BioArctic (BIOA) Q1 2025 earnings summary

Executive summary

• Leqembi approved in all major global markets, including recent EU authorization, expanding access to over 40 countries and supporting growth and market expansion.

• Record Q1 profit driven by $100M upfront and milestone payments from BMS, as well as increasing recurring royalties from Leqembi.

• Exidavnemab phase 2A progressing well, expanded to include MSA with orphan drug designation and patent protection extended to 2041.

• Leqembi sales exceeded EUR 200M in Eisai's FY2024, with Eisai forecasting 73% sales growth for FY2025.

• FDA approved first blood-based biomarker and less frequent IV maintenance dosing for Alzheimer's, expected to accelerate Leqembi uptake.

Financial highlights

• Q1 net revenues reached SEK 1,290M, including SEK 1,075M upfront from BMS and SEK 112.4M in milestones from Eisai.

• Royalty revenues from Leqembi were SEK 101.7M–96M, reflecting strong global sales growth.

• Operating profit reached SEK 1,075M–1,100M, the highest ever for the company.

• Net profit for Q1 was SEK 1,021M, compared to a loss of SEK 58M in Q1 last year.

• Cash and short-term investments at quarter-end were SEK 788.6M–800M, with SEK 1B received post-quarter from BMS.

Outlook and guidance

• Eisai forecasts Leqembi global sales to grow 73% to JPY 76.5B (SEK ~5.1B) in FY2025, with royalty income expected at SEK ~510M.

• Operating costs projected to increase by 60%-80% in 2025 as portfolio and commercial activities expand.

• Expectation to remain profitable for the full year and beyond, with recurring royalties and milestones supporting stable finances.

• Dividend payments may begin as early as next year if profitability continues.

• Upcoming milestones include potential US approval of Leqembi SC-AI maintenance dosing and EXIST study interim analysis.