Biovica International (BIOVIC) Q2 24/25 earnings summary

Executive summary

• DiviTum TKa continued to gain clinical validation and commercial traction, especially in the U.S. and Europe, with a focus on both metastatic and adjuvant breast cancer settings.

• Seven new clinical trials were presented at SABCS, expanding the evidence base and market potential, including breakthrough data in early breast cancer and support for DiviTum TKa as a ctDNA complement.

• Major agreements were signed with leading U.S. healthcare and insurance providers, expanding access to all 50 states after New York CLIA lab approval.

• Two new Master Service Agreements and the largest pharma services work order to date increased the project pipeline by 50%.

• The company is revising its business plan and exploring funding options as it is behind on its cash flow positive forecast.

Financial highlights

• Q2 sales were SEK 2,312 thousand, down from SEK 2,563 thousand year-over-year; accumulated sales for Q1 & Q2 reached SEK 4 million, in line with the previous year.

• Cash flow improved by over SEK 7 million year-over-year due to cost-saving measures.

• U.S. IVD sales grew 12% sequentially and tenfold year-over-year in Q2; number of prescribers increased by 11%.

• Pharma services revenue from testing increased 275% year-over-year; service testing hit a record in August.

• Cash and cash equivalents at period end were SEK 61,883 thousand; a cash injection may be needed by Q3 2025 if sales do not accelerate.

Outlook and guidance

• Management expects sales growth in the second half of the fiscal year, driven by new agreements and increased pharma collaborations.

• The new IDN agreement is expected to generate revenue starting January in the metastatic setting, with adjuvant trial revenues to follow.

• Updated business plan and guidance will be provided in Q1 next year; company is refining business plans to achieve cash-flow positivity.

• Contracts with major US healthcare and insurance providers are expected to accelerate sales growth in 2025.

• Anticipates positive sales growth in Pharma Services as the customer base expands, despite some trial delays.