Result and operating expenses Gross margin on sales was 40% vs. 41% in 2023, but lower sales and operating leverage resulted in a noticeable decline in adjusted EBITDA to PLN 30.9 million, down 48% y/y for the full year 2023. In accounting terms, the operating result was supported by nonrecurring events - the total balance of other operating income and expenses amounted to +PLN 19.4 million, including the write-off of an overdue liability for additional consideration resulting from the November 22, 2012 agreement between Troqueera Enterprises Limited and Bioton S.A. for the sale of shares in Biolek sp. z o.o. in the amount of PLN 10.3 million. Selling expenses in 2023 increased by 17% y/y, while general and administrative expenses were stable. Net income in 2023 was PLN 2.3 million (vs. PLN 1.4 million in 2022).
Analog project and other initiatives Management reports that correspondence with Yifan indicates a change in the business model of cooperation with the company in the Glargine and Lispro insulin analog projects. According to this correspondence, Yifan is considering a change in the current model of cooperation under the agreement, which could result in the transfer of the API and final drug technology to the company; or Yifan providing the API and the company manufacturing the final drug using Yifan's technology. In either case, the company will be the main supplier of final drug products in Europe.
The company's strategy is to continue developing analogs based on its own technology or Yifan's technology, or through other avenues such as licensing agreements and purchasing APIs to advance its drug product technology project. The company is considering and analyzing a number of strategic projects to ensure the development of its product portfolio. Agreements have also been reached on CMO opportunities for GLP-1 Liraglutide, and the company is negotiating final agreements. Management is also looking for partners to take full advantage of the plant's CDMO and CMO strategies, and is developing international markets to increase sales of insulin currently in production
