When we started BioGaia more than 30 years ago, our motto was ‘do good and have fun’. With this attitude as our guiding light we have developed into a world-leading probiotics company at the forefront of microbiome research with safe, effective and consumer-friendly products on the market.
Sales divided between the business areas child health and adult health
Quarter
• 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
Quarter
• BioGaia’s Board revises its dividend proposal
Quarter
• 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
Quarter
• 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.
100% subsidiary
(2)
BioGaia Japan Inc.
100% subsidiary
(24)
BioGaia Pharma
96% subsidiary
(2)
BioGaia Production
100% subsidiary
(29)
MetaboGen AB
92% subsidiary
(7)
Mission
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.
Values
▸ Innovation
▸ Collaboration
▸ Passion
Parent Company BioGaia AB’s class B shares
are listed on the Mid Cap segment of the Nasdaq OMX Nordic Stockholm Exchange.
Positioning
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
The probiotics market is changing fast. Consolidation of a fairly fragmented market is taking place and the major players are actively acquiring small probiotic companies with promising products. A number of new, major companies such as Kerry, ADM and Novozymes have entered the extremely hot probiotics market.
MESSAGE FROM THE CEO
2020 was a different year. For many, both people and companies, it was of course a difficult year but there are also many positive aspects worth highlighting. Above all, there are many lessons to learn and by taking these onboard and adapting our business accordingly, I am convinced that they will strengthen us as a company over time.
MetaboGen’s research focuses on the microbiome and finding unique opportunities that can be developed into the next generation of probiotic products.
BioGaia Production is critical for BioGaia’s operations. A large proportion of our most important product, drops, is manufactured here.
The Covid-19 pandemic had a very big impact on the Japanese economy. The number of patient visits to clinics and hospitals decreased sharply and fell to approximately 50% in July 2020 compared to the previous year
BioGaia Pharma is a subsidiary of BioGaia. This means we can benefit from 30 years’ experience of research within the microbiota when we develop the biological product category which the FDA in the USA calls Live Biotherapeutic Products, which refers to pharmaceutical products that stem from the microbiota.
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.
1990
Founded by Peter Rothschild and Jan Annwall
1998
IPO on Nasdaq Stockholm
2000
BioGaia launches world’s first probiotic chewable tablets
Agreement with Ascendis (South Africa)
2002
2003
2004
BioGaia launches the world’s first probiotic drops
Agreement with Verman (Finland)
2020
2018
Foundation to Prevent Antibiotic Resistance founded
2017
2014
Agreement with Abbott (Latin America, Asia)
BioGaia invests in MetaboGen
2008
First agreement with Nestlé
2006
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
Research
Product
development
Raw
material use
Production
Packing
Distribution
Sales
In the supply chain, BioGaia takes care of logistics as well as quality assurance and control of products and production.
Society
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
Consumers
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
Employees
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
Researchers
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)
Stakeholders
Distributors
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
Suppliers
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
Shareholders
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.
Through my sound experience in the field of sustainability from one of the really major players and in an industry of great complexity and high pace, I hope to be able to contribute with strategic sustainability thinking, innovative creation and guidance in governance-related issues.
I hope I can contribute with the speed and energy from the start-up world. Thanks to my operational job, I will be able to contribute with expertise but also with my global network to continue building BioGaia’s digital channels with a focus on increased brand awareness and a strong positioning, where D2C will be a driving channel in BioGaia’s journey going forward.
I believe that BioGaia can benefit from an owner like EQT, a global investor with broad experience of companies within healthcare, with a large network of advisers as well as resources within sustainability and digitalisation. I have experience of work on international boards and driving fast change programmes and growth in medium-sized companies. My role as a member of the Board, and EQT’s role as owner, is to support BioGaia’s continued development, increase the growth rate and benefit from EQT’s resources in this work.
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.
Free from
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.
Life cycle
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.
Since the primary outcome was not achieved, we cannot draw any firm conclusions from our meta-analysis. But despite this we can conclude that L. reuteri DSM 17938 can be effective in reducing pain intensity and increasing the number of days without pain in children suffering from functional abdominal pain
A supplement of L. reuteri lozenges is an efficacious and easily implementable measure to maintain or improve periodontal health in medically healthy persons with limited access to personal oral hygiene
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.
Many of our consumers are aware and seek information themselves before buying their product.
Sales by geographical market, SEKm
Through a focus on Protectis tablets with vitamin D, good stock levels and high involvement of midwives, PediAct saw a positive sales development in 2020 compared to 2019.
Ingrid Messerer
Key Account Manager Northern Europe
Born in Germany, lives in Stockholm, Sweden
As part of the strategy to build a strong consumer brand, at the end of the year we launched BioGaia Osfortis and BioGaia Prodentis under our own brand in Sweden.
Kim Prinsloo
Key Account Manager Africa
Born in South Africa, lives in Port Elisabeth, South Africa
South Africa is BioGaia’s most important market in Africa – and one of our ten top markets globally – and the loss of sales therefore had a significant impact on us. Despite the country being back on partial lockdown, Ascendis’s sales are now on the right track.
Among the six largest probiotic brands, BioGaia’s products were the only ones to increase sales in 2020 (in Brazil).
Iván García
Regional Director Latin America
Born in Mexico, lives in Miami, USA
Together with our LatAm partners we arranged presentation training for doctors, made 14 digital launches and held over 50 webinars during the year. BioGaia Protectis with vitamin D is now available in nearly all markets.
Joakim Annwall
Regional Director BioGaia Biologics Inc.
Born in Sweden, lives in Miami, USA
The business model of our partner Everidis, which focuses on online rather than traditional pharmacy sales, has proved both reliable and highly successful during the pandemic.
As in so many other countries, Japanese society in its entirety was in lockdown for long periods in 2020. Since our sales mainly take place in dental clinics, and these were closed, we had to adapt quickly and move physical meetings to digital channels.
Hok Ting Yau
Regional Manager and Office Head APAC
Born in Hong Kong, lives in Stockholm, Sweden, and in Singapore
Together with our partners in China we continue to work on strengthening our digital presence,” says Ting. “We are also planning to extend the portfolio by launching more products. BioGaia’s strategy for remaining competitive is our unique combination of leading-edge skills and the omnichannel strategy.
Tunç Kurtoğlu
Key Account Manager Turkey, Israel, North Africa and Middle East
Born in Turkey, lives in Stockholm, Sweden
Our partner Eczacibasi plans to launch BioGaia Gastrus and Prodentis during 2021 and with the broader portfolio we expect increased sales in Turkey in 2021.
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.
Greenhouse gas
reporting developed
and updated for 2020
100% renewable
electricity for all the
Group’s operations
in Sweden
A target is set to reduce
emissions from travel
by 30% with 2019
as base year
Everyone in the
BioGaia Group
attended training
in anti-corruption
New life-cycle assessment and
life-cycle tool to calculate
environmental impacts
from products
Whistleblower service
implemented
SEK 3.7 million
to community
involvement
New more sustainable products launched – vegan capsules, tablets and drops without palm oil and free from milk protein, gluten and lactose
Internal
Code of Conduct
implemented
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.
