Biohit Oyj Interim Report, 23 October 2014 at 9:30 am local time (EEST)
SUMMARY
January–September 2014
- Net sales grew by 21.0% compared with January-September 2013
- Net sales EUR 3.2 million (EUR 2.7 million)
- Operating result, continuing operations EUR -3.3 million (EUR -4.3 million)
- Result for the reporting period, continuing operations EUR -3.2 million (EUR -4.3 million)
- Result for the reporting period, discontinued operations EUR 3.3 million (EUR 0.0 million)
- Total result for the reporting period EUR 0.0 million (EUR -4.3 million)
- Net sales from international operations 91% (89%) of total net sales
- Equity ratio 84.1% (80.8%)
July–September / Q3 2014
- Net sales decreased by 9.9% compared with Q3/2013
- Net sales EUR 1.2 million (EUR 1.3 million)
- Operating result, continuing operations EUR -0.9 million (EUR -0.9 million)
- Result for the reporting period, continuing operations EUR -0.9 million (EUR -0.9 million)
- Result for the reporting period, discontinued operations EUR 0.0 million (EUR 0.0 million)
- Total result for the reporting period EUR -0.9 million (EUR -0.9 million)
- Net sales from international operations 93% (95%) of total net sales
- Equity ratio 84.1% (80.8%)
PRESIDENT & CEO SEMI KORPELA:
“During the third quarter of 2014, our net sales decreased by 9.9 % year on year. Whereas, unusually large GastroPanel deliveries were made to China during the comparison period in 2013, this year deliveries for orders placed in 2014 have had to be postponed due to a delay in new price approvals in China. Furthermore, during the reporting period a reimbursement decision was issued in four Chinese provinces on the three tests included in Biohit's GastroPanel (PG-I, PG-II, Gastrin-17): the provinces in question were Sichuan, Shandong, Tianjin and Ningxia. A similar decision had previously been issued in the province of Anhui.
In terms of operational development, Biohit Oyj has focused on supporting its international distributor network, investing in clinical research and preparing for new product launches.
In August, the Chinese health associations – The Chinese Society of Digestive Endoscopy and The Society of Ontological Endoscopy of the Chinese Anti-Cancer Association – issued a consensus clause regarding screening, endoscopic diagnosis and treatment of early gastric cancer in China. This clause recommends serum screening with Pepsinogen-1, Pepsinogen-2, Gastrin-17 and Helicobacter pylori tests that together form GastroPanel® entity. Millions of Chinese people potentially benefit from this consensus clause on the diagnosis of upper abdominal discomfort (dyspepsia) and the screening of asymptomatic patients (e.g. the cancer-causing atrophic gastritis, also known as anacidic stomach, is asymptomatic in most cases, see the attachment: Additional information). This consensus about the novel GastroPanel® approach in gastrointestinal diagnostics clearly shows the forerunner attitude of the Chinese health associations.
After the report period, in October the partners Biohit Oyj and its joint venture Biohit Biotech (Hefei) Co., Ltd agreed to begin a feasibility study in China regarding the Acetium® capsule as a potential medication to arrest the progression and even to restore atrophic gastritis. The agreement includes an option to negotiate a licensing deal concerning the product, if the result of the feasibility study is positive. The feasibility study will be funded by the Chinese partner of the joint venture Biohit Biotech (Hefei) Co., Ltd, in co-operation with Hefei Medicine.
We continued with the marketing of a new diagnostic test, Biohit Active B12, which enables the diagnosis of B12 vitamin deficiency from a venous blood sample. Biohit Active B12 will be released for sale during Q4/2014. Biohit introduced the Calprotectin test on the markets in August 2014. The registration of the acetaldehyde-binding capsule in Mexico has been delayed due to organizational changes in the local register authority.
During the reporting period, we continued to expand our distributor network. We also signed a distributor agreement with the Taiwanese Giraffes Pharmaceutical Company. This agreement entered into force immediately, giving Giraffes Pharma exclusive rights to distribute Acetium ®capsules and the Acetium® lozenge in Taiwan. Biohit Oyj signed a distribution agreement with Eastar Pharmaceuticals LLC, which thereby gained exclusive rights to the distribution of the Acetium®lozenge in China. Chinese registration procedures and distribution channel preparations for the Acetium® lozenge were begun immediately. Centro Prodotti Servizi Farmaceutici S.r.l. was appointed as the distributor of the Acetium®capsule in Italy. In order to boost the sales and marketing of Biohit's antibodies to research institutes and the diagnostics industry, we signed agreements with R&D Systems China in China, Taiwan and Hong Kong. Meditecno Médicos e Sistemade Diagnóstico Lda. is our new distributor of diagnostics products in Portugal, Al Misbar Medical Technology Co. has attained the same rights in Jordan and Ericon S.r.l. is now our distributor of such products in Moldova. Inclino was appointed as the distributor of Biohit quick tests in Norway.
After the report period, we entered into a distribution agreement with JOLI Diagnostics in the United States. This agreement entered into effect immediately and will provide JOLI Diagnostics with exclusive distribution rights for the Biohit lactose-intolerance quick test in the United States. After the report period, Biohemed was appointed as the Serbian distributor of quick tests and acetaldehyde-binding products.
The duration of the product registration process is different in each market area. It is not possible to accurately assess the time it takes to complete all registrations in these markets and to begin generating net sales.
M.Sc. (Tech.), MBA Annika Astola (b. 1974) was appointed Quality Director and a member of the Management Team of Biohit Oyj in August.”
CONSOLIDATED KEY FIGURES
| EUR million |
7-9/ 2014 |
7-9/ 2013 |
Change |
1-9/ 2014 |
1-9/ 2013 |
Change |
1-12/ 2013 |
| Net sales | 1.2 | 1.3 | -0.1 | 3.2 | 2.7 | 0.6 | 3.5 |
| Materials and services | -0.5 | -0.7 | 0.2 | -1.4 | -1.3 | -0.1 | -1.7 |
| Gross margin | 0.6 | 0.6 | 0.0 | 1.9 | 1.3 | 0.5 | 1.8 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 | 0.0 |
| Sales and marketing | -0.5 | -0.6 | 0.1 | -1.4 | -1.6 | 0.2 | -2.3 |
| Administration | -0.6 | -0.7 | 0.1 | -2.4 | -3.4 | 1.0 | -4.3 |
| Production and product development | -0.5 | -0.2 | -0.3 | -1.5 | -0.7 | -0.8 | -1.0 |
| Share of profit/loss in Joint Venture | |||||||
| Operating profit/loss, continuing operations | -0.9 | -0.9 | 0.0 | -3.3 | -4.3 | 1.0 | -5.9 |
| Financial income | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 | 0.2 | 0.2 |
| Financial expenses | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | -0.2 |
| Profit/loss before taxes | -0.9 | -0.9 | 0.0 | -3.1 | -4.3 | 1.2 | -5.9 |
| Income taxes | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | -0.1 | 0.0 |
| Income for the period, continuing operations | -0.9 | -0.9 | 0.0 | -3.2 | -4.3 | 1.1 | -5.9 |
| Income for the period, discontinued operations | 0.0 | 0.0 | 0.0 | 3.3 | 0.0 | 3.3 | 0.0 |
| Income for the period, total | -0.9 | -0.9 | 0.0 | 0.0 | -4.3 | 4.4 | -5.9 |
| Other comprehensive income after taxes | |||||||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | |||||||
| Available-for-sale financial assets | -0.1 | 0.0 | -0.1 | 0.1 | 0.0 | 0.1 | 0.1 |
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | -0.1 | 0.0 | -0.1 | 0.1 | 0.0 | 0.1 | 0.1 |
| Total comprehensive income for the period | -1.0 | -0.9 | -0.1 | 0.1 | -4.3 | 4.5 | -5.8 |
REPORTING
Biohit's product portfolio consists of diagnostic tests, acetaldehyde-binding products and monoclonal antibodies. All business is reported under a single segment.
NET SALES AND RESULT
January–September
Net sales grew by 21.0% compared with 1–9/2013.
The operating loss from continuing operations was EUR -3.3 million (EUR -4.3 million 1–9/2013). The result for continuing operations during the reporting period totaled EUR -3.2 million (EUR -4.3 million). In order to exploit the marked potential of our products and the resulting business growth, we need to make substantial investments in building a distributor and partner network and supporting our partners.
The result for discontinued operations during the reporting period totaled EUR 3.3 million (EUR 0.0 million). In conjunction with the liquid handling business divestment in late 2011, EUR 3.5 million of the gains on the sale were not recognized due to the terms of the sale agreement and to other, related factors that remained open at the time. The amount was recognized on 31 March 2014, when the deal was closed.
The result for the reporting period totaled EUR 0.0 million (EUR -4.3 million).
Consolidated net sales and result for continued operations
| 7-9/2014 | 7-9/2013 | Change | 1-9/2014 | 1-9/2013 | Change | 1-12/2013 | |
| Net sales MEUR | 1.2 | 1.3 | -0.1 | 3.2 | 2.7 | 0.6 | 3.5 |
| Change compared with the previous year (%) | -9.9 % | 21.0 % | |||||
| Operating income MEUR | -0.9 | -0.9 | 0.0 | -3.3 | -4.3 | 1.0 | -5.9 |
| Change compared with the previous year (%) | 0.5 % | -24.0 % | |||||
|
Operating income (% of net sales) |
-77 % | -69 % | -103 % | -163 % | -170 % |
BALANCE SHEET
On 30 September 2014, the balance sheet total was EUR 16.2 million (EUR 29.3 million) and the equity ratio was 84.1% (80.8%).
FINANCING
Biohit Oyj enjoys a strong financial position, which allows determined investments in an international distributor network as well as the development and commercialization of new products. At the end of the reporting period, the company's financial assets totaled EUR 10.7 million (EUR 24.7 million).
RESEARCH AND DEVELOPMENT
R&D operations focused on improvements and further developments of existing innovations and products, and on their commercialization. Biohit also employs external experts and subcontractors in its R&D operations. Development expenditure on the diagnostics business has not been capitalized. Research and development expenditure during the reporting period 1-9/2014 amounted to EUR 1.5 million (EUR 0.7 million), of which expenditure during the third quarter amounted to EUR 0.5 million (EUR 0.2 million).
Our development activities focused on the GastroPanel® standardization project and the launch of the ColonView, Biohit Active B12 and Biohit Calprotectin tests. Biohit introduced the Calprotectin test on the markets in August 2014.
As part of our research activities we initiated a research project on smoking cessation (with the Acetium® lozenge as the research product), two comparative trials of the celiac quick test in overseas research institutes and a study assessing the eradication of the Helicobacter pylori infection, which will be continued in laboratory tests. In Finland two clinical trials are underway on the prevention of migraine-type headaches (with Acetium® capsules as the research product). In Brazil, having received the required research permission from the hospital ethical committee, we are running a comparative trial of the ColonView test, involving a sample of 500 colonoscopy patients. The ColonView test will be compared to another test type as a screening method for colorectal cancer. In St. Petersburg in Russia, a corresponding trial is under way on a sample of 1,000 patients. (www.biohithealthcare.com/scientific/study-protocols)
INVESTMENTS
During the reporting period 1-9/2014 gross investments totaled EUR 0.3 million (EUR 2.2 million) of which expenditure during the third quarter was EUR 0.1 million (EUR 0.0 million).
PERSONNEL
During the reporting period, the average number of personnel employed by the Group was 52 (47 ) of whom 43 (36) were employed by the parent company and 9 (11) by its subsidiaries. At the end of the reporting period, the Group employed 51 (46) personnel, of whom 42 (37) were employed by the parent company and 9 (9) by the subsidiaries.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Biohit’s key risks have to do with the investments required for business growth. There are risks involved in areas such as the success of clinical trials, new market areas, the selection and development of distribution channels, personnel recruitment, registration processes, product pricing, and political decision-making affecting the progress of screening programs. Significant short-term risks are associated with the selection of new market areas, the timing of expansion into selected markets, and product success in these markets. The recent increase in uncertainty factors associated with international politics may have an unfavorable impact on the company's business.
The duration of the product registration process is different in each market area, and affects the company's business development. It is not possible to accurately assess the time it takes to complete all registrations in the main markets and to begin generating net sales.
When investing liquid assets, the objective is to gain a return on investment with a minimum risk of equity loss. The investment portfolio consists of deposits, money market investments and corporate loans. A fundamental aspect in portfolio management is sufficient diversification across different asset classes, investment instruments and counterparties. Biohit conducts its investment activities with at least two partners.
Thanks to its wide customer base, Biohit does not materially depend on any individual customers or individual project deliveries, with the exception of GastroPanel® sales in China, which currently represent a major business for Biohit. Most of the company’s business is conducted in euro, and the indirect effects of currency exchange rate fluctuations are considered minor.
MAIN EVENTS DURING THE THIRD QUARTER
Reimbursement decisions in China
During the reporting period, a reimbursement decision was issued in four Chinese provinces on the three tests included in Biohit's GastroPanel (PG-I, PG-II, gastrin-17): the provinces in question were Sichuan, Shandong, Tianjin and Ningxia. A similar decision had previously been issued in the province of Anhui.
Chinese Health Associations issue consensus clause on early gastric cancer screening using GastroPanel®
In August, the Chinese health associations – The Chinese Society of Digestive Endoscopy and The Society of Ontological Endoscopy of the Chinese Anti-Cancer Association – issued a consensus clause regarding screening, endoscopic diagnosis and treatment of early gastric cancer in China. This clause recommends serum screening with Pepsinogen-1, Pepsinogen-2, Gastrin-17 and Helicobacter pylori tests that together form GastroPanel® entity.
New distributor agreements
During the reporting period, we broadened our distributor network again, by signing a distributor agreement with the Taiwanese Giraffes Pharmaceutical Company. The agreement entered into force immediately, giving Giraffes Pharma exclusive rights to distribute Acetium® capsules and the Acetium® lozenge in Taiwan. Biohit Oyj signed a distribution agreement with Eastar Pharmaceuticals LLC, which gained exclusive rights to the distribution of Acetium® lozenge in China. Chinese registration procedures and distribution channel preparations for the Acetium® lozenge began immediately. Centro Prodotti Servizi Farmaceutici S.r.l. was assigned distribution rights for the Acetium®capsule in Italy. In order to boost the sales and marketing of Biohit's antibodies to research institutes and the diagnostics industry, we signed agreements with R&D Systems China in China, Taiwan and Hong Kong. Meditecno Médicos e Sistemade Diagnóstico Lda. is our new distributor of diagnostics products in Portugal, while Al Misbar Medical Technology Co. is our new distributor of such products in Jordan and Ericon S.r.l. is fulfilling the same role in Moldova. Inclino was appointed as the distributor of Biohit quick tests in Norway.
Biohit granted patent in Eurasia for the binding of acetaldehyde in the stomach and intestines
Biohit Oyj was granted a Eurasian patent (no. 019832), which will be in effect until 22 May 2027. The patent covers an improved compound and method for binding acetaldehyde present in the stomach and in the small and large intestine, in order to reduce the risk of cancer of the gastrointestinal tract.
Biohit granted Russian patent for the diagnosis of autoimmune disease and atrophic gastritis
Biohit Oyj was granted a Russian patent (no. 2519646), which will be in effect until 27 October 2028. The patented method can be used to identify the risk of autoimmune disease and gastric cancer; these accompany atrophic gastritis, which can be identified using GastroPanel.
Biohit granted patent in United States for the binding of acetaldehyde in the stomach and intestines
Biohit Oyj was granted a US patent (no. 8758812), which will be in effect until 9 May 2029. The patent covers compounds which, either as they are or added to food, bind carcinogenic acetaldehyde found in the stomach and small and large intestine.
MAJOR EVENTS AFTER THE END OF THE REPORTING PERIOD
Efficacy of Acetium® capsule in treatment of atrophic gastritis being studied in China
In October, Biohit Oyj and Biohit Biotech (Hefei) Co., Ltd partners agreed to begin a feasibility study in China regarding the Acetium® capsule as a potential medication to arrest the progression and even to restore atrophic gastritis. The agreement includes an option to negotiate a licensing deal concerning the product, if the outcome of the feasibility study is positive. The feasibility study will be funded by the Chinese partner of joint venture Biohit Biotech (Hefei) Co., Ltd, in co-operation with Hefei Medicine.
WHO prompts Helicobacter pylori screening to prevent gastric cancer
In October, the IARC, a cancer research institute under the WHO, published a report on the possibility of beginning extensive population-based screening for the identification and treatment of Helicobacter pylori infections, to be prioritized on a worldwide basis in an effort to reduce the health burden caused by gastric cancer. According to the IARC, more national healthcare resources should be directed at the worldwide prevention of gastric cancer as a matter of urgency. The working group which drafted this report recommends that all countries consider including gastric cancer in their national cancer control programs. Unlike all other Helicobacter tests, GastroPanel also identifies atrophic gastritis, which causes a risk of gastric and esophageal cancer, and of vitamin B12, iron, calcium and zinc deficiency (see the attachment: Additional information).
New distributor agreements
After the report period, we entered into a distributor agreement with JOLI Diagnostics in the United States. This agreement will enter into effect immediately and will provide JOLI Diagnostics with exclusive distribution rights for the Biohit lactose-intolerance quick test in the United States. After the report period, Biohemed was appointed as the Serbian distributor of quick tests and acetaldehyde-binding products.
SHARES AND SHAREHOLDERS
Biohit Oyj's shares are divided into A series and B series shares. There are 2,975,500 A series shares and 11,055,093 B series shares, totaling 14,030,593 shares. A series shares confer 20 votes per share and B series shares confer 1 vote per share. Supposing that the market capitalization value for A and B series shares is equal, the total market capitalization value at the end of the period was EUR 81.1 million (EUR 88.6 million on 30 September 2013).
Biohit Oyj's B series shares are quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group under the code BIOBV.
| BIOBV/NASDAQ OMX Helsinki | 1-9/2014 | 1-9/2013 |
| High (EUR) | 8.17 | 9.10 |
| Low (EUR) | 5.42 | 4.00 |
| Average (EUR) | 6.66 | 6.54 |
| Latest (EUR) | 5.78 | 6.42 |
| Turnover (EUR) | 22,531,644 | 51,081,867 |
| Turnover volume | 3,385,412 | 7,811,096 |
Shareholders
At the end of the reporting period on 30 September 2014, the company had 6,822 shareholders (6,126 on 31 December 2013). Private households held 78.0% (77.6%), companies 20.2% (20.6%), public sector organizations 0.0% (0.0%) and non-profit organizations 0.0% (0.0%). Foreign ownership or nominee registrations accounted for 1.7% (1.7%) of shares.
Further information on the shares, major shareholders and management shareholdings is available on the company's website at www.biohithealthcare.com/investors.
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with the requirements of the IAS 34 standard.
All business operations are presented as one segment. Biohit Oyj has applied the same accounting principles in preparing this interim report as for its financial statements of 2013. The IFRS standards that came into effect in 2014 did not have a material impact on the accounting principles.
All the figures in the interim report have been rounded up or down, due to which the sums of figures may deviate from the sum total presented.
The figures in this interim report have not been audited.
CONSOLIDATED INCOME STATEMENT
| EUR million |
7-9/ 2014 |
7-9/ 2013 |
Change |
1-9/ 2014 |
1-9/ 2013 |
Change |
1-12/ 2013 |
| Net sales | 1.2 | 1.3 | -0.1 | 3.2 | 2.7 | 0.6 | 3.5 |
| Materials and services | -0.5 | -0.7 | 0.2 | -1.4 | -1.3 | -0.1 | -1.7 |
| Gross margin | 0.6 | 0.6 | 0.0 | 1.9 | 1.3 | 0.5 | 1.8 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 | 0.0 |
| Sales and marketing | -0.5 | -0.6 | 0.1 | -1.4 | -1.6 | 0.2 | -2.3 |
| Administration | -0.6 | -0.7 | 0.1 | -2.4 | -3.4 | 1.0 | -4.3 |
| Production and product development | -0.5 | -0.2 | -0.3 | -1.5 | -0.7 | -0.8 | -1.0 |
| Share of profit/loss in Joint Venture | 0.0 | 0.0 | 0.0 | ||||
| Operating profit/loss, continuing operations | -0.9 | -0.9 | 0.0 | -3.3 | -4.3 | 1.0 | -5.9 |
| Financial income | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 | 0.2 | 0.2 |
| Financial expenses | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | -0.2 |
| Profit/loss before taxes | -0.9 | -0.9 | 0.0 | -3.1 | -4.3 | 1.2 | -5.9 |
| Income taxes | 0.0 | 0.0 | 0.0 | -0.1 | 0.0 | -0.1 | 0.0 |
| Income for the period, continuing operations | -0.9 | -0.9 | 0.0 | -3.2 | -4.3 | 1.1 | -5.9 |
| Income for the period, discontinued operations | 0.0 | 0.0 | 0.0 | 3.3 | 0.0 | 3.3 | 0.0 |
| Income for the period, total | -0.9 | -0.9 | 0.0 | 0.0 | -4.3 | 4.4 | -5.9 |
| Other comprehensive income after taxes | |||||||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | |||||||
| Available-for-sale financial assets | -0.1 | 0.0 | -0.1 | 0.1 | 0.0 | 0.1 | 0.1 |
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | -0.1 | 0.0 | -0.1 | 0.1 | 0.0 | 0.1 | 0.1 |
| Total comprehensive income for the period | -1.0 | -0.9 | -0.1 | 0.1 | -4.3 | 4.5 | -5.8 |
Earnings per share calculated from earnings attributable to equity holders of the parent company
| 1-9/2014 | 1-9/2013 | 1-12/2013 | |
| Undiluted earnings per share, continuing operations (EUR) | -0.23 | -0.31 | -0.43 |
| Undiluted earnings per share, discontinued operations (EUR) | 0.23 | ||
| Diluted earnings per share, discontinued operations (EUR) | 0.23 |
CONSOLIDATED BALANCE SHEET
| MEUR | 30.9.2014 | 30.9.2013 | 31.12.2013 |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | 1.9 | 1.2 | 1.7 |
| Tangible assets | 0.4 | 0.5 | 0.5 |
| Share in Joint Venture | 0.9 | 1.0 | 1.0 |
| Other financial long-term assets | 0.0 | 7,8* | 1.0 |
| Deferred tax assets | 0.0 | 0.0 | 0.0 |
| Total non-current assets | 3.3 | 10.5 | 4.2 |
| CURRENT ASSETS | |||
| Inventories | 1.0 | 0.6 | 0.6 |
| Trade and other receivables | 1.3 | 1.2 | 7.7* |
| Other financial short-term assets | 10.1 | 16.5 | 15.2 |
| Cash and cash equivalents | 0.5 | 0.5 | 0.5 |
| Total current assets | 12.9 | 18.8 | 24.1 |
| TOTAL ASSETS | 16.2 | 29.3 | 28.3 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity attributable to the owners of the parent company | |||
| Share capital | 2.4 | 2.3 | 2.3 |
| Invested unrestricted equity fund | 1.6 | 1.1 | 2.8 |
| Translation differences | 0.0 | 0.0 | 0.0 |
| Retained earnings | 9.6 | 20.2 | 17.3 |
| Total shareholders' equity | 13.6 | 23.7 | 22.5 |
| NON-CURRENT LIABILITIES | |||
| Deferred tax liabilities | 0.2 | 0.0 | 0.2 |
| Other liabilities | 0.0 | 0.0 | 0.0 |
| Total non-current liabilities | 0.2 | 0.0 | 0.2 |
| CURRENT LIABILITIES | |||
| Trade payables | 0.4 | 0.4 | 0.3 |
| Total interest-bearing liabilities | 0.3 | 0.4 | 0.4 |
| Tax liabilities | 0.1 | 0.0 | 0.1 |
| Other liabilities | 0.8 | 3.9 | 3.9 |
| Deferred gain | 0.9 | 1.0 | 1.0 |
| Total current liabilities | 2.4 | 5.6 | 5.6 |
| Total liabilities | 2.6 | 5.6 | 5.8 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 16.2 | 29.3 | 28.3 |
* Items include EUR 6.8 million in receivables from a business transaction completed in 2011; the funds were placed in an escrow account, and released on 31 March 2014.
STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity on 30 September 2014
| MEUR | Share capital | Translation differences | Invested unrestricted equity fund | Retained earnings | Shareholders' equity |
|
Shareholders' equity 1 Jan 2014 |
2.3 | 0.0 | 2.8 | 17.3 | 22.5 |
| Distribution of dividend | -10.0 | -10.0 | |||
| Capital repayment | |||||
| Direct share issue | |||||
| Share based payments | -1.6 | 2.1 | 0.5 | ||
| Exercise of share options | 0.0 | 0.5 | 0.0 | 0.5 | |
| Total comprehensive income for the period | 0.0 | 0.1 | 0.1 | ||
| Shareholders' equity 30 Sept 2014 | 2.4 | 0.0 | 1.6 | 9.6 | 13.6 |
Consolidated statement of changes in equity on 30 September 2013
| Share capital (MEUR) | Translation differences (MEUR) | Invested unrestricted equity fund (MEUR) | Retained earnings (MEUR) | Shareholders' equity (MEUR) | |
| Shareholders' equity 1 Jan 2013 | 2.3 | 0.0 | 3.2 | 30.0 | 35.5 |
| Distribution of dividend | -6.8 | -6.8 | |||
| Capital repayment | -3.2 | -3.2 | |||
| Share issue to Euroclone | 1.1 | 1.1 | |||
| Share based payments | |||||
| Exercise of share options | 1.4 | 1.4 | |||
| Total comprehensive income for the period | 0.0 | -4.3 | -4.3 | ||
| Shareholders' equity 30 Sept 2013 | 2.3 | 0.0 | 1.1 | 20.2 | 23.7 |
CASH FLOW STATEMENT
| MEUR | 1-9/2014 | 1-9/2013 | 1-12/2013 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit for the period | 0.0 | -4.3 | -5.9 |
| Adjustments | -2.8 | 1.5 | 1.9 |
| Change in working capital | -0.4 | -0.8 | -0.5 |
| Interest paid and payments on other operating financial expenses | 0.0 | 0.0 | -0.2 |
| Interest received | 0.2 | 0.2 | 0.3 |
| Realized exchange rate gains and losses | 0.0 | 0.0 | 0.0 |
| Income taxes paid | -0.1 | 0.0 | 0.1 |
| Net cash flow from operating activities | -3.2 | -3.5 | -4.4 |
| CASH FLOW FROM INVESTMENTS | |||
| Investments in tangible and intangible assets | -0.2 | -0.1 | -0.5 |
| Revenue from disposal of tangible and intangible assets | 0.0 | 0.0 | 0.0 |
| Capital gain from the sale of liquid handling business | 6.8 | ||
| Net investments in funds and deposits | 6.2 | 13.8 | 15.1 |
| Net cash flow from investments | 12.8 | 13.7 | 14.6 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Rights issue | 0.5 | 0.0 | 0.0 |
| Dividend payout | -10.0 | -6.8 | -6.8 |
| Repayment of capital | -3.2 | -3.2 | |
| Repayment of loans | -0.1 | 0.0 | 0.0 |
| Net cash flow from financing activities | -9.6 | -10.0 | -10.0 |
| Increase (+)/decrease (-) in cash and cash equivalents | 0.1 | 0.2 | 0.2 |
| Cash and cash equivalents at the beginning of the period | 0.5 | 0.2 | 0.2 |
| Effect of exchange rates on cash and cash equivalents | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents at the end of the period | 0.5 | 0.5 | 0.5 |
RELATED PARTY TRANSACTIONS
During the third quarter 2014, there were no notable changes in related party transactions.
Biohit Oyj B-shares Subscribed with Stock Options I and II 2013 during the reporting period 1-9/2014
During the year 2014, a total number of 120,000 new Biohit Oyj B-shares have been subscribed for with stock options I 2013, and a total number of 100,000 new Biohit Oyj B-shares have been subscribed for with stock options II 2013. These shares have been entered into the trade register and establish shareholder rights equal to those conferred by the company's existing B-shares. The new shares are being traded on NASDAQ OMX Helsinki together with the existing B-shares.
The share subscription price stock options I 2013 was EUR 2.2766 or EUR 3.00 per share, depending on the timing of subscription. The entire subscription price for stock options I 2013 was EUR 227,660 and for stock options II 2013 it was EUR 284,043, totaling to EUR 511,703. The nominal value of the share, EUR 2.550, was recorded in equity and the rest EUR 509,153 in the invested unrestricted equity fund. The company's share capital increased to EUR 2,350,350.81 from EUR 2,347,800.81.
After the subscriptions of year 2014 (220,000 shares in total) the number of all of Biohit Oyj's shares rose to 14,030,593 shares (13,810,593 December 31, 2013) and the number of B-shares rose to 11,055,093 shares (10,835,093 December 31, 2013). The new shares corresponded to a percentage of 1.6% of Biohit Oyj's total number of shares and 0.31% of the voting rights after registration.
The share subscription period with stock options I 2013 began on 1 June 2014 and will end on 31 May 2019. The share subscription period with stock options II 2013 began on 1 July 2013 and will end on 30 June 2015. The option schemes are based on the Biohit Oyj board resolution of 19 June 2013 and the Annual General Meeting authorization of 13 April 2011. The terms and conditions of the option schemes with additional information are available on Biohit Oyj’s website at www.biohithealthcare.com.
To exercise their stock options, holders must have paid the subscription price in accordance with the option scheme (EUR 3 or EUR 3 less the dividend, depending on the timing). Holders exercising their stock options are liable to pay income tax on stock option income.
COLLATERAL, CONTINGENT LIABILITIES, AND OTHER COMMITMENTS
| 1-9/2014 | 1-9/2013 | 1-12/2013 | |
| Collateral granted on behalf of the parent company | |||
| Corporate mortgages | 0.0 | 0.0 | 0.0 |
| Collateral granted on behalf of the subsidiaries | |||
| Guarantees | 0.0 | 0.0 | 0.0 |
| Other liabilities | |||
| Leasing commitments | |||
| Due for payment in less than one year | 0.1 | 0.1 | 0.1 |
| Due for payment in more than one year but less than five years | 0.0 | 0.1 | 0.1 |
| Due for payment in more than five years | 0.0 | 0.0 | 0.0 |
| Total | 0.1 | 0.2 | 0.1 |
| Other rental commitments | |||
| Due for payment in less than one year | 0.2 | 0.2 | 0.2 |
| Due for payment in more than one year but less than five years | 0.7 | 0.3 | 0.3 |
| Due for payment in more than five years | 0.1 | 0.0 | 0.0 |
| Total | 1.0 | 0.5 | 0.5 |
| Other liabilities, total | 1.1 | 0.7 | 0.6 |
| Commitments and contingencies, total | 1.1 | 0.7 | 0.6 |
Helsinki, 22 October 2014
Biohit Oyj
Board of Directors
Additional information:
CEO Semi Korpela, Biohit Oyj
tel. +358 9 773 861
investor.relations@biohit.fi
www.biohithealthcare.com
Attachment: Additional information
Biohit Oyj in brief
Biohit Oyj is a globally operating Finnish biotechnology company. Biohit’s mission ‘Innovating for Health’ means that we provide innovative products and services to promote research and early diagnostics. Biohit is headquartered in Helsinki and has subsidiaries in Italy and the UK. Biohit’s B series shares (BIOBV) are quoted on NASDAQ OMX Helsinki under Small cap/Healthcare. www.biohithealthcare.com
