SOURCE: Dako Denmark A/S

March 23, 2011 06:04 ET

Dako continues to improve revenue and operating profit

GLOSTRUP, DENMARK--(Marketwire - March 23, 2011) - Today, Dako announced its annual results for 2010. The Denmark-based company presented all-time high revenue and operating profit.

"Dako finished 2010 with a strong momentum as we closed the year with all-time high revenues and operating profits. We have good reasons to believe that this trend will continue in 2011 and beyond," says CEO Lars Holmkvist.

Highlights from the annual results 2010:

* Dako realized net sales of DKK 1,913 million, up 7% on 2009 (2009: DKK 1,782 million). Measured in local currencies, Dako showed an annual organic growth of 4%.

* Operating profit before other income and expenses amounted to DKK 329 million, up 42% on 2009 (2009: DKK 232 million), which was in line with expectations.

* EBITDA before other income and expenses amounted to DKK 628 million (2009: DKK 499 million). This is 26% above 2009 and equivalent to a 33% EBITDA margin (2009: 28%).

* With the launch of the Dako CoverStainer, Dako ventured into the area of primary staining.

* Dako received FDA approval for HercepTest™ and HER2 FISH pharmDx™ for stomach cancer. Dako is the first company in the world to receive FDA approval for a HER2 test for stomach indication. Dako also launched several other important products in 2010.

* Dako entered a large framework agreement with AstraZeneca on the development of companion diagnostics for targeted cancer treatments. Dako also entered collaboration with Philips and Omnyx in the area of digital pathology. A strong pharmDx pipeline has been build for 2011.

* Dako established subsidiaries in Brazil and China in late 2009 and early 2010, respectively. Dako expects significant future growth opportunities in these markets.

Building sustainable growth in 2011

Going out of 2010, Dako Management took the necessary steps to prepare Dako for sustainable growth by redistributing back-office resources to customer-facing activities and investing in strategic R&D projects.

"Dako is well positioned to capitalize on the growth opportunities that the cancer diagnostic market offers," says Lars Holmkvist

Dako operates in an attractive growing market and the all-time high 2010 revenue and operating profit has furthered Dako's potential as a company. Dako expects continued organic sales growth in 2011 at a higher level than in 2010, and an improved and positive operating profit before other income and expenses.

Download the fullannual report 2010 from Dako's website.

Key figures                                                    2010    2009
                                                      ---------------------
DKK million                          2010    2009 % of revenue % of revenue
---------------------------------------------------------------------------
Revenue                           1,913.1 1,782.4

Gross profit                      1,297.8 1,205.3        67.8%        67.6%

Research and Development
 expenses and investments           273.4   240.2        14.3%        13.5%

Operating profit/loss before other
 income and expenses*               461.0   364.6        24.1%        20.5%

Operating profit/loss before other
 income and expenses                328.7   232.2        17.2%        13.0%

Net financials                     (505.9) (303.7)       26.4%        17.0%

Net profit/(loss) for the year*    (163.8)  (53.1)        8.6%         3.0%

Net profit/(loss) for the year     (260.3) (119.8)       13.6%         6.7%

EBITDA before other income and
 expenses                           628.4   498.6        32.8%        28.0%


*Excluding amortization of intangibles recognized in connection with the
acquisition of Dako


About Dako

Dako, based in Denmark, is a global leader in tissue-based cancer diagnostics. Hospital and research laboratories worldwide use Dako's know-how, reagents, instruments and software to make precise diagnoses and determine the most effective treatment for patients suffering from cancer. Employing more than 1,000 people and being present in more than 80 countries, Dako covers essentially all of the anatomic pathology markets globally. Dako is owned by a private equity fund, EQT. www.dako.com

Forward-looking statements

Forward-looking statements in this press release are subject to risks, inaccurate assumptions and uncertainties. The consequence is that the actual results do not meet expectations. The future results could be influenced by factors such as interest rate and exchange rate fluctuations, development projects failure, production issues, price decreases influenced by government and reimbursement rules, introduction of competitive products, Dako's capability to successfully market new and existing products, product liability exposure and other law suits together with unexpected growth in expenses.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Dako Denmark A/S via Thomson Reuters ONE

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