Arctic Bioscience (ABS) H2 2024 earnings summary

Executive summary

• Achieved record sales revenue of NOK 43.5 million in 2024, up nearly 30% year-over-year, driven by strong nutraceutical growth and new product launches.

• Fully recruited 519 patients for the phase IIb HeROPA clinical trial for HRO350 in mild-to-moderate psoriasis; 12-month data readout expected in 2025.

• Secured NOK 30 million in new long-term debt funding in January 2025, providing financial runway toward positive cash flow in 2026.

• Expanded international presence, especially in Europe and China, with a joint venture term sheet signed for Asian nutraceutical markets.

Financial highlights

• 2024 sales revenue: NOK 43.5 million (2023: NOK 33.8 million), gross profit: NOK 11.9 million (2023: NOK 9.8 million), gross margin: 27%.

• Adjusted gross profit: NOK 14.2 million, adjusted gross margin: 33% (adjusted for NOK 2.34 million recall provision and other non-recurring costs).

• Operating loss: NOK 47.8 million (2023: NOK 48.6 million); net loss: NOK 47.9 million (2023: NOK 45.5 million).

• Net cash flow from operations: NOK -45.4 million; cash and equivalents at year-end: NOK 3.3 million; available liquidity including credit: NOK 7.0 million.

• Equity ratio: 75% (2023: 86%).

Outlook and guidance

• Positive outlook for continued nutraceutical revenue growth in 2025 and beyond, with break-even targeted for 2026.

• Full clinical study report for HRO350 expected in June 2025; further development to be funded via partnerships or project-specific funding.

• Ongoing cost reduction initiatives and new funding provide runway to cash-positive operations.