Biotage

Quarterly Report • Oct 26, 2011

Interim report January-September 2011

Third quarter, July – September 2011

• Group net sales amounted to 106.6 MSEK (109.5). The organic growth in the quarter was 5 percent.
• The operating result amounted to 10.9 MSEK (4.8).
• The result after tax amounted to 11.4 MSEK (4.7).
• Earnings per share amounted to 0.15 SEK (0.06).
• The cash flow from operating activities was 13.7 MSEK (7.0).
• Net cash at September 30, 2011 amounted to 181.6 MSEK, compared to 172.7 MSEK at December 31, 2010.

The nine month period January - September 2011

• Group net sales amounted to 312.4 MSEK (312.8). At comparable exchange rates net sales increased by 10 percent, primarily due to the acquisitions made in the second quarter 2010.
• The operating result amounted to 15.3 MSEK (17.1).
• The result after tax amounted to 15.3 MSEK (14.5).
• Earnings per share amounted to 0.20 SEK (0.17).
• The cash flow from operating activities was 75.7 MSEK (45.5).
• Dividends to shareholders have been paid to the amount of 19.9 MSEK (17.3).

Group result development in brief

Amounts in SEK millions	3 rd quarter 2011	3 rd quarter 2010	Jan-Sep 2011	Jan-Sep 2010	Full year 2010
Net sales	106,6	109,5	312,4	312,8	428,9
Cost of sales	-45,0	-44,5	-130,0	-128,2	-172,7
Gross profit	61,6	64,9	182,4	184,6	256,3
Operating expenses	-50,6	-60,1	-167,1	-167,5	-230,6
Goodwill impairment	-	-		-	-444,5
Operating profit/loss	10,9	4,8	15,3	17,1	-418,8
Financial items	0,8	0,3	2,0	0,1	0,2
Profit/loss before tax	11,7	5,2	17,3	17,2	-418,5
Tax expenses	-0,3	-0,5	-1,2	-2,6	-6,7
Profit/loss after tax for
continuing operations	11,4	4,7	16,1	14,5	-425,3
Profit/loss after tax for
discontinued operations	-	-	-0,8	-	15,0
Total profit/loss for the period	11,4	4,7	15,3	14,5	-410,2

Comments by CEO Torben Jörgensen

The sales development in the third quarter was stronger than in previous quarters this year, with a 5 percent organic growth. The development in the product areas synthesis and peptide synthesis is especially pleasing. Our newly developed instruments have been very positively received in the market. Consumables and service continue to develop positively and now constitute more than 50 percent of our sales. We expect this area to be further strengthened during the coming years.

In terms of the geographic development the American market had a strong quarter and Europe has recovered after the weak first six months. China continues to grow, while the other Asian markets had a weaker quarter. The exchange rate development has been negative for the company at large during most of the year, as practically all invoicing is done in foreign currency. Towards the end of the quarter the exchange rate development was positive, however, with a strengthened US dollar.

We continue to follow our strategy to expand our operations to new geographic areas and new customer groups and to increase our direct sales. We are now making major investments in China and Latin America, among other things. The initiative in Latin America is led by our US subsidiary; in China we have established our own company for direct sales. The operations are up and running, with a professional team based in Shanghai. As the operations grow we will evaluate further direct establishments in China. Many of our products demand qualified customer contacts, which is difficult to achieve through a distributor. In order to ensure good geographic coverage in China Biotage will continue to work in parallel with distributors, however. In view of the rapid development in China within our business areas it is pleasing that we have now succeeded to establish ourselves in the country in a manner that is satisfying for Biotage.

At the end of the second quarter we launched an upgraded version of our microwave system Initiator+. The instrument has been very positively received by the market. A half-automatic system for peptide

synthesis, Biotage® SP Wave, was introduced in June at the American Peptide Symposium in San Diego. In the third quarter RapidTrace®+ was launched, enabling analyses with Biotage's SLE+ product line. We also have a number of product launches planned for the fourth quarter. All these introductions make me confident that we will continue to have s strong and interesting product range to offer our customers.

Our development projects in the subsidiary MIP Technologies, concerning purification of for instance food raw materials in production scale, continue to develop positively.

Biotage continues to have a strong financial position with net cash amounting to 182 MSEK at September 30. The cash flow continues to be positive and is stronger than the same period last year. During the quarter the company has repurchased own shares for a total of 6 MSEK.

We continue the work to find suitable candidates for cooperation agreements or acquisitions. The number of available attractive objects is limited and the prices are high, however.

Group result, financial position and cash flow

Third quarter 2011

Group net sales amounted to 106.6 MSEK, compared to 109.5 MSEK the third quarter 2010. At comparable exchange rates net sales increased by 5 percent.

The US was the single biggest market with 42 percent of the net sales. The EU area contributed 35 percent, Japan 14 percent and the rest of the world 9 percent.

The Group's gross margin was 57.8 percent (59.3). Product mix changes and increased price competition have affected the gross margin negatively.

The operating expenses amounted to 50.6 MSEK (60.1). The exchange rate development has influenced the costs positively compared with last year.

The operating profit amounted to 10.9 MSEK (4.8) with an operating margin of 10.2 % (4.4).

Net financial income amounted to 0.8 MSEK (0.3).

The result after tax amounted to 11.4 MSEK (4.7).

The investments amounted to 9.8 MSEK (7.6). Of this sum 5.5 MSEK (5.0) were capitalized development costs.

The amortizations amounted to 8.4 MSEK (9.6). Of this sum 4.5 MSEK (5.3) were capitalized development costs.

The cash flow from operating activities was 13.7 MSEK (7.0). Of this sum 0 (0) MSEK, related to liquidated operations.

The nine month period January – September 2011

Group net sales amounted to 312.4 MSEK, compared to 312.8 MSEK the same period 2010. At comparable exchange rates net sales increased by 10 percent.

The US was the single biggest market, with 39 percent of the net sales. The EU area contributed 34 percent, Japan 17 percent and the rest of the world 10 percent.

The Group's gross margin was 58.4 percent (59.0). Product mix changes and increased price competition have affected the gross margin negatively.

The operating expenses amounted to 167.1 MSEK (167.5).

The operating profit amounted to 15.3 MSEK (17.1) with an operating margin of 4.9 percent (5.5).

Net financial income amounted to 2.0 MSEK (0.1).

The result after tax amounted to 15.3 MSEK (14.5).

The investments amounted to 31.7 MSEK (163.4). Of this sum 18.7 MSEK (13.3) were capitalized development costs. Investments in acquired companies and product lines amounted to 2.0 MSEK (144.1).

During the nine month period tangible fixed assets were divested for 0 MSEK (39.9). In 2010 the company's real estate in the US was divested.

Amortizations were made to the amount of 27.1 MSEK (24.6). Of this sum 15.6 MSEK (13.7) were amortizations of capitalized development costs.

The cash flow from operating activities was 75.7 MSEK (45.5). Of this sum 14.2 MSEK (23.4) were derived from divested operations.

Balance sheet items

At September 30, 2011 the Group's cash and securities totaled 188.1 MSEK, compared to 179.6 MSEK at December 31, 2010. The Group's interest-bearing liabilities amounted to 6.4 MSEK, compared to 6.8 MSEK at December 31, 2010.

During 2011 own shares in the parent company have been repurchased for 16.9 MSEK and at September 30, 2011 the company owns 2,618,500 own shares. The average share price for the acquired shares amounts to 6.46 SEK.

The Group reports a goodwill of 105.5 (104.8) MSEK at September 30, 2011. The change during the reported period is attributable to exchange rate changes at the recalculation of foreign subsidiaries.

Other intangible fixed assets in the form of customer register, trademarks, patents and license rights amounted to 47.6 MSEK (50.6) and capitalized development costs to 60.5 MSEK (57.4).

At September 30, 2011 the equity capital amounted to 548.0 MSEK, compared to 567.9 MSEK at December 31, 2010, a decrease by 19.9 MSEK. The reduction in equity capital is attributable to the reported period's net result, 15.3 MSEK, dividends to shareholders -19.9 MSEK, repurchasing of own shares -16.9 MSEK and exchange rate effects 1.6 MSEK.

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 to declare the infringement case resting.

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 US Patent and Trademark Office's 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 confirm our assessment of the legal situation.

Human resources

At September 30, 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 third quarter the parent company's net income amounted to 0.5 MSEK (1.5). In the whole nine month period net income amounted to 1.6 MSEK (4.7).

The result after financial items in the third quarter was -2.1 MSEK (-5.4). For the whole nine month period the result after financial items was -6.7 MSEK (-8.3).

The parent company´s investments in intangible fixed assets amounted 0.1 MSEK (0.2) in the third quarter and to 0.8 MSEK (0.5) in the whole nine month period..

At September 30, 2011 the parent company's cash and bank balance and short-term investments amounted to 104.2 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 report 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 year-end report for 2011 will be issued on February 9, 2012.

The interim report for the first quarter 2012 will be issued on April 26, 2012

The Annual General Meeting will be held on April 26, 2012.

This report has been reviewed by the company's auditor.

Uppsala, October26, 2011

Torben Jörgensen President and CEO

For further information, please contact:

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

Mats-Olof Wallin, CFO, phone: +46 705 93 52 73

This information 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 08.00 on October 26, 2011.

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 and Japan. Biotage has 272 employees and had sales of 428.9 MSEK in 2010. Biotage is listed on the NASDAQ OMX Nordic Stockholm stock exchange. Website: www.biotage.com

Biotage AB (publ) Interim report 2011-01-01 -- 2011-09-30 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2011-07-01	2010-07-01	2011-01-01	2010-01-01	2010-01-01
Amounts in SEK thousands	2011-09-30	2010-09-30	2011-09-30	2010-09-30	2010-12-31
Net sales	106 551	109 467	312 376	312 833	428 926
Cost of sales	-44 999	-44 531	-129 959	-128 216	-172 662
Gross profit	61 552	64 937	182 417	184 617	256 263
Distribution costs	-34 733	-35 835	-105 351	-105 838	-145 275
Administrative expenses	-12 059	-10 358	-35 569	-33 559	-45 949
Research and development costs	-7 819	-9 972	-26 844	-29 192	-39 662
Other operating income	3 974	-3 929	617	1 080	322
Goodwill impairment	-	-	-	-	-444 460
Total operating expenses	-50 638	-60 094	-167 148	-167 508	-675 024
Operating profit/loss	10 915	4 843	15 270	17 109	-418 760
Financial net income	813	347	2 001	50	236
Profit/loss before income tax	11 727	5 190	17 270	17 159	-418 524
Tax expenses	-284	-508	-1 192	-2 636	-6 729
Profit/loss after tax for continuing operations	11 443	4 682	16 078	14 523	-425 252
Profit/loss after tax for discontinued operations	-	-	-767	-	15 010
Total profit/loss for the period	11 443	4 682	15 311	14 523	-410 243
Other comprehensive income
Translation differences related to
non Swedish subsidiaries	16 701	-58 162	3 186	-42 131	-39 298
Cash flow hedges	-1 574	-	-1 574	-	-
Total other comprehensive income	15 127	-58 162	1 613	-42 131	-39 298
Total comprehensive income for the period	26 570	-53 481	16 924	-27 608	-449 541

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuing)

	2011-07-01 2011-09-30	2010-07-01 2010-09-30	2011-01-01 2011-09-30	2010-01-01 2010-09-30	2010-01-01 2010-12-31
Attributable to parent company´s shareholders:
Total profit/loss for the period	11 443	4 682	15 311	14 523	-410 243
Attributable to parent company´s shareholders:
Total comprehensive income for the period	26 570	-53 481	16 924	-27 608	-449 541
Average shares outstanding	76 454 388	82 130 982	78 243 655	84 817 108	83 527 613
Average shares outstanding after
dilution	76 454 388	82 130 982	78 243 655	84 817 108	83 527 613
Shares outstanding at end of reporting period (*)	79 637 688	88 486 320	79 637 688	88 486 320	88 486 320
Total profit/loss for the period per share SEK	0,15 kr	0,06 kr	0,20 kr	0,17 kr	-4,91 kr
Total profit/loss for the period per share SEK
after dilution	0,15 kr	0,06 kr	0,20 kr	0,17 kr	-4,91 kr
Earnings per share relates to:
Continuing operations	0,15 kr	0,06 kr	0,21 kr	0,17 kr	-5,09 kr
Discontinued operations	0,00 kr	0,00 kr	-0,01 kr	0,00 kr	0,18 kr
Total comprehensive income for the period
per share SEK	0,35 kr	-0,65 kr	0,22 kr	-0,33 kr	-5,38 kr
Total comprehensive income for the period
per share after dilution SEK	0,35 kr	-0,65 kr	0,22 kr	-0,33 kr	-5,38 kr
(*) Of the numbers of shares outstanding are
repurchased as per end of reporting period	2 618 500	8 741 612	2 618 500	8 741 612	8 848 632
Average numbers of shares outstanding are reported excluding numbers shares repurchased.

Quarterly summary 2011 and 2010	2011	2011	2011	2010	2010	2010	2010
Amounts in KSEK	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Net Sales	106 551	98 628	107 198	116 093	109 467	103 502	99 863
Cost of sales	-44 999	-40 735	-44 226	-44 447	-44 531	-42 704	-40 982
Gross profit	61 552	57 893	62 972	71 646	64 937	60 799	58 881
Gross margin	57,8%	58,7%	58,7%	61,7%	59,3%	58,7%	59,0%
Operating expenses	-50 638	-56 138	-60 372	-507 515	-60 094	-53 166	-54 248
Operating profit/loss	10 915	1 755	2 600	-435 869	4 843	7 633	4 633
Financial net income	813	803	385	186	347	102	-399
Profit/loss before income tax	11 727	2 558	2 985	-435 683	5 190	7 734	4 235
Tax expenses	-284	-178	-729	-4 093	-508	-1 104	-1 023
Profit/loss after tax for continuing operations	11 443	2 380	2 256	-439 776	4 682	6 630	3 211
Profit/loss after tax for discontinued operations	-	-	-767	15 010	-	-	-
Total profit/loss for the period	11 443	2 380	1 489	-424 766	4 682	6 630	3 211

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in SEK thousands	2011-09-30	2010-12-31
ASSETS
Non-Current assets
Property, plant and equipment	38 478	35 330
Goodwill	105 453	104 791
Other intangible assets	108 084	108 064
Financial assets	2 395	2 670
Deferred tax asset	39 436	39 436
Total non-current assets	293 846	290 291
Current assets
Inventories	88 182	97 976
Trade and other receivables	104 306	125 587
Cash, cash equivalents and short time deposits	188 074	179 573
Total current assets	380 562	403 135
TOTAL ASSETS	674 409	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	-103 031	-104 644
Retained earnings	556 881	579 112
Total equity	548 037	567 948
Non-current liabilities
Liabilities to credit institutions	6 004	6 401
Non-current provisions	27 866	31 433
Total non-current liabilities	33 870	37 834
Current liabilities
Trade and others liabilities	86 606	82 180
Tax liabilities	881	2 636
Liabilities to credit institutions	441	436
Current provisions	4 573	2 393
Total current liabilities	92 502	87 645
TOTAL EQUITY AND LIABILITIES	674 409	693 427

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Other	Accumulated
Amounts in SEK thousands	Share capital	payed-in capital	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
Transacitions 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		1 004 644	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	0	0	2 833		-424 766	-421 933
Transacitions 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
Transacitions 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 (*)					-16 926	-16 926
Closing balance September 30, 2011	89 194	4 993	-101 457	-1 574	556 881	548 037

(*) Repurchased shares, cancellation of repurchased shares and bonus issue

without issuing any new shares.

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

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 September 30, 2011 the company has, in accordance with this authorization, repurchased 2,618,500 shares at an average share price of 6.46 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) Interim report 2011-01-01 -- 2011-09-30 CONSOLIDATED STATEMENT OF CASH FLOWS

	2011-07-01	2010-07-01	2011-01-01	2010-01-01	2010-01-01
Amounts in SEK thousands	2011-09-30	2010-09-30	2011-09-30	2010-09-30	2010-12-31
Operating activities
Profit/loss before income tax	11 727	5 190	17 270	17 159	-418 524
Adjustments for non-cash items	4 562	15 297	25 957	26 957	486 232
	16 289	20 487	43 227	44 116	67 709
Income tax paid	-564	-508	-2 927	-2 636	-6 077
Cash flow from operating activities
before changes in working capital	15 725	19 979	40 300	41 481	61 631
Cash flow from changes in working capital:
Increase (-)/ decrease (+) in inventories	3 574	-2 654	11 155	-14 564	-10 543
Increase (-)/ decrease (+) in trade receivables	-8 677	-1 464	1 664	5 924	-3 248
Increase (-)/ decrease (+) in other current receivables	2 721	4 444	5 541	4 105	2 676
Increase (+)/ decrease (-) in other liabilities	348	-13 342	2 806	-14 771	-16 282
Cash flow from operating activities - continuing operations	13 691	6 964	61 467	22 175	34 234
Cash flow from operating activities - discontinued operations	-	-	14 243	23 361	23 361
Cash flow from operating activities	13 691	6 964	75 711	45 536	57 595
Investing activities
Acquisition of intangible assets	-5 608	-4 782	-20 565	-14 005	-21 109
Acquisition of property, plant and equipment	-4 147	-2 237	-9 119	-4 635	-10 333
Acquisition of financial assets	-2	-602	-17	-640	-678
Acquisitions of companies and product lines	-	-	-2 027	-144 116	-144 116
Sale of property and other non current assets	-	-	0	39 884	39 884
Sale of financial assets	83	46	422	144	183
Cash flow from investing activities - continuing operations	-9 674	-7 575	-31 305	-123 368	-136 169
Cash flow from investing activities - discontinued operations	-	-	-	-	-
Cash flow from investing activities	-9 674	-7 575	-31 305	-123 368	-136 169
Financing activities
Dividend to shareholders	-	-	-19 909	-17 303	-17 303
Buy-back of shares	-6 031	-33 013	-16 926	-53 469	-54 235
New borrowing	-	-	-	-	-
Repayment of loans	-173	266	-471	-30 867	-31 402
Cash flow from financing activities - continuing operations	-6 204	-32 747	-37 306	-101 639	-102 941
Cash flow from financing activities - discontinued operations	-	-	-	-	-
Cash flow from financing activities	-6 204	-32 747	-37 306	-101 639	-102 941
Cash flow for the period	-2 187	-33 359	7 099	-179 471	-181 515
Cash and liquid assets opening balance	186 027	220 066	179 573	364 902	364 902
Exchange differences in liquid assets	4 235	-4 360	1 403	-3 083	-3 814
Cash and liquid assets closing balance	188 074	182 348	188 074	182 348	179 573
Additional information:
Adjustments for non-cash items
Depreciations and impairments	8 368	9 627	27 146	24 619	482 467
Other items	-3 806	5 671	-1 190	2 338	3 766
Total	4 562	15 297	25 957	26 957	486 232
Interest received	821	421	2 148	788	1 028
Interest paid	-8	-74	-147	-737	-791

INCOME STATEMENT, PARENT

	2011-07-01	2010-07-01	2011-01-01	2010-01-01	2010-01-01
Amounts in SEK thousands	2011-09-30	2010-09-30	2011-09-30	2010-09-30	2010-12-31
Net sales	527	1 513	1 566	4 670	6 183
Administrative expenses	-7 083	-3 811	-18 231	-12 812	-17 800
Research and development costs	-287	-801	-957	-1 943	-2 215
Other operating items	-512	-4 239	-1 492	-4 943	9 590
Operating expenses	-7 882	-8 851	-20 681	-19 699	-10 425
Operating profit/loss	-7 355	-7 338	-19 115	-15 028	-4 242
Profit/loss from financial investments:
Interest income from receivables from group companies	2 659	2 708	9 502	8 553	14 343
Interest expense from liabilities to group companies	-473	-460	-1 390	-1 406	-1 868
Result from participations in group companies	2 336	-659	2 336	-659	-306 700
Other interest and similar income	759	338	1 967	702	1 006
Interest and similar expense	-	-2	-	-456	-456
Financial net income	5 281	1 927	12 415	6 734	-293 675
Profit/loss before income tax	-2 074	-5 411	-6 700	-8 294	-297 916
Tax expenses	-	-	-	-	-3 134
Total profit/loss for the period	-2 074	-5 411	-6 700	-8 294	-301 051
STATEMENT OF COMPREHENSIVE INCOME. PARENT
Total profit/loss for the period	-2 074	-5 411	-6 700	-8 294	-301 051
Translation differences related to
non Swedish subsidiaries	19 636	-43 723	-6 821	-25 771	-23 024
Total comprehensive income, parent	17 562	-49 135	-13 521	-34 065	-324 075

BALANCE SHEET, PARENT

Amounts in SEK thousands	2011-09-30	2010-12-31
ASSETS
Non-current assets
Intangible assets
Patents and licenses	6 107	5 574
Financial assets
Investments in group companies	491 528	413 833
Receivables from group companies	42 733	133 026
Deferred tax asset	39 436	39 436
	573 697	586 295
Total non-current assets	579 804	591 869
Current assets
Current receivables
Trade receivables	-	-
Receivables from group companies	36 405	87 788
Other receivables	861	808
Prepaid expenses and accrued income	470	16 695
	37 735	105 291
Cash, cash equivalents and short time deposits	104 166	106 619
Total current assets	141 901	211 910
TOTAL ASSETS	721 705	803 779
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity
Share capital	89 194	88 486
	89 194	88 486
Unrestricted equity
Fair value reserve	-53 749	-46 928
Retained earnings	495 239	833 833
Profit/loss for the period reported	-6 700	-301 051
	434 790	485 854
Total equity	523 984	574 340
Provisions	26 391	28 799
Current liabilities
Trade payables	656	714
Liabilities to group companies	166 130	195 051
Other current liabilities	286	397
Accrued expenses and prepaid income	4 256	4 476
	171 329	200 639
TOTAL EQUITY, PROVISIONS AND LIABILITIES	721 705	803 779

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 coming 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.

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.

Review Report

Introduction

We have reviewed the interim report for Biotage AB for the period January 1 - September 30, 2011. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the Standard on Review Engagements (SÖG) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, October 26, 2011

Deloitte AB

Marcus Sörlander

Authorized Public Accountant