Hofseth BioCare earnings sink further into red

The company is concerned about its ability to sell products at sufficiently high prices going forward.

Jon Olav Ødegård, CFO Hofseth BioCarePhoto: Anders Furuset

Demi Korban

Norwegian biotechnology company Hofseth Biocare (HBC) closed out 2019 in the red again, as its operating loss reached NOK 79 million (€6.7 million/$7.2 million), a 3 percent increase over the previous year.

Gross operating revenues increased around 12 percent to NOK 67.8 million (€5.7 million/$6.2 million) in 2019, however, ordinary operating revenues were lower than expected as the company optimized production lines.

Widening losses were also reported in the year prior. The company is concerned about its ability to sell products at sufficiently high prices going forward.

At the end of last year, HBC had cash and cash equivalents of NOK 94.6 million (€8 million/$8.6 million), double the amount recorded the year before.

Land-based salmon farmer Atlantic Sapphire announced on Nov. 1 that it signed an agreement with HBC to establish a joint venture at the company's Miami farming site to produce byproducts from the company's offcuts.

The two firms plan on entering a definitive agreement in the first quarter of next year, with a target of limited byproducts production in the fourth quarter once Atlantic Sapphire kicks off the first phase of its planned 20,000 metric ton production.

Last week, HBC inked a distribution contract with ingredients supplier Prinova for marine products, exclusive to Europe only.