STOCKHOLM, Sweden, Feb. 19, 2004 (PRIMEZONE) --
-- Sales increased to 105 MSEK in Q4 (34) and to 174 MSEK in 2003 (98 MSEK)
-- Operating result for Q4, excluding non-recurring items and goodwill amortization, improved to -31 MSEK (-44) and for 2003, operating result excluding non-recurring items and goodwill amortization, improved to -148 MSEK (-162 MSEK)
-- Result after tax was -244 MSEK (-168 MSEK)
-- Earnings per share was -6.02 SEK (-4.84 SEK)
-- The company acquired Biotage LLC for 35 MUSD
-- The company's name was changed from Pyrosequencing AB to Biotage AB
Biotage on the right course
To create increased turnover and achieve profitability more rapidly, the company broadened its operations through two acquisitions in 2003; Personal Chemistry in the third quarter and Biotage LLC in the fourth quarter. The two new companies formed the business area Discovery Chemistry, which is a world-leading supplier of systems for synthesis and purification of chemical entities involved in the drug development process. The integration of the new companies has progressed according to plan.
The market for genetic analysis remains slow and whole year sales for business area Biosystems remained at the same level as in 2002. During the year Biotage signed an agreement with 454 Life Sciences, which gives a minimum royalty amounting to 1 MUSD per year throughout the lifetime of the patents. The distribution of products from Corbett was successfully launched during the year and their sales compensated for the negative currency effects influencing the company due to the weak US dollar. The company's focus on selected areas, molecular microbiology and oncology, among others, is expected to yield results in the years ahead.
The restructuring program started in 2003 will reduce the company's costs significantly. The company aims to have operating costs of no more than 300 MSEK in 2004. Together with a positive sales development this creates a good basis for achieving profitability in the near future.
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. Customers include the world's top 30 pharmaceutical companies, 20 largest biotech companies and leading academic institutes. The company is headquartered in Uppsala and has offices in the US, Japan and several European countries. Biotage has approx. 250 employees and had sales of 174 MSEK in 2003. 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.
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