TwoPac solves the practical details At TwoPac in Eslöv, Reuteri is inserted into straws for delivery to the customers. Read more on page 13 Communication is key Cristián Contreras, BioGaia's newly appointed Director of Marketing, is focused on giving customers the best possible support. Read more on page 9 Product development Innovative products are one of BioGaia's hallmarks, and Lund is where their development takes place. Read more on page 11 BioGaia's development SEK M Sales Operating expenses 160 140 120 100 80 60 40 20 0 Year 2005 2006 2007 2008 A magazine from BioGaia about past year Annual report 2008 PHOTO: ÖRJAN KARLSSON Profits rising In several parts of this publication we talk about BioGaia's "model", what it consists of and that it works. Another way to describe the model is by drawing two curves, as in the diagram above. The blue curve shows sales and the red curve operating expenses over the past four years. As you can see, there is a growing gap between the two. That's where the model comes in. Read more in the annual report and in the magazine Discoverers In the mid 1980s, Walter Dobrogosz and Sven Lindgren met at the Swedish University of Agricultural Sciences in Uppsala where their shared efforts led to a discovery that laid the foundation for BioGaia's business, namely Lactobacillus reuteri. Read more on pages 4 and 5 Many languages in many countries BioGaia strives for close partnership with its customers and distributors. Jonas Weimer, BioGaia's new Director of Sales, provides good examples of how the BioGaia brand is being handled around the world. Read more on pages 6 and 7 HEALTHY GROWTH Products for children are showing fast growth and good profitability. BioGaia's Probiotic drops give children around the world a good start in life and help them to grow up healthy. With its portfolio of high quality and profitable products, BioGaia is also experiencing healthy growth. New study highlights benefits of probiotics Professor Svante Twetman's study confirming the role of BioGaia Prodentis in oral health was published in autumn 2008. "The study gives greater weight to our message to dentists and oral hygienists and indicates additional areas for future studies," says Anders Zachrisson at BioGaia. Read more on page 8