Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biotage AB (LTS:0GRP, Financial) expanded its customer base by adding 37 new customers in the early phase of drug discovery during Q1 2025.
- The company reported sequential growth in gross margin, reaching 73.5% in bioprocessing and 61.7% in the core business.
- There was a 3% growth in non-plasma revenue and small molecule revenue compared to Q1 2024.
- Biotage AB (LTS:0GRP) saw a 16% growth in China, marking a positive turnaround after years of decline.
- The company is taking decisive actions to streamline its bioprocessing cost base, which is expected to yield benefits starting from Q2 2025.
Negative Points
- Q1 2025 revenue was softer than the previous year, primarily due to volatility in the bioprocessing segment.
- The company experienced a significant decline in plasma revenue, with no plasma revenue in Q1 2025 compared to SEK90 million in Q1 2024.
- Analytical testing revenues declined by 8% year over year due to customer rationalization and macroeconomic factors.
- Biotage AB (LTS:0GRP) faced challenges in meeting demand for peptide systems due to manufacturing capacity constraints.
- 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.
Q: Regarding new customer numbers, is the figure net of customers won and lost, or have you not lost any customers since 2022?
A: Andrew Kellett, CFO: It is a net number, but we have not lost any significant customers.
Q: Can you explain the revenue split between resins, columns, and fiber, particularly in commercial stages?
A: Andrew Kellett, CFO: Fiber revenue is negligible. The revenue split is roughly 85% to 90% in resins and 10% to 15% in columns.
Q: When do you expect to be able to meet the demand for peptide systems?
A: Frederic Vanderhaegen, CEO: We are working to resume output levels from last year and exploring additional paths to meet demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
