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EQS-News: BRAIN Biotech AG / Key word(s): Half Year Results/Half Year Report
BRAIN Biotech AG receives major milestone payment and stays on-track to achieve year end targets
2024-05-28 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
BRAIN Biotech AG receives major milestone payment and stays on-track to achieve year end targets
. Major milestone payment from pharma-project of EUR 1.5 million received
. BioProducts business growth accelerated in Q2, further acceleration expected throughout H2
. On-track to meet fiscal year end targets
. Significantly strengthened cash position
Zwingenberg, Germany, May 28^th, 2024 - BRAIN Biotech AG, a leading provider of integrated solutions for the
biologization of industry, today published its half year results, 6M 2023/2024. BRAIN received a significant milestone
payment of EUR 1.5 million in its second quarter for the successful development progress in the out-licensed active
pharmaceutical ingredient program with deucrictibant (formerly PHA121). Overall cash on hand almost doubled to EUR 10.2
million compared to September 30, 2023. The company stays fully on track to meet its business year targets for FY 2023/
24.
In the first six months of the 2023/2024 financial year, BRAIN Biotech Group generated revenues of EUR 27.2 million,
which is at the same level as the previous year. In the second quarter of 2023/24, revenue increased by EUR 1.0 million
or 7.4 % to EUR 14.5 million. Total operating performance decreased by 2.6 % from EUR 28.1 million to EUR 27.4 million in the
first six months of the financial year. This was primarily due to negative changes in inventories and lower other
income compared to the same period of the previous year. The adjusted Group EBITDA in the first half of the 2023/24
financial year improved by EUR 0.4 million from EUR -0.9 million in the previous year to EUR -0.5 million.
Adriaan Moelker, CEO of BRAIN Biotech AG says: "The significant EUR 1.5 million milestone payment from our licensee
Pharvaris clearly demonstrates that we are starting to harvest the fruits of our past investments and that our
BioIncubator pipeline increasingly creates value. We continue to aim for accelerated commercialization of our many
BioIncubator projects." Moelker adds, "I am also very pleased that the growth in the BioProducts segment has
accelerated in the second quarter as forecasted and I remain confident that the second half in our products business
will be even stronger."
Development of segments
In the BioProducts segment, which comprises the product business with specialty enzymes and other proteins, revenues
decreased by 5.0 % from EUR 20.9 million to EUR 19.8 million in the reporting period. Total operating performance amounted
to EUR 19.7 million, down 6.5 % on the same quarter of the previous year. Revenues in the second quarter totaled EUR 10.5
million, an encouraging increase compared to EUR 9.3 million in the first quarter of the financial year. The cost of
materials was reduced from EUR 11.5 million to EUR 10.2 million. This led to an improved cost of materials ratio compared
to the same period of the previous year. Overall, the BioProducts segment's adjusted EBITDA fell from EUR 2.2 million to
EUR 1.7 million, primarily due to the lower revenues.
The BioScience segment which includes research-intensive custom solutions based on enzyme technology, strain
development, bioprocess development and natural product screening generated revenues of EUR 5.8 million in the reporting
period, which corresponds to a decrease of 5.3 % compared to the same period of the previous year (EUR 6.1 million).
Thanks to stringent project controlling and good general cost control, the segment's adjusted EBITDA was maintained at
the previous year's level of EUR 0.0 million.
Revenues of the BioIncubator segment, which covers revenues from own R&D projects or those initiated with partners
increased significantly from EUR 0.2 million to EUR 1.6 million in the reporting period compared to the same period of the
previous year. A large milestone in the deucrictibant project (PHA121) was successfully achieved in the reporting
quarter, making a significant contribution to the growth in revenues. The strong revenue growth is also reflected in
the segment's adjusted EBITDA, which improved from EUR -1.5 million in the previous year to EUR -0.5 million. Overall, the
segment continues to be characterized by high investments of EUR 1.5 million in the area of genome editing under the
brand name Akribion Genomics.
The BRAIN Biotech Holding segment mainly includes personnel expenses and other expenses for Group administration,
further development of the BRAIN Biotech Group, stock exchange listing and M&A activities. The adjusted EBITDA of the
segment amounted to EUR -1.7 million and was therefore only slightly below the previous year's level (EUR -1.6 million).
The financial year guidance remains unchanged to achieve revenues in a range of EUR 58 - 62 million with an adjusted
EBITDA to rise, at least, in-line with the revenue growth.
Key financials (first six months of the financial year 2023/24)

(in EUR million)                     6M         6M 
2023/24    2022/23 
Revenues                          27.2       27.2 
BioProducts                       19.8       20.9 
BioScience                        5.8        6.1 
BioIncubator                      1.6        0.2 
Total operating performance^1     27.4       28.1 
Adjusted EBITDA^2                 -0.5       -0.9 
EBITDA                            -0.9       -1.3 
Operating cash flow               -3.2       -5.6 

31.03.2024 30.09.2023
Cash and cash equivalents 10.2 5.4
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1 Revenues + change in inventories + other income including R&D grants

2 The reconciliation from adjusted to unadjusted EBITDA can be found in the 6M report for the period October 1, 2023 to March 31, 2024 Further information

BRAIN Biotech AG 6M Report 2023/24: https://www.brain-biotech.com/investors/financial-news

About BRAIN Biotech

BRAIN Biotech AG is a leading European supplier of bio-based products and solutions such as enzymes and proteins, microbial production strains, natural compounds and biotechnological solutions for more sustainable industrial processes. The company focuses on the fields of nutrition, health and environment.

BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. The Group's business activities are divided into three segments: The BioProducts segment comprises the product business with specialty enzymes and other proteins, for which the Group operates fermentation facilities in the United Kingdom and production facilities in continental Europe and the United States. The BioScience segment offers research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening. The BioIncubator segment conducts its own R&D projects or those initiated with partners with high value-added potential. A particularly promising incubator project is the development of the Company's own CRISPR-based gene editing technology platform, which is currently being established and expanded by Akribion Genomics (in foundation planning).

Through its own R&D activities, BRAIN Biotech Group is continuously expanding its product portfolio in the field of specialty enzymes and small molecules. The latter are the starting point for screenings, e.g. for novel drug candidates for pharmaceutical applications.

BRAIN Biotech AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since February 9, 2016 (ticker symbol: BNN; securities identification number: ISIN DE0005203947 / WKN 520394). The company employs approximately 330 people and generated revenues of EUR 55.3 million in the fiscal year 2022/23.

For more information, please visit: https://www.brain-biotech.com, LinkedIn, Threads and YouTube.

Contact Media Dr. Stephanie Konle PR & Corporate Communications Phone: +49 6251 9331-70 Email: stk@brain-biotech.com

Contact Investor Relations Martina Schuster Investor Relations Phone: +49 6251 9331-69 Email: ms@brain-biotech.com

Disclaimer

This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management.

Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, as well as other factors.

BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.

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2024-05-28 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

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