Biovitrum Full Year Report 2008

Strong cash flow from core business. By product acquisition, Biovitrum now is an international biopharmaceutical company. October - December * Biovitrum acquired on the December 15th the drugs Kepivance® and Stemgen® from Amgen as well as an exclusive license for Kineret®. The acquisition implies an expansion of Biovitrum's commercial operations to include other areas in Europe, North America and Australia/New Zealand. Sales in the second half of December amounted to SEK 32.1 M for these products. * Net revenues increased by 5 percent to SEK 314.3 M compared to the same period last year (299.5). Profit for the quarter before non-recurring expenses was SEK 15.4 M (-2.4). * Profit, including non-recurring cost amounted to SEK -246.6 M (-2.4). Non-recurring cost includes restructuring of Research & Development and write-downs of assets, SEK 226.2 M and cost for building-up of commercial infrastructure SEK 66.4 M. Earnings per share before non-recurring costs was 0.33 SEK (-0.05) and including non-recurring costs -5.26 SEK (-0.05). * Cash flow from operations, excluding the acquisition of the three new products, improved by SEK 220.5 M to SEK 209.8 M (-10.7). Including the acquisition, the cash flow amounted to SEK -382.7 M (-10.7). * The agreement regarding manufacturing of the hemophilia drug ReFacto® for Wyeth was extended until December 31st, 2015. * Factor IXFc for the treatment of hemophilia B received orphan drug status in the US. * Positive results were reported from a clinical study showing that the Sym001 drug candidate eliminates RhD positive red blood cells from the circulation. January - December * Net revenues amounted to SEK 1,140.6 M (1,256.4) and the profit for the year before non-recurring costs was SEK 60.4 M (79.0), which represents earnings per share of SEK 1.31 (1.73). Results including non-recurring costs were -335.5 SEK M, representing earnings per share of SEK -7.28 (1.73). * Cash flow from operations was -506.7 M (-25.4). Before acquisition and restructuring costs cash flow was SEK 164.8 M. Cash and cash equivalents and short-term investments as of December 31st amounted to SEK 460.1 M (760.4). * In line with the new business strategy to focus on protein drugs within specialist indications, the number of employees working in research and development will be reduced. The final parts of the restructuring process will be implemented during 2009 after which the number of employees within R&D will be reduced from 353 at the end of 2007 to 170. * At the end of the year, Biovitrum had six specialist pharmaceutical projects in clinical studies and one in preclinical development. After the end of period * The process of selling the UK research unit Cambridge Biotechnology (CBT) has been initiated. CEO's comments:"In 2008 Biovitrum went through a comprehensive process to transform the company's commercial operations according to the business strategy launched at the end of 2007. We acquired three unique marketed products with growth potential. The acquisition also means that Biovitrum has established a commercial presence in Europe, North America and Australia/New Zealand. We also implemented a radical restructuring of our research organization. The R&D organization is now focusing on protein drugs, and the restructuring will lead to lower research costs. The extension of the manufacturing agreement with Wyeth for ReFacto® was also a very important event. Thanks to these radical and successful initiatives we are well on the way towards long-term profitability. We now also have the infrastructure to handle additional product acquisitions, licensing and a broad-based launch of our own products, and thereby generate further growth" says Biovitrum's CEO Martin Nicklasson. For further information, please contact Martin Nicklasson, CEO Phone: +46 8 697 2545 Göran Arvidson, CFO Cell phone: +46 8 697 23 27 Erik Kinnman, VP Investor Relations Cell phone: +46 73 422 15 40 [email protected] About Biovitrum Biovitrum is a Swedish pharmaceutical company. The company markets a range of specialist pharmaceuticals internationally. Using its expertise and experience Biovitrum takes scientific innovation all the way to the market and to specialist indication patients with significant medical need. Research expertise and capabilities are focused on development and production of biotechnology therapeutics within our prioritized areas of hemophilia, inflammation/autoimmune diseases and malabsorption. The company has revenues of approximately SEK 1.1 billion and around 400 employees. It is listed on the OMX Nordic Exchange in Stockholm. For more information go to www.biovitrum.com. Biovitrum AB (publ) may be required to disclose the information provided herein pursuant to the Swedish Securities Markets Act. The information was provided for public release on February 10, 2009 at 08:30 a.m. CET.