Biohit Oyj

Earnings Release • Feb 8, 2022

Biohit has settled the dispute concerning a breach of the patent license agreement and therefore specifies its financial guidance for 2021

Biohit has settled the dispute concerning a breach of the patent license agreement and therefore specifies its financial guidance for 2021

Biohit Oyj Stock Exchange Release February 8, 2022 at 12:00 local time (EET)

Biohit Oyj’s (“Biohit”) shareholder Biohit HealthCare (Hefei) Co. Ltd (”Hefei”)
acts as the exclusive distributor of Biohit’s certain GastroPanel products in
China. Earlier, there has been a dispute between the companies regarding the
application of the patent license agreement pertaining to the distribution
cooperation. In order to resolve the dispute and some other controversies and
claims related to the agreement between the parties, Biohit has submitted an
application for the initiation of arbitration proceedings to the Arbitration
Institute of the Finland Chamber of Commerce in May 2021. The parties have now
on this date reached a settlement due to which the arbitration proceedings
between the parties will be terminated with a withdrawal of the submission,
provided that certain conditions are met within the agreed timeframe.

Biohit has previously estimated that 2021 revenue will grow significantly
compared to 2020. No guidance has been given on profitability. After the
settlement, Biohit estimates its revenue to grow by 31% to EUR 9.4 million (in
2020 EUR 7.1 million) and EBITDA to turn positive to EUR 0.5 million (in 2020
EUR -1.2 million). EBIT for the financial period of 2021 will be negative,
approximately EUR -1.5 million (in 2020 EUR -3.2 million), due to depreciations
from the China patents. These depreciations ended as planned in 2021. The
figures are based on a preliminary financial statement, and they have not been
audited. Biohit will release 2021 financial statement on February 16, 2022.

The parties have also agreed on new multiannual distribution agreement for
certain GastroPanel products in China. This agreement will stabilize Biohit’s
outlook for the upcoming years.

As part of the settlement, Hefei has pledged 1.5 million of its class B shares
in Biohit to Biohit as security for its payment obligations under, i.a., the new
distribution agreement. This pledge is conditional on Biohit’s Board of
Directors adopting a decision on the pledge pursuant to the authorization given
by the general meeting. Biohit’s Board of Directors will convene an
extraordinary general meeting without undue delay to decide on the grant of such
authorization. A separate notice of this will be sent to the shareholders.

CEO Päivi Siltala, Biohit Oyj
tel. +358 9 773 861
investor.relations@biohit.fi
www.biohithealthcare.com (https://eur04.safelinks.protection.outlook.com/?url=htt
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Biohit in brief Biohit Oyj is a globally operating Finnish biotechnology
company. Biohit’s mission is “Innovating for Health” – we produce innovative
products and services to promote research and early diagnosis. Biohit is
headquartered in Helsinki, Finland, and has subsidiaries in Italy and the UK.
Biohit's Series B share (BIOBV) is quoted on Nasdaq Helsinki in the Small
cap/Healthcare group. www.biohithealthcare.com

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