ArcticZymes Technologies ASA (OSL:AZT)
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Earnings Call: Q4 2020

Jan 28, 2021

Speaker 1

So the agenda today is we're going to start by going through the highlights of Q4. We will then tell you a little bit about the deliverables we delivered on in 2020. We will then go through the Arctic Syme's updates. We'll briefly talk about the Biotech Beta Glucan's divestment. Birgit will walk you through the Q4 financials.

Then I'll round off by talking about the outlook for 2021 and beyond. Before we go into all the details, I do want to say that all the figures and numbers that are presented today excluding discontinued operations, which is the Biotech be the glue cans business. So highlights. So in a nutshell, as a company, what we've seen during 2020 is that the company undergone a significant transformation, and this is no exception in Q4 as well. We're seeing a transformation there, and we will touch base on that in a minute.

So what have we achieved in Q4? Well, we achieved our 2nd best ever quarterly sales, achieving GBP 22,100,000 in product sales. This is equivalent of 34% growth for this quarter compared to the same quarter last year. We also continue to be profitable, achieving a profitable quarter of NOK 6,800,000 in EBITDA. This is equivalent to 39% growth for the same quarter last year.

We continue to grow our business in the Therapeutics and Molecular segments. Of course, this growth varies quarter to quarter, but the trend is growth in both of those areas. We successfully divested the Biotech beta glucan's subsidiary, and we did that on 31st December 2020. And this really is where the transformation happens for us because this means going to 2021, we are a pure It happens for us because this means going to 2021, we are a pure enzymes business. So in terms of deliverables, what did we deliver in 2020?

And these were objectives that we had set at the beginning of the year and we wanted to deliver on. Of course, we delivered on many of these objectives. The first one was our promise to deliver bring our early signs technologies into profitability in 2020. We achieved that very well. We delivered an EBITDA of CHF 45,000,000.

We continue to grow our sales. We've grown our top line sales, and we achieved NOK 93,000,000 for the year. That's equivalent of 1.7% growth. We grew the business last year compared to 2019. To align to our strategy that we set back in December 2019, where we made Artixyme's, the enzyme business, our core business, We rebranded the company last year from Biotech PharmaCon to Arlyxymes Technologies.

Furthermore, to set the stage of being a pure enzyme company, we divested the Biotech beta glucans business, as I mentioned before. And now this allows us to exclusively focus on our Enzymes business and our strategic initiatives for that moving forward. And what is this all about? All of the above here is about it's all about creating shareholder value. And we certainly have achieved that and delivered on that in 2020.

We have created shareholder value through the activities to be done through the share, and we see many new investors come on board as well. The only thing we didn't achieve was the merger and acquisitions. It was something on the table, but we didn't achieve that. But even without that, the business has done extremely well. So I'd like to walk you through the Arctic Syme's updates.

And here, we are going to talk about the segments. Before I get into segments, as mentioned, we have achieved strong underlying growth. We continue to do that on a quarterly basis. And for the quarter, we did have our 2nd best quarter, as mentioned, before. In terms of the Therapeutics segment, let's look at that.

We had a strong quarter. And for the quarter, we achieved 138% growth compared to Q4 last year. And when you look at the whole year actually for the Therapeutics segment, we grew the business by 2 16%. And I think and what's driving this growth? Well, we have a growing customer base.

And many of those customers are progressing with their preclinical and clinical trials efforts. And we have seen large orders coming in, and we're seeing now orders in excess of 1,000,000 Norwegian kroners coming routine in this business. And for the most well established customers, we have several well established customers now who have purchased over NOK 5,000,000 of product SAM Products during the year. So I think this sort of gives you a kind of flavor of how this business is maturing and ramping up. Reatea, as you've heard before, is a company who is using our SAM products to develop a COVID-nineteen vaccine.

They're progressing well with their Phase 1 clinical trials. Recently, they reported that they are preparing to conduct a large scale Phase to Phase 3 clinical trial in the coming months. And of course, Aardexxymes will be there supporting them along the way. We also had another European customer who has been purchasing sand for several other projects. And they recently confirmed that they will also and the utility of our SANHQ Enzyme into an early stage COVID-nineteen vaccine development program.

Also, last quarter, we told you about a top tier pharmaceutical company who is who did a GMP audit of our enzymes. And they've now started purchasing small amounts of ProductNow. This is related to early stage therapeutic development at one of their European sites. This business is not COVID related therapeutic. In China, Arctic Sciences partnered with Shanghai Besto Biotechnologies for the nonexclusive distribution of SANHQ here in China.

We're very excited because they're energetic experienced team who have commercial experience and the commodities in the gene therapy markets. They will be important in driving new opportunities and opening doors in the domestic therapeutic markets in China. And already we've seen initial sales From there, as our sales activity is we've seen a small revenue contribution to Q4 already. So when you have a look at the therapeutic segment At the end of the day, it's supported by over 100 different customers today purchasing our SAM products. And this is across all geographical continents.

So in the Molecular segment, which is Research and Diagnostics Here, we had marginal growth, we had 4% growth compared to Q4 last year. And I think when you look at this for the year, the growth rate has been very choppy between the quarters this year for this segment. This is due to the coronavirus pandemic. So you need to step back, take a look at this and look at the year 2020 as a whole. And when you look at this the segment overall.

It has grown 67% compared to 2019. So In so molecular product sales contributed 59% towards Ardeczymes total sales for Q4. And so in terms of this, this is really the main driver has been the molecular diagnostics business, in particular, CoduNG for use by our customers in COVID-nineteen tests. Beyond COVID-nineteen, we also sold over NOK 1,000,000 Norwegian kronor, KODU NG, to India, where it is being used and utilized in tuberculosis molecular diagnostic. Q4 as well as earlier quarters for this enzyme.

And you'll see a graph later from Virgo, which shows the kind of how the quarterly sales are here. But What we had in Q4 in 2019 was a real big bump with a large RSAP, say, the shrimp alkaline phosphatase order. And that's what gave them a nice bump in Q4 last year and we didn't get that this year. However, when you take a step back and look at this molecular segments. I think despite the slowdown we've seen in the research markets, sales have been counteracted strongly with increased demand in the Molecular Diagnostics segment.

So overall for the Molecular segment, sales growth remains robust And it's also supported by over 200 customers that Arctic Syme serves today. I'd like to talk a little bit about COVID-nineteen and COVID. So when you look at COVID-nineteen related sales, Our Alexiones will no longer refer to COVID-nineteen related sales as upsides, but we can now consider them as an integral part of its underlying business. So when we report On the segment numbers, this will be inclusive of COVID-nineteen related sales. And that's what we do in all the numbers you see in these slides around the segments include COVID-nineteen related business.

So when you have a look for Quarter, we had higher COVID related sales for Q4 versus Q3. It has been choppy between the quarters this year. There's these sales contribute 32% to total sales for Q4. When we break these sales down, 86% of these are associated with molecular diagnostics and 14% associated with therapeutics. Moving forward, we do expect this to fluctuate on a quarterly basis.

I'd like to talk about innovations, and this is about leveraging the future. I think at the end of the day, we're very active in innovations. It's important to capturing more of the value chain and the greater value from the market segments we are serving. It's very much at the heart of what Arctic Zymes is doing. And this is why approximately over 40% of our personnel effort is focused towards product innovation, product improvements and scale up.

And we're going to and we are investing in more people here. So this team will the R and D efforts will be wrapped up moving forward as well. So I want to tell you a bit about the pipeline, what's going on. And I think last quarter, I mentioned about the salt active nucleos. We've been upscaling that.

And last quarter, we were working on our first medium scale pilot batch that was in progress, but we were successful with that batch. And that is important because that was actually used to allow us to optimize the infrastructure and the manufacturing process, which is needed before progressing to the large scale manufacturing. And that's work in progress now. We're working on that 1st large scale pilot batch. There's been a slight delay here, and that's because the scheduling delay is beyond our control with the contract manufacturer who's helping us with the fermentation.

So that will extend now into Q1. But putting that to one side, we do expect to have large scale SAN HQ product commercially available to our customers within the first half of 2021. We are working on a lot of new product developments and we anticipate several new products So we'll be ready to launch in 2021 and I want to share some of these with you today. The third one thing we're working on is the MSAN ELISA kit. And similar to SAN HQ, The MSAN ELISA kit will support the sales of our MSAN enzyme, which we launched back in late 2019.

And this is into the therapeutic segment, of course. And MSAM was actually optimized for removal of contaminating DNA from non ADNO associated viruses such as lentivirus. So at the moment, we have got prototype kits, which we are sending out to customers during January for testing. Assuming all that testing goes to plan, we will then finish the validation of the products before the kit before launching that. TAP polymerases, we're working on those and those are very important for viral diagnostics, in particular COVID-nineteen.

And we will have our 1st thermostable polymerase, which will be optimized for robust utility in virus based PCR tests. And the important thing is to make sure that it's also compatible with our other enzymes such CodUNG, the DNases, the proteinases. Our internal prototype, we're testing it giving it some robust testing and we're testing internal PCR assays and that is functioning very well. At the same time, we're also working on Our first reverse transcript saves and similar to Taqbolimyrase, it will be optimized for using viral diagnostic assays where it can be used both in PCR and lamp based workflows. We're also working on other sound products.

And I think at the end of the day, what we realize is we're doing very well in gene therapy and vaccine in production, but we can capture more of the value chain, particularly in the protein purification world. And so we are we at the moment, we have a prototype enzyme, which we will then we are now sending out to customers for testing at this moment in time. We are also working on other enzymes and several of these enzymes Actually, relate to customer specific innovation projects where we're working with some large companies. Here we'd like some tweaking of, for instance, our isopole polymerase or have support products related to the use of the isopole polymerases, for example. And this will be for integration into new technologies or diagnostic tests.

So I think here, it's sometimes it is working directly with 1 large customer to optimize and bring a new innovation to market. And then that will extend to others as well. Longer term, we are making progress we've our innovations too, which are not destined for launch in 2021, but later on. And some of these enzymes include novel ligases, DNAs like enzymes, other novel polymerases, reverse transcriptase as well as other enzymes and support products. So that's the innovation pipeline.

I want to talk a little bit about strategic initiatives. We have been we've been working on organic growth and the organic growth. And going into 2021, organic growth will really be our primary, main and immediate focus. For this, we have a key activity, where we want to complete the infrastructure expansion of R and D and operations. This project is well underway and is progressing as planned.

And I think this expansion fits very timely to cater for the increase in commercial demand we see from our customers for expanding product range. Also, it will allow the company to capitalize on ramping up its innovation pipeline as you saw earlier. In the meantime, we are continuing to invest in new talent personnel in R and D and operations. I think it's important already to do that and this helps support our organic growth initiatives here. So all above is really about investing to leverage the greater growth potential from the Arctic Syme business.

In terms of inorganic growth, it's still on the cards, but we have scaled back our activities around temporarily on the M and A activities. I think it's important being a small company. We are We want to allow the team to really focus right now on the ongoing organic growth expansion initiatives. We want to get these new facilities in place. And then and of course, I think and that's quite the timing for this also makes sense because The corona pandemic that we're seeing due to this, the market environment is far from ideal at this time.

And I think for 2 good reasons. 1, firstly, travel restrictions limits our ability to conduct slower due diligence activities. And also when you're speaking to potential targets right now, they're somewhat less engaging and receptive to potential acquisition activities. COVID-nineteen, like it has done on our company, puts a lot of extra pressure on small companies. And we're seeing, when you talk to our small companies, they don't have the bandwidth at this time to really talk about these They're trying to manage day to day business.

So that's how it is. So I think at the end of the day, it's not that we're not going to do something here. But I think at the end of the day, We're going to remain opportunistic at the moment. And if a fitting target comes along and somebody wants to do a deal and the stars align, we will do that. So that's where we are with Arctic Syme's updates.

I want to talk a little bit about biotech beta glucan's divestment before we go into the financials. And I think the divestment of Biotech be the Glucan subsidiary. This was the most strategically significant event that could have happened for Alteryxymes in 2020. And we're delighted about this on several fronts. Firstly, we divested the entire Biotech Beta Glucan subsidiary to Lululemon Inks, Danastar Ferment AG, subsidiary.

And they represent the best owner we could find for the Biotech beta glucans. So under Lululemon, Biotech beta glucans We'll have a renewed purpose as a core business again. And I think that's important. Also, I think what was good here, we closed the deal on 31 December 2020. And that means we go into 2021 as a pure enzymes business.

We will continue supporting, Lalamund during 2021 in managing a smooth transition. That is actually moving very fast right now. BBG, the Bartolomeo Glucan's business will gradually relocate to the Nordoya site. And at the same time, as part of the expansion plans, Arctic Syme Technologies production will relocate to the CEVA Innovation Center. So at the end of the year, both Ardecimes Technologies and Biotech Bylglucans will be on separate sites.

I think at the end of the day, the divestment really marks a new era for Ardecimes Technologies. It very much supports Our strategy to focus exclusively now on the profitable enzymes business. So as mentioned before, we as mentioned before, Alizymes Technologies enters 2021 as a Pure Enzymes business. So with that, I'm going to hand over to Berge, and he will walk you through the financials.

Speaker 2

Thank you, Jethro. And first of all, I think from a financials perspective, I think 2020 has been a remarkable year where we have managed to drive sales into new heights. We have a profitability that we've never experienced before. We have also generated substantial positive cash flow. We have numerous new customers we have achieved numerous new customers throughout the year.

And we have also divested part of the company, becoming a purely enzymes Focused company now. And least but not and most importantly, we have managed to drive shareholder value throughout the year. And I would say Q4 is no exception to this and the underlying performance as well. And moving into the sales side of the business here. If you can switch that, Jethro, to the next slide.

And as with the Q3, we did not reach the same sort of sales levels as we experienced in the Q2. And this is natural. As we talked about earlier, in the Q2, we experienced a lot of stocking. And of course, this had a negative impact on the Q3 sales and also we can say it has a minor impact on Q4 sales as well. But of course, combined sales for all segments in Q4, They were SEK 22,100,000 as Sveto pointed out earlier.

And this is also, as he said, this is the 2nd best quarter in the history of the company. Our sales grew by 35% compared to the same quarter last year. And we also have to bear in mind that Q4 last year in 2019 was actually the Q1 we managed to drive sales in excess of SEK 15,000,000 on a quarterly level. So Q4 2019 was kind of a new milestone for us that has set now the baseline for the future going forward now. For the fiscal year 2020, We have secured more than SEK 93,000,000 in revenues or an increase in by more than 100% compared to the SEK 45,000,000 we generated in 2019.

And also, by looking at the table on the right hand side, you can also see that the positive sales trend that we have experienced over the last 2 years actually continued into the Q4 as well. And as Gretel talked a little bit about the Therapeutics segment, We generated 4th quarter sales of SEK 9,000,000 compared to SEK 3,800,000 in the same quarter last year. And for the full year 2020, we generated revenues of SEK 38,000,000, up from that SEK 12,000,000 we had in 2019. And Jester also touched a little bit upon the Research and the Diagnostics segment. We saw a marginal increase of 4% in the quarter, up from SEK 12,600,000 to SEK 13,100,000 in Q4 2020.

And also for the full year, we have seen that our revenues are up significantly. They were we ended up 2020 on SEK 55,500,000 compared to SEK33 1,000,000 last year. And as we it's important to say that as have talked about in previous presentations and in this one. COVID-nineteen related sales in the diagnostic area has played a Significant role for this growth. But it is as it is, however, important to emphasize that we have experienced a significant drop in the Research segment.

And as Jester said also, sales of shrink alkaline phosphatase It's reduced by more than 50% in 2020 compared to 2019. But of course, this drop in sales are offset by the strong sales we've seen in the Diagnostics segment. Moving into The next slide, Detro, please. And as we've talked about in previous presentations, we will no longer define COVID related sales as upsides as we believe they will be an integral part of our business going forward. And it will be tougher and tougher to estimate what kind of revenues that are transient and what kind of revenues that are part of the underlying business.

But we will, however, continue to report on estimated COVID-nineteen sales, even though we do not have full visibility into our customers' products and where our products are used in their products essentially. Well, for the Q4 in 2020, we have an estimated COVID-nineteen related sales of SEK 7,000,000, And this number ties in well with the revenues that we've seen in the last few quarters. And of course, if this is the kind of revenues we are expect in the future, that remains to be seen. But also, as Jethro talked about earlier here, in the 4th Of that SEK 7,000,000 in sales, the majority comes from the Molecular Diagnostics segment. But as we also said, We are starting to see increasing numbers from the therapeutic segment now, especially related to the Sand product.

Combined COVID-nineteen sales for 2020 is estimated at close to 26,000,000 for the year or 28% of Total sales for the year on the enzyme side of the business. Looking at the profitability side of the business, I think Q4 represents a significant change as to the structure on the on how we present our figures. Due to the divestment of Biotech Better Glucans, the Better Glucans segment shall no longer be presented as part of our operations on an EBITDA level. For Q4 and for the full year of 2020, Biotech Betterglucos has presented us with one line our consolidated profit and loss statement called net profit from discontinued operations. And all Internal transactions between the mother company and better glucans is also eliminated on an operations level, and this is mainly due to accounting rules.

It is technically it's a technical way on doing it, and it does not impact the net profit of the group as all Intercompany transactions are eliminated anyway. But also, if you want to have more details on the discontinued operations, you can find an extensive note in the financial statement that describes some of the effects on the discontinued operations. So at the end, with all necessary adjustments, Alexeym's Technologies delivered an EBITDA of SEK 6,800,000 for the quarter compared to SEK 4,900,000 in the same quarter last year. And for the full year 2020, Exclusive of Biotech Better Glukens, we secured an EBITDA of SEK 45,300,000, up from SEK 2,100,000 in 2019 or more than a 2000% increase. Our expenses are also up in the quarter.

I think they are and they are driven by Investment in personnel expenses, we do, of course we did, of course, experience expenses related to the divestment of Biotech beta glucans, And these were around NOK 1,000,000. We have also seen an increase in property, plant and equipment related expenses and some on the IPR expenses for the Q4. I think it is important to think a little bit. If we were to consider Biotech beta glucans as part of continued operations now, Then EBITDA on a group level would have been SEK 11,000,000 for the quarter and SEK 62,000,000 for the full year. But as I said, these numbers are excluded on an EBITDA level, but they are part of the net profit line.

And it is worth saying that also that Biotech beta glucans did an amortization in excess of SEK 6,000,000 related to Volgen in the Q4 of 2020 as well. On the margin side of the business, We continue to deliver EBITDA margins in excess of 30% for the quarter, and we have achieved significantly higher for the full year. And this is significantly higher than when you look at comparable companies. Look at cash flow. With the divestment of Biotech, Pedaglucan, our cash position at the end of the year was significantly strengthened and due to the SEK 70,000,000 settlement on the 31st of December last year.

But it's also due to good performance in the underlying business.

Speaker 3

At the

Speaker 2

end of the year, we had More than SEK 140,000,000 in our bank accounts, and we expect this one to be even further strengthened in the Q1 of 2021. One thing is with the underlying performance, but we are also expecting that there is a final settlement relating to the divestment of Biotech Beddiglucalan. And If you remember, we had an enterprise value of SEK 70,000,000, but there should also be it was sold on a cash free, debt free And then with normalized working capital adjustments. And with our own calculations, this number is estimated to be in excess of 16,000,000 And of course, with the end of the year, cash position we have now, I think we are well For both organic and inorganic growth opportunities in the future. And I think with that, I will hand it over to Jethro now to talk a little bit about we can expect for the future?

Speaker 1

Thank you, Birger, for going under the hood of the numbers. That's appreciated. So What I want to do is sort of give you a flavor of the outlook for 2021 and beyond and where we're going to focus. And I think at the end of the day, We see and I mentioned a bit earlier, we enter a new era as a pure enzymes company. And it's great we can do that at the beginning of 2021.

And for this, our attention Moving forward, we'll be undivided and totally towards enzymes. And with this, our attention will be in 4 key areas here. Firstly, we cannot forget performance. Performance, we're going to continue that. We are going to have and it's really going to be towards focus towards top line sales growth.

And it's important to step back and emphasize and realize that Alixymes does serve 3 different market segments. It's the therapeutic segment, the molecular diagnostic and molecular research segment. We also have a growing customer base by over 300 customers, and this continues to grow. We have an expanding product range and we're adding new products all the time. So I think this is what has been driven the earlier growth that you've seen and will continue to fuel growth moving forward.

Profitability is also a focus for us as it has been for the So we will work on increasing the profitability of our enzymes. And I think as an enzyme business, we have done that since I've been in the company for the last 6 years. Profitability has been a focus and it's going to remain a focus moving forward. Investments as well. I think that's something which is something which is really key this year.

And I think as Berge mentioned, we have a strengthened cash position. And we're going to make that cash work for us, and we're going to make it work hard. And here, we are this year, we are investing to leverage the greater potential in the business from the business more long term. And here, this is really about investing in the new expanded facilities we talked about earlier. It's also about in new and talented personnel.

And these are very much core to our organic growth initiatives. The last component is really about new innovations and new products. And I think new product launches during This year will really allow Alexeyne to reach parts of the market it cannot reach today. It allows us to take more of that value chain we're We have a small limited portfolio of enzymes today. So it's really important we build that out with synergistic products and that's what we're really working on.

And I think new innovations and ramping up innovation efforts will bring ArneXymes closer to realize its ambition of becoming European's leading one stop shop enzyme supply in the next 2 to 3 years. And of course, down the line, merger and acquisition will also be important to realize this ambition too. So with that, I'm going to stop and we invite you to pose your questions. Anybody who's called in by phone, if you want to ask a question, you can unmute your microphone using star 6. Thank you.

Speaker 3

Jethro, this is David Suttland of Invenp Partners. Good morning. Can I start by asking about your SAN Ensign ramp up? You've mentioned several times that you're running medium sized batches, which is about 10 times the small batches that you've run historically. And you're about to run a large batch, which is 100 times bigger than What you've produced historically.

How do you explain running such volumes? Well, how do you explain what's the motivation for that? I mean, this year, you've grown your SAN sales from €11,000,000 to €38,000,000 Are you planning to sell 10 or 100 times that or how does that reconcile with price pressure or things like that?

Speaker 1

Good question, David. That makes sense. There are 2 parts to it. 1, it's about serving existing business and it's also about serving the growing demand as well. So basically, what we've been doing, and 2020, we've been doing small scale manufacturing.

And actually, that's been back to back. So production has been really busy and then more or less, one production line has been just tied up making small scale sound back to back. And of course, we've been working on that scale up. And the point of the Scale up is to reduce the number of manufacturing cycles we do. And of course, we it will also help him also improve the margin there as well.

But the point is here is that rather than doing back to back small batches, we can do 1 or 2 large batches per year. And that's to serve our existing customers as well prepare us for the future for capacity from the new customers and the growth we see in our existing customers as well. So I hope that sort of gives you an idea of what we're doing there. And so and what we want to do, we want to make sure we're in front of the wave, commercial demand when it comes to scale up. So there is a trigger in when you decide to start doing the scale up activities.

And that's why we're working on them. And rather than just going to medium scale, we went we that is just helps us to get to the large scale. We probably won't use medium scale, we're going to use large scale. But scaling up from small scale straight to large scale, That is difficult, so that's why we worked on a medium scale. And that helped us optimize what we needed to go to large scale.

So I think the timing is perfect for us. So that I think so what that means is once we got the large scale operation going, it frees a lot of resources up to put it on to some of the other manufacturing and so we get more efficiency as well in our production.

Speaker 3

Okay. Thank you. Second question is as it relates to Reithera and their COVID vaccine, there was a media report earlier this week that major investment by I don't remember if it was EU or Italy as a country, but investing, I think, euros 80,000,000 into scaling up that company. And they're talking production of 100,000,000 doses per year. Can you In some way guide us to how that would impact your sales and earnings if Raethira would produce 100,000,000 doses.

Speaker 1

Yes. Well, I at the end of the day, we have a forecast, but and that's and I can't tell you what that forecast is from them, that's Confidential, but of course, we are at the end of the day, we are able to cater for that need. And of course, yes, Demand is certainly going to grow, assuming they're successful, of course, in launching that. So I think we so at the end of the day, we're all ready for that, but I can't say what our forecast is because that's confidential.

Speaker 3

Okay, thanks.

Speaker 2

Jethro, I have one question that I received on the e mail, and it was question. Has sand With negatively affected by the lockdown in all around the world like we've seen in the molecular research side?

Speaker 1

Yes. And that's a very good question. Yes, it has actually. And I think that's the feedback we get from our business development team. Actually, sales or Sam would have been more if it wasn't for the COVID-nineteen pandemic.

And I think that's really important because generally there is different dynamics at play COVID-nineteen slowed some parts of the business down, but when lockdown comes off, other parts of the business speed up. So I think here, yes, but again, coming to that question, yes, it has had some negative impact there.

Speaker 2

Any other questions?

Speaker 3

One more for me then, Jethro. Your cost base What's up? If you just look at the OpEx number, Can you how much cost did you actually add? And how much is sort of overhead added to your enzymes business now that beta glucan is gone?

Speaker 1

So I'll pass that one to Birgraf, if that's okay.

Speaker 2

Yes. And I think if you also have a look in our the financial You can say that there are some of the expenses that we have been able to pass on to the biotech better glucan The business. We will no longer be able to pass on those expenses. And those for the whole year of 2020, these expenses are in excess of SEK 2,000,000 for the full year. So that is expenses that we will have to carry with us going forward now.

But it is, of course, also important to say that we have increased, as I said, the personnel on the Arctic Symes. We did a restructuring at the end of 2019 Basically, so we are a much larger enzymes organizations than we were 1 year ago. And of course, we have with You can see with the increased sales, we have also had to take on some more expenses related to OpEx and things like that, All running somewhere to run the business as is. So there had there were there were some higher expenses. Okay.

And I don't know if there are any other questions. If not, then I think we just I think we thank you all for attending this Q4 presentation, and we wish you all A great day going forward now. Okay.

Speaker 1

Thank you.

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