Biovica International (BIOVIC) Q2 24/25 earnings summary

Executive summary

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

• Seven new clinical trials were presented at the San Antonio Breast Cancer Symposium, expanding the evidence base and market potential.

• Major agreements were signed with a leading U.S. healthcare provider (IDN) and a US insurance giant, expanding market access and expected to drive significant sales growth.

• The company achieved full U.S. regulatory coverage with New York State approval, enabling nationwide test availability.

• Clinical use and sales of DiviTum TKa in the US rose 10% sequentially, with a significant order from a US biotech company.

Financial highlights

• Q2 net sales were SEK 2,312 thousand, down from SEK 2,563 thousand year-over-year; accumulated sales for the first two quarters were SEK 4 million.

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

• U.S. sales grew 12% sequentially and tenfold year-over-year; 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 is confident sales will improve in the second half of the fiscal year, driven by new agreements and increased pharma collaborations.

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

• The company is revising its business plan and exploring funding options to achieve cash flow positivity.

• Updated business plan and guidance will be provided in Q1 next year.

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