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 and revenues driven by major licensing deals, milestone payments, and increasing recurring royalties, especially from Leqembi.

• Major global license agreement with Bristol Myers Squibb for amyloid beta antibodies and BrainTransporter technology, bringing $100M upfront and up to $1.25B in milestones.

• Exidavnemab phase 2A study expanded to include MSA patients, with orphan drug designation in the U.S. and patent protection extended.

• FDA approved first blood-based biomarker test for Alzheimer's and less frequent IV maintenance dosing for Leqembi; subcutaneous autoinjector under review.

Financial highlights

• Q1 net revenues reached SEK 1,290M, including SEK 1,075M upfront from BMS and milestone payments from Eisai.

• Royalty revenues from Leqembi were SEK 101.7M, with global sales up 11% sequentially and 380% year-over-year.

• Operating profit for Q1 was SEK 1,075M, with net profit at SEK 1,021M.

• Cash and short-term investments at quarter-end were SEK 789M, with an additional SEK 1B received in April.

• Operating margin for Q1 2025 was 83.4%.

Outlook and guidance

• Expectation to remain profitable for the full year and beyond, with recurring revenues from royalties and milestones.

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

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

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

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