BioArctic (BIOA) Q4 2024 earnings summary

Executive summary

• Signed a major global license agreement with BMS for PyroGlu-Aβ antibody program and BrainTransporter technology, including $100M upfront, up to $1.25B in milestones, and tiered royalties, pending HSR clearance.

• Leqembi sales and royalties grew rapidly, now approved in 10 geographies, with over 20,000 patients treated globally and SEK 230.4M in 2024 royalties.

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

• BrainTransporter platform demonstrated up to 70x higher brain exposure for antibodies and is attracting strong partnering interest.

• Strong cash position at year-end (SEK 779M–780M) supports ongoing R&D and business development.

Financial highlights

• Q4 2024 net revenues reached SEK 101M, with royalties at SEK 96.7M–97M, up 38% sequentially.

• Leqembi global Q4 sales were JPY 13.3B ($87M), up 33% from Q3; US sales JPY 7.7B ($50M), up 31%; Japan sales JPY 4.1B ($27M), up 49%.

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

• Operating expenses for Q4 were SEK 143M, with 67% allocated to R&D; full-year costs SEK 459M.

• Year-end cash and short-term investments were SEK 779M–780M.

Outlook and guidance

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

• Anticipate $130M in milestones for 2025, including BMS upfront and Eisai sales/regulatory milestones.

• Operating expenses projected to rise 50–80% in 2025, mainly from R&D and clinical programs.

• No dividend proposed for 2024.

• Commercial expansion to slow until EU decision on Leqembi; financial position expected to strengthen in 2025.