In This Article:
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Revenue: Softer than Q1 2024, impacted by volatility in bioprocessing and absence of plasma revenue.
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Gross Margin: Group level at just under 63%, with bioprocessing at 73.5% and core business at 61.7%.
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Non-Plasma Revenue Growth: Increased by 3% compared to Q1 2024.
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Small Molecule Revenue Growth: Increased by 3% year over year.
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China Revenue Growth: Increased by 16% in the quarter.
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Analytical Testing Revenue: Declined by 8% year over year.
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Operating Costs: SEK254 million, with adjusted OpEx at SEK224 million, lower than Q1 2024.
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Adjusted EBITDA: SEK50 million, impacted by softness in bioprocessing revenue.
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Adjusted Cash Flow from Operations: SEK76 million, down due to revenue softness.
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Net Cash: SEK182 million, on par with December 2024.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Biotage AB (LTS:0GRP) expanded its customer base by adding 37 new customers in the early phase of drug discovery during Q1 2025.
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The company reported sequential growth in gross margin, reaching 73.5% in bioprocessing and 61.7% in the core business.
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There was a 3% growth in non-plasma revenue and small molecule revenue compared to Q1 2024.
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Biotage AB (LTS:0GRP) saw a 16% growth in China, marking a positive turnaround after years of decline.
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The company is taking decisive actions to streamline its bioprocessing cost base, which is expected to yield benefits starting from Q2 2025.
Negative Points
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Q1 2025 revenue was softer than the previous year, primarily due to volatility in the bioprocessing segment.
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The company experienced a significant decline in plasma revenue, with no plasma revenue in Q1 2025 compared to SEK90 million in Q1 2024.
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Analytical testing revenues declined by 8% year over year due to customer rationalization and macroeconomic factors.
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Biotage AB (LTS:0GRP) faced challenges in meeting demand for peptide systems due to manufacturing capacity constraints.
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The company anticipates continued short-term revenue volatility and recognizes the executional and market risks ahead.
Q & A Highlights
Q: Could you clarify if the mid-single-digit growth mentioned in the report was for the entire group or just the core business? A: Andrew Kellett, CFO: It refers to the core business.
Q: What is the current backlog for peptide systems, and what alternatives do customers have if you can't meet demand? A: Andrew Kellett, CFO: The backlog is approximately SEK20 million. Frederic Vanderhaegen, CEO: We are working with third-party providers to meet demand and exploring alternative paths to accelerate market reach.