Vitrolife's press release of annual accounts 2001
VITROLIFE'S PRESS RELEASE OF ANNUAL ACCOUNTS 2001 The group's total net sales was SEK 100.1 million, compared with SEK 82.2 million the year before, equivalent to an increase of 21.8%. The group's gross profit totalled SEK 40.4 million, compared with SEK 33.5 million the year before, equivalent to an increase of 20.7%. The group's net result totalled SEK 37.4 million, compared with SEK 28.8 million the year before. Equity/assets ratio 73.7% (76.8%). See attached press release on annual accounts 2001 Göteborg, 12th of February 2002. Vitrolife AB (publ) For further information, please contact: Managing director: Peter Svalander, tel. +46-708 22 80 01 e-mail: psvalander@vitrolife.com Financial manager and IR agent: Stefan Jacobsson, tel. +46-708 22 80 10 e-mail: sjacobsson@vitrolife.com www.vitrolife.com Vitrolife Vitrolife's business mission is to develop, produce and sell advanced products and systems for the preparation, cultivation, preservation and support of cells, tissues and organs. Vitrolife expands the Company's production capacity to meet an expected increase in demand for its products, as well as strengthen its global market position as a leading company in the development of innovative cell and tissue technologies. Vitrolife believes that the number of procedures performed annually involving tissue and cell technologies will increase as new treatments are introduced and existing treatments are improved. In addition, Vitrolife expects that the regulation surrounding approval processes and quality control for its products will increase. Vitrolife aims to create competitive advantages from this regulation by meeting and exceeding expected future demands of regulatory authorities, ahead of the Company's competitors. Since it commenced its operations in 1993, Vitrolife has expanded rapidly. The Company currently has over 90 employees and sells its products in over 80 countries. During the latest five-year period, sales have increased by an average of 33 percent and totalled more than SEK 82 million for the fiscal year 2000. The Vitrolife share is listed on the Stockholm Exchange (Stockholmsbörsen) O-list under the ticker VITR. Press release of annual accounts 2001 · The group's total net sales was SEK 100.1 million, compared with SEK 82.2 million the year before, equivalent to an increase of 21.8%. · The group's gross profit totalled SEK 40.4 million, compared with SEK 33.5 million the year before, equivalent to an increase of 20.7%. · The group's net result totalled SEK 37.4 million, compared with SEK 28.8 million the year before. · Equity/assets ratio 73.7% (76.8%). · The year in brief The Vitrolife share was listed on 26 June on the Stockholm Stock Exchange's O-list in conjunction with a new share issue of SEK 160 million. FDA clearance of the pulmonary perfusion medium Perfadex used during transplantation. Launch of the world's first media for IVF entirely free from blood- extracted material. Acquisition of a production plant in Kungsbacka. Agreement with Millennium Biologix Inc. in Ontario, Canada, regarding development and testing of media for human tissue engineering. Agreement with Cell Therapeutics Scandinavia AB in Gothenburg regarding development and testing of media for cell therapy and stem cell-based biotechnology. In conjunction with this agreement, 10.7% of the shares in the company were acquired. Clinical trial of product for aesthetic facial surgery (so-called dermal implant) commenced in Europe. General information on business The Vitrolife group's business concept is to develop, produce and market high-quality nutrient solutions for storage of cells, tissues and organs outside the body. Through close collaboration with leading researchers in the field, the company will be in the front line for both research and product development focusing on function and safety. Marketing is global under our own management and in collaboration with distributors. Over the course of the year the Vitrolife group has been active within four business areas: · Fertility Systems · Cell Therapy/Tissue Engineering Systems · Transplantation Systems Biosupportive Systems The year's operations has meant several positive changes for Vitrolife AB, the most comprehensive of which took place on 26 June, when the company was introduced on the Stockholm Stock Exchange's O-list. The company issued 4,000,000 shares at a price of SEK 40. The share issue meant a capital injection of SEK 145.4 million after issue expenses. Particularly during the first six months of the year, a large part of management's time and work resources have been focused on the introduction on the stock exchange. Investment in the production and distribution plant in Denver, Colorado, USA proceeds according to plan. The reconstruction work regarding offices and distribution in the existing industrial premises was completed by the beginning of 2002. Manufacture of the high-tech modular plant for aseptic production, supplied by Pharmadule AB in Emtunga, is on schedule and is estimated to be ready by March 2002, after which it will be dismantled and transported to Denver, where the modules will be connected to the existing industrial premises. It is estimated that the plant will be approved by the American FDA (Food and Drug Administration) in the first six months of 2003. In April 2001 Vitrolife Sweden AB acquired a manufacturing business from Tremedic AB in Kungsbacka. The objective is to mitigate the effect of the limited manufacturing capacity within the business area Fertility Systems, and to free up capacity at the pilot plant in Gothenburg. This investment will bring about a further increase in manufacturing capacity, and is estimated to be operational during the first six months of 2002. In October Vitrolife Sweden AB also acquired the manufacturing business's real property. During the course of the year Vitrolife AB entered into a research and collaboration agreement with Cell Therapeutics Scandinavia AB, leaders in stem-cell research covering all areas in the R&D chain from production of cell lines to clinical application. Vitrolife will be supplying media to Cell Therapeutics Scandinavia AB's stem-cell research, and will later have exclusive rights to commercialise media developed for clinical culture of stem cells and tissues. In September Vitrolife AB acquired 10.7% of Cell Therapeutics Scandinavia AB in conjunction with a new share issue. In May, Vitrolife AB's wholly owned subsidiary Swedish Biotech Center AB raised a convertible loan of SEK 10 million. In conjunction with the agreement on the convertible loan, Vitrolife has made a guarantee agreement with Stiftelsen Industrifonden. In December the board of Vitrolife AB decided to terminate and prepare the sale of the construction project in Swedish Biotech Center AB. In conjunction with this decision, an agreement has been made with Stiftelsen Industrifonden regarding regulation of the convertible loan and the dissolution of all of the agreements and obligations. Investments In 2001 gross investments in the group's fixed assets totalled SEK 77.6 million (SEK 12.2 million). Of these, SEK 6.7 million (SEK 0.8 million) constituted intangible assets and SEK 57.9 million (SEK 1.9 million) largely investments in the plants in Denver and Kungsbacka. A further SEK 1.0 million was for investments in Cell Therapeutics Scandinavia AB, and another SEK 9.6 million (SEK 8.2 million) was for investments in machinery and other technical installations within production. Investments in equipment and IT totalled SEK 2.4 million (SEK 1.3 million). The group's net sales and result Net sales The net sales are made up of sales of IVF media, hyaluronic acid-based products, transplant media and sales of quality-control tests. The group's total net sales were SEK 100.1 million, compared with SEK 82.2 million the year before, equivalent to an increase of 21.8% (21.2%). Most of the increase is attributable to the business area Fertility Systems, which increased sales by 30.5% during the course of the year. The business areas' total net sales were SEK 96.1 million, and there is a further SEK 4.0 million in connection with revenue from contract manufacturing. Gross profit The group's gross profit totalled SEK 40.4 million, compared with SEK 33.5 million the year before, equivalent to an increase of 20.7 % (6.0%). The increase in gross profit is attributable to increased sales combined with improved gross margins within the business area Fertility Systems. Selling & marketing expenses The group's sales costs totalled SEK 23.1 million, compared with SEK 14.1 million the year before, equivalent to an increase of 63.2% (44.3%). A large part of the increase is attributable to the marketing investments within the business areas Fertility Systems and Transplantation Systems, whereby a new marketing director and two product-group managers have been appointed over the course of the year. There were additional costs for agent commissions with regard to direct billing of customers in the USA in conjunction with the business for the North American and Asian markets gradually being transferred to the USA. Administrative expenses The group's administrative costs totalled SEK 28.1 million, compared with SEK 23.5 million the year before, equivalent to an increase of 19.5% (39.3%). Most of this is attributable to IT investment during 2001. Much of the investment can be seen as a one-off investment for the future. A comprehensive new business system, including integrated systems for materials and production control (MPC), e-commerce and marketing support was purchased and put into operation during the course of the year. During this period the plants in Edinburgh, Kungsbacka and Denver were incorporated into the company's network. The website has been updated with on-line information for investors (share information in real time). Distribution has also been automated using a new IT support system. Research & development expenses The group's R & D costs totalled SEK 28.7 million, compared with SEK 22.5 million the year before, equivalent to an increase of 27.3% (5.5%). Much of the increase is in connection with external collaborations (research agreements with Prof. Stig Steen, Lund University Hospital and Dr David Gardner at the Colorado Center for Reproductive Medicine). Other net operating income and expenses The other net operating income and expenses totalled SEK 4.0 million (SEK 0.5 million). In conjunction with the board's decision to terminate the project at Swedish Biotech Center AB, a SEK 4.3 million write-off has been implemented for activated project expenses. Result from financial items The group's result from financial items totalled SEK 6.1 million (SEK 3.6 million). The biggest item of income, and the one which is crucial for the result from financial items, is the interest income received for investment of liquid assets in commercial papers. Tax situation At present Vitrolife is basically not paying any tax because of negative results and losses carried forward in the Company. As of 31.12.2001 the group's unutilised losses carried forward totalled SEK 284.1 million, of which SEK 27.4 million is related to companies in the USA and SEK 189.2 million is related to companies in Great Britain. Net loss for the year The loss for the year totalled SEK 37.4 million (SEK 28.8 million). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/12/20020212BIT01070/bit0002.doc The full year-end report http://www.waymaker.net/bitonline/2002/02/12/20020212BIT01070/bit0002.pdf The full year-end report
