CEO Statement



ESPERITE stronger strategy and markets positions than before, but late on schedule.
CRYOSAVE fell short due to major changes in workflow, GENOMA on a sharp growth for its strategic expansion.


Straight to the point: consolidated revenues were lower than expected as we bore higher costs, due to two different market dynamics. The stem cells market was destabilized as a result of aggressive, albeit short-lived, pricing strategies of various competitors. On the other hand, the genetic test market showed vast and earlier than anticipated opportunities at our reach; we needed to get prepared and invest accordingly in GENOMA, now a solid division with a winning strategy, growing consistently on an average 10% every month.


As I write these lines, the EBITDA for the group is already back to positive in the current month, consistent with the ongoing positive trend.


During the reporting period, we made significant investments to support the scientific development of our portfolio. We didn’t spare efforts to conceive and implement our methods and protocols, properly validated to enhance our products and pipeline; I can assure that it will pay off and support our future growth. We also anticipated the surge of the market and configured our organization for mass market demand.
ESPERITE has built a group of companies and a unique identity within a short timeframe. In a year characterized by challenging macroeconomic conditions and volatility, we made significant progress implementing our strategy.


CRYOSAVE remains the undisputed European leader in the stem cells industry after 15 years of technological and commercial excellence. Compliance for stem cells storage required additional unexpected investments in logistics and laboratories. Processing activities in Belgium ceased and operations are now consolidated in Switzerland, our new flagship laboratory, enjoying a more favorable regulatory and safety environment.


GENOMA, one year after its birth, is healthy and growing substantially every month, as per the forecasted curve. The company is executing its commercial strategy and establishing alliances with the most prestigious health institutions in Europe. GENOMA has the implantation, sales force, logistic and technical capacity to sell and analyze thousands of samples every month. The acquisition of INKARYO strengthened performance and enhanced the portfolio of genetic tests.


We maintain our position in research and development using science-based innovation to accelerate new ideas, disrupt conventional healthcare business models and deliver better outcomes for patients and doctors. We are leading clinical trials for broader applications of exosomes and stem cells in regenerative medicine. We work in partnership with technology leaders to develop new genetic tests.


ESPERITE is well prepared going forward. We have elaborated agile operating models and applied further improvements simplifying support functions to provide services more efficiently. ESPERITE has incorporated work processes with clear goals and metrics supported by information technology systems, for a centralized approach that provides consistency and synergies across the company.


The growing number and variety of geographic markets in which we are present brings resilience and stability to our company. Now, we are invigorating with fresh ideas our stem cell division stressing translational application of offer for better market penetration. We are unfolding new marketing strategies for cross-selling. We are exploring niche markets in genomics. I am confident that these initiatives will bear fruit and will continue to strengthen our market position in 2016.


Frederic A. Amar