More than 37 percent revenue growth for genXone in first quarter of 2022

Press Release

Biotechnology company genXone has achieved in the first quarter of this year an impressive, over 37 percent increase in revenue. From January to the end of March this year it was over PLN 7.3 million, while a year earlier it was about PLN 5.3 million. Net profit in the first quarter of this year amounted to almost 2 million PLN and was at a similar level as a year earlier. EBITDA generated in the first quarter of this year. EBITDA generated in the first quarter of this year amounted to over PLN 2.8 million and was higher by over 9% than that generated in the first quarter of 2021. The Company, thanks to the long-lasting diversification of the areas of its business activity, filled in the first quarter the gap in revenues resulting from the reduction by the National Health Fund of the rates for performing coronavirus tests. It also expanded its collaboration related to antigen test validation, which also continues in the second quarter.

The first quarter of this year maintained a strong revenue pace compared to the prior year period. The Company is actively using its laboratory base to provide advanced services to external parties. Since the beginning of the year, the Molecular Diagnostics Laboratory has been developing cooperation with Pure Clinical sp. z.o.o. in the area of validation of antigen tests. Starting from December 2021 until now, 12 agreements have been concluded under the cooperation with Pure Clinical, worth PLN 925 thousand net. In 2022 alone – 11 agreements were concluded, worth PLN 825 thousand net.

The company has signed a letter of intent with the Danish company gMendel ApS to start cooperation in the field of modernization of the diagnosis of genetic disorders. Currently available solutions have many limitations, e.g. due to complexity, time-consumption and cost of performed analyses. The cooperation aims to increase the availability of such tests and possibly early diagnosis. In recent days, the first effects have appeared – the company GMendel ApS obtained CE-IVD certificate for Phivea® v1.0.0 platform based on innovative technology for screening of Klineferter’s syndrome in newborns. genXone took an active part in the validation process of this innovative tool.

In the first quarter of this year, a key project – NANOBIOME, based on the study of intestinal microbiota, entered the third phase of development. The study of intestinal microbiota is of great value for shaping a healthy lifestyle. The NANOBIOME project aims to provide comprehensive knowledge of the gut microbiome and, ultimately, holistic solutions to support the microbiota in daily life. Among the most important directions of the project development are: development and introduction of new bioinformatics elements in order to create additional biological data analysis pathways enlarging the range of possibilities of inferring about the gut microbiota, product development possibilities, scope of the result report, use of mobile applications as a tool helping to improve the state of the microbiota.

The results of the first quarter confirm the effectiveness of management processes in the company and the stability of revenue streams built since the beginning of this year. In addition to new partners for whom we perform research work, we continue our cooperation with state sanitary inspection bodies on virus research, initiated last year. Very good results in the first quarter are not only a guarantee of the company’s continued development, but also an additional argument justifying our decision to allocate part of the profit for 2021 to dividends. What is very important, without jeopardizing the investment needs assumed for this year. We are looking for more opportunities to cooperate with other entities and next activities using our research base, because it brings us measurable financial benefits. It is worth emphasizing that we were able to effectively supplement in the company’s total revenues in the first quarter, the clear decrease in revenues from testing for coronavirus resulting from the reduction of rates by the National Health Fund. We had already warned at the time of our IPO that we were clearly treating testing revenues as an additional source of profit rather than one of our strategic areas. Therefore, thanks to consistent diversification of the sectors of our business activity, today we do not have any significant problems due to this,” emphasises Dr Michał Kaszuba, President of the Management Board of genXone.

Currently, diagnostic activity in the field of SARS-CoV-2 identification is still carried out at the Swab Collection Point in Tarnowo Podgórne.

The company made changes to its Board of Directors in the first quarter of this year. Currently, it consists of three people, and the extension of the scope of decision-making of the Board members affects faster and more effective decision-making.

During the General Meeting of Shareholders scheduled for 6 June this year, a resolution on dividend payment of PLN 1 per share for 2021 will be presented. The Supervisory Board approved the Management Board’s proposal to share profit with shareholders. The Management Board of genXone wants to pay out dividend for the second time. The company, which debuted less than two years ago on the Exchange, paid PLN 0.65 per share for 2020.