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Other key events during the year

• Distribution of the shares in IBT An extraordinary general meeting on 18 March 2016

resolved to distribute the shares in the subsidiary Infant Bacterial Therapeutics (IBT) to BioGaia’s shareholders. At the end of March, IBT commenced trading on First North. As of 22 March 2016, IBT is no longer part of the BioGaia Group. The operations in IBT are reported as “Discontinued operations” in the income statement. The company applies IFRIC 17, which means that the distribution of the subsidiary IBT is recognized at the fair value of the assets distributed. The difference between the previously reported value and the fair value (based on the average traded price for the first day of trading on 29 March 2016) has been recognized in the income statement and amounted to a profit of SEK 73.1 million.

IBT’s prospectus for the upcoming rights issue was published on 27 April. To ensure the rights issue, BioGaia guaranteed the issue up to an amount of SEK 38 million. The rights issue was fully subscribed without any need to utilize BioGaia’s guarantee. BioGaia received interest income of SEK 1.4 million for the guarantee.

• Additional investment in MetaboGen In December 2014 BioGaia reported its decision to invest SEK 12 million in MetaboGen AB in Gothenburg, Sweden. The investment was to be made over a two-year period. The first investment of SEK 4 million took place in December 2014, the second in December 2015 and, as MetaboGen had reached the agreed milestones, the third investment of SEK 4 million was made at the end of November. BioGaia’s holding in MetaboGen thereafter amounts to 36%, a stake the company has no plans to change at present.

MetaboGen is a research company that was founded in 2011 in Gothenburg by Professor Fredrik Bäckhed at the University of Gothenburg and Professor Jens B. Nielsen at Chalmers University of Technology, together with GU Holding. MetaboGen conducts research on metagenomics, the research-intensive and fast developing field concerned with sequencing of all genes in the microbial communities of for example the human gut, to find previously unknown members and patterns of the microbial diversity related to health and disease. The aim is to develop new treatments and products for different metabolic and other microbial associated diseases by influencing large parts of the microbiota. Peter Rothschild is Board Chairman and Sara Malcus is President of MetaboGen AB. At the beginning of December, MetaboGen announced that it had started a study on intrahepatic cholestasis of pregnancy together with Ferring. The study commenced in December and is expected to continue for 18 months. BioGaia’s investment in MetaboGen is long term and aimed at developing the next generation of probiotic products, based on in-depth analyses of the microbiome. The research field is expanding rapidly and a number of large pharmaceutical ­companies have invested in microbiome companies.

KEY EVENTS AFTER THE END OF THE YEAR

• BioGaia’s probiotic launched in Thailand In January BioGaia signed an exclusive

agreement with Abbott for the rights to sell BioGaia’s products in the area of pediatrics and gastroenterology in Thailand. The products will be marketed with a combination of BioGaia’s and Abbott’s brands. The launch is planned for 2017.

LAUNCHES IN 2016

1)

38

DISTRIBUTOR/LICENSEE

COUNTRY

PRODUCT

BRAND

Abbott/Recalcine

Chile

Prodentis oral health lozenges

BIoGaia

Alimentary Health

Ireland

LifeTop Straw (CapAble AB)

Partner brand

Axero

Sri Lanka

Drops and digestive health tablets

BioGaia

Baltic Business Partners

Lithuania

Prodentis oral health lozenges

BioGaia

Biovagen

Vietnam

Tablets

BioGaia

BioWellTech

Hong Kong

Prodentis oral health lozenges

BioGaia

Casen/Recordati

Spain

Gastrus digestive health tablets, Easy Dropper1)

BioGaia

Dong Sung

South Korea

Protectis digestive health tablets with strawberry flavour and Easy Dropper1),

BioGaia co-brand

Everidis

USA

Gastrus digestive health tablets and Easy Dropper1)

BioGaia

Ewopharma

Czech Republic, Slovenia and Croatia

Easy Dropper1)

BioGaia

Interbat

Indonesia

Protectis digestive health tablets with strawberry flavour

BioGaia co-brand

Italchimichi

Italy

Easy Dropper1) with vitamins D and K

Partner brand

J Health

Hong Kong

Drops with vitamin D

BioGaia co-brand

NeoCare

Belgium

Easy Dropper1)

BioGaia

Nestlé

Mexico

Growing Up milk with Lactobacillus reuteri Protectis

Partner brand

Noos

Italy

Easy Dropper with vitamins D and K

Partner brand

Noos

Italy

Gastrus digestive health tablets

BioGaia

Pediact

France

Easy Dropper

BioGaia

Pharmaforte

Singapore

Gastrus digestive health tablets

BioGaia

1)

1)

Unilab

Philippines

Protectis digestive health tablets with strawberry flavour

BioGaia Co-branding

Verman

Finland

Easy Dropper1)

Partner brand

New, user-friendly package for drops.

B I O G A I A A N N U A L R E P O R T 2016

Profile for BioGaia

2016 Financial information and Notes BioGaia  

2016 Financial information and Notes BioGaia  

Profile for biogaia