BioPorto expects bigger deficit

The hard-tried Danish diagnostics company, BioPorto, has updated its expectations for 2013. The deficit will be Even bigger than initially thought due in part to the laying off of the CEO.

BioPorto’s turnover is in decline, landing at DKK 7.3m (USD 1.3m) in the first six months of the year compared with DKK 8.8m (USD 1.56m) in the same period a year ago. The bottom line shows a deficit of DKK 10.76m (USD 1.91m) against DKK 8.3m (USD 1.48m) in 2012.

The reason for the negative result is that the company has had to adjust its full-year expectations by about DKK 18-21m (USD 3.2-3.73m) due to the initiation of new clinical studies, estimated to cost DKK 2.5m (USD 444,000), as well as the sacking of the CEO, which will run the company DKK 2m (USD 356,000).

But the company does register a rise in sales in Q2, as turnover rose from DKK 3m (USD 533,000) in Q1 to DKK 4.3m (USD 765,000). BioPorto expects a total turnover on par with 2012 when it landed at DKK 17.9m (USD 3.18m).

40 million

BioPorto maintains previously announced expectations for the upcoming share issue, which is to secure some much needed capital for the hard-tried company. Management writes in the report that they are completely dependent on the success of the future share issue.

“Management assesses that minimum DKK 40m will have to be added in Q3 in order to fund planned activities for 2013-2014 and settle outstanding debts (DKK 21.5m) in September 2013, which we will attempt to add through issuing new shares in Q3 with pre-emption rights for existing shareholders,” management writes and elaborates:

“The group’s capital needs are associated with uncertainty tied to expectations for the development in sales of the group’s products, cost levels, and protection of current IP rights”.

According to the report the company’s equity was in the red by DKK 11.9m (USD 2.11m) at the close of Q2.

Stay tuned for an exclusive interview with newly appointed CEO Peter Mørch Eriksen in the coming days.

- translated by Martin Havtorn Petersen

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