Bio-Works Technologies

Jan – Jun 2024

• Net sales decreased 41% to 13,0 MSEK (22,1) with. Sales in North America has been weak during the first half, while European sales have been somewhat stronger. We are looking forward to stronger sales in the second half, as a result of increased order intake.
• Order intake increased by 16% to 18,3 MSEK (15,9).
• Net profit for the first half was -18,9 MSEK (-28,8). The improvement can be explained by the cost reduction program, improved gross margins and lower OPEX.
• Earnings per share in the first half of the year amounted to -0,49 SEK (-0,81).
• Cash flow from operating activities amounted to -22,7 MSEK (-26,4).
• Bank deposits amounted to 16,7 MSEK (43,0) at the end of the period.

Message from the CEO

As we review the first half of the year, I am pleased to report that Bio-Works is showing strong signs of recovery following a challenging 2023. Our order intake has increased by 16% compared to the same period last year, reaching a total of 18.3 MSEK. This robust growth in orders sets a promising outlook for the second half of the year.
 
A significant portion of our growth is driven by large volume orders for our ion exchange and affinity resins. This indicates that our customers are scaling up their operations, presenting a significant opportunity for repeated sales and long-term partnerships for Bio-Works.
 
We are also excited to announce that as of July 1st, Anne Dyrdal has joined us as the Director of Global Sales. Ms. Dyrdal has 25 years of experience from sales positions at Waters, Sciex, Shimadzu and GE Healthcare (Cytiva). Her expertise will enhance our sales planning and execution, resulting in a more efficient and successful sales organization.
 
In addition to bolstering our sales efforts, we are diligently executing our cost-saving program as previously communicated. Our projected goal to reduce operating costs by 24 MSEK during 2024 remains still valid and will, of course, be realized. This initiative is crucial for improving our financial health and supporting sustainable growth.
 
Reflecting upon my first eight weeks as CEO, I am profoundly impressed by the strong relationships we have built with our customers. Our interactions are open and based on trust, and the feedback we receive highlights our responsiveness and diligent technical support.
 
I am equally impressed by our talented employees, whose expertise and dedication have been fundamental to Bio-Works’ development. Their hard work continues to drive our progress, and I am confident that we have the depth of proficiency needed to achieve absolute success in the near future.
 
Lastly, I am particularly proud of the quality of our products. Our ion exchangers, for instance, are top of the class in purifying oligonucleotides and peptides. As clinical projects involving peptides and oligonucleotides increase, Bio-Works is well-positioned to provide our customers with the tools they need to produce therapies with higher yields and purity at lower production costs.
 
In conclusion, we have a strong technical foundation to build upon. By continuing to improve our commercialization efforts and maintaining strict cost control, I believe the potential for Bio-Works is immense.
 
I am honored to lead this exceptional team and deeply grateful to our shareholders for their support, demonstrated not the least with Bio-Works’ upcoming fully secured Rights issue, through their subscription commitments and the free of charge guarantee commitments of our largest shareholders. This token of trust is, of course, something that Bio-Works will manage with the outmost concern and deliver excellent results on.
  
Lone Carlbom
Chief Executive Officer
Bio-Works Technologies AB