Results for the year ended 30 June 2023

• Profit before tax up 9% to £10.13 million (2022: £9.28 million)
• Cash at year end of £5.7 million (30 June 2022: £6.1 million)
• Second interim dividend of 90p per share (2022: 74p)
• Total dividends 152p per share (2022: 152p)

Introduction and Technology

Most of our antibodies are used on blood-testing machines installed in hospitals and other laboratories around the world. Bioventix makes antibodies using our SMA technology for supply to diagnostic companies for subsequent manufacture into reagent packs used on blood-testing machines. These blood-testing machines are supplied by large multinational in vitro diagnostics (IVD) companies such as Roche Diagnostics, Siemens Healthineers, Abbott Diagnostics & Beckman Coulter. Antibody-based blood tests are used to help diagnose many different conditions including, amongst others, heart disease, thyroid function, fertility, infectious disease and cancer.

Testosterone is an example of a blood test where a Bioventix SMA has facilitated an improved test. In 2003, it became clear that testosterone tests performed on automated IVD platforms were deficient. Whilst the higher levels of testosterone in healthy adult males were accurately reported, the lower levels of testosterone in pre-pubescent boys and women were inaccurately reported. In 2005, Bioventix created an antibody called testo3.6A3 which was evaluated by customers during 2006. Evaluations were successful and following the necessary regulatory approvals, the first testosterone assays based on testo3.6A3 were launched in 2009. A number of IVD companies now use this antibody for revised tests that more accurately measure lower levels of testosterone.

Over the past 18 years, we have created and supplied approximately 20 different SMAs that are used by IVD companies around the world. We currently sell a total of 15-20 grams of purified physical antibody per year, the vast majority of which is exported. In addition to revenues from physical antibody supplies, the sale by our customers of diagnostic products (based on our antibodies) to their downstream end-users attracts a modest percentage royalty payable to Bioventix. These downstream royalties currently account for approximately 70% of our annual revenue.

Bioventix adopts one of two commercial approaches when creating new antibodies. The first is own-risk antibody creation projects which gives Bioventix the complete freedom to commercialise the antibodies produced. The second is contract antibody creation projects in partnership with customers who supply materials, know-how and funding and to create antibodies that can only be commercialised with the partner company. In both cases, after initiation of a new project, it takes around a year for our scientists to create a panel of purified antibodies for evaluation by our customers. The evaluation process at customers' laboratories generally requires the fabrication of prototype reagent packs which can be compared to other tests, for example the customer's existing commercial test or perhaps another "gold standard" method, on the assay machine platform being considered. The process of subsequent development thereafter by our customers can take many years before registration or approval from the relevant authority, for example the US Food and Drug Administration (FDA) or EU authorities, is obtained and products can be sold to the benefit of the customers, and of course Bioventix, through the agreed sales royalty. This does mean that there is a lead time of 4-10 years between our own research work and the receipt by Bioventix of royalty revenue from product sales. However, because of the resource required to gain such approvals, after having achieved approval for an accurate diagnostic test using a Bioventix antibody, there is a natural incentive for continued antibody use. This results in a barrier to entry for potential replacement antibodies which would require at least partial repetition of the approval process arising on a change from one antibody to another. This barrier to antibody replacement arises from a combination of factors driven by the clinical criticality of the test and the potential consequences of making such a change which include the time and cost to register any changes required to validate the performance of the replacement antibody.

Another consequence of the lengthy approval process is that the revenue for the current accounting period is derived from antibodies created many years ago. Indeed, revenue growth over the next few years from, for example the troponin antibodies, will come from research work already carried out more than ten years ago. By the same dynamics, the current research work active at our laboratories now is more likely to generate sales in the period 2028-2038.

2022/2023 Financial Results

We are pleased to report our results for the financial year ended 30 June 2023. Revenues for the year increased by 9% to £12.8 million (2021/22: £11.7 million). Profits before tax for the year also increased by 9% to £10.1 million (2021/22; £9.3million). Cash balances at the year-end were £5.7 million (30 June 2022 £6.1 million).

Our most significant revenue stream continues to come from the vitamin D antibody called vitD3.5H10. This antibody is used by a number of small, medium and large diagnostic companies around the world for use in vitamin D deficiency testing. Sales of vitD3.5H10 increased by 7% to £5.8 million which reflects analysts' expectation for a relatively mature global IVD market.

Sales of our other core historic antibodies are featured below with the respective percentage increase/decrease from 2021/22:

• T3 (tri-iodothyronine): £.1.14 million (+23%)
• biotins and biotin blockers: £0.85 million (-5%)
• progesterone: £0.75 million (+21%)
• estradiol: £0.56 million (-6%)
• testosterone: £0.46 million (-3%)
• drug-testing antibodies: £0.40 million (+6%)

Troponin is the preferred biomarker to help diagnose heart attacks. Under an antibody creation contract previously undertaken with a company subsequently acquired by Siemens, SMAs were created that facilitated an improved troponin test that was launched by Siemens in 2017. Total troponin antibody sales from Siemens Healthineers and another separate technology sub-license increased by 30% during the year to £1.61 million (2021/22: £1.23 million). Whilst the percentage growth is less than last year, we have no reason to doubt that prospective troponin sales in 2024 and beyond will increase in line with analysts' forecast until June 2032 when contractual payments from our contract with Siemens will cease.

Our shipments of physical antibody to China continued to increase. Some sales are made directly but the majority are made through five appointed distributors. Regulatory approvals for domestic Chinese customers have considerable lead times but we continue to see modest increases in royalty payments flowing from these customers. The prospects for further growth in China are good although we detect pressure on downstream final assay prices that has resulted from aggressive purchasing on the part of centralised procurement organisations. This could exert pressure on Bioventix as we supply relatively high-cost reagents. We also recognise that continued antibody technology development in China and elsewhere constitutes a longer-term threat. In addition, relative global geopolitical stability will be important for the continued trade in technology products such as our antibodies.

We estimate that between 50% and 60% of our total revenue is either directly linked to US Dollars via physical product pricing in Dollars or indirectly linked to US Dollars via royalties based on downstream Dollar sales. The remainder of the currency split is dominated by Euros and important Asian currencies. In past year, exchange rates have been relatively stable compared to the previous 12 months. Our view continues to be that hedging mechanisms would not, in the longer term, add value and may have the potential to add risk to our business. Consequently, future movements in exchange rates may therefore affect our Sterling revenues.

Cash Flows and Dividends

As reported above, the performance of the business during the year generated cash balances at the year-end of £5.7 million and royalties received during quarter 3 of 2023 have added to this balance.

The Board has determined that it is appropriate to maintain the established dividend policy in the immediate future. For the current year, the Board is pleased to announce a second interim dividend of 90 pence per share which, when added to the first interim dividend of 62 pence per share makes a total of 152 pence per share for the current year.

Our view continues to be that maintaining a cash balance of approximately £5 million is sufficient to facilitate operational and strategic agility both with respect to possible corporate or technological opportunities that might arise in the foreseeable future. We have therefore decided to distribute surplus cash in our second interim dividend thereby maintaining our total distribution to shareholders at 152 pence per share, the same value as that paid for the previous financial year

Accordingly, a dividend of 90 pence per share will be paid in November 2023. The shares will be marked ex-dividend on 9 November 2023 and the dividend will be paid on 24 November 2023 to shareholders on the register at close of business on 10 November 2023.

Changes in the rate of Corporation Tax came into effect from 1 April 2023 increasing the rate of tax from 19% to 25%. This affected the business for the last quarter of 2022/23 and will reduce full year cashflows in 2023/24.

Research and Future Developments

Over the next few years, the continued commercial development of the new troponin assays and their roll out by our customers will have the most significant influence on Bioventix sales.

We have undertaken a range of new research projects over the previous few years and in the table below we have illustrated our current view of their potential value and probability of success:

Increasing probability of success →

Whilst antibodies in the future pipeline are at stages of testing and development that do not allow us to make any prediction about their definitive value and influence on future revenues there has still been encouraging progress.

Over the last few years, a considerable amount of lab resource has been allocated to the tau project and Alzheimer's disease (AD) diagnostics. AD is a complex disease that manifests itself differently across the patient population. At a cellular level, nerve cells (neurons) become associated with amyloid (A) plaques that build up outside the neurons. This is followed by the build-up of tau (T) tangles inside the neurons. These pathological processes then result in neuronal cell death and the symptoms of neurodegeneration (N) that accompany this. This "ATN" framework is used by neurologists to define the disease pathway that progresses many years before patient symptoms become more obvious.

Recent clinical trials of AD therapeutics have produced remarkable results and there are now two therapeutic agents (Lecanemab from EISAI Pharma and Donenamab from Eli Lilly) that whilst not a cure, have been demonstrated to slow the disease process. Patients presenting early in the ATN pathway appear to benefit most from therapy and ATN assessments can therefore be used to screen for patients suitable for therapy and also for monitoring patients whilst on therapy.

The ATN status of patients can be defined with the use of PET scans using appropriate amyloid and/or tau contrast agents together with other assays for biomarkers in cerebral spinal fluid. It would be desirable if such diagnostic procedures could be replaced or augmented with cheaper convenient blood tests.

Bioventix has been working with the University of Gothenburg since early 2020 to create new antibodies to tau and to develop prototype assays for use in AD.

A leading blood biomarker for "A" is a phosphorylated form of tau called pTau217. A prototype assay from Gothenburg using an SMA has now been established which has performed well with frozen patient samples from a number of different cohorts. The "effect size" (AD patients relative to controls) has been x2-4 which is similar to other leading groups and likely to be clinically useful. The percentage of false positives and false negatives is also relatively modest confirming potential clinical utility.

For more scientific detail, see: "A novel ultrasensitive assay for plasma p-tau217: performance in individuals with subjective cognitive decline and early Alzheimer's disease", Fernando Gonzalez-Ortiz, Journal of the Alzheimer's Association, accepted for publication October 2023.

A novel blood-based prototype assay for neurodegeneration (N) using another Tau SMA has also been developed in Gothenburg. This work clearly supports the potential utility of this blood test and further work is on-going in Gothenburg with further publications planned.

For more detailed scientific information, see:

"Brain-derived tau: a novel blood-based biomarker for Alzheimer's disease-type neurodegeneration", Fernando Gonzalez-Ortiz, BRAIN 2022: 00, and:

"Levels of plasma brain-derived tau and p-tau181 in Alzheimer's disease and rapidly progressive dementias", Fernando Gonzalez-Ortiz, Journal of the Alzheimer's Association, accepted for publication October 2023".

Precisely how Alzheimer's therapies will be adopted in the future and how blood tests will be used to support these therapies will become clearer over the coming years. It is quite likely that large IVD companies will be part of this development and we have already sent sample SMAs to some interested parties, accepting that other tau antibodies and assays already exist. Expert neurology centres are likely to adopt "research use only" tests in advance of the availability of other tests through hospital-orientated IVD companies. The prototype Gothenburg tests are run on Quanterix (Billerica, MA) machines and so a partnership with Quanterix would be desirable in this research use field.

Our partners at CardiNor, also in Oslo, have continued with their work to try and identify the possible utility of secretoneurin in heart failure patients and in particular those patients who might be candidates for implantable cardiac devices (ICDs).

Our pyrene lateral flow system for industrial pollution biomonitoring completed a second field trial at a UK industrial site during quarter 2 of 2023. This went well and we plan to conduct additional site studies during 2024. The progress of the pyrene project has encouraged us to develop additional assays for benzene and isocyanates, also in the field of industrial health and safety. Benzene exposure is of relevance to the petroleum industry and isocyanates are hazardous chemicals used in the manufacture of polyurethane paints and plastics. This work will continue into 2024 and 2025.

Future Strategy

We have previously identified diagnostic biomarkers that we believe suit our antibody technology and have found academic collaborators who have seen merit in working with Bioventix. The tau project and our collaboration with the University of Gothenburg is an excellent example of this strategy and we will seek additional such opportunities in the future.

We will continue to rely on our core SMA antibody creation technology which consistently helps us to create superior antibodies for our research projects. We are also incorporating additional newer technologies where such technologies are helpful to us. We have successfully created "sandwich" assay formats for pyrene and THC/cannabis using a combination of primary SMA technology and a secondary synthetic "anti-complex" antibody created using the "antibody library" technology of a third party. The synergy of the two technologies provided unique solutions to pyrene and THC/cannabis and we will seek more such opportunities in the field of small molecule detection.

The Bioventix Team and Facility

The composition of the Bioventix team of 12 full-time equivalents has remained stable over the year facilitating excellent performance and know-how retention. The past few years have been a challenging period for everyone and we are very grateful to the team at Bioventix for their dedication over this period. This has allowed us to adapt and modify our business to cope with changing circumstances and to maintain the progress of our business.

Supply chain issues relating to plastics and chemical reagents have eased considerably since the pandemic but price increases have been imposed by most suppliers. This has added further incentive to increase the productivity of our manufacturing processes.

Change of Name of Nominated Adviser and Broker

The Company also announces that its Nominated Adviser (NOMAD) and Broker has changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.

Conclusion and Outlook

We are pleased with our financial results for the year which we believe reflect steady growth in the use of our established products and the continued roll-out of the high sensitivity troponin assays.

Excellent technical progress has been made with our research projects and we anticipate that our pipeline of opportunities will create additional shareholder value in the later 2020s and 2030s and we look forward to further progress in the years ahead.

STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2023

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2023

Cash and cash equivalents at the end of year comprise:

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

General information

Bioventix Plc (04923945), a company creating and manufacturing sheep monoclonal antibodies, is a public limited company registered in England and Wales. The Registered Office is 27-28 Eastcastle Street, London, W1W 8DH and its principal place of business is 7 Romans Business Park, East Street, Farnham GU9 7SX.

Accounting policies

2.1 Basis of preparation of financial statements

The following principal accounting policies have been applied:

2.2 Revenue

Direct sales

R&D income

Subcontracted R&D income is recognised based upon the stage of completion at the year-end.

Licence revenue and royalties

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Accounting policies (continued)

2.3 Foreign currency translation Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

2.4 Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5 Finance costs

2.6 Pensions

Defined contribution pension plan

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Accounting policies (continued)

2.7 Current and deferred taxation

2.8 Research and development

Research and development expenditure is written off in the year in which it is incurred.

2.9 Tangible fixed assets

Freehold property - 2% straight line

Plant and equipment - 25% straight line

Motor Vehicles - 25% straight line

Fixtures & Fittings - 25% straight line

Office equipment - 25% straight line

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Accounting policies (continued)

2.10 Valuation of investments

2.11 Stocks

2.12 Debtors

2.13 Cash and cash equivalents

2.14 Creditors

2.15 Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Accounting policies (continued)

2.16 Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.17 Dividends

2.18 Employee benefits-share-based compensation

• Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies (as described in note 2), management is required to make judgments, estimates and assumptions. These estimates and underlying assumptions are reviewed on an ongoing basis.

Carrying value of Unlisted investments

The Company holds two unlisted investments in companies carrying out research in identifying biomarkers for diagnosing health conditions. The directors have reviewed the progress of this research over the last year. In common with much scientific research there is uncertainty, both in relation to the science and to the commercial outcome, and no information to be able to reliably calculate a fair value for these investments. The carrying value of these investments will continue to be historic cost.

Valuation of Share based payments

The Company operates two share option schemes: an Approved EMI Share Option Scheme and an Unapproved Share Option Scheme. In calculating the charge to profit or loss in respect of options granted to employees under these schemes the Company has applied the requirements of FRS 102 which includes making estimates for both the expected volatility of the Company's shares and the risk free interest rate the details of which are shown in Note 21 to the accounts.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

The average monthly number of employees, including the directors, during the year was as follows:

• No.

Management and administration 5 5

Scientific 11 11

16 16

Directors' remuneration

£ £

Directors' emoluments 412,059 368,996

Company contributions to defined contribution pension schemes 36,890 12,578

448,949 381,574

During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Interest receivable

£ £

Other interest receivable 101,094 4,804

101,094 4,804

Interest payable and similar expenses

£ £

Other interest payable - 303

• 303
• Taxation

Corporation tax

£ £

Current tax on profits for the year 1,788,254 1,637,682

Total current tax 1,788,254 1,637,682

Deferred tax

Origination and reversal of timing differences (26,052) (33,808)

Total deferred tax (26,052) (33,808)

Taxation on profit on ordinary activities 1,762,202 1,603,874

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Taxation (continued)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

Factors that may affect future tax charges

The rate of corporation tax increased from 19% to 25% on 1 April 2023. This change will increase the tax charge in future years such that, had the change been effective for in place throughout the current year, it would have increased by £ 392,980, from £ 1,762,202 to £ 2,155,182.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Tangible fixed assets

Freehold propert Plant & Machinery Motor Vehicles Fixtures & Fittings Ofice Equipment

£ £ £ £ £

Cost

At 1 July 2022 475,000 472,107 13,090 407,115 36,610

Additions - 7,420 - - 3,163

Disposals - - - - (248)

At 30 June 2023 475,000 479,527 13,090 407,115 39,525

Depreciation

At 1 July 2022 149,625 326,064 4,909 205,457 23,497

Charge for the year on

owned assets 7,125 55,962 3,273 58,137 4,730

Disposals - - - - (248)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Included within land and buildings is freehold land at cost of £118,750 which is not depreciated. (2022 -

£118,750).

Fixed asset investments

Unlisted Investments

£

Cost

At 1 July 2022 610,039

At 30 June 2023 610,039

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

The provision for deferred taxation is made up as follows:

10,323 ordinary shares were issued during the year at £13.50 per share.

Reserves

Share premium account

Capital redemption reserve

The capital redemption arose on the buy-back of shares by the company.

Profit & loss account

Share based payments

During the year the company operated 2 share option schemes; an Approved EMI Share Option Scheme and an Unapproved Share Option Scheme to incentivise employees.

The company has applied the requirements of FRS 102 Section 26 Share-based Payment to all the options granted under both schemes. The terms for granting share options under both schemes are the same and provide for an option price equal to the market value of the Company's shares on the date of the grant and for the Approved EMI Share Option Scheme this price is subsequently agreed with HMRC Shares and Assets Valuation Division.

The contractual life of an option under both schemes is 10 years from the date of grant. Options granted become exercisable on the third anniversary of the date of grant. Exercise of an option is normally subject to continued employment, but there are also considerations for good leavers. All share based remuneration is settled in equity shares.

Weighted average exercise price (pence) 2023 Number 2023 Weighted average exercise price (pence) 2022 Number 2022

Outstanding at the beginning of the year 2896 51,996 2942 53,702

Granted during the year 3855 39,708 -

Forfeited during the year 3855 (4,101) 3855 (1,706)

Exercised during the year 1350 (10,323) -

Outstanding at the end of the year 77,280 51,996

Option pricing model used Black Scholes Black Scholes

Issue price £13.50- £38.50 £13.50-£38.55

Exercise price (pence) £13.50-£38.50 £13.50- £38.55

Option life 10 years 10 years

Expected volatility 7.459% 25.15%

Fair value at measurement date £4.66 -£26.91 £4.66 -£26.91

Risk-free interest rate 1.5% 1.8%

The expected volatility for the options issued in the year is based upon the volatility over the past 12 months. For previous years it was based upon the historical volatility over the period since the Company's shares were listed on AIM.

The expense recognised for share-based payments during the year ended 30 June 2023 was £174,080 (2022 : £244,871).

The number of staff and officers holding share options at 30 June 2023 was 16 (2022: 13). The share options have been issued to underpin staff service conditions.

Earnings per share

The weighted average number of shares in issue for the basic earnings per share calculation is 5,212,220 (2022: 5,209,333) and for the diluted earnings per share, assuming the exercise of all share options is 5,289,501 (2022: 5,259,831).

The calculation of the basic earnings per shares is based on the profit for the period of £8,372,241 (2022:

£7,674,151) divided by the weighted average number of shares in issue of 5,212,220 (2022: 5,209,333), the basic earnings per share is 160.63p (2022: 147.32p). The diluted earnings per share, assuming the exercise of all of the share options is based on 5,289,501 (2022: 5,259,831) shares and is 158.28p (2022: 145.90).

Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently adminstered fund. The pension charge represents contributions payable by the company to the fund and amounted to £71,512 (2022: £34,563). No contributions were owing at the year end (2022: £nil).

Related party transactions

During the year a dividend of £775,764 (2022: £633,348) was paid to a director and his wife.

Controlling party

During the year there has not been an individual controlling party.

Earnings per share

The weighted average number of shares in issue for the basic earnings per share calculation is 5,212,220 (2022: 5,209,333) and for the diluted earnings per share, assuming the exercise of all share options is 5,289,501 (2022: 5,259,831).

The calculation of the basic earnings per shares is based on the profit for the period of £8,372,241 (2022: £7,674,151) divided by the weighted average number of shares in issue of 5,212,220 (2022: 5,209,333), the basic earnings per share is 160.63p (2022: 147.32p). The diluted earnings per share, assuming the exercise of all of the share options is based on 5,289,501 (2022: 5,259,831) shares and is 158.28p (2022: 145.90).

Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently adminstered fund. The pension charge represents contributions payable by the company to the fund and amounted to £71,512 (2022: £34,563). No contributions were owing at the year end (2022: £nil).

Related party transactions

During the year a dividend of £775,764 (2022: £633,348) was paid to a director and his wife.

Controlling party

During the year there has not been an individual controlling party.