Genetic Analysis

GA has announced a conditional share issue, receiving subscriptions for 14,889,576 new shares at NOK 0.86 each, potentially raising approximately NOK 12.8 million before costs. The board approved the subscriptions and will propose the issue at the AGM on May 19, 2025. The subscription price matches the average trading price on the Spotlight Stock Market. The board invited select shareholders and proposed board members to subscribe, with 23% of the issue taken up by the board and management. The Directed Issue deviates from shareholders' preferential rights, as a rights issue would take longer and expose the company to market fluctuations. The board deemed the Directed Issue beneficial for shareholders and plans a Subsequent Offering for those not invited to participate, contingent on AGM approval. The Directed Issue will fund collaborations, including with Ferring, and expand diagnostics in the microbiome field. The issue will increase the number of shares by 30%, and the share capital will rise from NOK 29,629,962.60 to NOK 38,564,208.20. The company faces financial risks due to limited liquidity but sees the issue as a means to enhance sales, marketing, and development projects. If additional capital isn't raised, strategic alternatives may be needed. Subscribers include BioRad Inc and various investment firms, with board and management members contributing as well. Total subscriptions amount to NOK 12,805,895.

The Chinese direct-to-consumer (D2C) microbiome testing market is experiencing rapid growth, with an estimated market size of USD 50-80 million in 2023 and a projected compound annual growth rate (CAGR) of 20-30%, potentially reaching USD 200-300 million by 2030. This growth is driven by increased consumer interest in gut health, probiotics, personalized nutrition, and advancements in e-commerce and digital health platforms like Tmall and WeChat. Thalys is launching a microbiome testing service in China using the GA-map® Dysbiosis Test, offering consumers a fast and affordable way to assess gut health. The service includes a mobile app for customers to subscribe, pay, and view results, providing insights into gut microbes and personalized health recommendations. This launch marks the first stage of a collaboration between Thalys and Genetic Analysis, with plans for further development and distribution of tests in China. The partnership involves Thalys investing in clinical studies and software development, while Genetic Analysis provides reagent kits and proprietary software. The collaboration is structured as an ongoing partnership without predefined order volumes, generating revenue for Genetic Analysis based on the number of tests sold. Thalys Group, a leading provider of medical supply chain management and IVD solutions in China, aims to be an innovative and trusted partner in healthcare. Genetic Analysis is a diagnostic company specializing in the human microbiome, with a vision to lead standardized gut microbiota testing worldwide.

Genetic Analysis (GA), under CEO Ronny Hermansen, reported record sales in Q4 2024, with a 63% increase compared to the previous year, reaching NOK 6.2 million. The company achieved its first positive EBITDA of NOK 0.4 million, marking a significant milestone. The GA-map® Dysbiosis Test sales grew 49% in Q4 and 37% YTD. A major agreement with Ferring Pharmaceuticals was signed to develop a new microbiome-based diagnostic test, targeting a launch in H1 2025. Financial highlights include an operating income of NOK 7.3 million in Q4, with a net loss of NOK 0.9 million. Operating costs decreased by 37% in Q4, attributed to reduced R&D expenses and general cost cuts. Significant events included share purchases by GA’s Head of Operations and CEO, and a collaboration with Ferring Pharmaceuticals to develop a new PCR test. No significant events were reported after the period. GA aims to lead in standardized gut microbiota testing globally.