Interim report for the period January - September 2014

Third quarter July – September 2014

  · Group net sales in the third quarter 2014 amounted to 118.5 MSEK (103.4), an
increase by 14.6 percent compared to the corresponding quarter 2013. At
comparable exchange rates sales increased by 7.2 percent for the quarter.
  · Operating profit (EBIT) for the quarter increased to 12.6 MSEK (7.6).
  · Result after tax for the period amounted to 11.0 MSEK (6.9).
  · Earnings per share amounted to 0.17 SEK (0.10).
  · The cash flow from operating activities amounted to 16.5 MSEK (14.2).
  · Net cash at September 30 amounted to 72.9 MSEK compared to 61.8 MSEK at June
30.

Nine months, January - September 2014

  · Group net sales in the first nine months 2014 increased by 9.2 percent to
352.6 MSEK (323.0). At comparable exchange rates sales increased by 6.2 percent
for the nine months period.
  · Operating profit (EBIT) for the nine month period increased to 35.6 MSEK
(25.8).
  · Result after tax amounted to 34.5 MSEK (22.9).
  · Earnings per share amounted to 0.53 SEK (0.34).
  · The cash flow from operating activities amounted to 51.9 MSEK (36.4).
  · Net cash at September 30 amounted to 72.9 MSEK compared to 85.0 MSEK at
December 31, 2013.
  · Dividends to shareholders were paid in May to the amount of 38.8 MSEK
(34.9).
  · At the end of the reported period Biotage had no holding of own shares. No
shares have been acquired under the repurchasing program decided by the 2014
Annual General Meeting. The previous holding of 5,146,883 shares acquired under
the previous repurchasing program were cancelled in May according to the
resolution by the 2014 AGM.

Comments by CEO Torben Jörgensen

Biotage maintains good momentum in its operations and shows organic growth for
the fourth consecutive quarter. The development of the Swedish currency
contributes to the high growth percentage for the quarter, 14.6 percent. At
comparable exchange rates, the growth for the third quarter is 7.2 percent. With
a 6.2 percent growth on a rolling 12 month basis at the end of September we are
approaching our long term goal of 8 percent average annual growth.

Operating profit (EBIT) for the quarter improved by 65 percent compared to last
year, to 12.6 MSEK. For the first nine months of the year it amounts to 35.6
MSEK, which is a 38 percent improvement. In the third quarter as well as on a
rolling 12 month basis we just exceed our 10 percent EBIT margin target.

All geographical areas except Japan show growth compared to the corresponding
quarter last year. For the nine month period also Japan reports growth despite a
weak Japanese economy after the VAT raise in April this year. The measures
initiated last quarter with a geographic division of the distributor sales in
the rest of the world and an increased focus on the single distributors have
already started to yield results. The negative trend for the indirect sales seen
earlier in the year has been broken.

The product area Purification in organic chemistry continues to develop well. So
do the sales of our Sample Prep products in analytical chemistry. These product
areas are Biotage’s biggest ones and a positive sales development in these is
important. During the quarter the preparations for the launch of our automated
Sample Prep system Extrahera have been intense. The customer feedback from the
demo systems has been very positive. Extrahera was launched on October 1 and we
expect that this novel technology platform will not only grow our systems sales,
but also drive the sales of consumables in analytical chemistry. In the product
area Industrial Resins we have closed yet another collaboration agreement with a
new customer and we also received some large orders that we bring with us into
the fourth quarter as sales back log.

The gross margin amounts to 54.6 percent for the quarter as well as on a rolling
12 month basis. The distribution of sales between systems and
consumables/service is 45 percent systems and 55 percent service and consumables
on a rolling 12 month basis. Biotage’s target is that aftermarket products shall
constitute at least 60 percent of the sales, as they generally have a better
margin and are less cyclical. With the last two years’ successful launches of
new systems, a higher share of system sales is expected also in the coming year.
Despite the relatively high share of system sales the gross margin for the
quarter is on the same level as the preceding quarter. System sales have
increased from 43 to 45 percent of the total sales in the quarter and
considering this, I am satisfied that the gross margin remains unchanged.


For further information, please contact:
Torben Jörgensen, President and CEO, phone: +46 707 49 05 84
Erika Söderberg Johnson, CFO, phone: +46 707 20 48 20

The information is of the kind that Biotage AB (publ) is required to make public
according to the Financial Instruments Trading Act. The information was released
for publication at 08.30 on October 30, 2014.

About Biotage
Biotage offers efficient separation technologies from analysis to industrial
scale and high quality solutions for analytical chemistry from research to
commercial analysis laboratories. Biotage’s products are used by government
authorities, academic institutions, pharmaceutical and food companies, among
others. The company is headquartered in Uppsala and has offices in the US, UK,
China and Japan. Biotage has approx. 290 employees and had sales of 445 MSEK in
2013. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website:
www.biotage.com