Annual Report • Feb 15, 2023
Annual Report
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Year end Report January - December 2022
HumanKind Unlimited
» On February 15, 2023 an agreement was announced to acquire Astrea Bioseparations.
* See definitions on pages 20-21.
| Quarter | Interim period | |||
|---|---|---|---|---|
| Amounts in MSEK | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
| Net sales | 384 | 341 | 1,566 | 1,232 |
| Change, % | 12.6% | 14.5% | 27.1% | 12.7% |
| of which: | ||||
| - Organic growth, % | -0.8% | 10.0% | 11.4% | 17.5% |
| - Currency effects, % | 12.7% | 1.0% | 12.7% | -5.7% |
| - Acquisitions/divestments, % | 0.6% | 3.4% | 3.1% | 0.9% |
| Gross profit | 227 | 212 | 948 | 755 |
| Gross margin, % | 59.1% | 62.1% | 60.6% | 61.3% |
| Operating profit (EBIT) | 41 | 61 | 327 | 271 |
| Operating margin (EBIT), % | 10.8% | 18.0% | 20.9% | 22.0% |
| Adjusted operating profit (EBIT) | 61 | 70 | 362 | 283 |
| Adjusted operating margin (EBIT), % | 15.9% | 20.7% | 23.1% | 23.0% |
| EBITA | 49 | 67 | 356 | 284 |
| EBITA margin, % | 12.7% | 19.5% | 22.7% | 23.1% |
| Adjusted EBITA | 69 | 76 | 391 | 296 |
| Adjusted EBITA margin, % | 17.9% | 22.2% | 25.0% | 24.0% |
| Profit for the period | 74 | 46 | 268 | 205 |
| Summa Just EBITA 49 847 Summa Just EBITA 49 847 Earnings per share, SEK, after dilution |
56 082 66 977 40 508 56 082 66 977 1.11 |
64 101 27 193 40 508 64 101 0.69 |
63 166 62 212 27 193 63 166 62 212 4.04 |
81 728 64 868 81 728 64 868 3.13 |
| Cashflow from operating activities Adj EBITA margin Adj EBITA margin kv 20,1% Adj EBITA margin Adj EBITA margin kv 20,1% |
99 19,9% 22,8% 14,0% 19,9% 22,8% |
104 23,1% 10,7% 14,0% 23,1% |
341 24,1% 20,8% 10,7% 24,1% 20,8% |
353 29,1% 21,4% 29,1% 21,4% |
Year end Report January - December 2022 | 3
Last twelve
months
Blue & Green
After eight straight quarters of double-digit organic growth figures, we confirmed that we did not grow organically compared with the corresponding quarter in 2021. Despite this, 2022 was Biotage's best year ever.
In terms of results, the fourth quarter generally tends to be weaker for Biotage. 2022 was no exception, with an adjusted EBITA margin of 17.9% (22.2). The product range, price increases and ongoing challenges in the supply chain affected our margins. Biotage has implemented incremental price increases for customers, but in some cases the price increases in the supply chain have been so dramatic that a gap arose between our own price adjustments.
Even though the end of the year was less satisfactory than we would have wanted, I can still say that 2022 was the best year in our 25-year history. Biotage grew rapidly, with profitability and strong cash flow. During the year, we recorded several records: net sales of more than SEK 400 million in a quarter and an operating profit of more than SEK 300 million for the year. For the full year, our net sales amounted to SEK 1,566 million.
The weakened sales for the fourth quarter are due to two reasons. As expected, the production of mRNA vaccines for COVID-19 decreased significantly, which affected our business with Scale Up solutions for lipid purification in Europe. At the same time, there was a slowdown with our largest CRO customer in China.
Our global presence and broad and diversified product portfolio are strengths that enable us to balance different geographical markets and product areas. Now that China's COVID-19 lockdowns have ended, our local organization has better long-term conditions to reach out to both new and existing customers. The fourth quarter was a new record quarter in the Americas and APAC also performed positively, with India, Japan and Korea showing organic growth.
Success in the US market was partly driven by continued strong sales in White Tech for the Biologics & Advanced Therapeutics product area, including our automated plasmid purification system Biotage® PhyPrep. Globally, sales in this product area grew by 50.1%. Sales in the Analytical Testing product area, within Red Tech, which includes our newly launched Biotage® Extrahera HV system, grew globally by 22.5%. The Water & Environmental Testing product area, in Blue&Green Tech, also grew globally during the quarter by 35.4% – the highest reported sales ever.
Another positive development during the year is how our manufacturing unit in Cardiff, Wales, has now achieved the objectives of a project to optimize production processes and further reduce solvent use there by up to 40%. During the year, a sustainability goal was achieved, where out team in Cardiff succeeded in updating existing production processes with new infrastructure that enables both increased capacity and a lower environmental footprint. We continue to strive to reduce the environmental impact of our manufacturing processes.
In an increasingly connected world, it is only natural that Biotage also provides innovative digitization solutions. Together with our customers, we have been working for some time on the development of remote control of, among other things, our purification systems Biotage® Selekt. We plan to make these solutions commercially available later in the year, something I am very much looking forward to. Not least as a sign that we listen to our customers, but also as an expression of innovation.
Today, we have been able to release the news with great joy that we will now further strengthen our product range by joining forces with a successful organization in chromatography for large molecules. This is a desirable and natural expansion of our already world-leading position in small molecule chromatography. The acquisition of Astrea Bioseparations Ltd includes a competent and experienced team at the same time that through the deal Biotage gets a new long-term and active owner. From a product perspective, both columns and media are added which will significantly strengthen our recurring revenue within the attractive market for biopharmaceuticals and advanced therapies. Over time, this will contribute to higher profit margins.
To sum up, we are now putting a fantastic but also challenging year behind us. Our growth and positive results have contributed to opportunities to invest in new, complementary businesses in attractive niches, which in turn equips us for continued growth and even better results. Most importantly, it allows us to contribute even more to solving important challenges for society. None of this would have been possible without all the fantastic employees at Biotage, who put their heart and soul into achieving our goals every day. I would like to take this opportunity to thank them, as well as our customers and shareholders, who put their trust in us. We look forward to continued positive development together in 2023!
Uppsala, February 15, 2023
Tomas Blomquist President and CEO
Net sales for the quarter amounted to SEK 384 (341) million, an increase of 12.6 percent with an organic decrease of 0.8 percent. Americas was the largest market, with 46 (40) percent of net sales. EMEA accounted for 28 (32) percent and APAC for 26 (28) percent.
Net sales for the twelve-month period amounted to SEK 1,566 (1,232) million, an increase of 27.1 percent and an organic growth of 11.4 percent.
The Group's gross margin for the quarter decreased by 3 percentage points to 59.1 percent (62.1) as a result of the disruptions in the supply chain and a less favorable product mix driven by a smaller share of covid-19 related sales within Scale Up. Sales were distributed as follows: system sales 48 (47) percent and aftermarket products (consumables and service) 52 (53) percent. The gross margin for the twelve-month period decreased by 0.7 percentage points to 60.6 (61.3) percent.
Operating expenses for the quarter amounted to SEK -186 (-150) million, an increase of SEK 36 million. Distribution costs increased by SEK 13 million to SEK -100 (-87) million. Administrative expenses increased by SEK 15 million to SEK -51 (-36) million, the increase relating to transaction costs in relation to the acquisition of Astrea. See further in Note 7. Research and development expenses increased by SEK 2 million to SEK -31 (-29) million. Other operating items for the quarter were SEK -4 (1) million and consist primarily of currency effects on operating liabilities and receivables.
Operating expenses for the twelve-month period amounted to SEK -621 (-483) million, an increase of SEK 138 million, primarily driven by negative currency effects and
acquisition-related costs from the acquisition of ATDBio LTd., with an impact on all functions. Distribution costs increased by SEK 92 million to SEK -379 (-287) million, mainly because of increased activity due to markets opening again after shutdowns during the pandemic. Administrative expenses increased by SEK 33 million to SEK -150 (-117) million. Research and development expenses increased by SEK 18 million to SEK -109 (-91) million. Other operating items for the twelve-month period were SEK 17 (11) million and consist primarily of currency effects on operating liabilities and receivables.
Operating profit for the quarter decreased by SEK 20 million to SEK 41 (61) million and the operating margin (EBIT) decreased by 7.2 percentage points to 10.8 (18.0) percent. Operating profit for the twelve-month period increased to SEK 327 (271) million and the operating margin (EBIT) amounted to 20.9 (22.0) percent.
Adjusted operating profit, operating profit adjusted for transaction costs and costs related to an additional purchase consideration relating to ATDBio, Ltd., amounted to SEK 61 (70) milllion and the adjusted operating margin amounted to 15.9 percent (20.7) for the quarter. For the twelve-month period, the corresponding values were SEK 362 (283) million and 23.1 (23.0) percent, respectively.
EBITA for the quarter amounted to SEK 49 (67) million. Adjusted EBITA amounted to SEK 69 (76) million for the quarter. For the twelve-month period, the corresponding values were SEK 356 (284) million and SEK 391 (296) million, respectively. See also Note 2.
Net financial items for the quarter amounted to SEK 55 (-5) million, and consisted primarily of revaluation of additional consideration relating to the PhyNexus, Inc. acquisition, SEK 28 million, revaluation of the shares in Chreto AS, SEK 5 million, and the impact of a repayment of an intragroup liability, previously classified as an increase in net investment, SEK 24 million. Twelve-month financial net was SEK 21 (-2) milion.
Profit after tax for the quarter increased by SEK 28 million to SEK 74 (46) million. Recognized tax expense increased to SEK -22 (-20) million. Profit after tax for the twelve-month period amounted to SEK 268 (205) million. Recognized tax expense for the twelve-month period amounted to SEK -80 (-64) million.
Cash flow from operating activities for the quarter decreased by SEK 5 million to SEK 99 (104) million. Cash flow from operating activities for the twelve-month period decreased by SEK 12 million to SEK 341 (353) million primarily due to higher paid tax and increased operating receivables.
Investments for the quarter amounted to SEK 35 (295) million and for the twelve-month period to SEK 84 (341) million. Investments in property, plant and equipment were SEK 9 (6) million for the quarter, and SEK 35 (23) million for the twelve-month period, mostly investments into production facilitites in Cardiff, UK. Investments in subsidiaries, SEK 12 (282) million, were related to an adjusted consideration to the sellers of ATDBio, Ltd.
Investments in intangible assets were SEK 12 (6) million for the quarter and SEK 35 (33) million for the twelve-month period. Capitalized development expenses accounted for
SEK 10 (5) million of the investments in intangible assets during the quarter and SEK 7 (7) million of amortization. Corresponding amounts for the twelve-month period were SEK 32 (30) million in investments and SEK 23 (24) million of amortizations.
Total depreciation and amortization for the quarter was SEK 27 (21) million, with SEK 5 million attributable to property, plant and equipment; SEK 8 million to amortization on rights-of-use assets and SEK 15 million to intangible assets. Total depreciation and amortization for the twelve-month period was SEK 102 (75) million, with SEK 18 million attributable to property, plant and equipment; SEK 26 million to amortization on rights-of-use assets, and SEK 58 million to intangible assets.
The Group's cash and cash equivalents on December 31 were SEK 441 (311) million. Interest-bearing liabilities relate to borrowings of SEK 150 (150) million under a revolving credit facility, lease liabilities of SEK 67 (53) million, an estimated additional consideration of SEK 22 (46) million for the acquisition of PhyNexus, Inc. and other financial liabilities of SEK 3 (1) million. The net cash position was SEK 199 (61) million.
The Group's total goodwill on December 31 amounted to SEK 794 (741) million, and is the result of acquisitions from 2010 onwards. During the third quarter, the distribution of consideration to the sellers of ATDBio, Ltd. changed, resulting in an increase of goodwill by SEK 7 million. For further information, see Note 6. All oher changes are related to changes in exchange rates.
Capitalized development expenses amounted to SEK 136 (128) million and other intangible assets, mainly identified surplus values related to acquisitions, amounted to SEK 172 (185) million.
Equity amounted to SEK 1,637 (1,371) million on December 31. The change in equity is mainly attributable to net profit of SEK 268 million, currency effects of SEK 84 million on the translation of foreign subsidiaries, and dividend paid to the shareholders of SEK 102 million.
The Group had 517 employees (full-time equivalents) on December 31, compared with 497 on December 31, 2021.
The Group's Parent Company, Biotage AB, has whollyowned subsidiaries in Sweden, the US, the UK, Germany, France, Italy, Switzerland, Japan, China, South Korea, India, and Singapore. The Parent Company is responsible for Group management, strategic business development and administrative functions at the Group and subsidiary levels.
The Parent Company's net sales for the quarter amounted to SEK 2 (1) million. Operating expenses were SEK -8 (-8) million. Operating loss was SEK -6 (-7) million. The twelvemonth revenue was SEK 6 (4) million and operating profit was SEK -27 (-21) million.
The Parent Company's net financial items for the quarter amounted to SEK 39 (30) million. The twelve-month financial net was SEK 401 (47) million and consisted mainly of dividends from subsidiaries.
Recognized tax for the quarter amounted to SEK -7 (-6) million and SEK -7 (-4) million for the twelve-month period. Profit after tax amounted to SEK 28 (22) million for the quarter, and 369 (26) for the twelve-month period.
Cash and cash equivalents on December 31 amounted to SEK 3 (2) million.
No significant events have taken place during the reporting period.
On February 15, 2023 an agreement was announced to acquire Astrea Bioseparations. See Note 7.
As an international Group, Biotage is exposed to various risks that affect its ability to achieve defined targets. These include operational risks, such as the risk of competitive situations affecting price levels and sales volumes, and the risk of economic instability in the markets and areas where the Group operates. There are also financial risks, which include currency risks, interest rate risks and credit risks.
There has been no significant change in material risks or uncertainties during the period, apart from the factors described below. Other risks are unchanged from the section on Biotage's risks, uncertainties and risk management in the Company's 2021 annual report.
The recovery continued during the quarter in many regions, after previous quarters' lockdowns in China and other places. As has been shown on several occasions, it is still too early to determine at what point the situation is normalized.
If the financial position of our customers weakens, this may also affect Biotage in terms of their ability to pay, which could lead not only to longer payment periods but also to eventual credit losses. Biotage has not been affected in this respect so far.
Biotage has a strong financial position, but if the pandemic's course is protracted, it may have an adverse effect on financially strong companies like Biotage. However, it is still too early to draw any conclusions about credit losses and impairment due specifically to the coronavirus pandemic. The same applies to general impairment of other asset classes. No general impairment due to the coronavirus pandemic has been identified to date.
Biotage has not made any staff reductions or lay-offs as a result of the coronavirus pandemic. Biotage has also not participated in any support programs other than reduced employer contributions in Sweden, China, the UK, and other countries.
Russia's invasion of Ukraine
Biotage is only affected to a lesser extent by the war in Ukraine in the short term, but it is too early to make a qualified assessment of the impact in the longer term. The war affects the global supply chain in general and it is likely that Biotage may also be affected.
The current energy crisis and inflationary pressure affect our cost picture at the moment and continue to have consequences that are difficult to see. We see price increases for important components and inputs, which could affect future profitability. Increasing energy costs also affect our shipping costs in the wrong direction with increasing fuel surcharges. How big the impact will be is uncertain, and may affect both profitability and capital tied up.
There were no significant transactions during the period other than transactions between subsidiaries and remuneration of senior executives of the Group and Parent Company. The amounts are essentially the same as in the most recent annual report.
This report contains forward-looking information based on management's current expectations. Although management believes that the expectations reflected in this forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct. Actual future outcomes may consequently vary significantly from those contained in this forwardlooking information due to factors such as changes to economic, market and competitive conditions, amended legal and regulatory requirements, other policy measures and exchange rate fluctuations.
This report has not been reviewed by the Company's auditors.
A Nomination Committee consisting of members appointed by the three largest shareholders or group of shareholders and the Chairman of the Board of Directors has been formed for Biotage AB in accordance with the principles adopted by the annual general meeting held on 28 April 2022. The Nomination Committee shall, before the Annual General Meeting 2023, prepare proposal for the election of Chairman and other members of the Board of Directors, the election of Chairman of the Annual General Meeting, election of Auditors, the determination of fees and matters pertaining thereto.
The members of the Nominations Committee are:
Torben Jørgensen, Chairman of the Board of Biotage AB, is an acting member of the Nomination Committee.
Shareholders wishing to submit a proposal to the Nomination Committee may do so by sending e-mail to the Chairman of the Board of Directors of Biotage AB at: [email protected]. Proposals should, in order to be timely assessed by the Nomination Committee, be submitted no later than seven weeks in advance of the meeting.
Unless otherwise indicated in this interim report, the Group is referred to.
Figures in parentheses indicate the outcome for the corresponding period in the previous year, apart from balance sheet items where they refer to the value on December 31 of the previous year. Unless otherwise stated, amounts are presented in SEK millions.
The interim report for Biotage AB (publ) has been issued by the Company's President and CEO Tomas Blomquist after authorization by the Board of Directors.
Uppsala, February 15, 2023
Tomas Blomquist President and CEO
Tomas Blomquist, President and CEO phone: +46 705 23 01 63
Maja Nilsson, CFO phone: +46 733 25 51 70
This information is information that Biotage AB (publ) is required to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act.
The information was submitted for publication, through the agency of the contact persons set out above, on February 15, 2023 at 08.00 CET.
| The Annual Report for 2022 is planned to be published |
Week 14, 2023 |
|---|---|
| Interim Report January-March 2023 | April 27, 2023 |
| Annual General Meeting 2023 | April 27, 2023 |
| Interim Report January-June 2023 | July 17, 2023 |
| Interim Report January-September 2023 | October 25, 2023 |
| Year-end Report 2023 | February 15, 2024 |
This document has been prepared in Swedish and English versions. In the event of any discrepancies between the versions, the Swedish version will take precedence.
| Amounts in SEK million | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|
| Net sales | 384 | 341 | 1,566 | 1,232 |
| Cost of sales | -157 | -129 | -618 | -477 |
| Gross profit | 227 | 212 | 948 | 755 |
| Distribution costs | -100 | -87 | -379 | -287 |
| Administrative expenses | -51 | -36 | -150 | -117 |
| Research & development expenses |
-31 | -29 | -109 | -91 |
| Other operating items | -4 | 1 | 17 | 11 |
| Total operating expenses | -186 | -150 | -621 | -483 |
| Operating profit | 41 | 61 | 327 | 271 |
| Net financial items | 55 | 5 | 21 | -2 |
| Profit before tax | 96 | 66 | 348 | 269 |
| Income tax | -22 | -20 | -80 | -64 |
| Profit for the period | 74 | 46 | 268 | 205 |
| 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|
|---|---|---|---|---|
| Average number of shares outstanding |
65,983,775 | 65,815,605 | 65,983,775 | 65,355,239 |
| Average number of shares outstanding after dilution due to outstanding share programs |
66,200,173 | 66,015,982 | 66,184,324 | 65,464,807 |
| Ordinary shares outstanding at the reporting date |
65,983,775 | 65,983,775 | 65,983,775 | 65,983,775 |
| Earnings per share for the period |
1.12 | 0.69 | 4.06 | 3.13 |
| Diluted earnings per share for the period |
1.11 | 0.69 | 4.04 | 3.13 |
| Items that may be reclassified to profit or loss for the year: | ||||
|---|---|---|---|---|
| Exchange differences from translation of foreign subsidiaries |
-40 | 33 | 84 | 67 |
| Total other comprehensive income |
-40 | 33 | 84 | 67 |
| Total comprehensive income for the period |
34 | 79 | 352 | 272 |
| Profit for the period attributable to owners of the Parent |
74 | 46 | 268 | 205 |
| Total comprehensive income for the period attributable to owners of the Parent |
34 | 79 | 352 | 272 |
| Amounts in SEK million | 12/31/2022 | 12/31/2021 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 794 | 741 | |
| Capitalized development expenditure | 136 | 128 | |
| Other intangible assets | 172 | 185 | |
| Right-of-use assets | 66 | 52 | |
| Property, plant and equipment | 96 | 76 | |
| Financial assets | 21 | 14 | |
| Deferred tax asset | 23 | 22 | |
| Total non-current assets | 1,308 | 1,218 | |
| Current assets | |||
| Inventories | 305 | 237 | |
| Trade receivables | 223 | 180 | |
| Other receivables | 62 | 46 | |
| Cash and cash equivalents | 441 | 311 | |
| Total current assets | 1,031 | 774 | |
| TOTAL ASSETS | 2,339 | 1,992 |
| Amounts in SEK million | 12/31/2022 | 12/31/2021 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Capital and reserves attributable to equity holders of the parent company | |||
| Share capital | 93 | 92 | |
| Reserves and other contributed capital | 315 | 216 | |
| Retained earnings | 1,229 | 1,063 | |
| Total equity | 1,637 | 1,371 | |
| Non-current liabilities | |||
| Liabilities to credit institutions | 150 | 150 | |
| Lease liabilities | 42 | 30 | |
| Other interest-bearing liabilities | 17 | 45 | |
| Deferred tax liability | 71 | 73 | |
| Non-current provisions | 5 | 10 | |
| Total non-current liabilities | 285 | 308 | |
| Current liabilities | |||
| Accounts payables | 57 | 56 | |
| Lease liabilities | 25 | 23 | |
| Other financial liabilities | 8 | 2 | |
| Other liabilities | 325 | 229 | |
| Current provisions | 3 | 3 | |
| Total current liabilities | 417 | 313 | |
| TOTAL EQUITY AND LIABILITIES | 2,339 | 1,992 |
| Other paid-in | Translation | Retained | |||
|---|---|---|---|---|---|
| Amounts in SEK million | Share capital | capital | reserve | earnings | Total equity |
| OPENING BALANCE JANUARY 1, 2021 | 91 | 60 | -117 | 956 | 990 |
| Changes in equity between January 1 and December 31, 2021 | |||||
| Total comprehensive income for the period | - | - | 67 | 205 | 272 |
| Total changes during the period, excluding transactions with owners of the Parent | - | - | 67 | 205 | 272 |
| Transactions with owners of the Parent | |||||
| New share issue | 1 | 200 | - | - | 201 |
| Dividend to shareholders of the Parent | - | - | - | -98 | -98 |
| Share-based compensation | - | 6 | - | - | 6 |
| Share buy-back, Parent company | - | - | - | -0 | -0 |
| Closing balance December 31, 2021 | 92 | 266 | -50 | 1,063 | 1,371 |
| CHANGES IN EQUITY BETWEEN JANUARY 1 AND DECEMBER 31, 2022 | |||||
| Total comprehensive income for the period | - | - | 84 | 268 | 352 |
| Total changes during the period excluding transactions with owners of the Parent | - | - | 84 | 268 | 352 |
| Transactions with owners of the Parent | |||||
| Dividend to shareholders of the Parent | - | - | - | -102 | -102 |
| New share issue | 1 | - | - | - | 1 |
| Share buy-back, Parent company | - | - | - | -0 | -0 |
| Share-based compensation | - | 15 | - | - | 15 |
| Closing balance December 31, 2022 | 93 | 281 | 34 | 1,230 | 1,637 |
| Amounts in SEK million | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|
| OPERATING ACTIVITIES | ||||
| Profit before tax | 96 | 66 | 348 | 269 |
| Adjustments for non-cash items | -19 | 29 | 84 | 78 |
| 77 | 95 | 432 | 347 | |
| Income tax paid | -14 | -2 | -52 | -16 |
| Cash flow from operating activities before changes in working capital | 63 | 93 | 380 | 332 |
| CASH FLOW FROM CHANGES IN WORKING CAPITAL | ||||
| Increase (-)/decrease (+) in inventories | -8 | -17 | -45 | -54 |
| Increase (-)/decrease (+) in operating receivables | 23 | 6 | -45 | 16 |
| Increase(+)/decrease (-) in operating liabilities | 21 | 22 | 51 | 60 |
| Cash flow from changes in working capital | 36 | 11 | -39 | 21 |
| CASH FLOW FROM OPERATING ACTIVITIES | 99 | 104 | 341 | 353 |
| INVESTING ACTIVITIES | ||||
| Acquisition of intangible assets | -12 | -6 | -35 | -33 |
| Acquisition of property, plant and equipment | -9 | -6 | -35 | -23 |
| Acquisition of financial assets | -1 | -1 | -2 | -2 |
| Acquisition of subsidiaries, net of cash | -12 | -282 | -12 | -282 |
| Cash flow from investing activities | -35 | -295 | -84 | -341 |
| FINANCING ACTIVITIES | ||||
| Dividend to shareholders | - | - | -102 | -98 |
| Subscription of new loans | - | 150 | 150 | |
| Repayment of borrowings | -5 | -5 | -30 | -134 |
| Cash flow from financing activities | -5 | -145 | -133 | -82 |
| Cash flow for the reporting period | 59 | -47 | 124 | -69 |
| Cash and cash equivalents at beginning of period | 388 | 359 | 311 | 371 |
| Exchange differences | -5 | -1 | 7 | 9 |
| Cash and cash equivalents at end of reporting period | 441 | 311 | 441 | 311 |
| Adjustments for non-cash items | ||||
| Depreciation and impairment | 27 | 21 | 102 | 75 |
| Translation differences | -19 | 10 | 4 | 4 |
| Value adjustment, additional consideration | -28 | -9 | -28 | -9 |
| Other items | 1 | 7 | 7 | 9 |
| Total | -19 | 29 | 84 | 78 |
| Amounts in SEK million | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|
| Net sales | 2 | 1 | 6 | 4 |
| Administrative expenses | -8 | -5 | -30 | -21 |
| Research & development expenses | - | -1 | -3 | -3 |
| Other operating items | -0 | -2 | 0 | -1 |
| Operating expenses, net | -8 | -8 | -33 | -25 |
| Operating profit | -6 | -7 | -27 | -21 |
| Profit/loss from financial investments | ||||
| Interest income on receivables from group companies | 1 | 2 | 3 | 3 |
| Profit/loss from investments in subsidiaries | - | 0 | 338 | 9 |
| Other interest and similar income | 5 | 14 | 51 | 22 |
| Interest and similar expense | -3 | -15 | -27 | -16 |
| Group contributions received | 36 | 29 | 36 | 29 |
| Net financial items | 39 | 30 | 401 | 47 |
| Profit/loss after financial items | 33 | 23 | 374 | 25 |
| Appropriations | 2 | 5 | 2 | 5 |
| Income tax | -7 | -6 | -7 | -4 |
| Profit/loss for the reporting period | 28 | 22 | 369 | 26 |
| STATEMENT OF COMPREHENSIVE INCOME, PARENT COMPANY | ||||
| Profit/loss for the reporting period | 28 | 22 | 369 | 26 |
| Other comprehensive income | ||||
| Items that may be reclassified to profit or loss for the year | - | - | - | - |
Comprehensive income for the reporting period 28 22 369 26
| Amounts in SEK million | 12/31/2022 | 12/31/2021 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Patents and licenses | 13 | 13 | |
| Total intangible assets | 13 | 13 | |
| Financial assets | |||
| Investments in Group companies | 1,141 | 1,134 | |
| Receivables from Group companies | 12 | 131 | |
| Other financial assets | 15 | 10 | |
| Total financial assets | 1,168 | 1,275 | |
| Total non-current assets | 1,181 | 1,288 | |
| Current assets | |||
| Current receivables | |||
| Receivables from Group companies | 125 | 1 | |
| Other receivables | 5 | 8 | |
| Prepaid expenses and accrued income | 17 | 2 | |
| Total current receivables | 147 | 11 | |
| Cash and bank balances | 3 | 2 | |
| Total current assets | 150 | 13 | |
| Total assets | 1,331 | 1,301 |
| Amounts in SEK million | 12/31/2022 | 12/31/2021 | |
|---|---|---|---|
| EQUITY, PROVISIONS AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 93 | 92 | |
| Total restricted equity | 93 | 92 | |
| Unrestricted equity | |||
| Other paid-in capital | 258 | 258 | |
| Retained earnings | 368 | 429 | |
| Profit/loss for the reporting period | 369 | 26 | |
| Total unrestricted equity | 995 | 713 | |
| Total equity | 1,088 | 805 | |
| Untaxed reserves | 1 | 3 | |
| Non-current liabilities | |||
| Liabilities to credit institutions | 150 | 150 | |
| Other non-current liabilities | 59 | 56 | |
| Total non-current liabilities | 209 | 206 | |
| Current liabilities | |||
| Trade payables | 3 | 3 | |
| Liabilities to Group companies | - | 257 | |
| Current tax liabilities | 4 | 11 | |
| Other current liabilities | - | 5 | |
| Accruals and deferred income | 26 | 11 | |
| Total current liabilitites | 33 | 286 | |
| Total equity and liabilities | 1,331 | 1,301 |
| 2022 | 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Amounts in SEK million | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
| Net Sales | 384 | 401 | 395 | 386 | 341 | 305 | 303 | 281 | 298 |
| Growth in net sales, % | 12.6% | 31.2% | 30.3% | 37.0% | 14.5% | 16.3% | 19.4% | 1.4% | 3.3% |
| Organic growth, % | -0.8% | 12.2% | 14.4% | 21.9% | 10.0% | 17.8% | 32.1% | 12.0% | 10.0% |
| Gross profit | 227 | 241 | 240 | 241 | 212 | 183 | 182 | 177 | 179 |
| Gross margin, % | 59.1% | 60.1% | 60.6% | 62.5% | 62.1% | 60.0% | 60.0% | 63.1% | 59.9% |
| Operating profit | 41 | 97 | 93 | 96 | 61 | 68 | 63 | 79 | 60 |
| Operating margin, % | 10.8% | 24.2% | 23.4% | 24.9% | 18.0% | 22.3% | 20.6% | 28.2% | 20.0% |
| Profit for the period | 74 | 65 | 57 | 71 | 46 | 53 | 46 | 60 | 44 |
| Profit margin, % | 19.2% | 16.2% | 14.5% | 18.4% | 13.4% | 17.4% | 15.1% | 21.3% | 14.9% |
| Total Assets | 2,339 | 2,306 | 2,158 | 2,056 | 1,992 | 1,503 | 1,407 | 1,576 | 1,434 |
| Net cash(+)/net debt(-), SEK millions | 199 | 135 | 67 | 103 | 61 | 244 | 161 | 190 | 157 |
| Equity/Assets ratio, % | 70.0% | 69.3% | 68.6% | 70.8% | 68.9% | 72.5% | 72.5% | 68.7% | 69.0% |
| Cash flow from operating activities, SEK/share | 1.49 | 1.47 | 1.25 | 0.86 | 1.57 | 1.37 | 1.41 | 1.04 | 1.34 |
| Average number of employees | 517 | 510 | 493 | 496 | 497 | 478 | 469 | 462 | 463 |
| Return on equity, % | 17.8% | 17.8% | 18.2% | 17.0% | 17.3% | 19.6% | 19.0% | 17.1% | 18.8% |
| Return on capital employed, % | 26.0% | 28.6% | 28.1% | 23.2% | 23.0% | 25.2% | 26.4% | 23.2% | 23.7% |
| Return on total assets, % | 21.0% | 22.9% | 22.6% | 19.3% | 18.9% | 20.9% | 22.0% | 19.5% | 20.0% |
| Earnings, SEK/share | 1.12 | 0.99 | 0.87 | 1.08 | 0.69 | 0.81 | 0.71 | 0.92 | 0.68 |
| Earnings after dilution, SEK/share | 1.11 | 0.98 | 0.87 | 1.08 | 0.69 | 0.81 | 0.70 | 0.92 | 0.68 |
| Stock market price at end of period, SEK/share | 185.5 | 166.8 | 181 | 220.2 | 262.0 | 239.4 | 202.6 | 154.0 | 139.0 |
| Equity, SEK/share | 24.81 | 24.23 | 22.44 | 22.05 | 20.83 | 16.71 | 15.64 | 16.60 | 15.18 |
| Equity after dilution, SEK/share | 24.73 | 24.16 | 22.39 | 21.98 | 20.77 | 16.68 | 15.62 | 16.59 | 15.18 |
| Weighted average number of shares, thousands | 65,984 | 65,984 | 65,984 | 65,984 | 65,822 | 65,202 | 65,202 | 65,202 | 65,202 |
| Weighted average number of shares after dilution, thousands | 66,200 | 66,195 | 66,158 | 66,185 | 66,015 | 65,345 | 65,267 | 65,230 | 65,222 |
| Total number of shares outstanding at end of the period, thousands | 65,984 | 65,984 | 65,984 | 65,984 | 65,984 | 65,202 | 65,202 | 65,202 | 65,202 |
See definitions in Note 2 and in the 2021 Annual Report, pp 104-106.
Biotage's consolidated financial statements are based on International Financial Reporting Standards as adopted by the EU. The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The Group and the Parent Company have applied the same accounting policies and calculation methods in the interim report as in the most recent annual report. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided in the notes and elsewhere in the interim report. Amended and new standards and interpretations from the IASB and IFRS Interpretations Committee that are effective for the 2022 fiscal year have not had any impact on the Group's financial reporting. Amendments to RFR2 that have come into force and are effective on or after January 1, 2022 have not had any material impact on the Parent Company's financial statements.
When preparing the interim reports for the Group and Parent Company, the same accounting policies and calculation methods have been used as in Biotage's 2021 annual report. The accounting policies are described on pages 63-78 of the annual report. For balance sheet items, figures in parentheses refer to the value at the end of the previous fiscal year, December 31, 2021. For income statement and cash flow items, figures in parentheses refer to the corresponding period in the previous year.
In the Annual report 2021, in Note 10 Significant accounting estimates on page 77, describes an intercompany loan that has been classified as an increased net investment in accordance to IAS 21. During the fourth quarter, a review of the capital structure was carried out, which has resulted that the loan has been refunded. Therefore, the revaluation that was made in previous periods over other comprehensive income, has now reversed to the income statement. The effect has a positive impact, SEK 24 million, on the Net financial items and profit for the year.
Biotage has a financial liability in connection with an additional consideration for an acquisition, which is measured at fair value through profit or loss. The additional consideration, attributable to the acquisition of PhyNexus Inc., is based on the agreed allocation of gross profit on related products during the period 2019 to 2023. The agreement with the sellers does not include a maximum amount.
The company's best assessment of fair value on the balance sheet date is shown in the table below. The fair value calculations are based on level 3 of the fair value hierarchy, which means that the fair value was determined on the basis of a valuation model using significant inputs that are unobservable. Valuation was based on expected future cash flows, discounted using a market interest rate.
If sales in the forecast period were to be 10 percent higher than estimated, this would mean a higher provision of 15 percent.
| Additional consideration, non current portion |
15 | 44 |
|---|---|---|
| Additional consideration, current portion |
7 | 2 |
| Total | 22 | 46 |
| Opening value, January 1, 2022 | 46 | |
| Value adjustment | -28 | |
| Translation differences | 6 | |
| Settled during the year | -2 | |
| Closing balance, December 31, 2022 | 22 |
Biotage has a financial asset in the form of shares in Chreto ApS, reported as financial assets at fair value. The holding has been allocated to level 2 of the fair value hierarchy on the basis that issue prices during the fourth quarter of 2022 are observable market data. At December 31, the shares were valued at the last known transaction price, which meant an increase in value, SEK 5 million, compared with the previous reporting period. A fair value calculation based on discounted future cash flows, for which the most significant input is a discount rate that reflects the counterparty's credit risk, is not expected to differ significantly from the carrying amount of other financial assets and current financial liabilities measured at amortized cost. Consequently, the carrying amounts of these financial assets and liabilities are considered to represent a good approximation of the fair values. Further information about financial assets and liabilities and their classification can be found in note 19 and 20 of the 2021 Annual Report.
Performance share program
In accordance with a resolution of the AGM, Biotage has adopted long-term incentive programs in the form of performance-based share programs ("LTIP 2020", "LTIP 2021", and "LTIP 2022") for employees of the Biotage Group. All programs include the CEO, senior executives and other key personnel, meaning that a maximum of 18 individuals within the Biotage Group will be eligible to participate. For further information on LTIP 2020 and LTIP 2021, see the 2021 Annual Report.
Changes in number of performance shares:
| Number of performance | LTIP | LTIP | LTIP |
|---|---|---|---|
| shares | 2020 | 2021 | 2022 |
| Opening balance January 1, 2022 |
127,819 | 151,599 | |
| Allotted performance shares | - | - | 168,926 |
| Cancelled performance shares | - | - | - |
| Closing balance December 31, 2022 |
127,819 | 151,599 | 168,926 |
Allotment of performance shares requires that the participant remains in his/her employment for three years from the allotment date. In addition to the requirement for the participant's continued employment, the final number of performance shares that each participant is entitled to receive is settled based on the following performance terms:
Performance term 1: 50 percent of the performance shares if the total return of the company's ordinary share amounts to or exceeds 64.3 percent in the period June 2022 – May 2025, however, at least 26 percent is required for the allotment to take place. Total return refers to return to shareholders in the form of price increase and reinvestment of any dividends during the vesting period.
Performance term 2: 25 percent of the performance shares if the average adjusted operating margin amounts to or exceeds 25 percent in 2022-2024 (calendar years), however, at least 22 percent is required for allotment to take place.
Performance term 3: 25 percent of the performance shares if the average organic sales growth amounts to or exceeds 15 percent in 2022-2024 (calendar years), however, at least 11 percent is required for allotment to take place. For further information on the rights, see the Annex to the General Meeting Protocol at the company's website.
The rights related to Performance term 1 are valued according to the Monte Carlo model with an expected volatility of 37.5 percent and an interest rate of 1.58 percent. This gives a value of SEK 84.82. The rights related to Performance terms 2 and 3 are valued on the basis of the current share price less forecast dividend during the vesting period. This gives a value of SEK 184.31.
Scope and costs of the LTIP programmes Nine participants, including the CEO, have been awarded a total of 127,819 rights to performance shares under the LTIP 2020 program. 11 participants, including the CEO, have been awarded a total of 151,599 rights to performance shares under the LTIP 2021 program. 13 participants, including the CEO, have been awarded a total of 168,926 rights to performance shares under the LTIP 2022 program. All senior executives are included in the program. All programs are reported in accordance with IFRS 2, which means that the rights are measured on the grant date at the fair value of allotted equity instruments.
The cost of LTIP 2020 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2020 is SEK 24 million. The cost of LTIP 2021 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2021 is SEK 30 million. The cost of LTIP 2022 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2022 is SEK 30 million.
Effects on key figures and dilution In order to secure the allotment of ordinary shares in Biotage to participants in LTIP 2020 and 2021, Biotage issued and repurchased C shares. Further information about the terms and conditions of the Class C shares can be found in the appendix to the minutes of the respective AGM on the Biotage website. With regard to LTIP 2022, there is a corresponding authorization for the board to issue and buy back C shares.
On maximum allotment of performance shares under LTIP 2020, 127,819 ordinary shares will be allotted to participants and 40,161 or dinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.24 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 151,599 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.31 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 196,183 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.37 percent of the number of ordinary shares in the Company.
The average number of shares after dilution is affected by the estimated allotment of shares as of December 31. However, this does not have any material effect on earnings per share before and after dividends.
A list of definitions of key figures and performance measures reported in the consolidated financial statements can be found in Note 32 of the 2021 Annual Report.
In this report, Biotage presents information used by management to assess the Group's performance. Some of the financial measures presented are not defined under IFRS. The Company believes that these measures provide useful additional information to investors and Company management and contribute to the evaluation of relevant trends and the Company's performance. As not all companies calculate performance measures in the same way, the measures are not always comparable with those used by other companies. These performance measures should therefore not be considered a substitute for measures defined under IFRS. ESMA's guidelines on alternative performance measures are applied and include enhanced disclosure requirements for performance measures not defined under IFRS. Explanations of the financial measures that Biotage considers relevant are provided below.
Information on the Group's net cash/debt, defined as cash less liabilities to credit institutions, is reported in order to enable stakeholders and management to monitor and analyze the Group's financial strength.
| Net cash (+) /net liabilities (-) | 199 | 61 |
|---|---|---|
| Others | -25 | -47 |
| Lease-related liabilities | -67 | -53 |
| Liabilities to credit institutions | -150 | -150 |
| Cash and cash equivalents | 441 | 311 |
In this report, Biotage uses the performance measure EBIT (Earnings Before Interest and Taxes) as an alternative term for operating profit, and EBITA Earnings Before Interest, Tax and Amortizations. EBIT margin is an alternative term for the operating margin, which is calculated as operating profit divided by net sales. Operating profit is calculated as net sales less cost of sales and operating expenses. EBITA is calculated as earnings before amortization of acquisition-related surplus values, interest and tax. EBITA margin is EBITA divided by net sales.
To make it easier for the reader to form an opinion about underlying operations adjusted for non-recurring items related to acquisitions, Biotage also reports adjusted profit measures in the form of adjusted EBIT and adjusted EBITA. The performance measures, how they relate to each other and the effect of adjustments are shown in the tables below.
| EBITA | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|
| Operating profit | 41 | 61 | 327 | 271 |
| Adjustment: Amortization of acquisition-related surplus values | 7 | 5 | 29 | 12 |
| EBITA | 49 | 67 | 356 | 284 |
| Adjusted EBIT | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
| EBIT | 41 | 61 | 327 | 271 |
| Adjustment additional consideration | 5 | 4 | 21 | 4 |
| Adjustment transcation costs | 15 | 5 | 15 | 8 |
| Adjusted EBIT | 61 | 71 | 362 | 283 |
| 10/1/2022 | 10/1/2021 | 1/1/2022 | 1/1/2021 |
| Adjusted EBITA | 12/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
|---|---|---|---|---|
| EBITA | 49 | 67 | 356 | 284 |
| Adjustment additional consideration | 5 | 4 | 21 | 4 |
| Adjustment transcation costs | 15 | 5 | 15 | 8 |
| Adjusted EBITA | 69 | 76 | 391 | 296 |
As most of the Group's net sales are settled in currencies other than the reporting currency, SEK, the amount recognized is affected by exchange rate changes between periods to a relatively large extent. The Group's revenue is also affected by acquisitions. To enable stakeholders and management to obtain a clear picture of organic growth and analyze the sales trend excluding currency effects and acquisitions, the Company reports sales growth for the current and comparative period at constant exchange rates and adjusted for acquisitions. The current period's sales in each currency are translated at the exchange rates that were used in the financial statements for the comparative period and adjusted for acquisitions. Organic growth as a percentage is the ratio of organic growth and reported net sales for the comparative period.
Biotage has chosen to report graphs of the net sales and the operating result on a last twelve months (LTM) basis as corporate management also follows the development over time on a LTM basis and believes that this provides supplementary information to the calendar-based interim data otherwise given in the report.
In connection with the acquisition of ATDBio, Ltd., there has been an agreement on an additional purchase price of GBP 5 million, which may be due provided that certain conditions are met. The terms mean that the additional purchase price is expensed over time, and owed to the extent that they are earned. The excess part, SEK 35 (57) million, is a contingent liability.
| 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|||||
|---|---|---|---|---|---|---|---|---|
| MSEK | % | MSEK | % | MSEK | % | MSEK | % | |
| Net sales recognized in the comparative period | 341 | 298 | 1,232 | 1,092 | ||||
| Net sales recognized in the period | 384 | 341 | 1,566 | 1,232 | ||||
| Recognized change | 43 | 12.6 | 43 | 14.5 | 334 | 27.1 | 139 | 12.7 |
| Net sales for the period, excl. acquisitions | 382 | 331 | 1,528 | 1,221 | ||||
| Change attributable to acquisitions | 2 | 0.6 | 10 | 3.4 | 38 | 3.1 | 10 | 0.9 |
| Net sales for the period at comparative period's exchange rates, excl. acquisitions |
339 | 328 | 1,372 | 1,283 | ||||
| Change attributable to currency | 43 | 12.7 | 3 | 1.0 | 157 | 12.7 | -62 | -5.7 |
| Net sales for the period at comparative period's exchange rates, excl. acquisitions |
339 | 328 | 1,372 | 1.283 | ||||
| Organic growth | -3 | -0.8 | 30 | 10.0 | 140 | 11.4 | 191 | 17.5 |
As a result of changes in customer or product classifications, individual sales information may differ from that disclosed in previous interim reports.
| Distribution between products and services | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|
| Products | 336 | 301 | 1,384 | 1,112 |
| Services | 45 | 37 | 170 | 111 |
| Other sales revenue | 3 | 2 | 12 | 9 |
| Total sales revenue | 384 | 341 | 1,566 | 1,232 |
| 10/1/2022 | 10/1/2021 | 1/1/2022 | 1/1/2021 | |
| Revenue by sales channel | 12/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 |
| Direct sales through own sales channels | 365 | 323 | 1,500 | 1,176 |
| Sales through distributors | 19 | 18 | 66 | 56 |
| Total sales revenue | 384 | 341 | 1,566 | 1,232 |
| Point in time of transfer of goods and services | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
| Goods transferred at a point in time | 336 | 301 | 1,384 | 1,112 |
| Services transferred at a point in time | 23 | 20 | 90 | 45 |
| Service contracts and other services transferred over a period of time |
25 | 20 | 92 | 74 |
| Total sales revenue | 384 | 341 | 1,566 | 1,232 |
| Revenue by systems and aftermarket products | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
| System | 185 | 164 | 747 | 583 |
| Service | 54 | 44 | 203 | 136 |
| Consumables | 145 | 133 | 616 | 513 |
| Total sales revenue | 384 | 341 | 1,566 | 1,232 |
| Revenue by customer focus area | 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
| White | 224 | 231 | 993 | 833 |
|---|---|---|---|---|
| Red | 113 | 71 | 395 | 256 |
| Blue & Green | 48 | 39 | 178 | 143 |
| Total sales revenue | 384 | 341 | 1,566 | 1,232 |
After a review of the Group's product areas, Biotage has decided to update the product area classification from 1 January 2022. The previous product area Analytical Chemistry has been divided into the product areas Analytical Testing and Water & Environmental Testing. The part of the product area Scale Up that came with the acquisition of ATDBio, Ltd. has broken out in the Diagnostics product area. At the same time, the Organic Chemistry product area has changed its name to Small molecules & Synthetics, and the Biomolecules product area has changed its name to Biologics & Advanced Therapies. The changes are shown in the table below:
| Previous reported | After Change | ||||
|---|---|---|---|---|---|
| Previous name | 10/1/2021 12/31/2021 |
Change | 10/1/2021 12/31/2021 |
New name | |
| Organic chemistry | 174 | - | 174 | Small Molecules & Synthetic Therapeutics |
|
| Biomolecules | 10 | 0 | 11 | Biologics & Advanced Therapeutics |
|
| Scale Up | 49 | -10 | 38 | Scale Up | |
| - | - | 10 | 10 | Diagnostics | |
| Analytical Chemistry | 109 | -26 | 83 | Analytical Testing | |
| - | - | 26 | 26 | Water & Environmental Testing |
|
| Total | 341 | - | 341 |
| Total | 1,232 | - | 1,232 | |
|---|---|---|---|---|
| - | - | 93 | 93 | Water & Environmental Testing |
| Analytical Chemistry | 386 | -93 | 293 | Analytical Testing |
| - | - | 46 | 46 | Diagnostics |
| Scale Up | 186 | -47 | 139 | Scale Up |
| Biomolecules | 38 | 1 | 39 | Biologics & Advanced Therapeutics |
| Organic chemistry | 622 | - | 622 | Small Molecules & Synthetic Therapeutics |
| Previous name | 1/1/2021 12/31/2021 |
Change | 1/1/2021 12/31/2021 |
New name |
| Previous reported | After Change |
| Americas | EMEA | APAC | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
10/1/2022 12/31/2022 |
10/1/2021 12/31/2021 |
|
| Small Molecules & Synthetic Therapeutics | 67 | 54 | 51 | 39 | 72 | 72 | 190 | 174 |
| Biologics & Advanced Therapeutics | 13 | 7 | 2 | 2 | 0 | 1 | 16 | 11 |
| Scale Up | 14 | 13 | 7 | 22 | 9 | 3 | 31 | 38 |
| Analytical Testing | 56 | 43 | 31 | 24 | 14 | 16 | 101 | 83 |
| Diagnostics | 2 | 1 | 8 | 6 | 2 | 2 | 11 | 10 |
| Water & Environmental Testing | 25 | 17 | 8 | 8 | 3 | 2 | 35 | 26 |
| Summa | 177 | 135 | 105 | 110 | 120 | 96 | 384 | 341 |
| Americas | EMEA | APAC | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
1/1/2022 12/31/2022 |
1/1/2021 12/31/2021 |
|
| Small Molecules & Synthetic Therapeutics | 247 | 189 | 172 | 155 | 351 | 278 | 770 | 622 |
| Biologics & Advanced Therapeutics | 54 | 26 | 8 | 8 | 4 | 4 | 66 | 38 |
| Scale Up | 57 | 52 | 91 | 99 | 33 | 24 | 181 | 175 |
| Analytical Testing | 206 | 151 | 110 | 81 | 66 | 61 | 382 | 293 |
| Diagnostics | 4 | 1 | 29 | 6 | 12 | - | 46 | 10 |
| Water & Environmental Testing | 88 | 62 | 23 | 22 | 10 | 9 | 121 | 93 |
| Summa | 656 | 481 | 433 | 372 | 476 | 379 | 1,566 | 1,232 |
The distribution relates to sales per product area to customers located in the above geographical areas.
The acquisition of ATDBio on October 20, 2021 contained customary provisions on adjustment of the acquisition amount due to subsequent reviews of the company, among other things with regard to working capital. Upon review and subsequent agreement with the sellers, an adjustment to the purchase price has been made. Against the background of the rules on adjustments in the acquisition analysis in IFRS 3, the group's Goodwill increased by SEK 7 million per 30th of September 2022. The cash flow was affected by SEK 12 million during the fourth quarter due to payment of the adjusted purchase price.
After the end of the reporting period, agreements were reached to acquire Astrea Bioseparations ("Astrea") from Gamma Biosciences, as well as the shares in Nanopareil (a subsidiary of Astrea) not already held by Astrea from certain minority shareholders.
Astrea supports drug developers and manufacturers globally to bring high-purity biopharmaceuticals and advanced therapeutics to the market globally. Astrea supplies chromatography resins, absorbents and columns as well as nanofiber-based purification technologies for biomanufacturing. Astrea has over 150 employees worldwide with production sites in Cambridge, UK, Isle of Man, Boston, USA, and Joliette, Canada.
Strategically, the acquisition extends Biotage's chromatography franchise into the higher-growth and larger bioprocessing segment, while also increasing exposure to biologics and advanced therapeutic customers. Importantly, Astrea strengthens Biotage's financial profile through its attractive organic growth rate, higher gross margins and significant exposure to recurring consumables-based revenues. In addition, the acquisition brings a rich, near-term pipeline of new product launches across chromatography resins, nanofiber-based membranes and columns.
The total purchase price for the acquisition of Astrea and Nanopareil (on a cash and debt free basis) to be paid in connection with closing of the transaction is approximately USD 215 million, and will be paid in the form of 13,954,103 newly issued ordinary shares in Biotage (number of shares to be determined based on an agreed share price of SEK 160 per share and adjustments for cash and debt in connection with closing). Certain adjustments to the purchase price payable at closing may be paid in cash. The total purchase price payable in connection with closing of the transaction
will be calculated in connection with closing, which is expected to occur during the second quarter of 2023.
No preliminary allocation of the purchase price between identifiable net assets and goodwill has been made, given the timing of when acquisition agreements have been entered into in relation to the publication of the report. The acquisition is expected to give rise to a significant amount of goodwill.
Since the acquisition took place after the end of the reporting period, the acquisition has not affected the Group's income or expenses during the quarter or twelvemonth period.
Transaction costs of SEK 15 million related to the acquisition are included in the administration costs in the fourth quarter.
Additional purchase price
Under certain conditions, the sellers of Astrea and Nanopareil may be entitled to additional purchase price payments in cash of up to USD 45 million in total. The payment of additional purchase price is conditional upon Astrea and Nanopareil reaching certain financial goals tied to revenue and gross profit during 2023-2025.
The maximum undiscounted amount is USD 45 million or 465 MSEK, based on a USD/SEK exchange rate of 10.342 on February 14, 2023.
Biotage, a global impact tech company, provides innovative solutions that streamline analytical testing, drug development and manufacturing, alongside water and environmental analysis. We help solve societal issues on a local and global level by working in a systematic, goal-oriented, and sustainable manner.
Everything we offer helps solve challenging issues facing society. Our customers work in a broad spectrum of industries, including pharmaceutical manufacturing, diagnostics, biotechnology, contract research and manufacturing, clinical, forensic, and academic laboratory research, and food safety, water quality, and environmental testing.
Our wide selection of effective, high-quality solutions plays a key role in streamlining our customers' workflows in pharmaceutical research, development, and manufacturing, as well as diagnostics, analytical testing, and water and environmental analysis. At the same time, our products reduce our customers' environmental footprint, and Biotage is constantly finding ways to continuously lower the amount of solvents and consumables required by our products.
We are proud to contribute to sustainable science in order to make the world a healthier, greener, and cleaner place for humanity - a goal that is summarized by our ethos "HumanKind Unlimited".
Biotage is headquartered in Uppsala in Sweden and employs approx. 517 people worldwide. The Group had sales of 1,566 MSEK in 2022. Biotage's share (BIOT) is listed in the Large Cap segment on the NASDAQ Stockholm
Website: www.biotage.com
Biotage has 14 office locations in seven different countries. Our own sales organization encompasses 18 countries in North America, Europe, and Asia while our distribution network covers numerous additional countries in South America, Europe, Africa, the Middle East, and Asia.
Biotage's mission is to help our customers make the world a healthier, greener and cleaner place. To achieve this we provide them with a wide set of solutions ranging from tools and services for drug and diagnostics discovery and development to products, methods and applications for analytical, clinical, environmental and food testing. All this is in line with our ethos – HumanKind Unlimited.
Our portfolio of solutions is very wide and so is our customer base. They span a wide range of activities – including the pharmaceutical and diagnostic industry, biotech, contract research and manufacturing as well as clinical, forensic and academic laboratories; in addition to organizations focused on food safety, clean water and environmental sustainability. To better meet the needs of each customer group we have divided them into three focus areas: White Tech, Red Tech and Blue & Green Tech.
Biotage AB (publ) Box 8 SE-751 03 Uppsala Visiting adress: Vimpelgatan 5 Telephone: +46 18 565900 Org.no.: 556539-3138 www.biotage.com
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