STOCKHOLM, Sweden, April 28, 2004 (PRIMEZONE) -- Biotage develops according to plan:
-In the first quarter 2004 sales increased to 87.0 MSEK (24.2)
-Operating costs improved significantly and amounted to 71.7 MSEK (50.0), compared to 123.7 MSEK pro forma (see table below)
-The operating result for the first quarter, excluding non-recurring items and goodwill, improved to -22.4 MSEK (-33.6)
-The result after tax was -31.2 MSEK (-30)
-Earnings per share amounted to -0.53 SEK (-0.86)
-Arbitration settled in Biotage's favor.
The cost savings programs carried out by Biotage and the synergy effects created by the merger of Pyrosequencing, Personal Chemistry and Biotage LLC have achieved practically full effect already in the first quarter. The operating costs amounted to 72 MSEK during the period, which is line with the company's full-year target of 300 MSEK in 2004.
Business area Discovery Chemistry's sales remained on the same level as last year, but with the currency effects factored in there was a 9 percent increase. New products will be launched in the second quarter and this is expected to have a positive effect on sales during the second half-year. The investment plans of the pharmaceutical companies look favorable for the coming quarters and Biotage therefore expects business area Discovery Chemistry to develop positively during the second half of 2004.
Business area Biosystems' sales decreased by 6 percent compared to the same period last year. Adjusted for currency effects sales remained on the same level as last year. The development in Europe was strong, while the American sales development was slow. The research market for genetic analysis is undergoing change and is developing from basic research towards applied research and diagnostic routine use. The company's new focus on clinical genetic analysis is well adapted to this trend.
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 362 MSEK pro forma 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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