BioArctic (BIOA) investor relations material

Executive summary

• LEQEMBI achieved growing global demand and approvals in over 50 countries, with launches in new markets such as Canada, Austria, Germany, Australia, India, and several Middle Eastern countries.

• The company expanded its pipeline with new projects, including Huntington's disease and Parkinson's, and broadened Brain Transporter technology collaborations, notably with Novartis and Bristol Myers Squibb.

• Strong financial performance was driven by increasing royalties, milestone and upfront payments, including a $30M Novartis deal and significant contributions from Eisai and Bristol Myers Squibb.

• The company is on track to achieve its 2030 ambitions, including profitability and recurring dividends, supported by robust cash reserves and a positive outlook.

• LEQEMBI IQLIK, a subcutaneous auto-injector, was approved in the US, with broader reimbursement expected in 2027 and recognition as a top medical innovation.

Financial highlights

• Q3 global LEQEMBI sales were JPY 18 billion ($121 million), down 22% sequentially due to prior stockpiling in China, but up 14% adjusted for this; year-over-year growth was approximately 80%.

• Q3 net revenues reached SEK 133 million, mainly from recurring royalties (SEK 117 million) and co-promotion revenues (SEK 5 million); Q3 operating loss was SEK 29 million, with net loss at SEK 87 million.

• Royalties for Jan–Sept were SEK 376 million, up 181% year-over-year.

• Cash and short-term investments at quarter-end were SEK 1,882 million, not including the $30 million Novartis payment received after quarter-end.

• For the nine-month period, net revenues reached SEK 1,815.1 million, driven by a SEK 1,074.8 million upfront payment from Bristol Myers Squibb and SEK 335.5 million in milestone payments from Eisai.

Outlook and guidance

• LEQEMBI global sales forecast for FY2025 is JPY 76.5 billion, with 52% of the target already achieved in the first two quarters.

• Confidence remains high in meeting full-year sales targets, with China expected to recover after Q4 inventory drawdown.

• Operating costs for the year are projected to be 50%-60% higher than last year, at the lower end of previous guidance, with further increases expected as the project portfolio matures.

• Further launches and regulatory submissions for LEQEMBI and pipeline assets are expected in upcoming quarters.

• All therapeutic areas targeted have significant unmet medical need and market potential.