Half-Yearly Report January-June 2011

Half-Yearly Report January-June 2011

Financial information

  · Net sales climbed to SEK 1,030k (558k)
  · Loss after financial items was SEK 6,784k (loss: 5,148k)
  · Loss after tax was SEK 6,763k (loss: 5,127k)
  · Earnings per share totaled SEK -0.10 (-0.12)
  · Cash and cash equivalents at the end of the period amounted to SEK
14,161k (11,863k)

Other events during the quarter

  · Genovis conducted a rights issue during the period that was
subscribed to more than 90% and provided the company with about SEK 18
million.
  · Genovis launched the FragIT™ Kit, a scalable and efficient
technology for producing antibody fragments with extremely high yield
and short process time. The product is a further development of Genovis'
unique technology and targets customers in pharmaceutical, biotech and
diagnostics companies that develop antibody-based drugs and analyses.
  · Hans-Göran Arlock left the Board of Directors at the annual meeting
of shareholders and was replaced by Jacob Engellau, associate professor
at Lund University stationed at both Skåne Oncology Department, Lund
University, and the Oncology Department at Finsencentret, Copenhagen
University Hospital.
  · During the period Genovis customers published numerous scientific
publications demonstrating the benefits of Genovis products from the
protein portfolio.

Other events after the end of the period

Fredrik Lindgren declined election at the Extraordinary General Meeting
in July, and Kenth Petersson was elected to serve as a new Board member.
Mr. Petersson is chairman of the board at AlphaBeta AB, Biocrine AB,
Spiber Technologies AB and Science Pacific AB. He is a board member of
Alligator Bioscience AB and BioInvent AB.

ABOUT GENOVIS

Genovis develops and sells innovative technologies from two unique
product portfolios. The first involves nanotechnology in new contrast
agents and the second consists of unique enzymes that facilitate
development and quality control of drugs. Research and development have
largely dominated the company's business activities, but over the past
two years commercialization has begun. Today, sales and customer-based
development projects account for an increasingly important part of
business. The customers are mainly biotechnology and pharmaceutical
companies and research groups associated with universities. By combining
direct sales with marketing through a few distributors in the US and
Europe, Genovis sells products to customers in the global Life Science
industry. Research and development projects are mainly in-house in the
company's facilities in Lund and Malmö, as well as collaborations with
research groups at Lund University.

COMMENTS FROM THE CEO

One year ago we launched products specifically designed for an
application, a kit with products for analysis of antibodies using mass
spectroscopy. We chose to do so to become more focused in our marketing
strategy. We shifted from only offering our enzymes to offering
customized products and protocols to biotechnology and pharmaceutical
companies. Now a year later, we see the results of this strategy - not
only in terms of sales, but also in terms of scientific publications
from our customers. During the first half of the year, in just a short
time period our customers published three scientific articles showing
that Genovis products open opportunities for completely new
technologies, which in turn increase the speed and quality of the
customer's analyses. In June we presented our products at the 59th ASMS
Conference on Mass Spectrometry & Allied Topics, the biggest conference
and meeting place for all mass spectroscopy users and developers. Our
customers also presented papers at the conference showing the high
performance of our products compared with competing technologies.
Interest in and attention to our products has grown and naturally serves
as an extremely welcome enhancement of our marketing.

I am pleased with the progress of our internal development projects and
look forward to the commercialization of products from the
nanotechnology portfolio and new applications from the protein portfolio
this autumn. We have chosen to prioritize our resources by focusing on
one defined application at a time when launching products from the
nanotechnology portfolio. The first product group to be launched
involves nanoparticles as contrast agents to track cells in preclinical
stem cell research.

The collaboration within the LUPAS EU project submitted the first report
to the EU. A summary of the results is available at the project website,
www.amyloid-lupas.com. The project is inherently interdisciplinary and,
although the research is at an early stage, the project has already
provided Genovis with a unique opportunity to apply our technology and
to learn about the use of nanostructures as contrast agents. We also
gain insight into what tools are greatly needed in preclinical research.

During the second quarter Genovis raised funds in a rights issue. With
this infusion of capital we can meet our customer obligations and
continue to drive our development projects toward established goals
during the coming year. We would like to thank all of our shareholders,
existing and new, for their confidence. It means so much to our
business.

Sarah Fredriksson, CEO

For more information, please contact: Sarah Fredriksson, CEO, Genovis AB
Tel: 46 46 10 12 35
sarah.fredriksson@genovis.com (sarah.fredriksson@genovis.com)