Biotage

Interim / Quarterly Report • Aug 17, 2012

Interim report

January - June 2012

August 17, 2012

Interim report for the period January – June 2012

Second quarter April – June 2012

• Group net sales in the second quarter 2012 increased by 24 percent to 122.3 MSEK (98.6). At comparable exchange rates sales increased by 15 percent
• Operating profit in the quarter amounted to 12.9 MSEK (1.8)
• The result after tax amounted to 13.2 MSEK (2.4)
• Earnings per share amounted to 0.18 SEK (0.03)
• The cash flow from operating activities amounted to 15.2 MSEK (15.1)
• Net cash at June 30 amounted to 158.3 MSEK, compared to 179.4 MSEK at March 31
• Dividends to the shareholders were paid in May to the amount of 29.3 MSEK (19.9)
• After the resolution at the Annual General Meeting on April 27 to cancel all shares repurchased during previous repurchasing program the number of shares in Biotage totals 73,255,705. At the end of the reported period Biotage has no holding of own shares

First six months January – June 2012

• Group net sales in the first six months 2012 increased by 18 percent to 241.9 MSEK (205.8). At comparable exchange rates sales increased by 11 percent
• Operating profit in the six month period amounted to 21.5 MSEK (4.4)
• The result after tax amounted to 21.0 MSEK (3.9)
• Earnings per share amounted to 0.29 SEK (0.05)
• The cash flow from operating activities amounted to 32.4 MSEK (62.0)
• Net cash at June 30 amounted to 158.3 MSEK, compared to 198.4 MSEK at December 31 2011

Group result development in brief

Amounts in SEK millions	2nd quarter	2nd quarter	Jan-Jun	Jan-Jun	Full year
	2012	2011	2012	2011	2011
Net sales	122.3	98.6	241.9	205.8	428.4
Cost of sales	-51.9	-40.7	-103.2	-85.0	-182.1
Gross profit	70.4	57.9	138.7	120.9	246.3
Operating expenses	-57.5	-56.1	-117.3	-116.5	-221.2
Operating profit/loss	12.9	1.8	21.5	4.4	25.1
Financial items	0.6	0.8	1.4	1.2	2.9
Profit/loss before tax	13.5	2.6	22.9	5.5	28.0
Tax expenses	-0.3	-0.2	-1.6	-0.9	-2.0
Profit/loss after tax for
continuing operations	13.2	2.4	21.3	4.6	25.9
Profit/loss after tax for
discontinued operations	-	-	-0.3	-0.8	6.5
Total profit/loss for the period	13.2	2.4	21.0	3.9	32.5

400,000 410,000 420,000 430,000 440,000 450,000 460,000 470,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 KSEK 12 month roll net sales

Comments by CEO Torben Jörgensen

It's with satisfaction that I note that we during the first six months have achieved Biotage's target of 10 percent sales increase and that we are approaching the profitability target of 10 percent operating margin. The strong improvement that we report in the second quarter depends, however, to some degree on the fact that we compare with relatively weak figures the corresponding period last year.

Despite operating in a very competitive market, we have managed to increase our sales and maintain our average sales prices. Together with good cost control this forms the basis for the considerably improved operating result. However, the gross margin decreased in the quarter, as a result of the efforts we are making in growth markets like China and Latin America, among other things.

The American market continues to be Biotage's biggest single market with 38 percent of the quarter's sales. The sales in the EU area are increasing their relative share and amounted to 31 percent in the quarter. Japan contributes 20 percent, China 5 percent and the rest of the world 6 percent of the global net sales. We have had a good sales development in all regions.

In terms of product areas, the purification products continue to develop well, and so do the Sample Prep products in analytical chemistry. The traditional synthesis products show a slower sales growth, while the peptide synthesis products show steady growth. The evaporation products have not lived up to our expectations during the quarter, with decreasing sales figures.

In the second quarter we have completed our pilot scale plant in Lund and continued to work with our purification and separation projects in production scale.

We launched only one new product line in the quarter, and this one specifically for the Japanese market. The product launches carried out in the first quarter of the year have been successful. New product launches will take place in the third quarter, of instruments as well as consumables. We are following our strategy to increase the relative share of sales consisting of consumables. In the second quarter service and consumables contributed 58.8 percent of the total sales, compared with 57.4 percent in 2011.

Biotage continues to have a strong financial position with net cash at mid-year amounting to 158 MSEK, which gives us freedom of action concerning acquisitions, repurchasing of shares and dividends.

Group result, financial position and cash flow

Second quarter April - June 2012

Group net sales increased by 24 percent and amounted to 122.3 MSEK, compared to 98.6 MSEK the corresponding period 2011. At comparable exchange rates net sales increased by 15 percent. The US was the single biggest market with 38 percent of the net sales. The EU area contributed 31 percent, Japan 20 percent, China 5 percent and the rest of the world 6 percent of the net sales.

The Group's gross margin was 57.6 percent (58.7). The gross margin is influenced by the distribution of the total sales between product groups as well as single products with various level of gross margin contribution, the shares of direct sales and distributor sales, the geographic distribution of the sales in different markets and currency effects.

The operating expenses amounted to 57.5 MSEK (56.1). As a result of changed accounting assessments of product life cycles for Biotage's products, amortizations of capitalized development costs have been reduced by 3.2 MSEK compared to previously applied assessments. This positive effect on the result is however counteracted by the fact that the period's operating expenses have been charged with amortizations of 2.7 MSEK relating to capitalized development costs and 0.5 MSEK relating to inventories.

The operating profit amounted to 12.9 MSEK (1.8) with an operating margin of 10.5 percent (1.8). Net financial income amounted to 0.6 MSEK (0.8). The result after tax amounted to 13.2 MSEK (2.4).

The investments amounted to 8.5 MSEK (12.5) and the amortizations to 5.4 MSEK (9.6). 5.7 MSEK (7.3) of the investments were capitalized development costs and 2.3 MSEK (5.8) of the amortizations were amortizations of capitalized development costs.

The cash flow from operating activities amounted to 15.2 MSEK (15.1). During the period decreases in accounts payable and in other current liabilities have resulted in an outflow of funds to the amount of -9.8 MSEK (2.3). An increase of the inventories reduced the cash flow by -0.2 MSEK (4.4). Decreases in accounts receivable and other current receivables resulted in positive cash flow effects to the amounts of 3.5 MSEK (-0.1) and 2.4 MSEK (-2.1), respectively.

First six months January-June 2012

Group net sales increased by 18 percent and amounted to 241.9 MSEK (205.8) in the first six months 2012. At comparable exchange rates net sales increased by 11 percent. The US was the biggest single market with 37 percent of the net sales. The EU area contributed 31 percent, Japan 20 percent, China 6 percent and the rest of the world 6 percent of the net sales.

The Group's gross margin was 57.4 percent (58.7). Variations in the product mix, sales channels and the geographic distribution of the sales influence this profitability figure.

The operating expenses amounted to 117.3 MSEK (116.5). The operating result amounted to 21.5 MSEK (4.4) with an 8.9 percent (2.1) operating margin. At the same time as the period's operating result was influenced positively to the amount of 3.2 MSEK due to reduced costs for amortizations of capitalized development costs, amortizations amounting to 2.7 MSEK relating to capitalized development projects and 0.5 percent relating to inventories have had a negative influence on the reported operating result.

Net financial income amounted to 1.4 MSEK (1.2). The result after tax amounted to 21.0 MSEK (3.9).

The investments amounted to 21.5 MSEK (22.0) and the amortizations to 14.6 MSEK (18.7). 13.0 MSEK (13.2) of the investments were capitalized development costs and 7.8 MSEK (11.1) of the amortizations were amortizations of capitalized development costs.

The cash flow from operating activities was 32.4 MSEK (62.0). During the period increased accounts receivable resulted in a negative cash flow effect to the amount of -5.5 MSEK (10.3). Also changes in inventories and accounts payable and other current liabilities gave negative effects on the cash flow, to the amounts of -0.4 MSEK (7.6) and -7.9 MSEK (2.5), respectively, while a decrease in other current receivables gave an inflow of funds to the amount of 1.7 MSEK (2.8).

Balance sheet items

At June 30, 2012 the Group's cash and securities amounted to 164.4 MSEK, compared to 204.7 MSEK at December 31, 2011. The Group's interest-bearing liabilities amounted to 6.1 MSEK at the end of the reported period, compared 6.3 MSEK at December 31, 2011. Net cash at June 30, 2012 thus amounted to 158.3 MSEK, compared to 198.4 at December 31, 2011.

The Group reports a total goodwill of 106.5 MSEK at June 30, 2012, compared to 106.1 MSEK at December 31, 2011. The reported goodwill relates to the acquisitions of MIP Technologies AB and two product lines from Caliper Life Sciences Inc. in 2010. This year's change in reported value is due to currency effects.

Other intangible fixed assets amounted to 113.0 MSEK (111.1). Of this sum patents and license rights amounted to 45.5 MSEK (47.4) and capitalized development cost to 67.5 MSEK (63.7).

At June 30, 2012 the equity capital amounted to 536.5 MSEK, compared to 563.9 MSEK at December 31, 2011. The change in equity capital in the first six months is attributable to the period's result, 21.0 MSEK, dividends to the shareholders, -29.3 MSEK, repurchasing of own shares, -20.5 MSEK, and cash flow hedges and currency effects at the translation of foreign subsidiaries, 1.4 MSEK.

Divested operations

The result after tax for divested operations in the first six months 2012 amounted to -0.3 MSEK (-0.8) and refers to currency effects on additional purchase payments from Qiagen for the Biosystems business area divested in 2008.

Major events

Patent dispute in the US

Biotage has, as previously reported, been sued for patent infringement in the US. During the period Biotage has filed reexamination requests before the USPTO concerning the patents that are subject to the alleged patent infringement, requesting that all claims shall be declared invalid. Biotage has also filed a motion to stay the proceedings in the court pending outcome of the reexamination proceedings, which motion has been granted by the court. There is no further news to report in relation to these law suits. Biotage's analysis indicates that the company has a strong position and that the other party lack good cause for the alleged patent infringement.

Major events after the end of the report period

There are no other major events after the end of the reported period to report.

Human resources

At June 30, 2012 the Group had 276 employees, compared to 270 at the start of the year and 273 at March 31, 2012.

Parent company

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

In the second quarter 2012 the parent company's net income amounted to 0.5 MSEK (0.6). In the six months period January – June net income amounted to 1.1 MSEK (1.0).

The result after financial items in the second quarter was -1.6 MSEK (-2.6). The first six months the result after financial items was -6.4 MSEK (-4.6).

The parent company's investments in intangible fixed assets amounted to 0.6 MSEK (0.7) in the second quarter and to 0.8 MSEK (0.7) the first six months.

The parent company's cash and bank balance and short-term investments amounted to 58.2 MSEK at June 30, 2012, compared to 104.7 MSEK at December 31, 2011. The decrease of the parent company's cash and bank balance is mainly attributable to the payment of dividends to shareholders to the amount of 29.3 MSEK and repurchasing of own shares to the amount of 20.5 MSEK.

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 2011. Readers wishing to study the risks and uncertainties reported in the 2011 Annual Report can download this from Biotage AB's website www.biotage.com or order it from Biotage AB, Box 8, SE-753 18 Uppsala or info@biotage.com.

Reports relating to 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. The interim report for the first quarter 2013 will be issued on April 25, 2013.

Annual General Meeting will be held on April 25, 2013.

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

Assurance

The Board of Directors and the President assure that the interim report gives a fair review of the operations of the Parent Company and the Group, their financial positions and results, and describes the significant risks and uncertainties that the Parent Company and the Group companies are facing.

Uppsala August 17, 2012

Ove Mattsson Chairman	Torben Jörgensen President and CEO
Nils Olof Björk	Thomas Eklund	Per-Olof Eriksson
Board Director	Board Director	Board Director
Karolina Lawitz	Anders Walldov	Nils Granlund
Board Director	Board Director	Employee Representative

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 08.00 on August 17, 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 approx. 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) Interim report 2012-01-01 -- 2012-06-30 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2012-04-01	2011-04-01	2012-01-01	2011-01-01	2011-01-01
Amounts in SEK thousands	2012-06-30	2011-06-30	2012-06-30	2011-06-30	2011-12-31
Net sales	122,287	98,628	241,866	205,826	428,408
Cost of sales	-51,889	-40,735	-103,151	-84,961	-182,127
Gross profit	70,398	57,893	138,715	120,865	246,281
Distribution costs	-36,831	-35,240	-72,246	-70,618	-140,824
Administrative expenses	-12,744	-12,125	-25,679	-23,510	-46,198
Research and development costs	-11,179	-9,668	-19,572	-19,025	-34,900
Other operating income	3,222	896	237	-3,357	718
Total operating expenses	-57,532	-56,138	-117,261	-116,510	-221,205
Operating profit/loss	12,866	1,755	21,454	4,355	25,076
Financial net income	625	803	1,438	1,188	2,911
Profit/loss before income tax	13,491	2,558	22,892	5,543	27,987
Tax expenses	-304	-178	-1,554	-908	-2,046
Profit/loss after tax for continuing operations	13,187	2,380	21,338	4,636	25,941
Profit/loss after tax for discontinued operations	-	-	-288	-767	6,533
Total profit/loss for the period	13,187	2,380	21,050	3,869	32,475
Other comprehensive income
Translation differences related to
non Swedish subsidiaries	10,078	1,292	1,361	-13,515	4,099
Cash flow hedges	-3,250	-	6	-	-404
Total other comprehensive income	6,828	1,292	1,367	-13,515	3,695
Total comprehensive income for the period	20,015	3,671	22,416	-9,646	36,169

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuing)

	2012-04-01	2011-04-01	2012-01-01	2011-01-01	2011-01-01
	2012-06-30	2011-06-30	2012-06-30	2011-06-30	2011-12-31
Attributable to parent company´s shareholders:
Total profit/loss for the period	13,187	2,380	21,050	3,869	32,475
Attributable to parent company´s shareholders:
Total comprehensive income for the period	20,015	3,671	22,416	-9,646	36,169
Average shares outstanding (*)	73,255,705	78,638,888	73,849,840	79,138,288	78,094,450
Average shares outstanding after
dilution (*)	73,255,705	78,638,888	73,849,840	79,138,288	78,094,450
Shares outstanding at end of reporting period (*)	73,255,705	78,638,888	73,255,705	79,637,688	79,637,688
Total profit/loss for the period per share SEK	0.18 kr	0.03 kr	0.29 kr	0.05 kr	0.42 kr
Total profit/loss for the period per share SEK
after dilution	0.18 kr	0.03 kr	0.29 kr	0.05 kr	0.42 kr
Earnings per share relates to:
Continuing operations	0.18 kr	0.03 kr	0.29 kr	0.06 kr	0.33 kr
Discontinued operations	0.00 kr	0.00 kr	0.00 kr	-0.01 kr	0.09 kr
Total comprehensive income for the period
per share SEK	0.27 kr	0.05 kr	0.30 kr	-0.12 kr	0.46 kr
Total comprehensive income for the period
per share after dilution SEK	0.27 kr	0.05 kr	0.30 kr	-0.12 kr	0.46 kr
(*) Of the numbers of shares outstanding are
repurchased as per end of reporting period	-	1,580,400	-	1,580,400	3,266,956
Average numbers of shares outstanding are reported excluding numbers shares repurchased.
Quarterly summary 2012 and 2011	2012	2012	2011	2011	2011	2011
Amounts in KSEK	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
Net Sales	122,287	119,579	116,031	106,551	98,628	107,198
Cost of sales	-51,889	-51,262	-52,168	-44,999	-40,735	-44,226
Gross profit	70,398	68,317	63,863	61,552	57,893	62,972
Gross margin	57.6%	57.1%	55.0%	57.8%	58.7%	58.7%
Operating expenses	-57,532	-59,729	-54,057	-50,638	-56,138	-60,372
Operating profit/loss	12,866	8,588	9,806	10,915	1,755	2,600
Finansnetto	625	813	911	813	803	385
Profit/loss before income tax	13,491	9,401	10,717	11,727	2,558	2,985
Tax expenses	-304	-1,250	-854	-284	-178	-729
Profit/loss after tax for continuing operations	13,187	8,151	9,863	11,443	2,380	2,256
Profit/loss after tax for discontinued operations	-	-288	7,300	-	-	-767
Total profit/loss for the period	13,187	7,863	17,163	11,443	2,380	1,489

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in SEK thousands	2012-06-30	2011-12-31
ASSETS
Non-Current assets
Property, plant and equipment	42,370	39,468
Goodwill	106,504	106,108
Other intangible assets	113,013	111,100
Financial assets	2,370	2,286
Deferred tax asset	39,436	39,436
Total non-current assets	303,692	298,399
Current assets
Inventories	90,390	89,694
Trade and other receivables	105,464	106,251
Cash, cash equivalents and short time deposits	164,364	204,711
Total current assets	360,219	400,656
TOTAL ASSETS	663,911	699,054
EQUITY AND LIABILITIES
Capital and reserves attributable to equity holders of the
parent company
Share capital	89,372	89,194
Other paied-in capital	4,993	4,993
Reserves	-99,582	-100,949
Retained earnings	541,718	570,659
Total equity	536,501	563,897
Non-current liabilities
Liabilities to credit institutions	5,647	5,850
Non-current provisions	25,834	28,228
Total non-current liabilities	31,481	34,078
Current liabilities
Trade and others liabilities	90,812	96,037
Tax liabilities	680	774
Liabilities to credit institutions	451	442
Current provisions	3,986	3,827
Total current liabilities	95,929	101,079
TOTAL EQUITY AND LIABILITIES	663,911	699,054

Biotage AB (publ) Interim report 2012-01-01 -- 2012-06-30 CONSOLIDATED STATEMENT OF CASH FLOWS

	2012-04-01	2011-04-01	2012-01-01	2011-01-01	2011-01-01
Amounts in SEK thousands	2012-06-30	2011-06-30	2012-06-30	2011-06-30	2011-12-31
Operating activities Profit/loss before income tax	13,491	2,558	22,892	5,543	27,987
Adjustments for non-cash items	6,773	9,764	19,251	21,394	35,560
	20,264	12,322	42,144	26,938	63,547
Income tax paid	-934	-1,743	-4,702	-2,362	-3,979
Cash flow from operating activities
before changes in working capital	19,330	10,578	37,442	24,575	59,568
Cash flow from changes in working capital:
Increase (-)/ decrease (+) in inventories	-234	4,415	-354	7,581	9,992
Increase (-)/ decrease (+) in trade receivables	3,485	-83	-5,476	10,341	8,191
Increase (-)/ decrease (+) in other current receivables	2,415	-2,101	1,678	2,821	3,951
Increase (+)/ decrease (-) in other liabilities	-9,827	2,283	-7,929	2,458	13,104
Cash flow from operating activities - continuing operations	15,170	15,093	25,361	47,776	94,806
Cash flow from operating activities - discontinued operations	-	-	7,012	14,243	14,243
Cash flow from operating activities	15,170	15,093	32,373	62,019	109,050
Investing activities
Acquisition of intangible assets	-6,334	-7,739	-14,152	-14,957	-30,347
Acquisition of property, plant and equipment	-1,956	-2,742	-7,185	-4,972	-11,910
Acquisition of financial assets	-163	-	-205	-15	-269
Acquisitions of companies and product lines Sale of property, plant and equipment	- 0	-2,027 0	- 0	-2,027 0	-2,027 -
Sale of financial assets	33	282	83	340	753
Cash flow from investing activities - continuing operations	-8,420	-12,225	-21,459	-21,631	-43,801
Cash flow from financing activities - discontinued operations	-	-	-	-	-
Cash flow from investing activities	-8,420	-12,225	-21,459	-21,631	-43,801
Financing activities
Dividend to shareholders	-29,302	-19,909	-29,302	-19,909	-19,909
Buy-back of shares	-	-10,894	-20,511	-10,894	-20,311
Repayment of loans	-166	-149	-323	-298	-629
Cash flow from financing activities - continuing operations	-29,468	-30,952	-50,136	-31,102	-40,849
Cash flow from financing activities - discontinued operations	-	-	-	-	-
Cash flow from financial activities	-29,468	-30,952	-50,136	-31,102	-40,849
Cash flow for the period	-22,719	-28,085	-39,222	9,286	24,399
Cash and liquid assets opening balance	185,527	213,595	204,711	179,573	179,573
Exchange differences in liquid assets	1,557	518	-1,125	-2,832	739
Cash and liquid assets closing balance	164,364	186,027	164,364	186,027	204,711
Additional information:
Adjustments for non-cash items
Depreciations and impairments	5,415	9,611	14,581	18,671	35,983
Other items	1,358	153	4,670	2,724	-423
Total	6,773	9,764	19,251	21,394	35,560
Interest received	649	803	1,557	1,327	3,111
Interest paid	-24	-	-119	-139	-200

Biotage AB (publ) Interim report

2012-01-01 -- 2012-06-30

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Amounts in SEK thousands	Share capital	Other payed-in capital	Accumulated translation reserve	Hedging reserve	Retained earnings	Total equity
Opening balance January 1, 2011	88,486	4,993	-104,643	0	579,112	567,948
Changes in equity in the
period of January 1 - June 30, 2011
Total comprehensive income	-	-	-13,515	-	3,869	-9,646
Total non-owners changes	-	-	-13,515	-	3,869	-9,646
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 (*)	-	-	-	-	-10,894	-10,894
Closing balance June 30, 2011	89,194	4,993	-118,158	0	551,470	527,499
Changes in equity in the period of July 1, - December 31, 2011 Total comprehensive income	-	-	17,614	-404	28,606	45,816
Total non-owners changes	-	-	17,614	-404	28,606	45,816
Transacitions with equity holders of the company Share buy-back by parent company (*)	-	-	-	-	-9,417	-9,417
Closing balance December 31, 2011	89,194	4,993	-100,544	-404	570,658	563,897
Changes in equity in the period of January 1 - June 30, 2012
Total comprehensive income	-	-	1,361	6	21,050	22,416
Total non-owners changes	0	0	1,361	6	21,050	22,416
Transacitions with equity holders of the company
Cancellation of treasury shares (*)	-7,148	-	-	-	7,148	0
Increase of share capital without the issue
of new shares, bonus issue (*)	7,326	-	-	-	-7,326	0
Dividend to shareholders of the parent company		-	-	-	-29,302	-29,302
Share buy-back by parent company (*)	-	-	-	-	-20,511	-20,511
Closing balance June 30, 2012	89,372	4,993	-99,184	-398	541,718	536,501

(*) Repurchased shares, cancellation of repurchased shares and bonus issue. At the Annual General Meeting held on April 27, 2009 and the Annual General Meeting held on April 29, 2010 the Board was authorized to repurchase the company's shares to the extent that the holding of own shares amounted to a maximum of 10 percent of the total number of shares issued. From September 2009 to December 2010 the company therefore repurchased a total of 8,848,632 shares, corresponding to 10.0 percent of the company's total issued shares. At the Annual General Meeting of April 27, 2011 it was decided that the repurchased shares should be cancelled. As a result 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 79,673,688. At the Annual General Meeting of April 27, 2011 it was also decided that the company should carry out a bonus issue and thereby increase the company's share capital by 9,557 KSEK to 89,194 without issuing any new shares. After the cancellation of repurchased shares and the bonus issue the number of shares was 79,637,688 with a quota value of 1.12 SEK. The Annual General Meeting of April 27, 2011 further resolved to authorize the Board to carry out a new repurchasing program comprising a maximum of 10 percent of the company's outstanding shares, i.e. a total of 7,963,769 shares. At the time of the Annual General Meeting of April 26, 2012 the company had in accordance with the authorization repurchased 6,381,983 shares at an average share price of 6.40 SEK. In accordance with the proposal of the Board, the Annual General Meeting 2012 resolved that the 6,381,983 repurchase shares should be cancelled. The company's share capital therefore decreased by 7,148 KSEK. At the same time it was decided that the company's share capital should be increased by 7,326 KSEK through a bonus issue where the issue sum was transferred from the parent company's non-restricted reserves. After realization of the AGM's decisions the registered share capital is 89,371,960 SEK and the number of outstanding shares 73,255,705 with a quota value of 1.22 SEK. The Annual General Meeting also resolved to authorize the Board to continue to let the company repurchase shares up until the Annual General Meeting 2013, so that the company's holding of own shares amounts to a maximum of 10 percent of the number of registered shares. At the balance sheet date June 30, 2012 no shares had yet been repurchased, however. Readers wishing to take part of the complete resolutions of the Annual General Meeting held on April 26, 2012 can download the minutes at the company's website www.biotage.com or order the documents from the company, Biotage AB, Box 8, SE-751 03 Uppsala, Sweden. The website also contains older resolutions regarding the company's shares.

CONSOLIDATED STATEMENT OF CASH FLOWS

	2012-04-01	2011-04-01	2012-01-01	2011-01-01	2011-01-01
Amounts in SEK thousands	2012-06-30	2011-06-30	2012-06-30	2011-06-30	2011-12-31
Net sales	537	568	1,067	1,039	2,098
Administrative expenses	-5,969	-5,862	-11,955	-11,148	-23,384
Research and development costs	-337	-349	-561	-671	-1,283
Other operating items	1,786	-472	-240	-980	6,319
Operating expenses	-4,519	-6,684	-12,755	-12,799	-18,348
Operating profit/loss	-3,982	-6,116	-11,689	-11,760	-16,251
Profit/loss from financial investments:
Interest income from receivables from group companies	2,465	3,261	4,959	6,843	12,276
Interest expense from liabilities to group companies	-495	-468	-989	-917	-1,882
Result from participations in group companies					-9,284
Other interest and similar income	461	689	1,290	1,208	2,768
Interest and similar expense	-1	-	-1	-	-
Group contribution received	-	-	-	-	19,245
Finance net	2,431	3,483	5,259	7,135	23,122
Profit/loss before income tax	-1,551	-2,633	-6,430	-4,625	6,871
Tax expenses	75	-	75	-	-
Total profit/loss for the period	-1,476	-2,633	-6,355	-4,625	6,871
STATEMENT OF COMPREHENSIVE INCOME. PARENT
Total profit/loss for the period Other comprehensive income:	-1,476	-2,633	-6,355	-4,625	6,871
Translation differences related to non Swedish subsidiaries	9,973	-2,648	301	-26,457	-6,305
Total comprehensive income, parent	8,496	-5,281	-6,054	-31,082	566

BALANCE SHEET, PARENT

Amounts in SEK thousands	2012-06-30	2011-12-31
ASSETS
Non-current assets
Intangible assets
Patents and licenses	7,420	6,909
Financial assets
Investments in group companies	502,921	494,181
Receivables from group companies	41,213	60,992
Deferred tax asset	39,436	39,436
	583,570	594,609
Total non-current assets	590,990	601,519
Current assets
Current receivables
Receivables from group companies	20,546	10,441
Other receivables	982	1,035
Prepaid expenses and accrued income	647	8,089
	22,176	19,565
Cash, cash equivalents and short time deposits	58,248	104,684
Total current assets	80,424	124,249
TOTAL ASSETS	671,414	725,767
EQUITY, PROVISIONS AND LIABILITIES
Equity Restricted equity
Share capital	89,372 89,372	89,194 89,194
Unrestricted equity
Fair value reserve	-52,932	-53,233
Retained earnings	448,734	491,854
Profit/loss for the year	-6,355	6,871
	389,446	445,492
Total equity	478,818	534,686
Provisions	24,024	26,391
Current liabilities
Trade payables	361	1,073
Liabilities to group companies	164,831	158,671
Other current liabilities	133	286
Accrued expenses and prepaid income	3,246	4,661
	168,571	164,690
TOTAL EQUITY, PROVISIONS AND LIABILITIES	671,414	725,767
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, 2012 have not had any effect on the Group's financial reporting, as these have not been relevant to Biotage AB in the current situation.

From April 1, 2012, Biotage has changed the assessment of periods of utilization at the amortization of capitalized development costs. The period of utilization has been assessed to be 7 years for the development of instruments and consumables, which have previously been amortized over periods of 3 and 5 years, respectively. These adaptations of the periods of utilization in the reporting are made in order to better reflect the management's assessment of the economic life of the company's products, based on information gained through analyses and increased experience. The revision of the periods of utilization constitutes a change assessment that is reported future-oriented and does thus not concern previous periods.

In the preparation of the Group's and the parent company's interim reports, the same accounting principles and calculation methods were in all other respects applied as in the preparation of Biotage's Annual Report for 2011. These are described on pp. 32-41 in the Annual Report.

Readers wishing to study the accounting principles presented in the 2011 Annual Report can download this report from Biotage AB's website www.biotage.com or order it from Biotage AB, Box 8, SE-753 18 Uppsala, Sweden, or info@biotage.com.