Eurobio Scientific: FIRST HALF TURNOVER OF € 83.6 MILLION MAINTAINED AT A HIGH LEVEL

FIRST HALF TURNOVER OF € 83.6 MILLION

MAINTAINED AT A HIGH LEVEL

• Growth in non-COVID activity (+5.1%)
• Limited decline in COVID revenue to €40.6m in a context of sharp reduction in prices and volumes
• Continued increase of the share of proprietary products

Paris, July 25, 2022 – 6:00 pm

Eurobio Scientific (FR0013240934, ALERS, PEA-PME eligible), a leading French group in in vitro medical diagnostics and life sciences, today presents its consolidated half-year turnover as at June 30, 2022.

Good resistance of the business

With a growth of +5.1% in its turnover excluding COVID to €43.0M in the 1st half of 2022 compared to €40.9M in the 1st half of 2021, and COVID sales of €40.6M compared to €54.8M (-26%), Eurobio Scientific recorded a turnover of €83.6 million in the 1st half of 2022, compared to €95.7 million in the 1st half of 2021 which was quite affected by the new epidemic waves linked to COVID-19. This good business resilience reflects:
–        The continued growth of traditional activities, excluding COVID, despite increased selectivity in terms of distribution which led to the termination of certain less profitable partnerships;
–        Continued substantial COVID revenues with a sharp drop in sales prices and test volumes, partially offset by the extension of the product portfolio with specific tests for the characterization of SARS-Cov-2 virus variants;

Growth in turnover excluding COVID

Non-COVID activities, which are the group’s fundamentals, increased by 5.1% in the 1st half of 2022, with €43.0 million in revenues. This increase reflects a still strong growth dynamic, partially offset by the announced termination of certain low-margin distribution contracts, one of which represented €2.2 million in revenue in the 1st half of 2021.

This strategic reallocation of the distribution portfolio is performed with new partnerships aimed at making innovative products with a strong impact available for healthcare professionals and patients in France. The Group has thus taken over the exclusive distribution in France of HIV self-tests from the American company Orasure, has signed partnerships with Alcor, Technoclone and SD Biosensor laboratories for distributions in the field of “Point of Care” proximity tests, and in the field of connected biology based on artificial intelligence.

This increase also reflects a good rate of renewal of public contracts, such as the one recently concluded with AP-HP for a period of 4 years in the field of transplantation. Over its entire duration, this contract represents an overall turnover of around 24 million euros.

Extension of the COVID diagnostic product portfolio

In a COVID diagnostics market that is beginning to slow down in 2022, Eurobio Scientific has been able to limit the drop in its turnover to 26% despite a sharp reduction in prices and volumes. This good resistance is explained in particular by the richness of the portfolio of proprietary products, made possible by a strategy of innovation and highly responsive marketing capabilities. Eurobio Scientific introduced 6 new proprietary tests in 2021 and 3 more in the 1st half of 2022, thus providing its customers with test kits adapted to the evolution of the pandemic, often with a single kit for screening and differentiation of new variants. The expertise of the R&D teams, the strength of regulatory affairs demonstrated by the company’s ISO 13485 recertification within the new IVDR¹ framework, and a high-capacity production tool enable the Group to support laboratories in quasi real time.

Eurobio Scientific thus remains one of the main French players in the diagnosis of COVID and benefits from a large base of installed automates, capable of processing a multitude of tests, including the Group’s proprietary tests.

Continuation of synergies internationally

Sales from international subsidiaries amounted to €9.4 million in the 1st half, compared to €8.2 million in 2021. Synergies with foreign subsidiaries (TECOmedical and Pathway Diagnostic) continue to produce their positive effects. These are now supplemented by the recent integration of Biomedical Diagnostics NV, which strengthens the group’s presence in the Benelux area.

Resources matching the Group’s ambitions

Eurobio Scientific currently has a gross cash amount in excess of €115 million, against a financial debt of €13.8 million. These financial resources, combined with a strengthening of its human resources, particularly in R&D, support the strategic deployment focused on increasing the share of proprietary products, the pursuit of international expansion, and the opening of new market segments. The support of Nextstage AM, a new strategic partner whose entry into the capital was confirmed in May in collaboration with AXA, also contributes to supporting the new phase of development of Eurobio Scientific.

Next financial meeting
2022 Half-year results: October 11, 2022, before market opens

1 In Vitro Diagnostics Regulation, new European regulation that went into effect in May 2022

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• 220725_PR_Eurobio Scientific_CA_S1_22_EN