• The Group’s sales for the period amounted to SEK 180 (123) million

• EBITDA amounted to SEK 28 (15) million

• EBIT amounted to SEK 23 (12) million

• The net profit after tax for the period amounted to SEK 9 (12) million

• Profit per share after tax for the period were SEK 0.03 (0.06 ) before and after dilution.

Important events after the end of the period

• The Board proposes that the Annual General meeting adopt the raising of approx. SEK 64 million in capital and the creation of an incentive programme.

MD´s report


The first quarter of 2009 was successful in many respects. Sales increased by 46% to SEK 180 (123) million, largely due to the product acquisition from Astra-Zeneca in June 2008. Organic growth was 11 % compared with the same period in 2008. Operating profit before depreciation (EBITDA) increased to SEK 28 (15) million, which corresponds to an EBITDA margin of 16% for the period.

The inventory level fell by SEK 23 million during the period, which was also positive. The selling price for Licensed products was adjusted during the period in order to increase sales, which reduced the inventory level at the expense of the margin. Licensed products accounted for SEK 10 million of the Group’s total inventory reduction. No further inventory-reducing price adjustments are expected to be needed.

The intense price pressure which has dominated the market for Licensed products in previous quarters showed signs of easing in Sweden and Denmark, although it is too early to say whether this is a lasting trend. At the end of the fi rst quarter, there were 35 approved licensed products, 28 of which were on sale on the market. This represents a sharp increase compared with the same period the previous year, when the equivalent numbers were 23 and 12. Preparations for the launch of the Company’s licensed pharmaceuticals in Poland towards the end of 2009 are on schedule.

Sales in the Company’s Parallel business increased during the period, while the value of the overall parallel market in Sweden fell by 20%. Despite negative currency effects, with the majority of purchases in the euro, the EBITDA margin for the period was on a par with the first quarter of 2008. This is partly due to the fact that the product mix contained a number of high margin products.

Organic growth for the Company’s Own products was 5%. A more expensive euro increased purchasing costs, although this was offset by price increases in the segment.

During the period, the Swedish government presented a proposal which will mark the end of the Swedish pharmacy monopoly. This may affect the Company’s business operations in certain respects. A deregulated market would create new business openings for BioPhausia’s selfcare products which include strong brands such as Novalucol and C-vimin. An increased number of sales channels and more scope for marketing products will become a reality towards the end of 2009.

A market survey and product positioning of GlycoVisc in the USA was carried out in the fi rst quarter. Different alternatives for licensing GlycoVisc on the American market are currently being evaluated. A number of potential partners will be contacted in the second quarter.

The Board has decided against proposing a reverse share split to the annual general meeting of shareholders. The Board’s decision is based on the low level of interest among the shareholders.

As previously communicated, the Board will propose to the annual general meeting that capital of approx. SEK 64 million be raised. The raised capital, which is guaranteed in its entirety, will be used for loan repayments of SEK 30 million and as working capital to fi nance the imminent launch in Poland.

In summary, it can be seen that BioPhausia is moving in the right direction, with organic growth of 11% and an EBITDA margin of 16%, under anything but easy market conditions.

(For full report see attached file.)



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