STOCKHOLM, Sweden, Jan. 10, 2005 (PRIMEZONE) -- Biotage AB set two financial targets in conjunction with the acquisition of Personal Chemistry AB and Biotage LLC in the autumn of 2003: to reduce annual operating expenses from above 600 MSEK to less than 300 MSEK, and to achieve a positive cash flow in the fourth quarter of 2004.
By the end of the first quarter of 2004, Biotage had already reduced its operating expenses to 75 MSEK. The figure for the full year will be in the range 280-285 MSEK. With a preliminary positive cash flow of approximately 2 MSEK in the fourth quarter, the company has thereby achieved both of its financial targets.
``This is a clear show of strength from Biotage, proving that we are heading in the right direction. We will now focus on strengthening the company further to continue this favorable trend for the remainder of the current year," says Jeff Bork, Biotage's President and CEO.
Sales in the fourth quarter of 2004 amounted to 107-109 MSEK. Adjusted for the low USD rate, this is higher than for the year-earlier period. This is in line with the forecast issued in conjunction with the third-quarter report in October 2004.
The year-end accounts for 2004 will be presented on February 9.
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. 235 employees and had sales of 362 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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