Biotage

Annual Report • Feb 9, 2012

Year-end report January - December 2011

February 9, 2012

Fourth quarter 2011

• Net sales are unchanged and are reported at 116.0 MSEK (116.1). At comparable exchange rates sales increased by 3 percent
• The operating result amounted to 9.8 MSEK (-435.9)1)
• A 7.3 MSEK (15.0) additional purchase payment for the Biosystems business area divested in 2008 was received from Qiagen
• The result after tax amounted to 17.2 MSEK (-424.8) 1)
• Earnings per share amounted to 0.22 SEK (-5.33) 1)
• Net cash at December 31, 2001 amounted to 198.4 MSEK (172.7)
• During the quarter 648,456 own shares were purchased. At the balance sheet date December 31, 2011 Biotage owned a total of 3,266,956 own shares, acquired for 20,311 KSEK at an average share price of 6.22 SEK per share
• The cash flow from operating activities amounted to 33.2 MSEK (12.1)

Full year 2011

• Net sales are almost unchanged and are reported at 428.4 MSEK (428.9). At comparable exchange rates net sales increased by 8 percent
• The operating result amounted to 25.1 MSEK (-418.8) 1)
• The result after tax amounted to 32.5 MSEK (-410.2) 1)
• Earnings per share amounted to 0.42 SEK (-4.91)1)
• The dividends to shareholders are proposed to be raised to 0.40 SEK (0.25) per share
• The cash flow from operating activities amounted to 94.8 MSEK (34.2)
• 1) The comparative figure for 2010 includes an amortization of Group goodwill to the amount of 444.5 MSEK, which was charged to the operating result and corresponded to -5.55 SEK per share.

Group result development in brief

Amounts in SEK millions	4 th quarter	4 th quarter	Full year	Full year
	2011	2010	2011	2010
Net sales	116.0	116.1	428.4	428.9
Cost of sales	-52.2	-44.4	-182.1	-172.7
Gross profit	63.9	71.6	246.3	256.3
Operating expenses	-54.1	-63.1	-221.2	-230.6
Goodwill impairment	-	-444.5	-	-444.5
Operating profit/loss	9.8	-435.9	25.1	-418.8
Financial items	0.9	0.2	2.9	0.2
Profit/loss before tax	10.7	-435.7	28.0	-418.5
Tax expenses	-0.9	-4.1	-2.0	-6.7
Profit/loss after tax for
continuing operations	9.9	-439.8	25.9	-425.3
Profit/loss after tax for
discontinued operations	7.3	15.0	6.5	15.0
Total profit/loss for the period	17.2	-424.8	32.5	-410.2

Comments by CEO Torben Jörgensen

In 2011 we intensified our efforts in Sample Prep and analytical chemistry. This means that we are increasing the relative share of consumables in our sales. Taken together consumables and service constituted 56 percent of our sales in 2011. The extended product offering in the rapidly growing analytical chemistry area, with a customer base above all in food, clinical and forensics medicine and environment, means that we reduce our dependence on customers in the pharma industry.

The development projects concerning purification and separation in production scale are developing well. Several ongoing projects are currently being evaluated in pilot scale. The development efforts in this area have during the year charged Biotage's result with approx. 5 MSEK. The production of the polymer raw material we need for analytical chemistry is gradually being transferred to our plant in Lund, as the production facilities there are being completed, which will make the operations more efficient and contribute to increased profitability.

In the fourth quarter the company showed a continued positive sales development with a 3 percent organic growth at comparable exchange rates. In the full year the growth was 8 percent at comparable exchange rates.

The product areas synthesis and peptide synthesis show a good development in the fourth quarter as well as in the full year. The new product launches carried out in these product areas in the second half of the year have been successful and have been well received in the market. The product area purification has not developed equally well, neither concerning instruments nor consumables. Especially in the US sales have failed to meet our expectations. However, in the fourth quarter we carried out important new product launches in the product area. Together with additional product launches in the first quarter 2012 we expect a turnaround of the negative development.

From a geographic perspective Europe continues to recover after a weak first half of the year. The US has had slow growth while China, Japan and Latin America continue to show good growth. We have now completed the planned recruitments in China and during the coming year we will be able to increase our direct sales in the country. The sales in India are not satisfactory and we plan to strengthen the company's position on this important future market in 2012.

Biotage continues to have a strong financial position with net cash amounting to 198.4 MSEK (172.7) at December 31. The cash flow continues to be positive and stronger than the same period last year. During the quarter the company has repurchased 648,456 own shares. During the year own shares were repurchased for a total of 20.3 MSEK. Dividends to the shareholders amounted to 19.9 MSEK.

At the divestment of the Biosystems business unit to Qiagen a potential total additional purchase payment of 7.0 MUSD was agreed for the years 2008 to 2012. At the end of 2010 Biotage had received 5.9 MUSD. The remaining 1.1 MUSD, corresponding to 7.3 MSEK, are included in the result for 2011 and will be paid to Biotage in the first quarter 2012.

During the year we have continued to evaluate suitable acquisition candidates. At the same time the acquisitions we made in 2010 have created such an interesting new platform for Biotage that we intend to focus on organic growth in 2012. This applies to analytical chemistry as well as to separation and purification in production scale. This means that we have an increased scope for dividends to the shareholders – the Board's proposal to the Annual General Meeting is a dividend of 0.40 SEK per share – and for repurchasing of own shares. The company will still have a satisfactory financial position for carrying out future acquisitions.

Group result, financial position and cash flow

Fourth quarter 2011

Group net sales in the fourth quarter 2011 amounted to 116.0 MSEK, compared to 116.1 MSEK the same period 2010. At comparable exchange rates net sales increased by 3 percent. The EU area was the single biggest market with 40 percent of the net sales. The US contributed 34 percent, Japan 13 percent and the rest of the world 13 percent.

The Group's gross margin was 55.0 percent (61.7). A redistribution of operational costs from R&D to production has affected to gross margin negatively by approx. 1 percent. Another factor that has had a negative effect on the gross margin is the fact that a larger part of the sales took place in countries with a lower margin for Biotage's products.

The operating expenses amounted to 54.1 MSEK (63.1). The exchange rate development has influenced the costs positively compared with last year.

The operating profit amounted to 9.8 MSEK (-435.9). Excluding the goodwill amortization of 444.5 MSEK that was charged to the operations in the fourth quarter of 2010 the operating profit for the comparative period amounted to 8.6 MSEK.

The result after tax amounted to 17.2 MSEK (-424.8). Excluding the goodwill amortization the result after tax for the comparative period amounted to 19.7 MSEK.

The investments amounted to 12.4 MSEK (12.8). Of this sum 8.8 MSEK (5.7) were capitalized development costs.

Amortizations were made to the amount of 8.8 MSEK (10.3). Of this sum 5.6 MSEK (4.6) were amortizations of capitalized development costs.

The cash flow from operating activities was 33.2 MSEK (12.1).

The full year 2011

Group net sales amounted to 428.4 MSEK, compared to 428.9 MSEK 2010. At comparable exchange rates net sales increased by 8 percent. The US contributed 37 percent of the sales, the EU area 35 percent, Japan 16 percent and the rest of the world 11 percent.

The Group's gross margin was 57.5 percent (59.7). The changes in the gross margin are mainly attributable to the fact that the fact that a larger part of the sales took place in countries with a lower margin for Biotage's products, and a redistribution of operational costs from R&D to production.

The operating expenses amounted to 221.2 MSEK (230.6).

The operating profit amounted to 25.1 MSEK (-418.8). Excluding the 444.5 MSEK amortization of goodwill that was charged to the operating result in 2010 the operating profit for the comparative year amounted to 25.7 MSEK.

The result after tax amounted to 32.5 MSEK (-410.2). Excluding the amortization of goodwill in 2010 the result after tax for the comparative year amounted to 34.2 MSEK.

The investments amounted to 43.8 MSEK (176.2). Of this sum 27.5 MSEK (19.1) were capitalized development costs. Investments in acquired companies and product lines amounted to 2.0 MSEK (144.1).

Amortizations were made to the amount of 36.0 MSEK (34.9). Of this sum 21.2 MSEK (18.4) were amortization for capitalized development costs.

The cash flow from operating activities was 94.8 MSEK (34.2).

Balance sheet items

At December 31, 2011 the Group's cash and securities totaled 204.7 MSEK, compared to 179.6 MSEK at December 31, 2010. The Group's interest-bearing liabilities amounted to 6.3 MSEK (6.8). The Group reports a total goodwill of 106.1 MSEK (104.8) at December 31. The change during the year is attributable to currency effects.

Other intangible fixed assets amounted to 111.1 MSEK (108.1), where of patents and license rights 47.4 MSEK (50.6) and capitalized development costs 63.7 MSEK (57.5).

At December 31 the equity capital amounted to 563.9 MSEK, compared to 567.9 MSEK at December 31 2010. The change in equity capital consists of the year's result, 32.5 MSEK, repurchasing of own shares, -20.3 MSEK, dividends to shareholders, -19.9 MSEK, and the effects of changed exchange rates, 3,7 MSEK.

Divested operations

The result after tax for divested operations amounted to 7.3 MSEK (15.0) in the fourth quarter and to 6.5 MSEK (15.0) in the full year 2011. The amounts refer to additional purchase payments from Qiagen for the Biosystems business area divested in 2008. All agreed additional purchase payments have now been obtained.

Major events

Patent dispute in the US

Biotage has, as previously reported, been sued for patent infringement in the US. The lawsuit was filed by Scientific Plastic Products, Inc. regarding alleged infringement of US patents 7,138,061, 7,381,327 and 7,410,571 and concerns Biotage's sales of the SNAP product line in the US.

Biotage has filed an application to the US Patent and Trademark Office applying for re-examination of the validity of all the patent demands in the patents concerned. At the same time Biotage submitted a request that the infringement case in the court should be declared resting awaiting the outcome of the re-examination proceedings. The court approved Biotage's request.

The US Patent and Trademark Office has later declared all patent demands in all three patents invalid. The decisions have been appealed by Scientific Plastic Products, Inc. The decision concerning the appeal is expected in 2012. Biotage continues to believe that the company has a strong position and that the other party lacks support for the alleged patent infringement. The decisions by the US Patent and Trademark Office in the first three re-examination cases confirm Biotage's assessment of the legal situation.

Biotage has also, together with the wholly owned subsidiaries Biotage GB Ltd and Biotage LLC, been sued in the US for infringement of the American patents 8,066,875 B2 and 8,070,957. Also these lawsuits have been filed by Scientific Plastic Products, Inc. The lawsuits relate to the same American patent family (7,138,061, 7,381,327 and 7,410,571) for which Biotage has previously been sued (see above). Patent 8,066,875 is based on a continuation of patent 7,381,327. This lawsuit, like the previous one, concerns Biotage's sales of the SNAP product line in the US. The patent 8,070,957 is a continuation of patent 7,410,571 and is a so-called method patent relating to the use of flash chromatography products. Biotage's preliminary analysis indicates that the company has a strong position and that the other party also in these cases lack good cause for the alleged patent infringement.

Major events after the end of the financial year

There are no other major events after the end of the financial year to report.

Human resources

At December 31, 2011 the Group had 270 employees, compared to 272 at the start of the year.

Parent company

The Group's parent company, Biotage AB, has wholly owned subsidiaries in Sweden, the United States, United Kingdom, Germany, France, Italy, China and Japan. The parent company is responsible for group management, strategic business development and administrative functions at Group level towards subsidiaries.

In the fourth quarter the parent company's net income amounted to 0.5 MSEK (1.5). In the full year 2011 net income amounted to 2.1 MSEK (6.2).

The result after financial items in the fourth quarter was 13.6 MSEK (-274,8). In the full year 2011 the result after financial items was 6.9 MSEK (-283.1). The comparative figures for 2010 have been charged with write-downs of shares in and receivables from subsidiaries to the amount of 306.0 MSEK.

The parent company´s investments in intangible fixed assets amounted to 0.9 MSEK (9.8) in the fourth quarter and to 1.7 MSEK (138.1) in the full year.

At December 31, 2011 the parent company's cash and bank balance and short-term investments amounted to 104.7 MSEK, compared to 106.6 MSEK at December 31, 2010.

Risks and uncertainties

As an international Group, Biotage is exposed to various risks that affect the possibilities to achieve the established targets. There are operational risks, such as the risk that competitive situations affect price levels and sales volumes, and the risk that the economic development in the markets and segments where the Group operates is not stable. There are also financial risks, such as currency risks, interest risks and credit risks.

No major changes in significant risks or uncertainty factors have occurred during the period. A detailed account of Biotage's risks, uncertainty factors and the handling of these can be found in the company's Annual Report for 2010. Readers wishing to study the risks and uncertainties reported in the 2010 Annual Report can download this from Biotage AB's website www.biotage.com or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala or info@biotage.com.

Reports in 2012

The Annual General Meeting will be held on April 26, 2012. The 2011 Annual Report will be distributed in week 14 and be available at the company's website www.biotage.com.

The interim report for the first quarter 2012 will be issued on April 26, 2012 The interim report for the second quarter 2012 will be issued on August 17, 2012 The interim report for the third quarter 2012 will be issued on October 26, 2012 The year-end report for 2012 will be issued on February 12, 2013.

This report has not been subject to special review by the company's auditor.

Uppsala February 9, 2012

Torben Jörgensen President and CEO

For further information, please contact:

Torben Jörgensen, President and CEO, phone: +46 707 49 05 84

Erika Söderberg Johnson, CFO, phone: +46 730 50 80 56

The information in this press release is of the kind that Biotage AB (publ) is required to make public according to the Financial Instruments Trading Act. The information was released for publication at 8.00am CET on February 9, 2012.

About Biotage

Biotage offers solutions, knowledge and experience in the areas of analytical chemistry and medicinal chemistry. The customers include the world's largest pharmaceutical and biotech companies, and leading academic institutes. The company is headquartered in Uppsala and has offices in the US, UK, China and Japan. Biotage has 270 employees and had sales of 428.1 MSEK in 2011. Biotage is listed on the NASDAQ OMX Nordic Stockholm stock exchange. Website: www.biotage.com

Biotage AB (publ)

Year end report

2011-01-01 -- 2011-12-31

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2011-10-01	2010-10-01	2011-01-01	2010-01-01
Amounts in SEK thousands	2011-12-31	2010-12-31	2011-12-31	2010-12-31
Net sales	116,031	116,093	428,408	428,926
Cost of sales	-52,168	-44,447	-182,127	-172,662
Gross profit	63,863	71,646	246,281	256,263
Distribution costs	-35,473	-39,437	-140,824	-145,275
Administrative expenses	-10,629	-12,390	-46,198	-45,949
Research and development costs	-8,056	-10,470	-34,900	-39,662
Other operating income	101	-758	718	322
Goodwill impairment	-	-444,460	-	-444,460
Total operating expenses	-54,057	-507,515	-221,205	-675,024
Operating profit/loss	9,806	-435,869	25,076	-418,760
Financial net income	911	186	2,911	236
Profit/loss before income tax	10,717	-435,683	27,987	-418,524
Tax expenses	-854	-4,093	-2,046	-6,729
Profit/loss after tax for continuing operations	9,863	-439,776	25,941	-425,252
Profit/loss after tax for discontinued operations	7,300	15,010	6,533	15,010
Total profit/loss for the period	17,163	-424,767	32,475	-410,243
Other comprehensive income
Translation differences related to
non Swedish subsidiaries	913	2,833	4,099	-39,298
Cash flow hedges	1,170	-	-404	-
Total other comprehensive income	2,082	2,833	3,695	-39,298
Total comprehensive income for the period	19,245	-421,934	36,169	-449,541

excluding numbers shares repurchased.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuing)

	2011-10-01 2011-12-31	2010-10-01 2010-12-31	2011-01-01 2011-12-31	2010-01-01 2010-12-31
Attributable to parent company´s shareholders: Total profit/loss for the period	17,163	-424,767	32,475	-410,243
Attributable to parent company´s shareholders:
Total comprehensive income for the period	19,245	-421,934	36,169	-449,541
Average shares outstanding Average shares outstanding after	76,702,836	79,659,128	78,094,450	83,527,613
dilution	76,702,836	79,659,128	78,094,450	83,527,613
Shares outstanding at end of reporting period (*)	79,637,688	88,486,320	79,637,688	88,486,320
Total profit/loss for the period per share SEK
Total profit/loss for the period per share SEK	0.22 kr	-5.33 kr	0.42 kr	-4.91 kr
after dilution	0.22 kr	-5.33 kr	0.42 kr	-4.91 kr
Earnings per share relates to:
Continuing operations	0.13 kr	-5.52 kr	0.33 kr	-5.09 kr
Discontinued operations	0.09 kr	0.19 kr	0.09 kr	0.18 kr
Total comprehensive income for the period
per share SEK	0.25 kr	-5.30 kr	0.46 kr	-5.38 kr
Total comprehensive income for the period	0.25 kr	-5.30 kr	0.46 kr	-5.38 kr
per share after dilution SEK
(*) Of the numbers of shares outstanding are
repurchased as per end of reporting period	3,266,956	8,848,632	3,266,956	8,848,632
Average numbers of shares outstanding are reported

Quarterly summary 2011 and 2010	2011	2011	2011	2011	2010	2010	2010	2010
Amounts in KSEK	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Net Sales	116,031	106,551	98,628	107,198	116,093	109,467	103,502	99,863
Cost of sales	-52,168	-44,999	-40,735	-44,226	-44,447	-44,531	-42,704	-40,982
Gross profit	63,863	61,552	57,893	62,972	71,646	64,937	60,799	58,881
Gross margin	55.0%	57.8%	58.7%	58.7%	61.7%	59.3%	58.7%	59.0%
Operating expenses	-54,057	-50,638	-56,138	-60,372	-507,515	-60,094	-53,166	-54,248
Operating profit/loss	9,806	10,915	1,755	2,600	-435,869	4,843	7,633	4,633
Financial net income	911	813	803	385	186	347	102	-399
Profit/loss before income tax	10,717	11,727	2,558	2,985	-435,683	5,190	7,734	4,235
Tax expenses	-854	-284	-178	-729	-4,093	-508	-1,104	-1,023
Profit/loss after tax for continuing operations	9,863	11,443	2,380	2,256	-439,776	4,682	6,630	3,211
Profit/loss after tax for discontinued operations	7,300	-	-	-767	15,010	-	-	-
Total profit/loss for the period	17,163	11,443	2,380	1,489	-424,766	4,682	6,630	3,211

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in SEK thousands	2011-12-31	2010-12-31
ASSETS
Non-Current assets
Property, plant and equipment	39,468	35,330
Goodwill	106,108	104,791
Other intangible assets	111,100	108,064
Financial assets	2,286	2,670
Deferred tax asset	39,436	39,436
Total non-current assets	298,399	290,291
Current assets
Inventories	89,694	97,976
Trade and other receivables	106,251	125,587
Cash, cash equivalents and short time deposits	204,711	179,573
Total current assets	400,656	403,135
TOTAL ASSETS	699,054	693,427
EQUITY AND LIABILITIES Capital and reserves attributable to equity holders of the
parent company
Share capital	89,194	88,486
Other paied-in capital	4,993	4,993
Reserves	-100,949	-104,644
Retained earnings	570,659	579,112
Total equity	563,897	567,948
Non-current liabilities
Liabilities to credit institutions	5,850	6,401
Non-current provisions	28,228	31,433
Total non-current liabilities	34,078	37,834
Current liabilities
Trade and others liabilities	96,037	82,180
Tax liabilities	774	2,636
Liabilities to credit institutions	442	436
Current provisions	3,827	2,393
Total current liabilities	101,079	87,645
TOTAL EQUITY AND LIABILITIES	699,054	693,427

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Belopp i KSEK	Share capital	Other payed-in capital	Accumulated translation reserve	Hedging reserve	Retained earnings	Total equity
Opening balance January 1, 2010	88,486	4,993	-65,345	-	1,060,893	1,089,027
Changes in equity in the
period of January 1 - September 30, 2010
Total comprehensive income	-	-	-42,131	-	14,523	-27,608
Total non-owners changes	0	0	-42,131		14,523	-27,608
Transactions with equity holders of the company
Dividend to shareholders of the parent company					-17,303	-17,303
Share buy-back by parent company (*)	-	-	-	-	-53,469	-53,469
Closing balance September 30, 2010	88,486	4,993	-107,477	-	1,004,645	990,647
Changes in equity in the
period of October 1 - December 31, 2010
Total comprehensive income	-	-	2,833	-	-424,766	-421,933
Total non-owners changes	-	-	2,833		-424,766	-421,933
Transactions with equity holders of the company
Share buy-back by parent company (*)	-	-	-	-	-766	-766
Closing balance December 31, 2010	88,486	4,993	-104,644	-	579,112	567,948
Changes in equity in the
period of January 1 - September 30, 2011
Total comprehensive income	-	-	3,186	-1,574	15,311	16,924
Total non-owners changes	0	0	3,186	-1,574	15,311	16,924
Transactions with equity holders of the company
Cancellation of treasury shares (*)	-8,849	-	-	-	8,849	0
Increase of share capital without the issue
of new shares, bonus issue (*)	9,557	-	-	-	-9,557	0
Dividend to shareholders of the parent company	-	-	-	-	-19,909	-19,909
Share buy-back by parent company (*) Closing balance September 30, 2011	- 89,194	- 4,993	- -101,457	- -1,574	-16,926 556,881	-16,926 548,037
Changes in equity in the
period of October 1 - December 31, 2011
Total comprehensive income	-	-	913	1,170	17,163	19,246
Total non-owners changes	-	-	913	1,170	17,163	19,246
Transacitions with equity holders of the company
Share buy-back by parent company (*)	-	-	-	-	-3,385	-3,385
Closing balance December 31, 2011	89,194	4,993	-100,545	-404	570,659	563,897
(*) Repurchased shares, cancellation of repurchased shares and bonus issue
At the Annual General Meeting on April 27, 2009 and the Annual General Meeting on April 29, 2010 the Board was
authorized to repurchase the company's shares to the extent that the holding of own shares at most amounts to 10 percent
of the total number of shares issued. During the period September 2009 to December 2010 the company thus repurchased a total of 8, 848, 632 shares, corresponding to 10.0 percent of the company's total shares issued.
At the Annual General Meeting on April 27, 2011 it was resolved that the repurchased shares should be canceled.
As a consequence of the cancellation, the company's share capital decreased by 8,849 KSEK to 79,638 KSEK.
The number of shares was reduced from 88,486,320 to 79,637,688. The AGM on April 27, 2011 also resolved that the
company should carry out a bonus issue and thereby increase the company's share capital by 9,557 KSEK to 89,194 KSEK
without issuing any new shares.
After the cancellation of repurchased shares and the bonus issue the number of shares is 79,637,688 with a quota value of 1.12
SEK. The AGM on April 27, 2011 further resolved to authorize the Board to carry out a new repurchasing program comprising a
maximum total of 10 percent of the company's outstanding shares, i.e. a total of 7,963,769 shares. At the balance sheet day
Decmeber 31, 2011 the company has, in accordance with this authorization, repurchased 3,266,956 shares at an average
share price of 6.22 SEK.
Readers wishing to take part of the complete decisions at the Annual General Meeting on April 27, 2011
and the background material for these can download the AGM minutes on the company's website www.biotage.com or order the material from the company; Biotage AB, Box 8, SE-751 03 Uppsala, Sweden.

Biotage AB (publ) Year end report 2011-01-01 -- 2011-12-31 CONSOLIDATED STATEMENT OF CASH FLOWS

	2011-10-01	2010-10-01	2011-01-01	2010-01-01
Amounts in SEK thousands	2011-12-31	2010-12-31	2011-12-31	2010-12-31
Operating activities
Profit/loss before income tax	10,717	-435,683	27,987	-418,524
Adjustments for non-cash items	9,487	459,275	35,560	486,232
Income tax paid	20,204 -1,052	23,593 -3,442	63,547 -3,979	67,709 -6,077
Cash flow from operating activities
before changes in working capital	19,152	20,151	59,568	61,631
Cash flow from changes in working capital:
Increase (-)/ decrease (+) in inventories	-1,164	4,020	9,992	-10,543
Increase (-)/ decrease (+) in trade receivables	6,526	-9,173	8,191	-3,248
Increase (-)/ decrease (+) in other current receivables	-1,590	-1,428	3,951	2,676
Increase (+)/ decrease (-) in other liabilities	10,298	-1,511	13,104	-16,282
Cash flow from operating activities - continuing operations
	33,222	12,059	94,806	34,234
Cash flow from operating activities - discontinued operations	-	-	14,243	23,361
Cash flow from operating activities	33,222	12,059	109,050	57,595
Investing activities
Acquisition of intangible assets	-9,665	-7,104	-30,347	-21,109
Acquisition of property, plant and equipment	-2,791	-5,698	-11,910	-10,333
Acquisition of financial assets	-252	-39	-269	-678
Acquisitions of companies and product lines	-	-	-2,027	-144,116
Sale of property and other non current assets	-	-	0	39,884
Sale of financial assets	330	39	753	183
Cash flow from investing activities - continuing operations	-12,379	-12,801	-43,801	-136,169
Cash flow from investing activities - discontinued operations	-	-	-	-
Cash flow from investing activities	-12,379	-12,801	-43,801	-136,169
Financing activities
Dividend to shareholders	-	-	-19,909	-17,303
Buy-back of shares	-3,385	-766	-20,311	-54,235
New borrowing	-	-	-	-
Repayment of loans	-158	-535	-629	-31,402
Cash flow from financing activities - continuing operations	-3,543	-1,302	-40,849	-102,941
Cash flow from financing activities - discontinued operations	-	-	-	-
Cash flow from investing activities	-3,543	-1,302	-40,849	-102,941
Cash flow for the period	17,300	-2,044	24,399	-181,515
Cash and liquid assets opening balance	188,074	182,348	179,573	364,902
Exchange differences in liquid assets	-664	-731	739	-3,814
Cash and liquid assets closing balance	204,711	179,573	204,711	179,573
Additional information:
Adjustments for non-cash items
Depreciations and impairments	8,836	457,847	35,983	482,467
Other items	650	1,428	-423	3,766
Total	9,487	459,275	35,560	486,232
Interest received	963	693	3,111	1,028
Interest paid	-52	-507	-200	-791

INCOME STATEMENT, PARENT

	2011-10-01	2010-10-01	2011-01-01	2010-01-01
Amounts in SEK thousands	2011-12-31	2010-12-31	2011-12-31	2010-12-31
Net sales	532	1,513	2,098	6,183
Administrative expenses	-5,153	-4,988	-23,384	-17,800
Research and development costs	-326	-272	-1,283	-2,215
Other operating items	7,811	14,534	6,319	9,590
Operating expenses	2,332	9,273	-18,348	-10,425
Operating profit/loss	2,864	10,786	-16,251	-4,242
Profit/loss from financial investments:
Interest income from receivables from group companies	2,774	5,789	12,276	14,343
Result from participations in group companies	-493	-461	-1,882	-1,868
Resultat från andelar i koncernföretag	-11,620	-306,041	-9,284	-306,700
Other interest and similar income	801	304	2,768	1,006
Interest and similar expense	-	-	-	-456
Group contribution received	19,245	14,791	19,245	14,791
Financial net income	10,707	-285,618	23,122	-278,883
Profit/loss before income tax	13,571	-274,831	6,871	-283,125
Tax expenses	-	-3,134	-	-3,134
Total profit/loss for the period	13,571	-277,966	6,871	-286,260
STATEMENT OF COMPREHENSIVE INCOME. PARENT
Total profit/loss for the period	13,571	-277,966	6,871	-286,260
Other comprehensive income:
Translation differences related to
non Swedish subsidiaries	516	2,747	-6,305	-23,024
Total comprehensive income, parent	14,087	-275,219	566	-309,284

BALANCE SHEET, PARENT

Amounts in SEK thousands	2011-12-31	2010-12-31
ASSETS
Non-current assets
Intangible assets
Patents and licenses	6,909	5,574
Financial assets
Investments in group companies	494,181	413,833
Receivables from group companies	60,992	133,026
Deferred tax asset	39,436	39,436
	594,609	586,295
Total non-current assets	601,519	591,869
Current assets
Current receivables
Receivables from group companies	10,441	13,975
Other receivables	1,035	808
Prepaid expenses and accrued income	8,089	16,695
	19,565	31,479
Cash, cash equivalents and short time deposits	104,684	106,619
Total current assets	124,249	138,097
TOTAL ASSETS	725,767	729,966
EQUITY, PROVISIONS AND LIABILITIES Equity
Restricted equity
Share capital	89,194	88,486
	89,194	88,486
Unrestricted equity
Fair value reserve	-53,233	-46,928
Retained earnings	491,854	819,041
Profit/loss for the year	6,871	-286,260
	445,492	485,854
Total equity	534,686	574,340
Provisions	26,391	28,799
Current liabilities
Trade payables	1,073	714
Liabilities to group companies	158,671	121,239
Other current liabilities	286	397
Accrued expenses and prepaid income	4,661	4,476
	164,690	126,827
TOTAL EQUITY, PROVISIONS AND LIABILITIES	725,767	729,966
Pledged assets	22,500	22,500
Contingent liabilities	-	-

Accounting principles

Biotage's Group reporting is based on International Financial Reporting Standards as adopted by the EU. The Group's interim report is prepared in accordance with IAS 34 Interim Reporting and the Swedish Accounting Act. The parent company's interim report is prepared in accordance with the Swedish Accounting Act and The Swedish Financial Reporting Board's recommendation RFR 2 Reporting for legal entities.

Revised or new standards, interpretations or statements from standard-setting bodies for IFRS within the EU that have come into effect on January 1, 2011 have not had any effect on the Group's financial reporting, as these have not been relevant to Biotage AB in the current situation.

The revisions in RFR 2 Reporting for legal entities that have come into effect and apply to the financial year 2011 have meant that Group contributions are no longer reported against the equity capital. A Group contribution that the parent company receives from a subsidiary is reported according to the same principles as usual dividends from subsidiaries and is reported as financial income. Group contributions from the parent company to subsidiaries are reported as an investment and increases the value of shares and interests in subsidiares.

The change in RFR 2 concerning Group contributions has for Biotage meant that received Group contributions to the amount of 19.245 KSEK (14.791) and given Group contributions to the amount of 3.279 KSEK (0) have been reported as financial income and increase in shares and interests, respectively, and not directly against equity.

In the preparation of the Group's and parent company's interim report, the same accounting principles and calculation methods were applied as in the preparation of Biotage's Annual Report for 2010. These are described on pp. 39-50 in the Annual Report.

Readers wishing to study the accounting principles presented in the 2010 Annual Report can download this report from Biotage AB's website www.biotage.com or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala, Sweden, or info@biotage.com.