BioArctic (BIOA) Q4 2024 earnings summary

Executive summary

• Signed a major global license agreement with Bristol Myers Squibb (BMS) for the PyroGlu-Aβ antibody program/BAN1503 and BAN2803, including $100 million upfront, up to $1.25 billion in milestones, and tiered royalties, pending HSR clearance.

• Leqembi (lecanemab) now approved in 10 geographies, with over 20,000 patients treated and SEK 230.4 million in royalties for 2024, with strong expansion in the US, Japan, and China.

• Exidavnemab entered phase IIa for Parkinson’s disease, with full recruitment in the low-dose cohort and interim safety review expected in Q3 2025.

• BrainTransporter technology validated, showing up to 70x higher brain exposure for antibodies and attracting significant partnering interest.

• Strong cash position of SEK 779–780 million at year-end 2024, supporting ongoing R&D and business development.

Financial highlights

• Q4 2024 net revenues reached SEK 101–101.2 million, with royalties at SEK 96.7 million, up 38% sequentially.

• Leqembi global Q4 sales were JPY 13.3 billion ($87 million), up 33% from Q3; US sales grew 31% and Japan 49% sequentially.

• Q4 operating loss was SEK 53–53.5 million; net result was SEK -31 to 31 million, aided by financial net and tax effects.

• Operating expenses for Q4 were SEK 143 million, with 67% allocated to R&D.

• Cash and short-term investments at year-end: SEK 779–780 million.

Outlook and guidance

• Profitability expected in 2025, driven by BMS upfront and milestone payments and continued Leqembi royalty growth.

• Anticipate $130 million in milestones for 2025, including $100 million from BMS and additional from Eisai.

• Operating expenses projected to rise 50–80% in 2025 due to increased R&D and clinical activity.

• No dividend proposed for 2024.

• Financial position expected to strengthen further in 2025.