Higher sales and improved operating profit
Significant events in Q1
Significant events after the end of the period
|(SEK million)|| Jan-Mar|
| Full year|
|Gross margin, %||61||72||70|
|Cash flow from operating activities||-5.1||-4.9||-37.7|
|Average number of employees||16||15||16|
CEO statement: A quarter characterized by the acquisition and planned integration of Zymetech
Q1 was characterized by Enzymatica's acquisition of Iceland-based company and partner Zymetech. The acquisition serves as a key complement to our business, giving Enzymatica access to patent protection for ColdZyme® throughout Europe and a dozen or so additional countries. This gives us the ability to offer distributors exclusive distribution rights, which will facilitate our international expansion. We also get control over enzyme production and access to Zymetech's research expertise in enzyme technology and the company's research portfolio.
The transaction was completed on April 1 and we are already pushing full speed ahead with the integration of product development, regulatory issues, quality processes, production, marketing and sales. This is an aggressive acquisition to facilitate and accelerate our international expansion. Cost synergies are thus less important. We will avoid overlapping activities in regards to new product lines and patent applications. A key milestone in connection with the acquisition was the approval of the extraordinary general meeting on April 14 for the preemptive rights issue of SEK 60 million. The issue is fully underwritten through subscription and underwriting commitments from existing shareholders and external underwriters. The issue creates financial stability and an opportunity to steer our business in a more aggressive direction with a primary focus on expansion outside of the Nordic region.
I am glad that we were able to boost sales in Q1 in comparison to the strong first quarter of 2015. Our operating loss improved as well thanks to a cost-cutting program we initiated in the second half of 2015, resulting in lower staff and marketing expenses.
The Swedish market still accounts for the largest share of Enzymatica's sales and the smaller package ColdZyme OneCold has exhibited solid volume growth. We are excited that sales on markets outside of Sweden are now beginning to take off with follow-on orders from our distributors in Finland and Spain.
Our patient study COLDPREV II was kicked off in late March at Imperial College London and we expect the study to be complete by the end of 2016 at the latest. Discussions with potential international distributors are in progress and are our highest priority going forward.
Fredrik Lindberg CEO
For questions about this report, please contact:
Fredrik Lindberg, CEO, Enzymatica AB
Tel: +46 (0)708-86 53 70 | Email: firstname.lastname@example.org
Bengt Jöndell, CFO, Enzymatica AB
Tel: +46 (0)703-77 71 70 | Email: email@example.com