Sales divided between the business areas child health and adult health
• BioGaia signs exclusive agreement with the company Ethical Nutrition for sales of BioGaia Protectis drops and tablets in Argentina
• Study published showing that BioGaia’s probiotic for oral health L. reuteri Prodentis, reduces bleeding of the gums
• BioGaia’s Board revises its dividend proposal
• Study published showing that L. reuteri Protectis reduces pain in children with functional abdominal pain (FAP).
• BioGaia’s Board withdraws its proposal regarding an extra dividend
• BioGaia carries out a directed new share issue of 2.86 million class B shares, raising proceeds for the company of SEK 1.1 billion
• BioGaia warns of reduced sales due to Covid-19
(number of employees December 2020)
BioGaia Biologics Inc.
BioGaia Japan Inc.
BioGaia’s mission is to be the ground-breaking leader in probiotics and contribute to improved health by educating people and providing probiotic products for defined indications.
Parent Company BioGaia AB’s class B shares
are listed on the Mid Cap segment of the Nasdaq OMX Nordic Stockholm Exchange.
Food supplements with clinically-tested, high-quality probiotics that are sold through pharmacies and via online retail platforms. In most markets the products are recommended by doctors or other healthcare professionals. However, BioGaia is also meeting rising demand directly from consumers.
MESSAGE FROM THE CHAIRMAN
MESSAGE FROM THE CEO
BioGaia is a Swedish world-leading probiotic company that has been at the forefront of microbiome research for more than 30 years. BioGaia develops, markets and sells probiotic products with documented health benefits. The company operates throughout the value chain partly through the company and partly through global networks of leading, independent researchers and specialists, production experts and local distribution partners. The distribution partners are nutrition and pharmaceutical companies which sell BioGaia’s products in more than 100 countries.
BioGaia’s products contain strains of the lactic acid bacterium L. reuteri (Limosilactobacillus reuteri, formerly known as Lactobacillus reuteri). L. reuteri is one of few bacteria that has developed in symbiosis with humans. Due to this it naturally colonises and has a strong adaptation and interacts with us. Results from clinical studies with BioGaia’s probiotic strains have been published in more than 200 articles in scientific journals, proving that they are effective and safe in children and adults.
BioGaia wants to contribute to better health in the world by developing and offering clinically-proven and user-friendly probiotic products.
Founded by Peter Rothschild and Jan Annwall
IPO on Nasdaq Stockholm
BioGaia launches world’s first probiotic chewable tablets
Agreement with Ascendis (South Africa)
BioGaia launches the world’s first probiotic drops
Agreement with Verman (Finland)
Foundation to Prevent Antibiotic Resistance founded
Agreement with Abbott (Latin America, Asia)
BioGaia invests in MetaboGen
First agreement with Nestlé
Agreement with Ewopharma AG (Eastern Europe) and Ferring (Middle East)
Subsidiary BioGaia Japan founded
Click or hover to read more about BioGaia’s process through each step of the value chain
In the supply chain, BioGaia takes care of logistics as well as quality assurance and control of products and production.
BioGaia contributes to society by being a good citizen and by offering products that contribute to improved health
• SEK 49.7m in tax
• SEK 3.7m to charities
• Lower cost to society for ill health
BioGaia offers consumers probiotic products that contribute to improved health.
• 5 new products, all without palm oil
• 46 product launches in new and existing markets
BioGaia offers its employees a meaningful and stimulating workplace where employees feel job satisfaction
• 40% women in Executive Management
• 1,9% sickness absence 2020 (BioGaia AB)
• 160 employees
BioGaia contributes to increased knowledge of probiotics
• 14% of net sales to research and development
• 214 published articles (Dec 2020)
• 13,900 individuals have participated in studies (Dec 2020)
BioGaia builds long-term relationships with distributors and supports them within sales and marketing
• 90% have signed the Code of Conduct
• 7% average growth in past 5 years
BioGaia contributes to development of suppliers through long-term relationships and being a reliable partner
• 100% of key suppliers have signed the Code of Conduct
Through good risk management and a long-term strategy BioGaia offers a stable value appreciation for its shareholders
• 31% operating margin
During 2020 two trends in particular dominated the world: digitalisation and preventive health care with a focus on the immune system.
Sustainable companies are the future
Despite the pandemic, companies continued to invest in sustainability. Consumers and other stakeholders are becoming more and more aware and sustainability is increasingly a key requirement for purchases or collaboration.
Increased focus on sustainability
BioGaia is intensifying its work with sustainability and in 2020 took several key initiatives to ensure good business ethics, to improve environmental impact and offer a workplace that motivates and creates wellbeing.
Everyone talks about the immune system
The incentive to remain healthy and not be infected by Covid-19 has meant that interest in products that strengthen the immune system, including probiotics, has risen sharply. As an example, statistics show that the number of searches for ‘immune’ increased by more than 100% between June 2019 and June 2020 (Lumina Intelligence 2020). Awareness that probiotics, in particular in combination with vitamin D, have immune strengthening effects has also increased.
Upswing for probiotics with vitamin D
BioGaia has been offering probiotic products combined with vitamin D, which has positive effects on health, for several years.
Digitalisation at rocket speed
Lockdowns and restrictions on physical meetings have led people to investigate the digital alternatives. Groups of people who previously never used this technology have been tempted – or forced – to go digital. This transition has also been very fast and in many cases become ‘the new normal’.
BioGaia’s digital journey
Like so many other companies, BioGaia has where possible transitioned to a smoothly functioning digital operation, both internally and externally. Together with distribution partners in more than 100 countries, a large number of webinars and virtual production launches have been arranged. BioGaia has also intensified the work of making its products available online.
Development of antibiotic resistance is not taking time out
The focus on the pandemic has overshadowed another future global catastrophe, galloping antibiotic resistance. According to field reports and surveys from WHO/Europe, there is a risk of an increased spread of antibiotic resistance in Europe since erroneous use of antibiotics has increased as a result of the pandemic.
More probiotics, fewer antibiotics
Due to their immune-strengthening effects probiotics can play a key role in the fight against antibiotic resistance. A study published in the European Journal of Public Health shows for example a correlation between intake of BioGaia’s probiotic L. reuteri DSM 17938 and a reduced need of antibiotics for children.
The foundation started by BioGaia in 2017 makes a financial contribution to research and information about measures that reduce the need for antibiotics. In 2021, funds will be distributed to projects with a focus on preventive measures in elderly people.
Linda Hägglund, Marketing Manager and Johannes Asplund, Global Digital Business Manager will target the consumers.
BioGaia is looking to the future and has strengthened the Board with valuable skills and experience from relevant sectors and areas.
BioGaia’s products are clinically-tested, high-quality probiotics sold by pharmacies and via online platforms worldwide. The product range includes oil drops, chewable tablets and lozenges, capsules and oral rehydration solution (ORS). In most countries the products are registered as a food supplement.
Paediatrics account for almost 80% of total sales and the largest product is BioGaia Protectis drops.
Four products for children
• BioGaia Protectis drops
• BioGaia Protectis drops with 10 µg vitamin D
• BioGaia Protectis tablets with strawberry flavour
• BioGaia Protectis tablets with orange flavour and 10 µg vitamin D
…and one for adults
• BioGaia Protectis tablets with orange flavour and 20 µg vitamin D
Interest in products that strengthen the immune system has increased substantially, mainly due to the pandemic and a desire not to become infected by Covid-19. In pace with this, awareness that probiotics, in particular in combination with vitamin D, have immune-strengthening effects has increased among consumers.
In spring 2021 Everidis, BioGaia’s partner in the USA, will launch
• BioGaia Protectis Baby Drops Immune Active, with 15 µg/600 IU vitamin D3
• BioGaia Protectis Tablets Immune Active, with 20 µg/800 IU vitamin D3
• BioGaia Protectis Capsules Immune Active, with 50 µg/2 000 IU vitamin D3
Two line extensions were also launched during the year, BioGaia Prodentis Mum, an oral health product for pregnant and nursing women, and BioGaia Prodentis Kids, an oral health product for children. Both products were launched in Japan and the USA.
Phase-out of palm oil
BioGaia is making active efforts to phase out palm oil from products that previously contained this ingredient. At the end of 2020, approximately 63% (35%) of the product range was available in variants without palm oil. By 2023, all products will be offered in variants without palm oil and by 2025 BioGaia will no longer sell products containing palm oil. The task of phasing out palm oil is challenging since BioGaia must ensure that the transition does not compromise the products’ quality or stability. With sales in over 100 countries, phasing out also takes time.
More and more consumers are demanding products free from allergens. During the year, BioGaia complemented its documentation to meet EU requirements and can now offer Protectis drops and tablets (with and without vitamin D) and capsules free from gluten, lactose and milk protein. BioGaia Protectis capsules are also vegan.
A new life-cycle assessment was carried out during the year where both packaging and product ingredients were assessed. The assessment, which was more extensive than the life-cycle assessment performed in 2013, gives BioGaia a better understanding of the company’s environmental impact. A tool has also been developed which allows the results from the assessment to be integrated into the product development process.
BIOGAIA MAKES KEY INVESTMENT IN EDUCATION WITH A NEW DIGITAL PLATFORM
Education is one of the cornerstones of BioGaia’s operations. Already in the 1990s seminars were arranged at trade fairs for doctors and other healthcare professionals, which today are an established and extensive activity. In parallel with this type of education another, more in-depth form of training has been developed.
Charlotta Grahn, Corporate Marketing Manager Education and Events at BioGaia and responsible for BioGaia Academy, describes the initiative.
BioGaia’s subsidiary MetaboGen works with developing the next generation of probiotic products. The focus is on metabolic conditions, primarily diabetes and related illnesses.
Following positive results from the initial clinical study of the strains Faecalibacterium prausnitzii (DSM 32379) and Desulfovibrio piger (DSM 32187), MetaboGen has now received approval from the ethics committee to start its next clinical study. The study will include people with prediabetes and is planned to start during 2021.
MetaboGen has studied women with intrahepatic cholestasis of pregnancy
Together with pharmaceutical company Ferring Pharmaceuticals, BioGaia’s subsidiary MetaboGen has carried out a study on women with intrahepatic cholestasis of pregnancy (ICP), a condition that annually affects around 400,000 women worldwide.
The study, which is explorative, was carried out in collaboration with Kvinnokliniken in Lund and Södersjukhuset in Stockholm and included 100 women. The results will be presented in 2021.
Sales by geographical market, SEKm
Key Account Manager Northern Europe
Born in Germany, lives in Stockholm, Sweden
Key Account Manager Africa
Born in South Africa, lives in Port Elisabeth, South Africa
Regional Director Latin America
Born in Mexico, lives in Miami, USA
Regional Director BioGaia Biologics Inc.
Born in Sweden, lives in Miami, USA
Hok Ting Yau
Regional Manager and Office Head APAC
Born in Hong Kong, lives in Stockholm, Sweden, and in Singapore
Key Account Manager Turkey, Israel, North Africa and Middle East
Born in Turkey, lives in Stockholm, Sweden
BioGaia looks beyond the direct health benefits of the products and includes the company’s impact on the health of society as a whole and the health of our planet.
The UN’s sustainable development goal ‘Ensuring healthy lives and promoting well-being at all ages’ is the basis of BioGaia’s business. But sustainability work also includes action to reduce environmental impact and ensure an ethical approach and behaviour in everything the company does.
To ensure that sustainability initiatives remain relevant and focused in those areas where BioGaia can make the most difference, a continuous dialogue is held with stakeholders about these issues. During the year, the company’s sustainability strategy has been further developed and key steps were taken for increased sustainability work.
and updated for 2020
electricity for all the
A target is set to reduce
emissions from travel
by 30% with 2019
as base year
Everyone in the
New life-cycle assessment and
life-cycle tool to calculate
SEK 3.7 million
New more sustainable products launched – vegan capsules, tablets and drops without palm oil and free from milk protein, gluten and lactose
Code of Conduct
BioGaia climate compensates
for its emissions for
both 2019 and 2020
BioGaia now reports
in accordance with the
GRI Standards: core option
It is fundamental that the products are safe and meet consumers’ expectations. Quality is a key factor, from ensuring that research on product benefits is reliable to guaranteeing that the product retains its high quality when it reaches consumers.
BioGaia’s values are the cornerstones of the business and help to ensure that all employees embrace the highest standards in everything the company does. Ensuring good business ethics, taking a clear stand on respect for human rights and accepting responsibility for the environmental impact of the company’s operations are fundamental and highlighted in BioGaia’s Code of Conduct.
BioGaia’s international networks of researchers, suppliers and distributors are key to the business model. A large part of BioGaia’s impact and ability to make a difference comes from being able to influence and collaborate with partners in the value chain.
BioGaia strives to promote a healthy environment in the workplace to enable the employees to thrive. By engaging and inspiring employees to be the best version of themselves, both employees and the business benefit.
During 2020 BioGaia invested SEK 3.7 million to support organisations that work with health-promoting activities in areas that are linked to BioGaia’s business.
BioGaia continues to support the Foundation to Prevent Antibiotic Resistance (PAR), The Children’s Mission in the Philippines and Dr Denis Mukwege’s vital work at the Panzi Hospital in the Democratic Republic of Congo. Since 2013, BioGaia has offset climate emissions, since 2020 by supporting Burn Manufacturing. An improved reporting function for carbon footprint in 2020 means that the company could not only compensate for emissions in 2019 but also for 2020 with a total of SEK 322,000.