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Biotage

Quarterly Report Oct 31, 2008

2894_10-q_2008-10-31_458985e3-ed7b-45f6-8f4f-59d7d5d35b3b.pdf

Quarterly Report

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Biotage AB (publ) Kungsgatan 76 October 31, 2008 SE-753 18 Uppsala Tel: +46 18 565900 Org no 556539-3138 www.biotage.com

Interim report January - September 2008

  • Net sales in the third quarter amounted to 119.4 MSEK (111.9) and to 354.7 MSEK (361.9) in the period January – September 2008. At comparable exchange rates net sales increased by 13 percent in the third quarter and by 5 percent in the period January – September.
  • The operating result for the third quarter increased by 41 percent and amounted to 13.1 MSEK (9.3). The operating result for the first nine months of the year increased by 12 percent to 30.9 MSEK (27.6).
  • The result after tax amounted to 12.8 MSEK (11.2) in the third quarter and to 33.9 MSEK (56.5) in the period January – September. In the second quarter 2007 capitalization of deferred income taxes recoverable was made to the amount of 27.6 MSEK.
  • Earnings per share amounted to 0.14 SEK (0.13) in the third quarter and to 0.38 SEK (0.64) in the period January – September.
  • The cash flow from operating activities amounted to 20.2 MSEK (22.9) in the third quarter and to 38.1 MSEK (21.2) the first nine months of the year.
  • On October 2, Qiagen acquired the assets in the Biosystems business area and Biotage's shares in Corbett (17.5 percent) for an initial purchase sum of 53 MUSD. The capital gain for the divestment is expected to amount to 220 MSEK before tax. Biotage has received cash payment amounting to approx. 360 MSEK for the divested operations.

Comments from CEO Torben Jörgensen

In the third quarter much work was devoted to the sale of the Biosystems business area to the German biotech company Qiagen. On October 1 the parties finally agreed on all conditions to conclude the deal. The deal was closed on October 2. The deal means that Qiagen acquires the assets and some liabilities in the business area together with Biotage's shares in Corbett (17.5 percent) for an initial purchase sum of 53 MUSD. Provided that certain sales targets are met, additional purchase sums totaling a maximum of 7 MUSD will be paid to Biotage during the period from Qiagen's taking possession of the operations up to December 31, 2012. Qiagen takes over all Biosystems' employees.

This deal marks the end of the strategic evaluation work. Biotage will now intensify its work with developing and strengthening the Discovery Chemistry business area, with the aim of improving the operating margin, creating organic growth and acquiring complementary products and businesses. The strategic evaluation work has yielded a number of leads and contacts that will be pursued.

In the Biosystems business area the operations continued to develop favorably with a 26 percent sales growth at comparable exchange rates. The launch of the new PyroMark™ Q24 instrument has been successful and 15 instruments were sold during the quarter. In total Biosystems sold 32 instruments in the third quarter.

Discovery Chemistry is much affected by the ongoing restructuring within the major pharma companies. However, it is gratifying to note a 9 percent sales growth at comparable exchange rates in the third quarter. The business area's new introductions, the purification system Isolera and the new product area SNAP, have developed successfully and were the main factors behind the growing sales in the third quarter.

Amounts in MSEK 3 rd quarter
2008
3 rd quarter
2007
Jan-Sep
2008
Jan-Sep
2007
Full year
2007
Oct 1, 2007-
Sep 30, 2008
Net sales
Cost of goods sold
119.4
-47.3
111.9
-40.3
354.7
-139.1
361.9
-136.5
496.4
-190.9
489.2
-193.5
Gross profit 72.0 71.5 215.6 225.4 305.5 295.7
Operating expenses -58.9 -62.2 -184.7 -197.8 -262.6 -249.5
Operating profit/loss 13.1 9.3 30.9 27.6 42.9 46.2
Financial items 0.2 2.1 3.8 2.8 2.9 3.9
Profit/loss before tax 13.3 11.4 34.6 30.4 45.8 50.2
Tax expenses -0.5 -0.2 -0.7 26.1 53.5 26.7
Profit/loss after tax 12.8 11.2 33.9 56.5 99.4 76.8

Group result, financial position and cash flow

Third quarter 2008

Group net sales amounted to 119.4 MSEK, compared to 111.9 MSEK the third quarter 2007. At comparable exchange rates net sales grew by 13 percent.

The Group's gross margin was 60.3 percent (63.9). The gross margin was negatively affected by lower sales prices resulting from product mix changes and changes in the market. Tender procedures in the major pharma companies are increasing the competition and price is becoming an increasingly dominant factor.

The operating expenses amounted to 58.9 MSEK (62.2). The cost control continues to be good. This quarter the marketing costs have been charged with personnel-related costs of a non-recurring nature amounting to 1.5 MSEK. During the second quarter two major research projects were completed. Amortization of these projects has started in the third quarter. Exchange rate differences relating to receivables and liabilities have improved the operating expenses by 7.6 MSEK (-1.9).

Investments amounted to 4.7 MSEK (9.9). Of this sum 2.8 MSEK (7.0) were capitalized development costs. Amortizations were made to the amount of 10.5 MSEK (8.3) Of this sum 4.9 MSEK (3.5) were amortizations of capitalized development costs.

The operating result increased by 41 percent and amounted to 13.1 MSEK (9.3), with an operating margin of 11.0 percent (8.3).

Net financial income amounted to 0.2 MSEK (2.1). In the third quarter 2007 dividends from the financial holding in Corbett were received to the amount of 2.5 MSEK.

Profit after tax amounted to 12.8 MSEK, corresponding to 0.14 SEK per share, compared to 11.2 MSEK in 2007, corresponding to 0.13 SEK per share.

The cash flow from operating activities amounted to 20.2 MSEK (22.9). The cash flow from the investment activities amounted to -4.7 MSEK (-9.9).

January – September 2008

Group net sales amounted to 354.7 MSEK, compared to 361.9 MSEK the first nine months 2007. At comparable exchange rates net sales increased by 5 percent.

The Group's gross margin was 60.8 percent (62.3) The gross margin was negatively affected by lower sales prices resulting from product mix changes and changes in the market. Tender procedures in the major pharma companies are increasing the competition and price is becoming an increasingly dominant factor.

The operating expenses have continued to decrease and amounted to 184.7 MSEK (197.8). Above all the costs in the US and UK have been reduced compared to last year as a result of the weakened currencies. Exchange rate differences relating to receivables and liabilities have improved the operating expenses to the amount of 3.8 MSEK (-2.3).

Investments amounted to 29.8 MSEK (36.6). Of this sum 21.7 MSEK (29.6) were capitalized development costs. Amortizations were made to the amount of 26.3 MSEK (25.1). Of this sum 9.9 MSEK (9.4) were amortizations of capitalized development costs.

The operating result increased by 12 percent and amounted to 30.9 MSEK (27.6), with an operating margin of 8.7 percent (7.6).

Net financial income amounted to 3.8 MSEK (2.8). During the first six months dividends from the financial holding in Corbett were received to the amount of 5.1 MSEK (5.4).

Profit after tax amounted to 33.9 MSEK, corresponding to 0.38 SEK per share, compared to 56.5 MSEK in 2007, corresponding to 0.64 SEK per share. In the first nine months 2007 capitalization of deferred income taxes recoverable was made to the amount of 27.6 MSEK.

The cash flow from operating activities amounted to 38.1 MSEK (21.2). The cash flow from investment activities amounted to -29.8 MSEK (-36.6), the major part relating to capitalized development costs from the now completed projects PyroMark Q24 and Isolera. The cash flow from financing activities amounted to -17.3 MSEK (-1.9).

Exchange rates

The exchange rate development affects comparability between years. The weakening of the US dollar and the British pound has affected the sales negatively at recalculation to SEK.

When excluding exchange rate differences relating to receivables and liabilities, which have influenced the operating expenses positively to the amount of 3.8 MSEK in the first nine months of the year, the effect on the result is small, however. By having production in the Discovery Chemistry business area in both the US and UK, the Group has a good balance concerning income and costs in USD and GBP and thereby a natural hedge.

Balance sheet items

At September 30, 2008 the Group's cash and securities totaled 22.4 MSEK, compared to 31.0 MSEK at December 31, 2007. Granted unutilized credits amounted to 53.7 MSEK, compared to 40.2 MSEK at December 31, 2007. The Group's interest-bearing liabilities amounted to 57.1 MSEK, compared to 71.9 MSEK at December 31, 2007. The sum of liquid resources and interest-bearing liabilities shows that the net liability has been reduced by 6.2 MSEK compared with December 31, 2007.

The Group reports a total goodwill of 465.7 MSEK (460.6) at September 30, 2008. This is attributable to the acquisitions of Personal Chemistry and Biotage LLC in 2003 and the acquisitions of Argonaut and Separtis in 2005. This year's change is due to currency effects.

Other intangible assets in the form of patents and license rights amounted to 22.6 MSEK (26.4) and capitalized development costs to 82.7 MSEK (70.8).

At September 30, 2008 the equity capital amounted to 838.3 MSEK, compared to 796.3 MSEK at December 31, 2007. The Group's equity capital has increased with 33.9 MSEK due to the period's net result, with 1.0 MSEK due to stock related remunerations, with 0.5 MSEK due to changes in the security reserve, and with 6.6 MSEK due to exchange rate changes.

Discovery Chemistry (Medicinal chemistry)

Amounts in MSEK 3 rd quarter 3 rd quarter Jan-Sep Jan-Sep Full year Oct 1, 2007-
2008 2007 2008 2007 2007 Sep 30, 2008
Net sales 92.3 89.1 276.3 290.1 397.6 383.8
Operating profit/loss 0.6 9.3 13.0 21.7 32.9 24.2
Sales per geographic market
USA 38% 42% 37% 41% 40% 38%
Europe 45% 41% 47% 44% 45% 46%
Rest of the world 17% 17% 16% 15% 15% 15%
Sum 100% 100% 100% 100% 100% 100%

Net sales in the third quarter amounted to 92.3 MSEK (89.1).

At comparable exchange rates net sales increased by 9 percent compared to last year.

The EU area was Discovery Chemistry's biggest market, accounting for 45 percent of the net sales. The US contributed 38 percent and the rest of the world 17 percent.

During the period sales were negatively affected by lower sales volumes to the major pharma companies. Sales in the academic area and the Biopharma market segment have increased, resulting in a changed product mix and a lower margin.

The launch of the company's new purification system Isolera earlier in the year was successful and sales have continued to develop positively. The sales of consumables have continued to grow and the new product area SNAP has had strongly growing sales.

The gross margin for the third quarter was 58.2 percent (62.4). The gross margin was negatively affected by lower sales prices resulting from product mix changes and changes in the market. Tender procedures in the major pharma companies are increasing the competition and price is becoming an increasingly dominant factor.

Operating profit for the third quarter amounted to 0.6 MSEK (9.3) with an operating margin of 0.7 percent (10.4).

Biosystems (Genetic analysis)

Amounts in MSEK 3 rd quarter 3 rd quarter Jan-Sep Jan-Sep Full year Oct 1, 2007-
2008 2007 2008 2007 2007 Sep 30, 2008
Net sales
Operating profit/loss 27.1 22.8 78.3 71.7 98.8 105.4
6.2 6.2 20.1 18.2 26.2 28.0
Sales per geographic market
USA 53% 47% 49% 47% 45% 46%
Europe 40% 50% 41% 47% 47% 44%
Rest of the world 7% 3% 10% 6% 8% 10%
Sum 100% 100% 100% 100% 100% 100%

In the third quarter the Biosystems business area increased its net sales to 27.1 MSEK (22.8). At comparable exchange rates net sales increased by 26 percent.

The strong sales development for the business area continues. System sales totaled 32 units (19). The launch of the company's new instrument PyroMark™ Q24 has been successful and the interest great. During the quarter 15 instruments were sold. The demand for and interest in the Pyrosequencing® technology and its products continues to be high.

The US was Biosystem's biggest market, accounting for 53 percent of the net sales. The EU area contributed 40 percent and the rest of the world 7 percent.

The gross margin was 67.7 percent (69.9). The gross margin was negatively affected by exchange rate changes, as sales are made almost exclusively in foreign currency, while all production takes place in Sweden.

The business area's profitability continues to be good. The operating result for the third quarter amounted to 6.2 MSEK (6.2) with an operating margin of 22.8 percent (27.3).

Human resources

At September 30, 2008 the Group had 332 employees, compared to 336 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, Switzerland, Germany, France, Italy and Japan. The parent company is responsible for group management, strategic business development and administrative functions at Group level and towards subsidiaries.

In the third quarter 2008 the parent company's net income amounted to 2.2 MSEK (2.0). In the period January – September 2008 net income amounted to 6.2 MSEK (6.3).

A profit after financial items amounting to 9.7 MSEK is reported for the third quarter 2008 (3.0). In the January – September period profit after financial items amounted to 13.6 MSEK (10.9).

The parent company's investments in intangible fixed assets in the third quarter 2008 amounted to 0.3 MSEK (0.3). In January - September investments in intangible fixed assets amounted to 1.4 MSEK (2.5).

On September 30, 2008 the parent company's cash and bank balance amounted to 1.1 MSEK, compared to 0.9 MSEK at December 31, 2007.

Major events after the reported period

On October 2, Qiagen acquired the assets in the Biosystems business area together with Biotage's shares in Corbett (17.5 percent) for an initial purchase sum of 53 MUSD. Provided that certain sales targets are met, additional purchase sums totaling a maximum of 7 MUSD will be paid to Biotage during the period from Qiagen's taking possession of the operations up to December 31, 2012. Qiagen took over all Biosystems' employees.

After adjustment for certain obligations that Qiagen takes over on taking possession, Biotage obtained a net of approx. 50 MUSD. The capital gain for the divestment is expected to amount to approx 220 MSEK before tax.

During the fourth quarter 2008 Biotage will be Qiagen's distributor for Biosystems' products. The net result of this distribution agreement is expected to be marginal. According to a separate agreement Biotage will also supply certain administrative services to Qiagen in the next 12 month period.

Even if the criteria for reporting the operations divested at October 2, which are held for sale according to IFRS 5, were not met at the balance sheet date, further information is provided.

The Group's income statements, balance sheets and cash flow analyses are also reported on page 19-24 as if the provisions for reporting according to IFRS 5 for terminated operations held for sale had been met.

Risks and uncertainties

The risks associated with the Group's operations can generally be divided into operational risks related to the business and risks related to the financial activities. No major changes in significant risks or uncertainty factors 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 2007.

Readers wishing to study the risks and uncertainties reported in the 2007 Annual Report can download this report from Biotage AB's website www.biotage.se or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala, or at [email protected].

Next report

The full-year report for 2008 will be issued on February 10, 2009.

The interim report for the first quarter 2009 will be issued on April 27, 2009.

The Annual General Meeting will be held on April 27, 2009.

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

Uppsala October 31, 2008

Torben Jörgensen President and CEO

För 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

About Biotage

Biotage is a global company active in life science research with strong technologies, a broad range of operations and a long-term view of the market. The company offers solutions, knowledge and experience in the areas of genetic analysis and medicinal chemistry. In 2005 business and products from the company Argonaut were acquired, further strengthening the product range in medicinal chemistry. The customers include the world's top 30 pharma companies, the world's top 20 biotech companies, and leading academic institutes. The company is headquartered in Uppsala and has subsidiaries in the U.S., Japan, UK, Germany and several other European countries. Biotage has 336 employees and had sales of 496 MSEK in 2007. Biotage is listed on the Stockholm stock exchange. Website: www.biotage.com

Certain statements in this press release are forward-looking. These may be identified by the use of forward looking words or phrases such as "believe," "expect," "intend," and "should," among others. These forward-looking statements are based on Biotage's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Biotage notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the microwave synthesis and flash purification in the drug discovery market, DNA sequencing and genomics market, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for Biotage's products (including seasonal fluctuations), difficulties in successfully adapting the Company's products to integrated solutions and producing such products, and the Company's ability to identify and develop new products and to differentiate its products from competitors.

Accounting principles

The interim report for the Group has been prepared in accordance with IAS 34 Interim Reporting and the Swedish Accounting Act. The interim report for the parent company complies with regulations in the Swedish Accounting Act and RFR 2.1 Reporting for legal entities.

The accounting principles and valuation methods applied agree with the accounting principles used in the preparation of the latest Annual Report, described on pp. 31-40 in the 2007 Annual Report.

Readers wishing to study the accounting principles presented in the 2007 Annual Report can download this report from Biotage AB's website www.biotage.se or order it from Biotage AB, Kungsgatan 76, SE-753 18 Uppsala, or at [email protected].

Review report

To the board of directors of Biotage AB Org no. 556539-3138

Introduction

We have performed a review of the enclosed interim report for the period January 1, 2008 – September 30, 2008. The responsibility for truly and fairly preparing and presenting this interim financial information in accordance with the Annual Accounts Act rests with the board of directors and the president. Our responsibility is to state an opinion regarding this interim financial information based on our review.

The purpose and scope of the review

We have performed our review in accordance with Standard for Reviewing (SÖG) 2410, Reviewing of interim financial information by the company's elected accountants. Performing a review consists of asking questions, primarily from persons responsible for financial and reporting issues, conducting analytical auditing and performing other general audit steps.

A review has another purpose and is considerably smaller in scope compared to the purpose and scope of an audit according to the Auditing Standard in Sweden (RS) and generally accepted accounting principles. The audit steps performed in connection with a review do not enable us to gain such a degree of certainty that we can become aware of all important circumstances that might have been identified if an audit had been performed. A stated opinion based on a review has thus not the degree of certainty that a stated opinion based on an audit has.

Opinion

Based on our review, no circumstances have been disclosed that would give us reason to think that this interim report is not in all essentials prepared according to the Annual Accounts Act.

Stockholm October 31, 2008

Deloitte AB Marcus Sörlander Authorized public accountant

CONSOLIDATED INCOME STATEMENTS

2008-07-01 2007-07-01 2008-01-01 2007-01-01 2007-01-01 2007-10-01
Amounts in KSEK 2008-09-30 2007-09-30 2008-09-30 2007-09-30 2007-12-31 2008-09-30
Net sales 119,365 111,853 354,657 361,863 496,402 489,196
Cost of goods sold -47,332 -40,335 -139,086 -136,471 -190,875 -193,490
Gross profit 72,033 71,519 215,571 225,392 305,527 295,706
Selling expenses -44,123 -39,472 -125,225 -126,523 -169,711 -168,413
Administative expenses -10,369 -10,755 -34,210 -36,724 -50,150 -47,635
Research and development costs -12,038 -10,108 -29,011 -32,259 -41,400 -38,151
Other operating income 7,810 662 15,005 1,677 2,439 15,767
Other operating expenses -187 -2,549 -11,236 -3,958 -3,783 -11,060
Operating expenses -58,907 -62,222 -184,676 -197,788 -262,604 -249,492
Operating profit/loss 13,126 9,297 30,894 27,604 42,923 46,214
Financial income 2,023 3,663 9,216 7,645 8,396 9,967
Financial expenses -1,871 -1,554 -5,463 -4,872 -5,484 -6,075
Profit/loss before income tax 13,279 11,406 34,647 30,377 45,835 50,105
Tax expenses -522 -217 -704 26,123 53,537 26,711
Profit/loss after tax 12,756 11,189 33,943 56,500 99,373 76,816
Part related to the parent company´s
shareholders 12,756 11,189 33,943 56,500 99,373 76,816
Average shares outstanding 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320
Average shares outstanding after
dilution 88,552,312 89,016,897 88,593,389 89,054,035 89,015,260 88,643,770
Shares outstanding at closing day 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320
Profit/loss per share SEK 0.14 kr 0.13 kr 0.38 kr 0.64 kr 1.12 kr 0.87 kr
Profit/loss per share after dilution SEK 0.14 kr 0.13 kr 0.38 kr 0.63 kr 1.12 kr 0.87 kr
Quarterly summary 2008 and 2007 2008 2008 2008 2007 2007 2007 2007
Amounts in KSEK kv 3 kv 2 kv 1 kv 4 kv 3 kv 2 kv 1
Net Sales 119,365 121,311 113,980 134,539 111,853 131,138 118,872
Cost of goods sold -47,332 -49,119 -42,635 -54,404 -40,335 -51,149 -44,987
Gross profit 72,033 72,192 71,345 80,135 71,519 79,989 73,884
Gross margin 60.3% 59.5% 62.6% 59.6% 63.9% 61.0% 62.2%
Operating expenses -58,907 -63,289 -62,480 -64,816 -62,222 -68,913 -66,653
Operating profit/loss 13,126 8,903 8,865 15,319 9,297 11,076 7,232
Financial net income 152 -738 4,339 139 2,109 -737 1,400
Profit/loss before income tax 13,279 8,165 13,204 15,458 11,406 10,339 8,631
Tax expenses -522 -157 -24 27,415 -217 27,736 -1,396
Profit/loss after tax 12,756 8,008 13,180 42,873 11,189 38,075 7,236

CONSOLIDATED BALANCE SHEETS

Amounts in KSEK 2008-09-30 2007-12-31
ASSETS
Fixed assets
Tangible assets 81,768 84,987
Goodwill 465,685 460,593
Other intagible assets 106,318 98,460
Financial assets 47,037 46,934
Capitalized loss carry-forward 54,253 53,419
Total fixed assets 755,060 744,393
Current assets
Inventory 108,784 97,144
Account receivable and other receivables 116,415 116,044
Liquid funds 22,387 31,017
Total current assets 247,585 244,206
TOTALT ASSETS 1,002,645 988,599
EQUITY AND LIABILITIES
Capital and reserves attributable to shareholders
in parent comapny
Share capital 88,486 88,486
Other contributed capital 847,334 1,513,992
Accumulated translation difference -26,917 -72,117
Profit/loss carried forward -70,612 -734,096
Total equity 838,291 796,265
Long term liabilities
Loans 8,954 37,152
Provisions of a long-term nature 2,716 3,776
Total long term liabilities 11,670 40,928
Current liabilities
Accounts payable and other liabilitiwes 96,450 111,235
Tax liabilities 1,854 1,159
Loans 48,121 34,741
Provisions of a short-term nature 6,259 4,271
Total current liabilities 152,684 151,406
TOTAL EQUITY AND LIABILITIES 1,002,645 988,599

CONSOLIDATED CASH FLOW STATEMENTS

Amounts in KSEK 2008-07-01
2008-09-30
2007-07-01
2007-09-30
2008-01-01
2008-09-30
2007-01-01
2007-09-30
2007-01-01
2007-12-31
2007-10-01
2008-09-30
Operating activities
Profit/loss after financial items 13,279 11,406 34,647 30,377 45,835 50,105
Adjustments for items not included in the cash flow 8,220 8,950 25,662 25,745 30,810 30,727
21,498 20,356 60,309 56,121 76,645 80,832
Tax paid -522 -217 -704 -1,526 -519 304
Cash flow from operating activities
before changes in working capital 20,976 20,139 59,605 54,595 76,126 81,136
Cash flow from change in working capital:
Increase (-)/ decrease (+) of inventories 1,678 -6,221 -8,974 -15,665 -15,273 -8,581
Increase (-)/ decrease (+) of account receivables 791 13,059 4,715 -2,553 -18,633 -11,365
Increase (-)/ decrease (+) of other current receivables -4,405 605 -2,857 -907 -3,979 -5,930
Increase (+)/ decrease (-) of other liabilities 1,153 -4,635 -14,418 -14,303 -4,523 -4,638
Cash flow from operating activities 20,193 22,946 38,071 21,167 33,718 50,622
Investing activities
Acquisition of intangible fixed assets -3,305 -7,679 -23,275 -31,305 -44,143 -36,113
Sales of intangible fixed assets 16 16 16 0
Acquisition of tangible fixed assets -1,409 -2,263 -6,360 -5,332 -8,198 -9,226
Sales og tangible fixed assets 0
Acquisition of financial assets -17 -12 -193 -12 -102 -283
Sales of financial assets - 18 17 21 4 -1
Cash flow from investment activities -4,730 -9,919 -29,812 -36,611 -52,422 -45,623
Financial activities
Loans taken
- - 3,155 6,164 3,009
Amortization of loan liabilities -11,960 -2,168 -17,287 -5,016 -6,455 -18,726
Cash flow from financial activities -11,960 -2,168 -17,287 -1,860 -291 -15,717
Cash flow during period 3,503 10,859 -9,028 -17,305 -18,995 -10,718
Cash and liquid assets beginning of period 18,365 21,942 31,017 50,136 50,136 32,681
Exchange differences in liquid assets 520 -120 398 -150 -124 424
Cash and liquid assets at end of period 22,387 32,681 22,387 32,681 31,017 22,387
Additional information:
Adjustments for items not included in the cash flow
Depreciations and write-downs 10,693 8,279 27,249 25,125 31,563 33,687
Other items -2,473 671 -1,587 619 -754 -2,960
Total 8,220 8,950 25,662 25,745 30,810 30,727

CONSOLIDATED STATEMENT OF CHANGES IN EQIUTY

Share Other
payed-in
Accumulated
translation
Hedging- Profit/loss
carried
Total
Belopp i KSEK capital capital differences reserve forward equity
Opening balance January 1, 2007 88,486 1,512,383 -55,386 - -833,009 712,474
Changes in 2007:
Exchange rate differences - - -16,731 - - -16,731
Change in hedging reserve for the year - - - -460 - -460
Profit/loss January - december 2007 - - - - 99,373 99,373
Change due to outstanding option programs - 1,609 - - - 1,609
Total changes during 2007: 1,609 -16,731 -460 99,373 83,791
Closing balance December 31, 2007 88,486 1,513,992 -72,117 -460 -733,636 796,265
Changes in 2008:
Redistribution after annual general meeting - -667,636 38,554 629,082 0
Exchange rate differences - - 6,645 - - 6,645
Change in hedging reserve for the year - - - 460 460
Profit/loss January - September 2008 - - - - 33,943 33,943
Change due to outstanding option programs - 977 - - - 977
Total changes during 2008: 0 -666,658 45,199 460 663,025 42,026
Closing balance September 30, 2008 88,486 847,334 -26,917 0 -70,612 838,291

INCOME STATEMENTS FOR THE PARENT COMPANY

2008-07-01 2007-07-01 2008-01-01 2007-01-01 2007-01-01 2007-10-01
Amounts in KSEK 2008-09-30 2007-09-30 2008-09-30 2007-09-30 2007-12-31 2008-09-30
Net sales 2,179 2,009 6,159 6,314 8,345 8,190
Selling expenses -4 -228 -210 -464 -506 -251
Administative expenses -3,880 -3,773 -12,538 -12,000 -15,350 -15,888
Research and development costs -695 -359 -2,850 -2,253 -2,936 -3,533
Other operating income 2,070 2,063 6,191 6,851 8,118 7,459
Other operating expenses 948 -1,595 -1,824 -3,251 -3,892 -2,464
Operating expenses -1,561 -3,892 -11,230 -11,118 -14,565 -14,678
Operating profit/loss 619 -1,884 -5,072 -4,804 -6,220 -6,488
Profit/loss from financial investments:
Interest income from receivables from group companies 4,027 4,039 11,365 12,541 16,453 15,277
Interest expenses from liabilities to group companies -479 -568 -1,550 -1,239 -1,793 -2,104
Profit and loss from other securities and receivalbes
that are long term financial assets
0 2,507 5,092 5,371 5,371 5,093
Other interest income and similar income items - - 0 1 117 116
Interest expenses and similar expense items -1 - -35 -4 -5 -35
Translation differences on intra-group receivalbles 5,472 -1,116 3,754 -919 -349 4,324
Net financial income/expense 9,018 4,862 18,627 15,750 19,794 22,671
Profit/loss after financial items 9,637 2,979 13,555 10,946 13,574 16,183
Tax expenses - - 27,649 49,026 21,377
Profit/loss after tax 9,637 2,979 13,555 38,595 62,600 37,560

BALANCE SHEETS FOR THE PARENT COMPANY

Amounts in KSEK 2008-09-30 2007-12-31
ASSETS
Fixed assets
Intangible fixed assets
Patent and license rights 12,243 13,309
12,243 13,309
Financial assets
Participation in group companies 717,727 717,727
Receivables from group companies 141,725 109,869
Deferred tax asset 39,361 39,361
Other long-term securities 45,783 45,783
944,596 912,740
Total fixed assets 956,839 926,049
Current assets
Current receivables
Receivables from group companies 73,625 76,382
Other receivables 2,012 632
Prepraid expenses and accrued income 1,317 1,514
76,954 78,528
Cash and bank balances 1,132 862
Total current assets 78,086 79,390
TOTALT ASSETS 1,034,924 1,005,439
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity
Share capital 88,486 88,486
Statutory reserves 842,180 1,509,816
930,666 1,598,302
Unrestricted equity
Fair value fond 8,826 -38,554
Profit/loss carried forward - -691,682
Profit/loss for the period reported 13,555 62,600
22,382 -667,636
Total equity 953,048 930,667
Current liabilities
Account payable 916 1,488
Liabilities to group companies 70,684 60,140
Other short term liabilities 209 5,369
Accrued expenses and prepaid income 10,066 7,775
81,876 74,772
TOTAL EQUITY, PROVISIONS AND LIABILITIES 1,034,924 1,005,439

CASH FLOW STATEMENTS FOR THE PARENT COMPANY

2008-07-01 2007-07-01 2008-01-01 2007-01-01 2007-01-01 2007-10-01
Amounts in KSEK 2008-09-30 2007-09-30 2008-09-30 2007-09-30 2007-12-31 2008-09-30
Operating activities
Profit/loss after financial items 9,637 2,978 13,555 10,946 13,574 16,184
Adjustments for items not included in the cash flow -8,125 663 598 1,928 2,424 1,094
1,513 3,642 14,153 12,874 15,999 17,278
Tax paid
Cash flow from operating activities
- - - - - -
before changes in working capital 1,513 3,642 14,153 12,874 15,999 17,278
Cash flow from change in working capital:
Increase (-)/ decrease (+) of other current receivables -5,607 -6,557 -19,386 -12,798 -10,940 -17,528
Increase (+)/ decrease (-) of other liabilities 5,426 4,168 6,928 -2,866 -9,351 443
Cash flow from operating activities 1,332 1,253 1,695 -2,791 -4,293 193
Investing activities
Acquisition of intagnibile fixed assets -433 -296 -1,368 -2,504 -3,037 -1,901
Sales of intagnibile fixed assets -331 16 348
Acquisition of subsidiaries - -331 -331 -331
Increase (-)/ decrease (+) of other long-term receivables -58 1,191 -58 -72 -130
Cash flow from investment activities -491 563 -1,426 -2,835 -3,423 -2,014
Cash flow from financial activities - - - - - -
Cash flow during period 842 1,817 270 -5,626 -7,716 -1,821
Cash and liquid assets beginning of period 290 1,136 862 8,578 8,578 2,952
Cash and liquid assets at end of period 1,132 2,952 1,132 2,952 862 1,132
Additional information:
Adjustments for items not included in the cash flow
Depreciations and write-downs 571 548 2,434 1,636 2,192 2,989
Other items -8,696 115 -1,836 292 233 -1,895
Total -8,125 663 598 1,928 2,424 1,094

STATEMENT OF CHANGES IN EQIUTY FOR THE PARENT COMPANY

Share Statutory Fair value Brought
forward
Total
Amounts in KSEK capital reserve fond profit/loss equity
Opening balance January 1, 2007 88,486 1,509,816 -27,115 -716,534 854,652
Changes in 2007:
Exchange rate differences -
-
-
-
-
-11,439
-
-
-
-11,439
Group contributions received 2007 - - 24,852 24,852
Profit/loss 2007 - - - 62,600 62,600
Total changes during 2007 0 0 -11,439 87,453 76,014
Closing balance December 31, 2007 88,486 1,509,816 -38,554 -629,082 930,667
Changes in 2008:
Redistribution after annual general meeting -667,636 38,554 629,082
Exchange rate differences - - 8,826 - 8,826
Profit/loss January - September 2008 - - 13,555 13,555
Total changes during 2008 0 -667,636 47,381 642,637 22,382
Closing balance September 30, 2008 88,486 842,180 8,826 13,555 953,048

Biotage AB

Interim report INCOME STATEMENT BY SEGMENT

Amounts in KSEK
2008-07-01 -- 2008-09-30 Discovery
Biosystem Chemistry Corporate Total
Net sales 27,057 92,308 - 119,365
Cost of goods sold -8,735 -38,597 - -47,332
Gross profit 18,322 53,711 0 72,033
Gross margin 67.7% 58.2% 60.3%
Selling expenses -7,595 -36,528 - -44,123
Administative expenses -1,570 -7,398 -1,401 -10,369
Research and development costs -3,025 -9,013 - -12,038
Other operating income 39 78 7,692 7,810
Other operating expenses 0 -217 30 -187
Operating expenses -12,150 -53,077 6,321 -58,907
Operating profit/loss 6,172 634 6,321 13,126
Financial income net - - 152 152
Profit/loss before income tax 6,172 634 6,473 13,279
Tax expenses - - -522 -522
Profit/loss after tax 6,172 634 5,950 12,756

INCOME STATEMENT BY SEGMENT

Amounts in KSEK

2007-07-01 -- 2007-09-30
Biosystem Chemistry Corporate Total
Net sales 22,793 89,060 - 111,853
Cost of goods sold -6,859 -33,476 - -40,335
Gross profit 15,934 55,585 0 71,519
Gross margin 69.9% 62.4% 63.9%
Selling expenses -6,108 -33,364 - -39,472
Administative expenses -1,367 -5,279 -4,109 -10,755
Research and development costs -2,244 -7,864 - -10,108
Other operating income - 232 430 662
Other operating expenses - -16 -2,533 -2,549
Operating expenses -9,718 -46,291 -6,212 -62,222
Operating profit/loss 6,216 9,294 -6,212 9,297
Financial income net - - 2,109 2,109
Profit/loss before income tax 6,216 9,294 -4,103 11,406
Tax expenses - - -217 -217
Profit/loss after tax 6,216 9,294 -4,320 11,189

Biotage AB Amounts in KSEK

Interim report INCOME STATEMENT BY SEGMENT

2008-01-01 -- 2008-09-30
Biosystem Chemistry Corporate Total
Net sales 78,311 276,345 - 354,657
Cost of goods sold -24,674 -114,412 - -139,086
Gross profit 53,637 161,933 0 215,571
Gross margin 68.5% 58.6% 60.8%
Selling expenses -23,225 -102,000 - -125,225
Administative expenses -4,714 -23,226 -6,270 -34,210
Research and development costs -5,653 -23,358 - -29,011
Other operating income 39 377 14,589 15,005
Other operating expenses -12 -767 -10,457 -11,236
Operating expenses -33,564 -148,974 -2,138 -184,676
Operating profit/loss 20,073 12,959 -2,138 30,894
Financial income net - - 3,753 3,753
Profit/loss before income tax 20,073 12,959 1,614 34,647
Tax expenses - - -704 -704
Profit/loss after tax 20,073 12,959 911 33,943

INCOME STATEMENT BY SEGMENT

Amounts in KSEK
2007-01-01 -- 2007-09-30
Biosystem Chemistry Corporate Total
Net sales 71,713 290,150 - 361,863
Cost of goods sold -24,472 -111,999 - -136,471
Gross profit 47,241 178,151 0 225,392
Gross margin 65.9% 61.4% 62.3%
Selling expenses -20,185 -106,338 - -126,523
Administative expenses -4,100 -22,808 -9,816 -36,724
Research and development costs -4,726 -27,534 - -32,259
Other operating income - 486 1,191 1,677
Other operating expenses - -274 -3,683 -3,958
Operating expenses -29,011 -156,469 -12,308 -197,788
Operating profit/loss 18,230 21,682 -12,308 27,604
Financial income net - - 2,773 2,773
Profit/loss before income tax 18,230 21,682 -9,535 30,377
Tax expenses - - 26,123 26,123
Profit/loss after tax 18,230 21,682 16,588 56,500

Account according to IFRS 5 of assets being liquidated and liquidated operations

On October 2, 2008 the Biosystems business area was divested to Qiagen GmbH. The deal means that Qiagen has acquired the assets in the Biosystems business area and Biotage's shares in Corbett Life Science Pty Ltd (17,5 percent) for an initial purchase sum of 53 MUSD. Provided that certain sales targets are met, milestone payments totalling a maximum of 7 MUSD will be paid to Biotage by Qiagen, during the period from Qiagen taking possession to December 31, 2012. The divested assets were transferred to the buyer as at October 1, 2008.

After adjustment for certain obligations that Qiagen took over on taking possession, Biotage obtained a net of approx. 50 MUSD.

The capital gain for the divestment is expected to amount to approx 220 MSEK before tax.

Even if the criteria for reporting the operations divested at October 2, which are held for sale according to IFRS 5, were not met at the balance sheet date, further information is provided.

The Group's income statements, balance sheets and cash flow analyses are also reported on page 19-24 as if the provisions for reporting according to IFRS 5 for terminated operations held for sale had been met.

Biotage AB (publ) Interim report

2008-01-01 -- 2008-09-30

CONSOLIDATED INCOME STATEMENTS

2008-07-01 2007-07-01 2008-01-01 2007-01-01 2007-01-01 2007-10-01
Amounts in KSEK 2008-09-30 2007-09-30 2008-09-30 2007-09-30 2007-12-31 2008-09-30
Continuing operations:
Net sales 92,308 89,060 276,345 290,150 397,568 383,763
Cost of goods sold -38,597 -33,476 -114,412 -111,999 -157,707 -160,120
Gross profit 53,711 55,585 161,933 178,151 239,861 223,643
Selling expenses -36,528 -33,364 -102,000 -106,338 -140,962 -136,624
Administative expenses -8,799 -9,388 -29,496 -32,624 -44,860 -41,732
Research and development costs -9,013 -7,864 -23,358 -27,534 -35,883 -31,707
Other operating income 7,770 662 14,966 1,677 2,345 15,633
Other operating expenses -187 -2,549 -11,223 -3,958 -3,783 -11,048
Operating expenses -46,756 -52,503 -151,112 -168,777 -223,143 -205,478
Operating profit/loss 6,955 3,081 10,821 9,374 16,718 18,165
Financial income 2,023 1,156 4,123 2,274 3,025 4,874
Financial expenses -1,871 -1,554 -5,463 -4,872 -5,484 -6,075
Profit/loss before income tax 7,107 2,683 9,481 6,776 14,259 16,963
Tax expenses -522 -217 -704 26,123 53,537 26,711
Profit/loss after tax for continuing operations 6,585 2,466 8,778 32,899 67,796 43,675
Profit/loss after tax for discontinued operations 6,172 8,723 25,165 23,601 31,576 33,141
Total profit/loss for the period 12,756 11,189 33,943 56,500 99,373 76,816
Part related to the parent company´s
shareholders
12,756 11,189 33,943 56,500 99,373 76,816
Average shares outstanding 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320
Average shares outstanding after
dilution 88,552,312 89,016,897 88,593,389 89,054,035 89,015,260 88,643,770
Shares outstanding at closing day 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320 88,486,320
Profit/loss per share SEK 0.14 kr 0.13 kr 0.38 kr 0.64 kr 1.12 kr 0.87 kr
Profit/loss per share after dilution SEK 0.14 kr 0.13 kr 0.38 kr 0.63 kr 1.12 kr 0.87 kr
Profit/loss per share SEK
Continuing operations 0.07 kr 0.03 kr 0.10 kr 0.37 kr 0.77 kr 0.49 kr
Discontinued operations 0.07 kr 0.10 kr 0.28 kr 0.27 kr 0.36 kr 0.37 kr
Sum 0.14 kr 0.13 kr 0.38 kr 0.64 kr 1.12 kr 0.87 kr

CONSOLIDATED BALANCE SHEETS

Amounts in KSEK 2008-09-30 2007-12-31
ASSETS
Fixed assets
Tangible assets 78,664 84,987
Goodwill 465,685 460,593
Other intagible assets 62,131 98,460
Financial assets 1,254 46,934
Capitalized loss carry-forward 54,253 53,419
Total fixed assets 661,986 744,393
Current assets
Inventory 95,662 97,144
Account receivable and other receivables 116,415 116,044
Liquid funds 22,387 31,017
Total current assets 234,463 244,206
Total assets for continuing operations 896,449 988,599
Assets for disvestment 106,196
TOTALT ASSETS 1,002,645 988,599
EQUITY AND LIABILITIES
Capital and reserves attributable to shareholders
in parent comapny
Share capital
Other contributed capital
Accumulated translation difference
Profit/loss carried forward
Total equity
88,486
847,334
-26,917
-70,612
838,291
88,486
1,513,992
-72,117
-734,096
796,265
Long term liabilities
Loans 8,954 37,152
Provisions of a long-term nature
Total long term liabilities
2,716
11,670
3,776
40,928
Current liabilities
Accounts payable and other liabilitiwes 83,804 111,235
Tax liabilities 1,854 1,159
Loans 48,121 34,741
Provisions of a short-term nature 5,893 4,271
Total current liabilities 139,672 151,406
Total equity and liabilities for continuing operations 989,633 988,599
Liabilities for disvestment 13,012
TOTAL EQUITY AND LIABILITIES 1,002,645 988,599

CONSOLIDATED CASH FLOW STATEMENTS

Amounts in KSEK 2008-07-01
2008-09-30
2007-07-01
2007-09-30
2008-01-01
2008-09-30
2007-01-01
2007-09-30
2007-01-01
2007-12-31
2007-10-01
2008-09-30
Operating activities
Profit/loss after financial items 7,107 2,683 9,481 6,776 14,259 16,964
Adjustments for items not included in the cash flow 7,115 6,477 20,360 18,458 21,691 23,593
14,222 9,160 29,842 25,235 35,950 40,557
Tax paid -522 -217 -704 -1,526 -519 304
Cash flow from operating activities
before changes in working capital
13,699 8,943 29,138 23,708 35,431 40,861
Cash flow from change in working capital:
Increase (-)/ decrease (+) of inventories -1,407 -8,070 -6,059 -19,237 -19,025 -5,847
Increase (-)/ decrease (+) of account receivables 4,303 12,818 5,413 -595 -12,349 -6,341
Increase (-)/ decrease (+) of other current receivables -5,763 1,291 -4,211 -1,106 -3,373 -6,478
Increase (+)/ decrease (-) of other liabilities 2,187 -8,727 -14,077 -14,026 -2,313 -2,363
Cash flow from operating activities
for continuing operations 13,020 6,255 10,204 -11,255 -1,627 19,832
Cash flow from operating activities
for discontinued operations 7,173 16,691 27,867 32,422 35,346 30,790
Cash flow from operating activities 20,193 22,946 38,071 21,167 33,718 50,622
Investing activities
Acquisition of intangible fixed assets -2,049 -4,380 -14,890 -15,753 -23,232 -22,368
Sales of intangible fixed assets 16 16 16 0
Acquisition of tangible fixed assets -1,505 -1,891 -5,572 -4,775 -7,110 -7,907
Sales og tangible fixed assets - - 0 0 0
Acquisition of financial assets -17 -12 -193 -12 -102 -282
Sales of financial assets - 18 17 21 0 -1
Cash flow from investment activities
for continuing operations -3,571 -6,249 -20,638 -20,503 -30,428 -30,558
Cash flow from investment activities
for discontinued operations
Cash flow from investment activities
-1,159
-4,730
-3,671
-9,919
-9,173
-29,812
-16,108
-36,611
-21,999
-52,422
-15,064
-45,623
Financial activities
Loans taken
Amortization of loan liabilities
-
-11,960
-
-2,168
-17,287 3,155
-4,976
6,164
-6,415
3,009
-18,726
Cash flow from financial activities
for continuing operations -11,960 -2,168 -17,287 -1,821 -251 -15,717
Cash flow from financial activities
for discontinued operations 0 0 -40 -40 0
Cash flow from financial activities -11,960 -2,168 -17,287 -1,860 -291 -15,717
Cash flow during period 3,503 10,859 -9,028 -17,305 -18,995 -10,717
Cash and liquid assets beginning of period 18,365 21,942 31,017 50,136 50,136 32,681
Exchange differences in liquid assets 520 -120 398 -150 -124 424
Cash and liquid assets at end of period 22,387 32,681 22,387 32,681 31,017 22,387
Additional information:
Adjustments for items not included in the cash flow
Depreciations and write-downs
Other items
7,670
-555
6,077
400
20,592
-232
17,990
468
22,546
-854
25,148
-1,555
Total 7,115 6,477 20,360 18,458 21,691 23,593

Biotage AB Amounts in KSEK 2008-07-01 -- 2008-09-30

Interim report INCOME STATEMENT BY SEGMENT

Continuing operations
Discovery
Discontinued operations
Chemistry Corporate Delsumma (2008-10-01)
Biosystems
Corporate Total
Net sales 92,308 - 92,308 27,057 - 119,365
Cost of goods sold -38,597 - -38,597 -8,735 - -47,332
Gross profit 53,711 0 53,711 18,322 0 72,033
Gross margin 58.2% 67.7% 60.3%
Selling expenses -36,528 - -36,528 -7,595 - -44,123
Administative expenses -7,398 -1,401 -8,799 -1,570 - -10,369
Research and development costs -9,013 -9,013 -3,025 - -12,038
Other operating income 78 7,692 7,770 39 - 7,810
Other operating expenses -217 30 -187 0 - -187
Operating expenses -53,077 6,321 -46,756 -12,150 0 -58,907
Operating profit/loss 634 6,321 6,955 6,172 0 13,126
Financial income net - 152 152 - 152
Profit/loss before income tax 634 6,473 7,107 6,172 0 13,279
Tax expenses - -522 -522 - - -522
Profit/loss after tax 634 5,950 6,584 6,172 0 12,756

INCOME STATEMENT BY SEGMENT

Amounts in KSEK

2007-07-01 -- 2007-09-30

Continuing operations
Discovery
Discontinued operations
Chemistry Corporate Delsumma (2008-10-01)
Biosystems
Corporate Total
Net sales 89,060 - 89,060 22,793 - 111,853
Cost of goods sold -33,476 - -33,476 -6,859 - -40,335
Gross profit 55,585 0 55,585 15,934 0 71,519
Gross margin 62.4% 69.9% 63.9%
Selling expenses -33,364 - -33,364 -6,108 - -39,472
Administative expenses -5,279 -4,109 -9,388 -1,367 - -10,755
Research and development costs -7,864 - -7,864 -2,244 - -10,108
Other operating income 232 430 662 - - 662
Other operating expenses -16 -2,533 -2,549 - - -2,549
Operating expenses -46,291 -6,212 -52,503 -9,718 0 -62,222
Operating profit/loss 9,294 -6,212 3,081 6,216 0 9,297
Financial income net - -398 -398 - 2,507 2,109
Profit/loss before income tax 9,294 -6,610 2,683 6,216 2,507 11,406
Tax expenses - -217 -217 - - -217
Profit/loss after tax 9,294 -6,827 2,466 6,216 2,507 11,189

Biotage AB Amounts in KSEK 2008-01-01 -- 2008-09-30

Interim report INCOME STATEMENT BY SEGMENT

Continuing operations Discontinued operations
Discovery (2008-10-01)
Chemistry Corporate Delsumma Biosystems Corporate Total
Net sales 276,345 - 276,345 78,311 - 354,657
Cost of goods sold -114,412 - -114,412 -24,674 - -139,086
Gross profit 161,933 0 161,933 53,637 0 215,571
Gross margin 58.6% 68.5% 60.8%
Selling expenses -102,000 - -102,000 -23,225 - -125,225
Administative expenses -23,226 -6,270 -29,496 -4,714 - -34,210
Research and development costs -23,358 - -23,358 -5,653 - -29,011
Other operating income 377 14,589 14,966 39 - 15,005
Other operating expenses -767 -10,457 -11,223 -12 - -11,236
Operating expenses -148,974 -2,138 -151,112 -33,564 0 -184,676
Operating profit/loss 12,959 -2,138 10,821 20,073 0 30,894
Financial income net - -1,340 -1,340 - 5,092 3,753
Profit/loss before income tax 12,959 -3,478 9,481 20,073 5,092 34,647
Tax expenses - -704 -704 - - -704
Profit/loss after tax 12,959 -4,182 8,778 20,073 5,092 33,943

INCOME STATEMENT BY SEGMENT Amounts in KSEK

2007-01-01 -- 2007-09-30

Continuing operations Discontinued operations
Discovery
Chemistry
Corporate Delsumma (2008-10-01)
Biosystems
Corporate Total
Net sales 290,150 - 290,150 71,713 - 361,863
Cost of goods sold -111,999 - -111,999 -24,472 - -136,471
Gross profit 178,151 0 178,151 47,241 0 225,392
Gross margin 61.4% 65.9% 62.3%
Selling expenses -106,338 - -106,338 -20,185 - -126,523
Administative expenses -22,808 -9,816 -32,624 -4,100 - -36,724
Research and development costs -27,534 - -27,534 -4,726 - -32,259
Other operating income 486 1,191 1,677 - - 1,677
Other operating expenses -274 -3,683 -3,958 - - -3,958
Operating expenses -156,469 -12,308 -168,777 -29,011 0 -197,788
Operating profit/loss 21,682 -12,308 9,374 18,230 0 27,604
Financial income net - -2,598 -2,598 - 5,371 2,773
Profit/loss before income tax 21,682 -14,906 6,776 18,230 5,371 30,377
Tax expenses - 26,123 26,123 - - 26,123
Profit/loss after tax 21,682 11,217 32,899 18,230 5,371 56,500

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