SECOND QUARTER & HALF YEAR 2020 FINANCIAL REPORT
Hofseth BioCare reported operating revenues of NOK 20.0 million in the second quarter of 2020, an increase of 57 percent compared to the similar period last year. Operating profit (EBITDA) in the second quarter was negative NOK 17.3 million (8.3 million), as the company continues to invest in R&D and improved production processes.
“Extracting high value nutrition and medical products from low value waste from salmon production is the core of our business, and I am very happy to see that have made significant progress during the second quarter, even in a market environment affected by the Covid-19 pandemic. Our revenue growth is particularly driven by the successful commercialization of our high-quality salmon oil and protein powder. Both these products have proven health benefits which make them attractive in the market. Our newly signed distribution agreement with a global retailer giant with strong presence in UK and Spain is clear evidence of the quality of our products,” CEO of Hofseth BioCare Roger Hofseth says.
“In parallel with the commercial roll-out of our current product portfolio, we continue to take important steps forward when it comes to developing Hofseth BioCare into a true biotech company. Right now, we are starting a fast track phase II clinical study aiming to document whether fat-soluble components in our salmon oil can save lives among COVID-19 patients with breathing difficulties. We are also optimistic that we soon will receive a health label from Canadian health authorities approving that our salmon protein hydrolysate products CollaGo® and ProGo® have a corrective effect of iron deficiency anaemia. These are only two of the close to 20 scientific indications we have of nutrition and health benefits of our products, and hence our potential is tremendously large. We will increase our investments in targeted research and development to exploit this potential,” CEO Roger Hofseth says.
HIGHLIGHTS IN THE SECOND QUARTER 2020
- Signed research agreement and started our research collaboration with Prof. Karl Sylvester at Stanford University School of Medicine on a multi-year pre-clinical and clinical program towards a Necrotizing EnteroColitis (NEC) and Irritable Bowel Disease (IBD) label claim for our Soluble Protein Hydrolysate (SPH).
- Initiated accelerated COVID-19 Phase 2 clinical trial of OmeGo® salmon oil to decrease Acute Respiratory Distress Syndrome and the need for assisted respiration
- Brilliant Salmon Oil™ brand launched in USA, contracts with new US distributors signed for delivery from end of May.
- HBC Berkåk obtained Kosher certification
- Received approval for a loan facility of NOK 38m to increase cash balance and secure further R&D activities
POST PERIOD HIGHLIGHTS
- Signed an agreement to acquire 34 per cent ownership in the Asia-Pacific distributor Atlantic Delights Ltd. in Hong Kong for approx. NOK 6.5m in August
- Dr. Erland Hermansen hired as Medical Director for Clinical Development
- Secured distribution with a Global Retailer giant in the UK, Spain, Iceland and online for Brilliant Salmon Oil™ for pets
Please find the Second Quarter & Half Year 2020 Financial Report enclosed.
For further information, please contact:
James Berger, Head of Investor Relations & Strategy of Hofseth BioCare ASA
Phone: +41 79 950 1034
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. Ingredients are further developed into discovery and pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are development towards a Gastro-Intestinal (GI) Protective Medical Food, Medical Food to help treat age-related Sarcopenia, and future phase 1 studies on treatment of Anemia and NEC-IBD with Salmon Protein Hydrolysate fractions.
The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, Chicago, Mumbai, Palo Alto and Tokyo.
HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act