Arctic Bioscience (ABS) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw strong nutraceutical revenue growth, with NOK 11.1 million in sales, up from NOK 4.8 million year-over-year.

• The HeROPA phase 2b study's 6-month read-out did not meet its primary endpoint due to a high placebo rate; the study continues for a 52-week read-out in Q1 2025.

• Asian and European markets are driving significant revenue growth, with expectations of 65-70% and 45% increases respectively for 2024 compared to 2023.

• Liquidity is sufficient into Q1 2025, but NOK 30 million in additional funding is needed to reach positive operational cash flow.

Financial highlights

• Q3 2024 sales revenue: NOK 11.1 million (Q3 2023: NOK 4.8 million); YTD revenue: NOK 27.8 million (2023: NOK 23.9 million), up 16.3%.

• Q3 2024 gross profit: NOK 3.7 million (Q3 2023: NOK 2.4 million); gross margin: 33.5% (49.4%).

• Adjusted EBITDA for Q3 2024: NOK -8.4 million (Q3 2023: NOK -10.4 million); YTD: NOK -29.4 million (2023: NOK -28.7 million).

• Available liquidity at end Q3 2024: NOK 17.4 million (Q3 2023: NOK 126.5 million).

Outlook and guidance

• HeROPA study to continue until 52-week data read-out in Q1 2025; top-line results expected February/March 2025.

• Targeting 25-30% year-over-year revenue growth in 2024 for nutraceuticals.

• NOK 30 million in new funding required to reach positive cash flow and complete HeROPA phase 2b.

• Future phase 3 HRO350 program to be financed through partnerships if 12-month results are positive.