Biohit Oyj - Company Announcement

Biohit Oyj and Sartorius Lab Holding GmbH complete sale of liquid handling business, Biohit Oyj revises risk outlook

Biohit Oyj
Company Announcement
14.12.2011 05:18 pm

The prerequisites for the completion of the sale of Biohit Oyj's liquid
handling business to Sartorius Lab Holding GmbH have been met; the companies
completed the sale on 14 December 2011. Upon the sale's completion, Biohit's
liquid handling business transferred to Sartorius. The parties signed the sales
contract on the sale of the liquid handling business on 26 October 2011. The
transaction was subject to approval by a Biohit's shareholders' meeting and the
authorities. Biohit's extraordinary shareholders' meeting approved the
transaction on 23 November 2011. The parties have also received the required
approvals from the authorities. Following the sale's completion, Biohit Oyj
revises its outlook on short-term risks and uncertainty factors. 

Upon the sale's completion, Biohit's liquid handling business has been
transferred to Sartorius, including the associated intellectual property
rights, production facilities, subsidiaries, other property, agreements, and
certain responsibilities. 

The employees and management team of the liquid handling business transferred
to the new owner on their existing terms of employment. Biohit's current
President and CEO, Jussi Heiniö, transferred to Sartorius as part of the
transaction. 

Semi Korpela, M.Sc. (Econ.), was appointed Biohit's new President and CEO as of
15 December 2011. The diagnostics employees and the diagnostics business
management team will remain in the service of Biohit Oyj. The composition of
the Biohit Board of Directors will remain unchanged. 

Short-term risks and uncertainty factors

Following the sale of the liquid handling business, the company revised its
outlook on short-term risks and uncertainty factors. As a result of the
transaction, the company's financial position has materially strengthened, with
no uncertainty factors corresponding to those of the former liquid handling
business having emerged. However, other uncertainty factors continue to impact
on the growth of the diagnostics business. 

Growth in the diagnostics business is now all the more important for
strengthening the entire Group's operating conditions. Long-term failure to
meet these growth expectations may also result in a EUR 2.6 million impairment
of goodwill associated with the diagnostics products. However, after the sale
of the liquid handling business, the company is in a much better position to
invest in the business prerequisites of its diagnostics business and to
strengthen the sales channels and marketing of its products. In addition, the
company clarified its product commercialisation plans and decided to prioritise
certain market areas. 

Previously, the company conducted a large part of its business in currencies
other than the euro. However, since most trade in the diagnostics business is
conducted in euro, exchange rate fluctuations do not have as great an impact on
the company's result as before. 

For more information, please contact:

Osmo Suovaniemi
MD, Ph.D, Professor
Chairman of the Board of Directors
Tel. +358 40 745 5605
osmo.suovaniemi@biohit.com



Distribution:

NASDAQ OMX Helsinki Oyj
Central Storage Facility (www.oam.fi)
Press
www.biohit.com



About Biohit

Biohit Oyj is a globally operating Finnish biotechnology company established in
1988. Biohit's mission crystallises in its motto “Innovating for Health”. The
company assumes social responsibility by producing innovations, new
technologies and analysis systems for use in medicine, research institutions
and industry. These products help to promote research and diagnostics, while
improving quality of life by preventing disease, human suffering and financial
loss. Biohit also seeks to innovate and develop the marketing and availability
of its products and services, in order to ensure its profitable growth and
ability to pay dividends. 

Biohit works with scientific communities to produce new technologies, products
and services based on research results and innovations. These can be used to
develop safe and cost-effective diagnostic tests for the early detection and
prevention of diseases of the gastrointestinal tract. 

Biohit's products include analysis systems for the prevention and early
diagnosis of gastrointestinal diseases, such as the blood-sample based
GastroPanel examinations for the diagnosis of stomach illnesses and associated
risks, quick tests for the diagnosis of lactose intolerance and H. pylori
infection in connection with gastroscopy, and the ColonView examination for the
early detection of intestinal bleeding that indicates a risk of colorectal
cancer. Acetium reduces the amount of carcinogenic acetaldehyde in an anacidic
stomach. 

Biohit employs around 35 people. The company is headquartered in Helsinki,
Finland and has a subsidiary in the UK. Since 1999, Biohit's Series B share has
been quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group and is
traded under the code BIOBV (www.biohit.com/investors). 

Read more at www.biohit.com.