October – December 2024

• Net sales totaled SEK 27,936 (23,118)* thousand, with a growth rate of 21%, including when adjusted for currency effects. Net sales, including the divested Antibody Business, totaled SEK 27,936 (27,306)** thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 7,771 (3,615) thousand. EBITDA for the enzyme business (excluding the antibody business) totaled SEK 7,771 (3,550) thousand.
• Operating profit (EBIT) totaled SEK 5,329 (355) thousand. EBIT for the enzyme business (excluding the antibody business) totaled SEK 5,329 (953) thousand.
• Profit/loss for the period totaled SEK 4,587 (-422) thousand.
• Earnings per share*** totaled SEK 0.07 (-0.01).
• Comprehensive income for the period totaled SEK 5,777 (-80) thousand.
• Cash flow from operating activities was SEK 18,598 (9,868) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 169,442 (123,261) thousand.

January – December 2024

• Genovis completed the strategic acquisition of a 25% stake in Sequrna AB.
• Genovis completed the successful strategic sale of the antibody business to Leinco Technologies Inc.
• Net sales for the Enzyme Business (excluding the divested Antibody Business) totaled SEK 120,368 (138,639) thousand. Growth for the Enzyme Business adjusted for license revenue is 14%, including when adjusted for currency effects. Net Sales, including the divested Antibody Business, totaled 130,358 (158,232) with a decline of -18%. Adjusted for currency effects, the decrease is -17%.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 56,178 (63,946) thousand. EBITDA for the enzyme business (excluding the antibody business) adjusted for license revenue and related costs totaled SEK 30,688 (22,870) thousand.
• Operating profit (EBIT) totaled SEK 45,732 (54,224) thousand. EBIT for the enzyme business (excluding the antibody business) adjusted for license revenue and related costs totaled SEK 21,946 (15,802) thousand.
• Profit for the period totaled SEK 32,916 (61,500) thousand.
• Earnings per share*** totaled SEK 0.50 (0.94).
• Comprehensive income for the period totaled SEK 37,162 (65,158) thousand.
• Cash flow from operating activities was SEK 37,116 (67,752) thousand. Adjusted cash flow from operating activities excluding the divestment of the antibody business was SEK 41,330 thousand.

*Previous year excluding the divested antibody business. The antibody business was divested on August 19, 2024.
** Previous year including the divested antibody business
***Earnings per share are calculated by dividing profit by the weighted average number of shares during the year. There is no dilutive effect.

Comments from Fredrik Olsson, Chief Executive Officer

We end the year with strong organic sales growth in our enzyme business of 21%. At the same time, we show a strong improvement in operating profit compared with the corresponding quarter last year. The operating margin at the EBITDA level improved from 13% to almost 28% in the fourth quarter. The improvement is primarily driven by increased sales and reduced costs following the sale of the antibody business.

Looking back at 2024, I can say that we achieved our best performance to date in our enzyme business, adjusted for license revenue. We achieved a 14% sales increase despite challenges in our end markets, related to venture capital availability and shifting priorities within our customers’ projects. Increased sales in the enzyme business (excluding license revenue), combined with effective cost control, have resulted in a 34% improvement in EBIDA for the enzyme segment compared to 2023.

In the fourth quarter, sales growth was relatively evenly distributed across all key geographic markets in North America, Europe and Asia. The trend of gradual improvement in China continued throughout the fourth quarter. In the final quarter of the year, we saw sustained strong customer activity and sales growth for our antibody conjugation and ADC offerings, continuing the positive trend we experienced over the year.

During the year we substantially broadened our enzyme offering for potential therapeutic applications, which include Xork and other novel enzymes, to provide treatment options for patients who cannot undergo AAV-based gene therapy. Discussions with potential partners in the final quarter confirmed the interest in our technology platform.

At the end of the year, we launched Sequrna RNAse inhibitor. Effective protection of fragile RNA from degradation during analytical and manufacturing workflows is critical for ensuring reliable and reproducible results. Our partnership with Sequrna and their unique RNAse inhibitor enables us to expand into new markets, where RNA sequencing is expected to become an increasingly useful tool in both basic research and diagnostics. Furthermore, we see several potential applications related to emerging clinical RNA-based technologies, such as mRNA.

The final quarter of the year showed a strong cash flow from operating activities. Our financial position is robust, with an improved cash position during the year, mainly driven by strong operating cash flows. Our strong cash position ensures financial stability while providing the flexibility to invest to invest for the future and I have a positive outlook on our future growth opportunities. While geopolitical factors and macroeconomic uncertainty remain in the near term, I see sustained long-term growth in our markets for the development of tomorrow’s medicines.

Despite a challenging market environment, especially during the first half of the year, we are closing the year with solid momentum. With our expanding portfolio and promising pipeline of innovative solutions for our growing customer base, I look forward to further strengthening and advancing Genovis’ business together with my colleagues in 2025. I would like to conclude by extending my heartfelt thanks to all our dedicated colleagues at Genovis for their outstanding efforts throughout 2024.