Interim report January – March 2009

4/27/2009 9:14 AM EST

• Net sales increased by 12 percent to 99.6 MSEK (88.9). At comparable exchange rates sales decreased by 9 percent.
• Estimated restructuring costs for the closing of the production plant in the USA and consolidation of the operations in the UK have affected the result to the amount of 21.2 MSEK.
• The operating profit amounted to -19.4 MSEK (1.2) respectively to 1.8 MSEK before estimated restructuring costs.
• The profit after tax amounted to -21.6 MSEK (0.4).
• Earnings per share amounted to -0.24 SEK (0.15) before and after dilution.
• Net cash on March 31, 2009 amounted to 363.5 MSEK.
• The cash flow from operating activities amounted to 20.9 MSEK (1.7).

Comments from CEO Torben Jörgensen
Following the divestment of the Biosystems business area in the fourth quarter 2008, Biotage is a focused company with only one business area, Discovery Chemistry.
The opening of 2009 has to a high degree been affected by the current financial climate and the restructuring of the major pharma companies. We have seen continued slowing sales and increased price pressure on instruments in this customer segment. It is satisfying to note, however, that the development in the academic area continues to be good.
In order to improve profitability and reduce capital binding, we decided in January to close the factory in Charlottesville, Virginia, USA and relocate the production to a contract manufacturer and to Biotage’s own plant in Cardiff, Wales. We have also decided to consolidate our operations in the UK to one site. The accounts for the quarter have therefore been charged with estimated restructuring costs totaling 21.2 MSEK. When the structural changes have been implemented the company will have a lower cost structure and less capital bound.
In the first quarter Biotage started a cooperation with the German company MultiSynTech GmbH. The cooperation concerns the distribution of MultiSynTech’s existing system for peptide synthesis as well as a collaboration project concerning microwave initiated peptide synthesis. The aim of the project is to increase the yield and speed of peptide synthesis.
Biotage has a continued strong financial position with net cash amounting to 363.5 MSEK, which enables us to expand our operations at a time when this can be expected to be possible at reasonable economic terms.