Genetic Analysis Expands Global Reach Amid Q1 2025 Challenges
Genetic Analysis shows resilience with strategic expansions despite a challenging first quarter of 2025.
Sammanfattning
Genetic Analysis navigates a challenging Q1 2025 with strategic expansions and partnerships, while financial metrics show mixed results.
The first quarter of 2025 has proven to be a pivotal period for Genetic Analysis (GA), as the company continues to expand its international footprint while navigating financial challenges. CEO Ronny Hermansen highlighted the strategic progress and increased global reach as key achievements, despite facing a 27% decline in sales compared to the same period in 2024. This drop, attributed to inventory adjustments by partners, saw sales revenues fall to NOK 2.4 million.
Despite the decline in sales, GA reported a robust gross margin of 84%, an improvement from 77% in Q1 2024. This growth in margin is largely due to an enhanced product mix and cost savings from a manufacturing improvement program. The company also managed to reduce its net loss to NOK -4.6 million from NOK -5.8 million in Q1 2024, showcasing effective cost management and reduced R&D spending.
A significant highlight is the expansion of the distribution and logistics collaboration with Diasorin for the GA-map® Dysbiosis Test in the DACH & Poland region, now extended to include selected Baltic countries. Additionally, the development of the new GA-map® MHI marker in partnership with Ferring Pharmaceutical is on track for a Q2 launch in the US, signaling positive future prospects.
Strategic moves in Q1 included the launch of the GA-map® Dysbiosis Test in the Chinese market through a partnership with Thalys Medical Technology Group. This marks GA's entry into the burgeoning Chinese microbiome diagnostics market, leveraging Thalys' Independent Clinical Lab in Shanghai to offer customized tests and mobile-based access for customers.
In May 2025, GA announced a directed share issue of NOK 12.8 million, primarily subscribed by existing shareholders. This capital infusion is aimed at supporting ongoing collaborations and meeting conditions for an innovation grant from Innovation Norway.
Furthermore, changes in the Board of Directors were approved, with Morten Jurs and Ove Öhman bringing significant experience to the table, potentially guiding GA through its next growth phase.
Given the strategic expansions and financial improvements, investors might consider holding their positions in GA. While the current financial figures present challenges, the company's proactive approach and promising partnerships suggest potential for future growth.
Källa
Sammanfattning
Ronny Hermansen, CEO of Genetic Analysis, reported strategic progress and international expansion in the first quarter of 2025. The company saw a decrease in sales by 27% compared to the same period in 2024, with total sales reaching NOK 2.4 million. Despite this, the gross margin improved to 84%, and cost savings led to a better EBITDA of NOK -3.5 million. The net loss was reduced to NOK -4.6 million. Significant events included the launch of the GA-map® Dysbiosis Test in China and a directed share issue raising NOK 12.8 million to support collaborations and innovation. Additionally, changes were made to the Board of Directors with Morten Jurs appointed as Chairman and Ove Öhman as a new board member.
