BioArctic (BIOA) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with strong Leqembi sales growth, rising royalties, and a major new partnership with Novartis, including a $30M upfront payment and up to $802M in milestones.

• Leqembi is now approved in over 49 countries, with launches in Austria and Germany and early access planned in France and Spain.

• 2030 ambitions focus on pipeline expansion, global partnerships, and sustainable profitability, with recurring dividends likely within one to two years pending board approval.

• Exidavnemab advanced to higher-dose phase II-A in Parkinson's and MSA, with orphan designation in both U.S. and EU and patent protection extended to 2041.

• European Commission granted Marketing Authorisation for Leqembi, triggering a EUR 20M milestone payment.

Financial highlights

• Q2 2025 net revenues reached SEK 392.1M, up from SEK 50M year-over-year, including SEK 162.5M in Leqembi royalties.

• Operating profit for Q2 was SEK 179.1M, with net profit of SEK 97M, compared to losses in Q2 2024.

• Cash and short-term investments at quarter-end totaled SEK 1,916.1M, with cash flow from operating activities at SEK 1,147.1M.

• Leqembi global sales hit JPY 23.1B ($160M), a 57% quarter-over-quarter increase, with a notable one-time stocking effect in China.

• Milestone payments from Eisai and upfront payments from Novartis and Bristol Myers Squibb bolstered the cash position.

Outlook and guidance

• Leqembi is on track to meet or exceed Eisai's FY2025 forecast of JPY 76.5B in sales, with further launches and regulatory milestones anticipated.

• Operating costs for 2025 are expected to be 50%-70% higher than 2024, lower than previously estimated, with R&D accounting for 70%.

• Profitability is expected to be sustained from 2026 onwards, with recurring dividends likely within one to two years, pending board approval.

• Further European launches of Leqembi, including the Nordics, are anticipated in 2026, with early access and new formulations expected in 2025-2026.

• Financial position remains strong, supporting continued development and growth.