Annual Report 2022: A year of progress for Bio-Works

"Bio-Works has both the ambition and a good position for further expansion."

With these words, I concluded the CEO statement in the Annual Report 2021. One year later, Bio-Works' sales had increased by 89 percent and our order intake by as much as 94 percent. In other words, the result for 2022 is in line with the ambition we had twelve months ago.

In addition to sales growth, we further strengthened our local presence in the US market during the year and took significant steps to strengthen our brand in other markets.

I am also pleased with the results of our internal improvement work where we have: re-certified our ISO 9001:2015 quality management system, developed a new e-commerce platform, launched our prepacked product series (GoBio) and been granted EU support for the development of a new and greener process for manufacturing our products.

Leadership for the future

In the autumn of 2022, together with the Board, we developed a plan for the company's development. Our focus for 2023 is to continue to drive strong sales growth at the same time as moving up a gear through increased cash flow.

I listened to a lecture in late 2022 where the speaker said "What brought us here will not get us where we want to go." This is true of Bio-Works. The company is now entering a phase where not only culture, but also leadership, will be crucial to the result. To accelerate development, we have started an internal program with the goal of developing leadership at all levels of the organization. The purpose is to ensure that we are well prepared for continued profitable growth.

A market under rapid diversification

There is a megatrend that has developed in the biotech industry in recent years. The underlying molecular structures used to treat diseases are quickly diversifying in two directions simultaneously. In one direction, we see simpler structures that begin to resemble traditional medicines (so-called "small molecules"). In this category we find peptides and oligonucleotides. In the other direction, we see much more complex structures, such as viruses and living cells. In this category we find gene therapy and cell therapy products (so-called Advanced Therapeutic Medicinal Products, or ATMPs). The rapid diversification creates a demand for new tools that are adapted to the specific needs of these structures. At the same time, the market is becoming more fragmented, which provides a more level playing field for suppliers of raw materials such as resins. This benefits Bio-Works by allowing us to be agile in developing new products that meet new needs, while players that have traditionally dominated the market are less established in these new market categories.

When standard products no longer live up to expectations, a need arises for a tailor-made solution. We believe that this will be something that increases over time, and we are well equipped to meet the demand. Already today, many of our products have their roots in projects that began as customized resins. Our goal is to own the position as the "tailor" in the industry who has the expertise to take on complex, niche projects and solve problems for our customers. Developing new products in collaboration with the customer is a "win-win" concept that reduces the risks of development projects, as there is a paying customer from day one. A successful end product can then be standardized and offered to companies that work with similar molecules.

Huge opportunities disguised as challenges

It has been said that "Opportunities tend to be disguised as hard work, so most people don't recognize them." We are incredibly proud of the company's success during the past year, but at the same time we know that there is a lot of hard work ahead of us. But hard work is nothing to be afraid of. We have a talented team at Bio-Works and we continue to invest in our development to ensure the company's success in the coming years. I am convinced that we have a good plan for the future. Every day is a new step towards our goals, and we work to turn challenges into opportunities that will ensure a successful outcome going forward.

Once again, I thank you for your trust and the opportunity to lead the company.

Sincerely,

Jonathan Royce

CEO, Bio-Works