust growth in oncology across all regions; solid contribution from infectious diseases, comparable to the H2 2020 volumes against the backdrop of declining global COVID-19 testing volumes.

Installed base:

  • 189 new Idylla™ placements in H1 2021 (101 in H1 2020) mainly driven by demand in European and distributor1 markets as well as by content partners;
  • Installed base of 1,770 Idylla™ instruments end of H1 2021;
  • Average annualized consumption per Idylla™ instrument during H1 2021 was 209, in part reflecting high utilization for infectious disease testing.

Regional performance:

  • Europe Strong increase in new Idylla™ placements in European markets, leading to continued growth of cartridge volumes in Europe. Strongest growth in oncology, combined with the acquisition of new EU customers needing rapid SARS-CoV-2 testing for safe access to hospitals, events and travel.
  • US Although Idylla™ placements slowed down in the US because of constrained hospital budgets following the pandemic, US commercial cartridge volumes grew by 150%. Growth driven by increased demand for oncology biomarker testing, although the return to pre-pandemic oncology biomarker testing volumes showed to be more disparate across the US. In infectious diseases, demand for SARS-CoV-2 testing in H1 2021 significantly down from 2020 levels.
  • Distributor markets Strong performance in terms of Idylla™ placements. Cartridge volume regained traction in oncology in all regions2.
  • China and Japan Continued progress was made in China and Japan3. Registration of the Idylla™ instrument in China is expected by the end of this year, while Idylla™ assay registrations are expected to follow earliest end of 2022 in both countries. Furthermore, during H1 2021, the progress in the local manufacturing set-up in China was going well, with local manufacturing of first cartridge volumes needed for local registration of the assays expected in H1 2022.

TEST MENU, PARTNERSHIPS & PUBLICATION HIGHLIGHTS

  • Encouraging first market demand for the Idylla™ GeneFusion Assay (RUO4), launched on 22 March 2021. The Assay detects, in one single cartridge, a wide range of biomarkers covering all gene fusions5 considered to be relevant in cancer research6.
  • First oncology assay US FDA submission for Biocartis with the 510(k)7 notification for the |dylla™ MSI Test for the detection of MSI8 and to aid in the differentiation between sporadic colorectal cancer and potential Lynch Syndrome on 20 April 2021
  • EUR 1.4m grant from VLAIO9 announced on 11 May 2021, subject to the development of a new Idylla™ technology.
  • Post the reporting period, successful CE-IVD launch of the Idylla™ SARS-CoV-2/Flu/RSV Panel which detects SARS-CoV-2. Flu A/B and RSV nucleic acids in one single cartridge within approx. 90 minutes. Timing of the Emergency Use Authorization ('EUA') submission to the US FDA to be decided.
  • New partnership with SkylineDx announced on 22 April 2021 for the development of SkylineDx's novel proprietary Merlin Assay on Idylla™ aimed at predicting a patient's risk of nodal metastasis in melanoma.
  • Expanded partnership with AstraZeneca announced on 4 May 2021 to improve access to rapid and easy-to-use Idylla™ EGFR testing products at selected hospital sites in European and global distributor markets.
  • 19 new Idylla™ publications, abstracts and posters were published in peer-reviewed journals during H1 2021,

1 Defined as the world excluding European direct markets, U.S. China and Japan

2 During Q1 2021, the Idyllane platform, the Idyllane BRAF Mutation Test (CE-IVD) and the Idyllane EGFR Mutation Test (CE-IVD) completed registration in Russia, and the Idyllane MSI Test (CE-IVD) completed registration in Taiwan, as such expanding the commercial footprint for Biocartis' IVD medical devices. Post the reporting period, additional registrations were also completed in Taiwan

3 In China, Biocartis established a joint venture ('China JV') with Guangzhou Wondfo Biotech Co., Ltd (SHE: 300482), a fast-growing diagnostics leader in China. In Japan, Biocartis is collaborating with Nichirei Bioscience 4 RUO = Research Use Only, not for use in diagnostic procedures

4 ROO – Research Ose Only, not for use in diagnostic procedures
5 Biomarkers including gene fusions involving ALK1, ROS1, RET, NTRK1-2-3 as well as MET exon 14 skipping
6 Stransky et al. The landscape of kinase fusions in 381 2015

دمة, حاضر) is a premarketing submission made to FDA to demonstrate that the device to be marketed is as safe and effective, that is, substantially equivalent (SE), to a legally marketed device that is not subject to premarket approval (PMA). A 510(k) or Premarket Notification (PMN) with the US FDA is required when introducing a device into commercial approvals-denials-and-clearances, last consulted on 17 distribution for the first time. Source: https://www.fda.gov/medical-devices/products-and-medical-procedures/device August 2021

8 MSI or Microsatellite Instability is the result of inactivation of the body's so-called DNA mismatch repair (MMR) system, which normally spontaneously corrects errors that occur during DNA replication

9 Flanders government agency for Innovation & Entrepreneurship

including the publication of two studies10 by Memorial Sloan Kettering Cancer Center ('MSKCC', New York, US) concluding that Idylla™ EGFR testing (RUO) enables rapid assessment of the most common EGFR mutations with low sample input, even on different sample types, without compromising subsequent more comprehensive NGS11 testing, which can be useful in cases where EGFR mutation results were negative and further testing is needed. One abstract12 was presented at the ASCO Annual Meeting taking place virtually between 4-8 June 2021. One abstract on the SeptiCyte® RAPID on Idylla™ was presented at the 31st ECCMID (European) Congress $\Omega$ f Clinical Microbiology $\mathcal{R}_{\mathcal{L}}$ Infectious Diseases) congress (9-12 July 2021).

OPERATIONAL & ORGANIZATIONAL HIGHLIGHTS

  • Shareholders' Meetings All agenda items approved during the ordinary shareholders' meeting held on 14 May 2021, including the re-appointment of Herman Verrelst, CEO of the Company, as director of the Company for a term of four years, and the appointment of Christian Reinaudo as independent director of the Company for a term of three years13. All agenda items approved during the extraordinary general shareholders' meeting held on 4 June 2021, including the renewal of the authorization to the Board of Directors to increase the share capital of the Company by up to 75% of the then current amount of the share capital, during a period of five (5) years.
  • Cartridge manufacturing Transfer of the Idylla™ EGFR Mutation Test (CE-IVD) to the second cartridge manufacturing line ('ML2') completed during H1 2021. This concluded the transfer of Biocartis' main oncology assays to ML2, which is a key driver of cost optimizations within the Company's cartridge manufacturing activities. The resulting improvement of the gross margin on product sales was however offset by the global shortage of certain reagent supplies caused by the pandemic that forced lower than planned production volumes.

FINANCIAL HIGHLIGHTS

  • Total operating income Total operating income amounted to EUR 23.1m compared to EUR 17.6m last year. Product revenues increased by 62% from EUR 11.4m in H1 2020 to EUR 18.5m in H1 2021. Within product sales, cartridge sales revenues increased by 54%. Idylla™ instrument sales revenues of EUR 3.7m doubled on the back of 189 new instrument placements, 88 more than in H1 2020. Collaboration revenues amounted to EUR 2.6m and solely consisted of R&D services provided to partners. The decrease of EUR 2.0m compared to H1 2020 is predominantly driven by the different timing of certain collaboration projects.
  • Idylla™ cartridge average sales price (ASP) Idylla™ oncology cartridge ASP was stable at EUR 104. The ASP of the IdyllaTM SARS-CoV-2 Test was lower than last year, in line with expectations and resulting in an overall ASP of EUR 95.

10 Arcila ME, Yang S-R, Momeni A, Mata DA, Salazar P, Chan R, Elezovic D, Benayed R, Zehir A, Buonocore DJ, Rekhtman N, Lin O, Ladanyi M, Nafa K, Ultra-Rapid EGFR Mutation io According Followed by Comprehensive Next-Generation Sequencing: A Feasible, Informative Approach for Lung Carcinoma Cytology Specimens with a High Success Rate., JTO Chical and Research Reports (2020), doi: https://doi. Mol Diagn 2020, Published on 23 December 2020, 1-12; https://doi.org/10.1016/j.jmoldx.2020.11.009 11 Next Generation Sequencing

ment veneration sequencing
12 Behera et al. Circulating tumor DNA mutation as a prognostic marker in melanoma with brain metastasis. J Clin Oncol 39, 2021 (suppl 15; abstr e21560); Only the abstracts at the
12 Behera et al

13 To replace CRBA Management BV, permanently represented by Christian Reinaudo, as independent director of the Company

  • Gross margin Gross margin on products of 8%, compared to 18% in H1 2020 as a result of the impact of the lower ASP of the Idylla™ SARS-CoV-2 Test. Furthermore, the gross margin was also temporarily impacted by higher COGS because production volumes were lower than expected as the pandemic caused a global shortage of reagent supplies. COGS also included the effect of hiring additional staff in anticipation of increasing volumes in the second half of the year.
  • OPEX Total operating expenses (excluding cost of sales) of EUR 39.1m in H1 2021 increased from EUR 34.7m in H1 2020, predominantly as a result of the planned acceleration and diversification of the Idyllam test menu, both in oncology and in infectious diseases.
  • Net cash flow and cash position The net cash outflow from operating and investing activities amounted to EUR 35.8m in H1 2021 compared to EUR 25.6m in H1 2020. The increased outflow is attributable to (a) lower gross margin and (b) higher investment in net working capital and higher capital expenditure resulting from a higher number of Idylla™ instruments placed under reagent rental agreements. The cash and cash equivalents at 30 June 2021 amounted to EUR 85.0m.
  • Revised credit facility During H1 2021, Biocartis entered into a new credit facility with KBC Bank, replacing the facilities with KBC Bank and BNP Paribas Fortis that came to maturity in 2020. This facility consists of a EUR 7.5m straight loan and a EUR 7.5m rollover credit line. To date, the new credit facility remains undrawn.

KEY FIGURES H1 2021

The tables below show an overview of the key figures and a breakdown of operating income for H1 2021 and H1 2020. Consolidated financial statements and accompanying notes are included in Biocartis' half-year 2021 report that is available here on the Company's website.

Key figures (EUR 1,000) H1 2021 H1 2020 % Change
Total operating income 23,057 17,606 31%
Cost of goods sold $-17,059$ $-9,233$ 85%
Research and development expenses $-23,389$ $-20,303$ 15%
Sales and marketing expenses $-7.740$ $-7,931$ $-2%$
General and administrative expenses $-7,935$ $-6,491$ 22%
Operating expenses $-56,132$ $-43,958$ 28%
Operating result $-33,075$ $-26,352$ 26%
Net financial result $-4,249$ $-5,129$ $-17%$
Share in the result of associated companies $-101$ $-195$ $-48%$
Income tax 149 118 26%
Net result $-37,276$ $-31,558$ 18%
Cash flow from operating activities $-33.752$ $-24,526$ 38%
Cash flow from investing activities $-2,087$ $-1,028$ 103%
Cash flow from financing activities $-3,518$ $-3,456$ 2%
Net cash flow 1 $-39,357$ $-29,010$ 36%
Cash and cash equivalents 2 84,905 149,674 $-43%$
Financial debt 149,412 165.258 $-10%$

1 Excludes the effect of exchange rate differences on the cash balances held in foreign currencies

2 Including EUR 1.2m of restricted cash in H1 2021 and H1 2020

Operating income (EUR 1,000) H1 2021 H1 2020 % Change
Collaboration revenue 2,640 4.746 $-44%$
Idylla™ system sales 3.715 1,837 102%
Idylla™ cartridge sales 14.749 9.584 54%
Product sales revenue 18,463 11.421 62%
Service revenue 748 530 41%
Total revenue 21,851 16.697 31%
Grants and other income 1.206 909 33%
Total operating income 23,057 17,606 31%
Product sales revenue (EUR 1,000) H1 2021 H1 2020 % Change
Commercial revenue : 18.441 10.491 76%
Research & development revenue $\sim$ 930 -98%
Fotal product sales revenue 18,463 11.421 62%

$\overline{\mathbf{4}}$ . PRINCIPAL RISKS RELATED TO THE BUSINESS ACTIVITIES

The principal risks related to Biocartis' business activities are outlined in Biocartis' 2020 Annual Report, p.42-55 available on the Biocartis website here. In summary, the principal risks and uncertainties faced by Biocartis relate to strategic and commercial risks, operational risks, regulatory risks and financial risks. Except for the update on the impact of COVID-19, the impact of the fire incident of 30 July 2021 as described below, and the going concern described in note 6.4, the principal risks have not materially changed from the ones outlined in the 2020 Annual Report.

RISKS RELATED TO COVID-19

During the first half of 2021, the pandemic still impacted the ordinary course of business, but global cancer care started to normalize. Commercial cartridge volumes in oncology grew across all regions and the contribution from the IdvIIam SARS-CoV-2 test remained robust. As a consequence, product income strongly grew by 62% to EUR 18.5m from EUR 11.4m in H1 2020.

The pandemic however started to impact the supply of raw materials. As a result, production volumes in H1 2021 were lower than expected as the pandemic caused a global shortage of reagent supplies, impacting gross margin through higher cost of goods, which also included the effect of hiring additional staff in anticipation of increasing volumes in the second half of the year. Further information on the impact of COVID-19 on the Group's operations and its financial results can be found in sections 3 and 6.3.

RISKS RELATED TO THE FIRE INCIDENT OF 30 JULY 2021

After the fire that broke out at one of the warehouse facilities in Mechelen (Belgium) during the night of 30 July 2021, the Company has taken immediate actions to mitigate the loss of finished products and raw materials as well as the temporary unavailability of the high-throughput ML2 manufacturing line. Aiming to safeguard continued supply to customers as much as possible, actions included (i) the redirection of additional personnel and resources to the unaffected ML1 cartridge manufacturing line to temporarily increase production on this line, (ii) the placement of orders to replenish critical reagents lost in the fire from different suppliers to minimize production delay and (iii) the prioritization of oncology and partner project tests manufacturing. The latter consequently also reduces the Idylla™ SARS-CoV-2 testing volumes.

As a result, Biocartis is able to confirm a 40% cartridge volume growth target for 2021, however subject to the timely availability of reagent raw materials for Idylla™ cartridges in sufficient quantities and the full restart of the ML2 line, which is now expected by the 2nd half of September. Nevertheless, due to the already known delays in the supply of certain assay-specific reagents, certain products may still be temporarily unavailable to meet the entire customer demand and further mitigating action may be required after production resumes on ML2.

A further overview and description of risk factors that may affect the future operating and financial performance of Biocartis and the value of an investment in the Company's securities can be found in Biocartis' annual and half-year reports.

For the 6 months ended
In EUR 000 Notes 30 June 2021 30 June 2020
Collaboration revenue 6.5 2,640 4,746
Product sales revenue 6.5 18,463 11,421
Service revenue 6.5 748 530
Total revenue 21,851 16,697
Other operating income
Grants and other income 6.6 1,206 909
Total operating income 23,057 17,606
Cost of sales 6.7 $-17,059$ $-9,233$
Research and development expenses 6.8 $-23,398$ $-20,303$
Sales and marketing expenses $-7,740$ $-7,931$
General and administrative expenses 6.9 $-7,935$ $-6,491$
Total operating expenses $-56,132$ $-43,958$
Operating loss for the period $-33,075$ $-26,352$
Financial expense 6.10 $-4,703$ $-5.083$
Other financial results 6.10 454 -46
Financial result, net $-4,249$ $-5,129$
Share in the results of joint ventures $-101$ $-195$
Loss for the period before taxes $-37,425$ $-31,676$
Income taxes 149 118
Loss for the period after taxes $-37,276$ $-31,558$
Attributable to owners of the Group $-37,276$ $-31,558$
Earnings per share
Basic and diluted loss per share 6.11 $-0.65$ $-0.56$
For the 6 months ended
In EUR 000 Notes 30 June 2021 30 June 2020
Loss for the period -37,276 $-31,558$
Other comprehensive income (loss),
not to be reclassified to profit or
loss:
Re-measurement gains and losses on defined
benefit plan
-449 -83
Income taxes on items of other
comprehensive income
112 28
Other comprehensive gain (loss) for
the year, that may be reclassified to
profit and loss:
Exchange differences on translation of foreign
operations
152 86
Total comprehensive loss for the
period
-37,461 -31,527
Attributable to owners of the Group $-37.461$ -31,527
As of
In EUR 000 Notes 30 June 2021 31 Dec 2020
Assets
Non-current assets
Intangible assets 5,377 5,645
Property plant and equipment 6.12 38,381 40,098
Financial assets 6.13 1,140 $\Omega$
Investment in joint ventures 2,871 2,893
Other non-current assets 13 426
Deferred tax assets 1,437 1,472
49,219 50,534
Current assets
Inventories 17,544 15,712
Trade receivables 12,015 13,488
Other receivables 6.14 4,865 3,960
Other current assets 2,064 3,155
Cash and cash equivalents* 84,905 123,668
121,393 123,668
Total assets 170,612 210,517
Equity and liabilities
Capital and reserves
Share capital $-220,657$ $-220,657$
Share premium 711,874 711,874
Share based payment reserve 6,512 6,102
Accumulated deficit $-492,467$ $-455343$
Other comprehensive income $-5,489$ $-5,152$
Total equity attributable to owners
of the Group $-227$ 36,824
Non-current liabilities
Provisions 30 $\circ$
Borrowings and lease liabilities 6.15 16,221 18,625
Convertible debt 6.15 126,675 125,260
Deferred income 6.16 338 363
143,264 140,248
Current liabilities
Borrowings and lease liabilities 6.15 6,516 6,673
Trade payables 11,864 13,907
Deferred income 6.16 1,932 1,278
Other current liabilities 7,263 7,587
27,575 29,445
Total equity and liabilities 170,612 210,517
For the 6 months ended
In EUR 000 Notes 30 June 2021 30 June 2020
Operating activities
Loss for the period $-37,276$ $-31,558$
Adjustments for
Depreciation and amortization 4,799 5,010
Impairment losses 598 721
Income taxes in profit and loss
Financial result, net
$-149$
4,249
$-118$
5,129
Net movement in defined benefit obligation 106 $-109$
Share of net profit of associate and a joint 101 195
venture
Share based payment expense
Other
409
$-78$
381
-64
Changes in working capital
Net movement in inventories
$-3,388$ $-4,428$
Net movement in trade and other receivables
and other current assets 1,844 6.975
Net movement in trade payables & other
current liabilities
$-2,367$ $-3,159$
Net movement in deferred income 6.16 629 87
$-30,523$ $-20,938$
Interests paid $-3,227$ $-3,585$
Taxes paid $-2$ -3
Cash flow used in operating
activities
-33,752 $-24,526$
Investing activities
Interest received 5 7
Acquisition of property, plant & equipment $-952$ $-1,020$
Acquisition of intangible assets 0 $-15$
Investment financial asset $-1,140$ 0
Cash flow used in investing activities $-2,087$ $-1,028$
Financing activities
Repayment of borrowings 6.15 $-3,457$ $-3,435$
Bank charges -61 $-21$
Cash flow from financing activities $-3,518$ $-3,456$
Net increase / (decrease) in cash
and cash equivalents
$-39,357$ -29,010
Cash and cash equivalents at the beginning of
the period
123,668 178,725
Effects of exchange rate changes on the
balance of cash held in foreign currencies
594 -41
Cash and cash equivalents at the end
of the period*
84,905 149,674
In EUR 000 Notes Share capital Share
premium
Share based
payment
reserve
Other
comprehensive
income
Accumulated
deficit
Total equity
attributable to
the owners of
the Group
Total equity
Balance as at 1 January 2020 $-220,668$ 698,027 4,670 $-5,291$ -392,259 84,480 84,480
Loss for the period $-31,558$ $-31,558$ $-31,558$
Re-measurement gains and losses on
defined benefit plan
Consolidation translation difference
$-83$ 86 $-83$
86
$-83$
86
Total comprehensive income $-83$ $-31,472$ $-31,555$ $-31,555$
Share-based payment expense 381 381 381
Other $\Omega$ $\circ$
Balance as at 30 June 2020 $-220,668$ 698,027 5,051 $-5,374$ -423,731 53,305 53,305
Balance as at 1 January 2021 $-220,657$ 711,874 6,102 $-5,152$ -455,343 36,824 36,824
Loss for the period $-37,276$ $-37,276$ $-37,276$
Re-measurement gains and losses on
defined benefit plan
Consolidation translation difference
$-337$ 152 $-337$
152
$-337$
152
Total comprehensive income $-337$ $-37,461$
Share-based payment expense
Other
410 -37,124 $-37,461$
410
0
410
$\circ$
Balance as at 30 June 2021 $-220,657$ 711,874 6,512 $-5,489$ $-492,467$ $-227$ $-227$

NOTES TO THE CONDENSED CONSOLIDATED 6. INTERIM FINANCIAL STATEMENTS

$6.1.$ GENERAL INFORMATION

Biocartis Group NV, a company incorporated in Belgium with registered address at Generaal de Wittelaan 11 B, 2800 Mechelen, Belgium (the 'Company') and its subsidiaries (together, the 'Group') commercialize an innovative and proprietary molecular diagnostics ('MDx') platform that offers accurate, highly-reliable molecular information from virtually any biological sample, enabling fast and effective diagnostics treatment selection and treatment progress monitoring

The Group's mission is to become a global, fully integrated provider of novel molecular diagnostics solutions with industry-leading, high clinical value tests within the field of oncology and infectious disease. The Group has established subsidiaries in Mechelen (Belgium), New Jersey (US), Milan (Italy) and a joint venture in Hong Kong (China).

The consolidated financial statements have been authorized for issue on 31 August 2021 by the board of directors of the Group (the 'board of directors').

$6.2.$ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies for preparing these consolidated financial statements are explained below.

$6.2.1$ Statement of compliance and basis of preparation

These condensed consolidated interim financial statements for the six months ended 30 June 2021 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union. The statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with IFRS as adopted by the EU.

The accounting policies adapted in the preparation of the condensed interim financial statements are consistent with those applied in the preparation of the financial statements for the year ended 31 December 2020. New standards or interpretations applicable from 1 January 2021 do not have an impact on the condensed consolidated interim financial statements.

The consolidated financial statements are presented in Euro (EUR) and all values are rounded to the nearest thousand (EUR000), except when otherwise indicated.

These condensed interim financial statements have been subject to a review by the Group's external auditor Deloitte Bedrijfsrevisoren BV CVBA. The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2021:

  • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform Phase 2
  • Amendments to IFRS 16 Leases: COVID-19 Related Rent Concessions beyond 30 June 2021 (applicable for annual periods beginning on or after 1 April 2021 but not yet endorsed in the EU)

The above application of new standards did not have a significant impact on the financial position and the result of the Group.

.

Going concern

The interim results for the six months ended 30 June 2021 show a negative result, and the balance sheet includes a loss carried forward. The Board of Directors has examined the statements and accounting standards. Taking into account the cash position and the credit facilities that the Group has at its disposal, the Board of Directors is of the opinion that it can submit the interim financial statements on a going concern basis. Furthermore, and although no assurance can be given, the board is confident that the Group's strategic plans and the corresponding operating plans are viable so that the Group will have access to additional financial resources if and when required.

Revenue recognition relating to collaboration arrangements

Assessing the indicators for revenue recognition under collaboration arrangements requires judgement to determine (i) the nature of the contractual performance obligations and whether they are distinct or should be combined with other performance obligations, and (ii) the pattern of transfer of each promised component identified in the contract, using methods based on key assumptions such as forecasted costs and development timelines of the collaboration arrangements for the assessment of satisfaction of the performance obligation.

For all performance obligations linked to licensing agreements, the Group makes an assessment about whether or not the license is to be considered as a distinct performance obligation or not. The Group determines whether a promise to grant a license of intellectual property is distinct from other promised goods or services in the contract. As such, the Group assesses whether the customer can benefit from a license of intellectual property on its own or together with readily available resources (i.e., whether it is capable of being distinct) and whether the Group's promise to transfer a license of intellectual property is separately identifiable from other promises in the contract (i.e., whether it is distinct in the context of the contract). The assessment of whether a license of intellectual property is distinct is based on the facts and circumstances of each contract, e.g. interdependencies between the license and other services in the contract, the continuing involvement of the Group after the license has been granted.

If the transfer of the license is considered to be a separate performance obligation, revenue relating to the transfer of the license is recognized at a point in time or over time depending on the nature of the license, i.e. granting a right to use the intellectual property or the right to access the IP. Basically, the Group assesses whether the customer has the right to use the intellectual property as it exists at a certain period in time or whether it has access to the intellectual property as it exists at any time during the license period, where the latter requires more on-going activities from the Group.

$6.5.$ REVENUE

The Group's revenue can be aggregated as follows:

For the 6 months ended,
In EUR 000 30 June 2021
At a point
in time
Over time 30 June
2021
30 June
2020
Collaboration revenue
R&D services $\Omega$ 2,590 2.590 4,623
License fees 50 50 123
Milestones $\left( \right)$
ο 2,640 2,640 4,746
Product related
revenue
Idylla™ system sales revenue 1.878 Ω 1.878 844
Idylla™ system rental revenue 1.837 1.837 993
Cartridge revenue 14.749 14.749 9.584
18,463 о 18,463 11.421

Service revenue

Total 19,118 2,733 21,851 16,696
654 94 748 530
revenue 654 748 53C
ldylla''' system service

For details related to the movement in deferred income of collaboration agreements, we refer to note 6.19.

R&D service revenue is recognized over time as the services are rendered to the customer based on the progress over the activities i.e. a rato the services performed. Over the reporting period, the majority of the collaborations for which revenues were recognized, included a quarterly or monthly payment structure. Consequently, the Group recognized either an accrued income or deferred income on the balance sheet over the course of the reporting period.

In general, customers do not have a right-of return and/or are not entitled to refunds in the context of product related sales.

The below table corresponds to the revenue expected to be recognized in the future relating to (partially) unsatisfied performance obligations. This table excludes potential future R&D service revenue of pending collaborations for which the associated services are performed on an hourly invoicing basis (IFRS 15.121).

In EUR 000 Deferred
income
2021 709
2022 175
2023
2024
2025
After 2025

For more information regarding the revenue statement above, we refer to chapter 3, 'Commercial highlights'.

6.5.1. Revenues by region and major customers

For the 6 months ended
In EUR 000 30 June 2021 30 June 2020
Country of domicile 261 256
Belgium 261 256
Total all foreign countries, of which 21,590 16,441
United states of America 4.134 6,851
Great Britain 4.341 699
China 765 372
Spain 1.655 1,322
France 2.298 1.396
Germany 1.515 1,322
Rest of the world 6.883 4.479
Total 21,851 16,697

Revenues in the above table are assigned according to the location of the Group or parent company of the customer. The Group has recognized revenues from one customer representing 13% of the total revenues and three other major customers together represent 11% of the total revenues.

$6.6.$ OTHER OPERATING INCOME

For the 6 months ended
In EUR 000 30 June 2021 30 June 2020
R&D project support (VLAIO & IWT grants) 1.159 312
Other project grants (EU) 56
Other income 48 541
Total 1,206 909

The other operating income mainly consists out of grants that were awarded to support R&D activities. In 2021, the Group was awarded a new grant from VLAIO, for the ongoing development of a new generation Idylla™ technology.

$6.7.$ COST OF SALES

The cost of goods sold in relation to the product sales is as follows:

For the 6 months ended
In EUR 000 30 June 2021 30 June 2020
Employee benefit expenses -4.543 $-2,332$
Material, lab consumables & small equipment $-8.301$ $-4.233$
Depreciation and amortization $-2.339$ $-1.384$
Royalty expense $-774$ $-687$
Facilities, office and other $-1,103$ $-597$
Total -17.059 -9,233

The volume of commercial cartridges sold in H1 2021 increased with 96% compared H1 2020, which resulted in higher cost of goods sold, mainly the variable costs increased accordingly such as employee benefit expenses, material, lab consumables & small equipment. Depreciation and amortization increased due to the new Idylla™ instrument placements that were added to the installed based in H1 2021.

$6.8.$ RESEARCH AND DEVELOPMENT EXPENSES

For the 6 months ended
In EUR 000 30 June 2021 30 June 2020
Employee benefit expenses $-12.967$ $-11.889$
Laboratory costs $-7.155$ $-3,383$
Quality, regulatory and intellectual property $-269$ $-285$
Facilities, office & other $-997$ $-1.588$
ICT $-177$ $-142$
Travel, training & conferences $-41$ $-121$
Depreciation and amortization $-1,793$ $-2,896$
Total -23.398 -20.303

Laboratory costs include consumables and prototype costs related to the development of diagnostic platform prototypes and assays, expenses in relation to services provided by research and development providers such as services related to the development of assay cartridges, instrument and console of the various diagnostic platforms, manufacturing equipment design and engineering services. The increase in laboratory costs is mainly related to the planned acceleration and diversification of the Idylla™ test menu, both in oncology and in infectious diseases.

The remaining expenses relate to quality, regulatory, patenting, building facilities, ICT, office, maintenance of equipment, logistics, travel, training and conferences.

$6.9.$ GENERAL AND ADMINISTRATIVE EXPENSES

For the 6 months ended
In EUR 000 30 June
2021
30 June
2020
Employee benefit expenses -5.547 $-5,017$
External advice $-314$ $-321$
Facilities, office & other $-1.087$ $-230$
Human resources $-675$ $-504$
Travel, training & conferences $-25$ $-138$
Depreciation and amortization expenses $-286$ $-281$
Total -7,935 -6.491

External advice expenses include fees, service and consulting expenses related to legal, human resources, investor relations, accounting, audit and tax services. Facilities, office & other include office, insurance and other miscellaneous expenses used in general and administrative activities. Facilities, office & other increased due to the growing business and the planned acceleration and diversification of the Idylla™ test menu, which resulted in higher ICT, consultancy and insurance costs.

6.10. FINANCIAL INCOME AND EXPENSES

For the 6 months ended
In EUR 000 30 June 2021 30 June 2020
Interest expense -4.642 $-5,050$
Other financial expense -61 $-33$
Total -4,703 $-5,083$
Other financial result 454 $-46$
Total 454 $-46$
Financial result, net $-4,249$ $-5,129$

Net financial result amounted to EUR 4.2m per 30 June 2021 compared to EUR 5.1m as per 30 June 2020 and include financial expenses in relation to the Company's convertible bond of EUR 4.1m in H1 2021 compared to EUR 4.5m in H1 2020. The other financial result mainly consists of non-realized foreign exchange gains and losses.

6.11. LOSS PER SHARE

The Group has stock option plans that may be settled in common shares of the Group, and which are considered anti-dilutive given that the Group's operations were loss making over the reporting period. As such, the basic and diluted earnings per share are equal. The basis for the basic and diluted earnings per share is the net loss for the year attributable to the owners of the Group.

For the 6 months ended
30 June 2021 30 June 2020
Profit/loss for the period attributable to the
owners of the Group (in EUR 000)
-37.276 -31.558
Weighted average number of ordinary shares
for basic loss per share (in number of shares)
57.545.663 56.695.322
Basic loss per share (EUR) -0.65 -0.56

6.12. PROPERTY, PLANT AND EQUIPMENT

As of
In EUR 000 30 June 2021 31 Dec 2020
Property, plant and equipment 38.381 40.098
Total property, plant and equipment 38,381 40,098

Property, plant and equipment decreased to EUR 38.4m as per end of June 2021 from EUR 40.1m at the end of 2020 (decrease of EUR 1.7m) mainly driven by a depreciation charge of EUR 4.5m and capital expenditures in H1 2021 of EUR 3.4m. The capital expenditures are predominantly related to capitalized Idylla™ systems sold under reagent rental and similar agreements and right-of-use assets.

6.13. FINANCIAL ASSETS

As of
In FUR 000 30 June 2021 31 Dec 2020
Financial asset 1.140
Total financial asset 1,140

The Group holds a convertible note from GeneproDx, with maturity date of 25 January 2023 (i.e. 2-year duration) and a coupon of 10%. The convertible note from GeneproDx was issued early 2021 and was issued to the Group as payment for the license granted by the Group to GeneproDx at the end of 2020, which was recorded in 2020 as a receivable under 'other current assets'.

6.14. OTHER RECEIVABLES

As of
In EUR 000 30 June 2021 31 Dec 2020
VAT receivables 3.074 2.133
Tax credit research and development 330 310
Other receivables 1.460 1.518
Total 4,865 3,960

Other receivables include VAT receivables and amongst others amounts recorded for the government capital grant by STS Strategic Transformation Support) related to the investments in the second cartridge manufacturing facilities in Mechelen.

6.15. FINANCIAL LIABILITIES

The financial debt can be analyzed as follows:

As of
In EUR 000 30 June 2021 31 Dec 2020
Lease liabilities
Bank borrowings
16.221
$\left( \right)$
18,625
$\left( \right)$
Convertible bond 126,675 125,260
Total non-current 142,896 143,885
Lease liabilities
Bank borrowings
6.516
O
6.615
58
Total current 6,516 6,673
Total financial liabilities 149,412 150,557

In 2013, Biocartis NV refinanced about 50% of its Idylla™ semi-automated cartridge manufacturing line in Mechelen (Belgium) via a sale and lease back operation. This lease has a current lease term till 1 June 2021, carries a 3.35% interest rate and includes a purchase option of EUR 0.1m. As per the end of H1 2021 the lease has been fully paid.

In 2015, Biocartis NV obtained two new financing facilities for the modifications to the current cartridge production line. The first new facility entails an investment credit for an amount of EUR 0.6m, with a payment term of 5 years and an interest rate of 1.93%. The second one entails a leasing facility for EUR 4.4m that carries a 1.77% interest, includes a purchase option of 1% of the financed amount and has a duration of 54 months. As per the end of H1 2021 EUR 0.5m is outstanding under these two facilities.

In 2016, Biocartis NV obtained a lease financing facility for the development of a second cartridge production line in Mechelen, for EUR 15m. This facility was increase in 2018 with EUR 2.3m. The interest applicable for this facility equals 1.87% and includes a purchase option of 1% of the financed amount. As per the end of H1 2021 EUR 7.4m is outstanding under this facility. As a security, a debt service reserve account is to be maintained for all of the above financing facilities, the current debt service account amounts to EUR 1.2m.

In 2018, Biocartis NV obtained an investment credit of EUR 1m from a bank to finance mold investments related to its first cartridge manufacturing facility. The investment credit has a payment term of 5 years and an interest rate of 2.53%. In total EUR 0.8m has been withdrawn on this credit facility. As per 30 June 2021, EUR 0.5m is outstanding under this credit facility.

On 9 May 2019, the Group issued a convertible bond of EUR 150m, with a maturity date of 9 May 2024 (i.e. 5-year duration) and a coupon of 4%. The bond can be converted into new/existing ordinary shares of the Group upon the discretion of the bondholder. Under IAS 32- Financial instruments: Presentation the convertible bond is a compound financial instrument and contains, from the issue's perspective, both a liability (i.e. host debt instrument) and an equity component (i.e. an embedded share conversion option). The liability amounts to EUR 126.7m per 30 June 2021.

The credit facility and guarantees from BNP Paribas Fortis have been canceled in 2021 and replaced by a revised credit facility of KBC. This facility consists of a EUR 7.5m straight loan and a EUR 7.5m rollover credit line. No amounts have been withdrawn on this credit facility as per 30 June 2021.

6.16. DEFERRED INCOME

As at
In EUR 000 30 June 2021 31 Dec 2020
Grants 545 658
Collaboration income 1.725 983
Total 2,270 1,641
Current 1.932 1.278
Non-current 338 363
Deferred
partner
income
As per 31 December 2019 1,197
Invoiced 3.369
Recognized in profit or loss $-3,583$
As per 31 December 2020 983
Invoiced 1.073
Recognized in profit or loss $-330$
As per 30 June 2021 1.726

Deferred partner income includes upfront payments from collaboration partners in relation to the strategic licensing, development and commercialization collaborations.

6.17. OTHER DISCLOSURES

6.17.1. Fair value

The fair value of the financial assets has been determined on the basis of the following methods and assumptions:

  • The carrying value of the cash and cash equivalents and the current receivables approximate their value due to their short term character:
  • Other current financial assets such as current other receivables are being evaluated on the basis of their credit risk and interest rate. Their fair value is not significantly different than its carrying value on 30 June 21 and 31 December 2020.

The fair value of the financial liabilities has been determined on the basis of the following methods and assumptions:

  • The carrying value of current liabilities approximates their fair value due to the short-term character of these instruments:
  • Loans and borrowings are measured based on their interest rates and maturity date. Most interest-bearing debts have fixed interest rates and its fair value is subject to changes in interest rates and individual creditworthiness. The fair value measurement is classified as level 2.

Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

  • Level $1$ quoted (unadjusted) prices in active markets for identical assets and liabilities
  • Level 2 other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly
  • Level 3 techniques which use inputs that have a significant effect on the recorded fair value that are not $\bullet$ based on observable market data

The Group has one financial instrument (MyCartis) carried at fair value through OCI in the consolidated balance sheet on 30 June 2021 and 31 December 2020.

Except for the borrowings (financial liabilities, see note 6.18), the carrying amount of the financial assets and liabilities approximate their fair values. The borrowings with a carrying amount of EUR 149.4m (31 December 2020: EUR 150.6m) have a fair value of EUR 149,5m (31 December 2020: EUR 150.6m).

6.17.2. Contingencies

The Group has no new contingencies compared to 31 December 2020.

6.17.3. Commitments

6.17.3.1. Capital commitments

As per 30 June 2021, the Group has EUR 1.7m capital commitments mainly related to the upgrade of its cartridge production lines located in Mechelen (Belgium) for which the Group is engaged in several contractual arrangements with specified suppliers. The Group had no other material capital commitments on 30 June 2021.

6.17.3.2. Operating commitments

As per 30 June 2021, the Group has operating commitments towards different suppliers for Idylla™ systems and cartridge parts for a total amount of EUR 8.4m. It is expected that the majority of the commitments will be fulfilled in 2021.

6.17.4. Related-party transactions

Transactions between the Group and its subsidiaries have been eliminated on consolidation and are not disclosed in the notes. Apart from the remuneration of key management and the transactions with the joint venture, there were no other transactions with related parties.

6.18. EVENTS AFTER THE BALANCE SHEET DATE

The following events took place after 30 June 2021:

  • Fire incident See under 'risks related to the fire incident of 30 July 2021;
  • Product registrations Taiwan Additional registrations for Idylla™ products have been completed in Taiwan;

  • Launch Idylla™ SARS-CoV-2/Flu/RSV Panel (CE-IVD) Successful CE-IVD launch of the Idylla™ SARS-CoV-2/Flu/RSV Panel which detects SARS-CoV-2, Flu A/B and RSV nucleic acids in one single cartridge within approx. 90 minutes. Timing of the Emergency Use Authorization ('EUA') submission to the US FDA for the Idylla™ SARS-CoV-2/Flu/RSV Panel is to be decided.

  • Cartridge manufacturing Alongside the ongoing development of a new technology on Idyllan with the support of VLAIO, aimed at the off-line customization of the Idylla™ cartridge14 to shorten development lead times for Idylla™ assays, Biocartis is currently also evaluating a new concept for a simplified, costefficient Idylla™ cartridge. This should enable an accelerated reduction of the manufacturing cost of Idylla™ cartridges beyond the impact of continued volume growth and the resulting increased utilization of the available manufacturing capacity. The new cartridge concept reduces the complexity of the cartridge, and is ideally suited for infectious disease testing and certain oncology assays. The new concept is expected to run on the existing Idylla™ platform alongside the existing Idylla™ cartridge, which will continue to be used for those assays that are not compatible with the lower complexity cartridge. Post the reporting period, the feasibility of the new Idylla cartridge has been externally validated by a reputable global contract manufacturing organization. Subject to the successful design and manufacturing, the new Idylla™ cartridge concept is expected to facilitate the development of a highly competitive franchise of multiplex infectious disease assays with partners and may also be applicable to a number of oncology assays. The decision to invest in the development of new and existing Idylla™ assays using the new Idylla™ cartridge concept and in the accompanying manufacturing equipment, is still subject to completion of the concept design. As a result, the Company decided to review (the timing of) ongoing and future investments in the infectious disease and oncology assay menu.

$\overline{7}$ . REVIEW REPORT OF THE AUDITOR

Report on the review of the consolidated interim financial information of Biocartis Group NV for the six-month period ended 30 June 2021

The original text of this report is in Dutch

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the condensed consolidated statement of financial position as at 30 June 2021, the condensed consolidated income statement. the condensed consolidated statement of other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated cash flow statement for the period of six months then ended, as well as selective notes.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Biocartis Group NV ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting" as adopted by the European Union.

The condensed consolidated statement of financial position shows total assets of 170 612 (000) EUR and the condensed consolidated income statement shows a consolidated loss (group share) for the period then ended of 37 276 (000) EUR.

The board of directors of the company is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European

14 Previously referred to as the Idyllam 'FLEX' technology, aimed to tap into new market opportunities with customized and personalized products

Union. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Biocartis Group NV has not been prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Signed at Zaventem, 1 September 2021

The statutory auditor, Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises CVBA/SCRL, Represented by Nico Houthaeve

DISCLAIMER AND ADDITIONAL INFORMATION 8.

8.1. GENERAL INFORMATION

About Biocartis

Biocartis Group NV is a limited liability company organized under the laws of Belgium and has its registered office at Generaal de Wittelaan 11 B, 2800 Mechelen, Belgium. Throughout this report, the term 'Biocartis NV' refers to the non-consolidated Belgian subsidiary company and references to 'the Group' or 'Biocartis' include Biocartis Group NV together with its subsidiaries.

Use of the Idylla™ trademark, logo and CE-marking

Biocartis and Idylla™ are registered trademarks in Europe, the United States and other countries. The Biocartis and Idylla™ trademark and logo are used trademarks owned by Biocartis. This report is not for distribution, directly or indirectly, in any jurisdiction where to do so would be unlawful. Any persons reading this press release should inform themselves of and observe any such restrictions. Biocartis takes no responsibility for any violation of any such restrictions by any person. Please refer to the product labeling for applicable intended uses for each individual Biocartis product. This report does not constitute an offer or invitation for the sale or purchase of securities in any jurisdiction. No securities of Biocartis may be offered or sold in the United States of America absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended.

As defined by Belgian law, Biocartis has to publish its financial report in the English and Dutch language. In case of difference in interpretation, the English version prevails. An electronic version of the half-year financial report 2021 is available on the Biocartis website. Other information on the Biocartis website or on other websites is not a part of this half-year report.

8.2. CONTACT INVESTOR RELATIONS

Biocartis Investor Relations Renate Degrave, Head of Corporate Communications and Investor Relations Generaal de Wittelaan 11 B 2800 Mechelen, Belgium +32 15 632 600 [email protected]

8.3.LISTING

Biocartis is listed on Euronext Brussels since 27 April 2015 under the symbol BCART. Biocartis' ISIN code is BE0974281132.

8.4.FINANCIAL CALENDAR

10 November 2021 24 February 2022 31 March 2022

Q3 2021 Business Update 2021 full year results Publication 2021 annual report

8.5. FINANCIAL YEAR

The financial year starts on 1 January and ends on 31 December.

8.6.AUDITOR INFORMATION

Deloitte Bedrijfsrevisoren B.V. o.v.v.e. CVBA, represented by: Nico Houthaeve Gateway Building Luchthaven Nationaal 1J 1930 Zaventem Belgium

8.7. FORWARD-LOOKING STATEMENT

Certain statements, beliefs and opinions in this report are forward-looking, which reflect the Company's or, as appropriate, the Company directors' or managements' current expectations and projections concerning future events such as the Company's results of operations, financial condition, liquidity, performance, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions and factors could adversely affect the outcome and financial effects of the plans and events described herein. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forwardlooking statements contained in this report regarding past trends or activities are not guarantees of future performance and should not be taken as a representation that such trends or activities will continue in the future. In addition, even if actual results or developments are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in future periods. No representations and warranties are made as to the accuracy or fairness of such forward-looking statements. As a result, the Company expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements in this report as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based, except if specifically required to do so by law or regulation. Neither the Company nor its advisers or representatives nor any of its subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this report or the actual occurrence of the forecasted developments. You should not place undue reliance on forwardlooking statements, which speak only as of the date of this report.

Assay In the field of diagnostics, an assay is a process or method aimed at determining the presence or
amount (quantitative assay) of a certain substance in a sample.
Application In the context of the Idylla™ platform, an application is a specific Nucleic Acid detection assay
(test) that is to run on the system. Applications have their own specific requirements.
Batch Record The set of records of all relevant process information in any physical or electronic format.
Biopsy (solid/liquid) The Idylla™ platform is capable of processing both solid biopsies (FFPE tissue which is the
standard tissue type for solid tumor diagnostics, and fresh (frozen) tissue samples) and liquid
biopsies. These are easier to obtain sample types such as blood plasma or urine. Liquid biopsy
based assays will facilitate monitoring of treatments and disease progression, and possible earlier
disease detection.
Serine/threonine-protein
kinase B-raf (BRAF)
BRAF is a protein that, in humans, is encoded by the BRAF gene. The BRAF protein is involved in
sending signals within cells and in cell growth. Certain inherited BRAF mutations cause birth
defects. Alternatively, other acquired mutations in adults may cause cancer.
CE-mark The CE-mark is a mandatory conformance mark on many products placed on the market in the
European Union. With the CE-marking on a product, the manufacturer ensures that the product
is in conformity with the essential requirements of the applicable European Union directives. The
letters "CE" stand for 'Conformité Européenne' ('European Conformity').
Clinical data ety and/or performance information that are generated from the clinical use of a medical device.
Companion Diagnostics
(CDx)
CDx is a bio-analytical method designed to assess: (i) whether or not a patient will respond
favorably to a specific medical treatment; (ii) what the optimal dose is for a patient; and
(iii) whether the patient can expect certain side effects from a medical treatment. Any
prescription of a drug with a CDx is based on the outcome of the CDx. CDx tests are also used in
the drug development process.
COVID-19 COVID-19 or the novel coronavirus is caused by SARS-CoV-2. Coronaviruses are named for the
crown-like spikes on their surface (source: www.cdc.org).
CLIA The Clinical Laboratory Improvement Amendments of 1988 (CLIA) regulations include federal
standards applicable to all U.S. facilities or sites that test human specimens for health assessment
or to diagnose, prevent, or treat disease (source: https://wwwn.cdc.gov/clia/).
Consumables Materials that are in direct or indirect contact with final product.
ctDNA This is circulating tumor DNA.
Deoxyribonucleic acid
(DNA)
DNA is a nucleic acid molecule that contains the genetic instructions used in the development and
functioning of living organisms.
Distributor Person or legal entity that furthers the marketing and/or selling of a device from the original place
of manufacture to the ultimate user without modifying the device, its packaging or its labelling.
Epidermal growth factor
receptor (EGFR)
EGFR is a protein found on the surface of certain cells which can cause them to divide. It is found
in abnormally high levels on the surface of many types of cancer cells.
Emergency Use
Authorization (EUA)
This is an authorization given by the FDA Commissioner pursuant to section 564 of the US Federal
Food, Drug, and Cosmetic Act, as amended (the 'FD&C Act'), which allows unapproved medical
products or unapproved uses of approved medical products to be used in the United States in an
emergency to diagnose, treat, or prevent serious or life-threatening diseases or conditions caused
by chemical, biological, radiological or nuclear threat agents when there are no adequate,
approved, and available alternatives.
Formalin fixed, paraffin
embedded (FFPE)
FFPE tissues are samples, typically from suspected tumors, that are fixed or mixed with formalin
to preserve the structural integrity of the sample. The sample is then embedded into a type of
paraffin wax so that it can be sliced into very fine slices, 5-10 microns thick. Treating samples in
this manner enables the samples to be stained with dyes to analyze abnormalities in tissue that is
suspected of cancer.
Gene fusions Studies over the past decades have uncovered fusion genes, a class of oncogenes that provide
immense diagnostic and therapeutic advantages because of their tumor-specific expression.
Originally associated with hemotologic cancers, fusion genes have recently been discovered in a
wide array of solid tumors, including sarcomas, carcinomas, and tumors of the central nervous
system. Fusion genes are attractive as both therapeutic targets and diagnostic tools due to their
inherent expression in tumor tissue alone. Therefore, the discovery and elucidation of fusion genes
in various cancer types may provide more effective therapies in the future for cancer patients
(source: Parker BC, Zhang W. Fusion genes in solid tumors: an emerging target for cancer
diagnosis and treatment. Chin J Cancer. 2013;32(11):594-603. doi:10.5732/cjc.013.10178)
(US)
Food
and
Administration (FDA)
Drug The FDA is a federal agency of the United States Department of Health and Human Services
responsible for protecting and promoting public health through the regulation and supervision of,
among other things, medical devices.
ICU Intensive Care Unit
Idylla Platform Combination of the Idylla™ Instrument (hardware and software) and the Idylla™ Console
(hardware and software) using the Idylla™ cartridge technology.
Idylla Cartridge Refers to the disposable container containing the necessary reagents to perform a Test with the
System.
Immunoassay Immunoassays are assays that measure biomarkers through antigen-antibody interaction
technologies. In most cases such assays are used to measure biomarkers of the immune system
itself, e.g. HCV or HIV antibodies produced by the bodies, which are detected by means of HCV
or HIV antigens.
Influenza Also known as 'the flu' is a highly contagious respiratory tract infection caused by the family of
influenza viruses.
In vitro diagnostics or
In vitro diagnosis (IVD)
IVD is a diagnostic test outside of a living body in contrast to "in vivo", in which tests are
conducted in a living body (for example an X-ray or CT-scan).
(IUO) Investigational Use Only Investigational Use Only (IUO) product is an IVD product, in the testing phase of product
development that is being shipped or delivered for product testing prior to full commercial
marketing.
oncogene (KRAS) Kirsten rat sarcoma-2 virus KRAS is a protein that, in humans, is encoded by the KRAS gene. Like other members of the Ras
family, the KRAS protein is a GTPase (a large family of hydrolase enzymes that can bind and
hydrolyse guanosine triphosphate), and is an early player in many signal transduction pathways.
The protein product of the normal KRAS gene performs an essential function in normal tissue
signalling, and the mutation of a KRAS gene is associated with the development of many cancers.
KOL Key Opinion Leader.
Manufacturer Natural or legal person responsible for the design, manufacture, fabrication, assembly, packaging
or labelling of a medical device, for assembling a system, or adapting a medical device before it is
placed on the market and/or put into service, regardless of whether these operations are carried
out by that person or on their behalf by a third party.
Any instrument, apparatus, implement, machine, appliance, implant, in vitro reagent or calibrator,
Medical Device software, material or other similar or related article, intended by the manufacturer to be used,
alone or in combination, for human beings for one or more of the specific purpose(s) of -
diagnosis, prevention, monitoring, treatment or alleviation of disease, - diagnosis, monitoring,
treatment, alleviation of or compensation for an injury, - investigation, replacement, modification,
or support of the anatomy or of a physiological process, - supporting or sustaining life, - control
of conception, - disinfection of medical devices, - providing information for medical purposes by
means of in vitro examination of specimens derived from the human body, and which does not
achieve its primary intended action in or on the human body by pharmacological, immunological
or metabolic means, but which may be assisted in its function by such means.
Metastatic Colorectal
Cancer (mCRC)
Colorectal Cancer (CRC) is the second most common cancer worldwide, with an estimated
incidence of more than 1.36 million new cases annually. According to the International Agency for
Research on Cancer, an estimated 694,000 deaths from CRC occur worldwide every year,
accounting for 8.5% of all cancer deaths and making it the fourth most common cause of death
from cancer.
Molecular diagnostics
(MDx)
MDx is a form of diagnostic testing used to detect specific sequences in DNA or RNA that may or
may not be associated with disease. Clinical applications of MDx include infectious disease testing,
oncology, pharmacogenomics and genetic disease screening.
Micro satellite instability
(MSI)
MSI is a genetic hyper-mutability condition resulting from MMR that is functioning abnormally.
Multiplexing The simultaneous detection of more than one analyte or biomarker from a single sample.
Neuroblastoma RAS viral
(v-ras) oncogene (NRAS)
NRAS is a protein that is encoded, in humans, by the NRAS gene. Like other members of the Ras
family, the NRAS protein is a GTPase (a large family of hydrolase enzymes that can bind and
hydrolyse guanosine triphosphate), and is an early player in many signal transduction pathways.
The protein product of the normal NRAS gene performs an essential function in normal tissue
signaling, and the mutation of a NRAS gene is associated with the development of many cancers
Next-Generation
Sequencing
(NGS)
Sequencing is the process of determining the precise order of nucleotides within a DNA molecule.
It includes any method or technology that is used to determine the order of the four bases-
adenine, guanine, cytosine, and thymine-in a strand of DNA. The high demand for low-cost
sequencing has driven the development of high-throughput sequencing technologies that
parallelize the sequencing process, producing thousands or millions of sequences concurrently.
High-throughput sequencing technologies are intended to lower the cost of DNA sequencing
beyond what is possible with standard dye-terminator methods.
Performance study Performance study means a study undertaken to establish or confirm the analytical or clinical
performance of a device.
(PCR) Polymerase chain reaction The specific and exponential amplification of DNA sequences by consecutive thermal cycling
steps. Real-time PCR is a form of PCR whereby the amplified sequences are made visible by
means of fluorescent labelling in real time, i.e., as they become synthesized. Real-time PCR can be
used to estimate the quantity of target DNA sequences in a multiplexed way. PCR and real-time
PCR can also be used to detect and quantify RNA sequences after a DNA copy has been made
from the RNA sequence by means of a reverse transcriptase enzyme.
Protein Polypeptide chain built from the 20 natural amino acids. Proteins are synthesized from a
messenger RNA copy of a gene and can have many functions in the cytoskeleton of the cell,
enzymatic, messenger functions in cells and blood such as immune cytokines, DNA binding
proteins that regulate expression, etc.
Prototype (First) materialization of the intended product
Regulatory authority A government agency or other entity that exercises a legal right to control the use or sale of
medical devices within its jurisdiction, and can take legal action to ensure that medical devices
Respiratory Syncytial Virus
(RSV)
RSV is a major cause of lower respiratory tract infection that is a frequent infection in children.
Research Use Only (RUO) This is a category of non-approved (i.e. no CE-marking and FDA approval) medical device
products that can solely be used for research purposes. Many producers introduce their products
first as RUO and/or IUO products, prior to obtaining 510(k) clearance or PMA approval.
Ribonucleic acid (RNA) RNA, like DNA, is a nucleic acid molecule. RNAs have a variety of different functions in living cells.
They can have a scaffolding role in the build-up of complexes (ribosomes, SNRPs), provide
sequence recognition (translation, RNA spicing), have catalytic function (ribozymes), act as
messengers for protein synthesis (mRNAs), regulate gene expression (miRNAs) or make up the
genome of certain viruses.
SARS-CoV-2 The novel coronavirus that causes coronavirus disease 2019, or COVID-19). Coronaviruses are
named for the crown-like spikes on their surface (source: www.cdc.org).
Screening Test An initial or preliminary test. Screening tests do not tell you if you definitely have a disease or
condition. Rather, positive results indicate that you may need additional tests or a doctor's
evaluation to see if you have a particular disease or condition.
Sepsis Sepsis is a potentially life-threatening condition caused by the body's response to an infection.
The body normally releases chemicals into the bloodstream to fight an infection. Sepsis occurs
when the body's response to these chemicals is out of balance, triggering changes that can
damage multiple organ systems (source: www.mayoclinic.org).
Serine/threonine-protein
kinase B-raf (BRAF)
BRAF is a protein that, in humans, is encoded by the BRAF gene. The BRAF protein is involved in
sending signals within cells and in cell growth. Certain inherited BRAF mutations cause birth
defects. Alternatively, other acquired mutationns in adults may cause cancer.

Talk to a Data Expert

Have a question? We'll get back to you promptly.