Annual Report 2023: Bio-Works continued journey

One year ago, I wrote that opportunities tend to be disguised as hard work, and although 2023 has been a challenging year for the biotech industry and for Bio-Works, I still see great opportunities on the horizon. The market's long-term potential and Bio-Work's strategy to gain market share remain intact. The design-in of our WorkBeads chromatography resins into new production processes, increased sales of prepacked GoBio columns and a flexible offering of customized solutions continue to be the cornerstones of our growth strategy. These products, along with first-class customer service, strengthen Bio-Works' reputation as a premium supplier of purification solutions.

Tailor-made solutions - Our continued journey

In line with our vision to be the industry's preferred "tailor" of customized solutions, we have continued to focus on the development of unique, customized resins during the past year. Our belief that the demand for customized solutions will only increase has been further strengthened by the progress and projects we have committed to in 2023.

Several of the projects initiated during the year are now approaching a point where they both demonstrate our ability to meet specific customer needs through innovation and expertise, and will generate larger orders. With an estimated value of over SEK 10 million for these potential orders, we see clear signs that our strategy is not only on track, but also bearing fruit.

This success is not only a result of our technical expertise, but also a confirmation of our "win-win" concept where we develop new products in close cooperation with our customers. This strategy reduces the risk in our development projects and ensures that we have a paying customer from day one. The successful end product can then be standardized and offered to other companies in the same niche, which further broadens our market and strengthens our position as a leader in the industry.

By continuing on this path, we are confident that our role as the "tailor" in the industry will continue to grow, and that we will be able to solve even more complex, niche problems for our clients. We look forward to sharing more success stories and milestones in the coming years.

Finding the right balance in product mix

2023 was a year characterized by a decline in sales of our bulk products, which in turn led to a deterioration in gross margin. We have learned important lessons from this experience which has highlighted the need to carefully balance our offering between bulk products and other solutions (such as customized products and newly launched products). While the bulk products have traditionally been a stable source of revenue with good margins, we have seen the potential in attracting more new customers with more tailored products to meet unique needs.

In the coming year, our focus will be on finding a better balance between these two product categories. New products may initially have lower margins due to smaller production scale and the initial costs of customization and development. However, our belief is that these products, in the long term, will not only strengthen our customer relations but also contribute to higher margins through efficiencies in production that come with a larger production scale.

We are committed to implementing strategies that maximize our gross margin, while continuing to deliver value to our customers through both standardized and customized products. Through this balanced strategy, we are convinced that we can return to a stable growth path and improved financial results.

A year of internal transformation

During the past year, Bio-Works has undergone significant changes with the aim of creating an even more agile and focused organization that is adapted to prevailing market conditions. Although we have had to make difficult decisions, including reducing our workforce from 53 to 34 employees, these actions have been necessary to ensure our long-term success.

The internally driven leadership development program we initiated in the fall of 2022 has played a critical role during this transition period. By strengthening leadership at all levels within the organization, we have not only managed to maintain our core values and culture during these changes, but also strengthened our ability to lead with clarity and purpose. We enter the new year with an organization that is better equipped than ever to meet the opportunities and challenges that lie ahead.

I thank you for your continued trust and support.

Kind regards from Uppsala
Jonathan Royce
CEO, Bio-Works