July – September 2025

• Genovis AB acquired the remaining 75% of Sequrna AB on July 1, 2025, by exercising the purchase option that had been agreed upon in connection with the acquisition of 25% of Sequrna AB in July 2024.
• Net sales totaled SEK 27,532 (31,625)¹ thousand, representing a decrease of 13% excluding items affecting comparability², corresponding to -7% when adjusted for currency effects. Sales for the corresponding period last year included a large service order of approximately SEK 4 million within our ADC technology. This type of business is more volatile between quarters compared to the regular product business.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 6,878 (10,828)* thousand excluding items affecting comparability².
• Earnings per share totaled SEK 0.12 (0.21).
• Cash flow from operating activities was SEK 10,875 (723) thousand.

 January – September 2025

• Net sales totaled SEK 88,694 (82,034)¹ thousand, representing growth of 8% excluding items affecting comparability³, corresponding to 12% when adjusted for currency effects.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 21,820 (22,917)¹ thousand excluding items affecting comparability³.
• As a result of the Swedish krona strengthening during the period against both the USD and the EUR, with the greatest strengthening and impact related to the USD, the operating profit was impacted by currency translation effects amounting to -4,068 (-284) thousand SEK.
• Earnings per share totaled SEK 0.25 (0.43).
• Cash flow from operating activities was SEK 16,126 (18,518) thousand. SEK -6,873 thousand refers to the payment of tax on the profit from the divestment of the antibody business in 2024.

¹Previous year excluding the divested antibody business and excluding non-recurring license revenues. The antibody business was divested on August 19, 2024.
²Items affecting comparability in the third quarter relate to the divested antibody business in the previous year. In the previous year, including items affecting comparability, net sales amounted to SEK 32,895 thousand and EBITDA amounted to SEK 24,566 thousand, of which the gain from the divestment of the antibody business contributed SEK 14,925 thousand.
³Items affecting comparability for the first nine months relate to the divested antibody business and non-recurring license revenues in the previous year. In the previous year, including items affecting comparability, net sales amounted to SEK 102,422 thousand and EBITDA amounted to SEK 48,407 thousand, of which the gain from the divestment of the antibody business contributed SEK 14,925 thousand.
 
Message from the CEO
The third quarter showed lower revenue compared to the same period last year, but the decline is primarily attributable to timing effects from larger individual customer orders. In the third quarter of 2024, revenue included a project order of nearly SEK 4 million, whereas a significantly larger order of SEK 11 million was received shortly after the end of this quarter. Such quarterly variations are natural in our business and do not alter the underlying positive growth trend.
 
In addition to timing effects, a more cautious sentiment in the biotech segment, particularly in the United States, affected sales. Uncertainty surrounding FDA priorities and NIH funding levels has led several venture-backed companies to reduce their investments. In my assessment, the weakest period is now behind us. The start of the fourth quarter shows clear signs of recovery within biotech, with customer activity increasing again, especially in the U.S. market.
 
At the same time, our business with large pharmaceutical and biopharma companies continues to grow steadily, helping to broaden and strengthen our customer base. In the third quarter, organic sales in this customer segment increased by approximately 30 percent, and for the first nine months of the year the increase amounts to 19 percent, adjusted for currency effects. The strengthening of the Swedish krona against the U.S. dollar has had a negative impact on our U.S. revenues of around SEK 2 million compared with the same quarter last year.
 
Despite temporarily lower sales, we maintained solid profitability. The EBITDA margin amounted to 25 percent, including non-recurring costs of SEK 1.3 million related to the acquisition of Sequrna. Adjusted for these costs, the margin was approximately 30 percent, confirming strong cost control and operational efficiency even in a quarter with lower revenue.
 
At the same time, we continue to invest actively in future growth. The acquisition of Sequrna strengthens our position within Genomics, where sales of Sequrna’s RNAse inhibitor continue to develop well compared with the previous year. We recently expanded a supply agreement with a leading international manufacturer of research kits, meaning that Sequrna’s product is now integrated into the partner’s kits for global distribution – an important step in our strategy to increase accessibility to our technologies.
 
Through the licensing agreement with Thermo Fisher Scientific within conjugation technology, we are also broadening our offering to cover the entire chain from preclinical development to commercial manufacturing. This opens new volume opportunities in the bioprocess area as our customers move towards commercialization of their conjugated drugs. Shortly after the end of the quarter, we received an order worth approximately SEK 11 million from a global pharmaceutical company. The order covers materials and services related to one of our conjugation technology platforms and will be used in the development of a new drug candidate. The agreement represents an important milestone in the development of our conjugation technologies and confirms their growing relevance for the medicines of the future.
 
Overall, I view the third quarter as a result of normal variations in our sales between quarters rather than a change in the underlying growth trend. With a strong start to the fourth quarter, increased customer activity, and a substantial order from a global biopharma company, I remain confident in the outlook for the remainder of the year and in our long-term growth potential.
 
Finally, I would like to thank all my colleagues at Genovis for their strong commitment and efforts during the quarter. Through your work, we continue to support the developers of tomorrow’s medicines with innovative technologies that enable new scientific breakthroughs.