Flerie (FLERIE) Q1 2025 earnings summary

Executive summary

• Maintains a diversified portfolio of 27 companies, 74% in private firms, focused on biotech and pharma investments.

• Net asset value (NAV) at quarter end was SEK 3,947 million, NAV per share SEK 50.56, down 6.0% from the previous quarter.

• Proactive portfolio management included a full write-off of Provel Pharmaceuticals and divestment of A3P Biomedical at a premium.

• Proposed merger and privatization of Toleranzia to enable clinical progress amid challenging public market conditions.

• Portfolio companies reported clinical and regulatory progress, including positive trial results and new patents.

Financial highlights

• Q1 NAV decreased to SEK 3.947 billion from SEK 4.198 billion at year-end, a drop of SEK 251 million.

• NAV per share fell to SEK 50.56 from SEK 53.77 in Q4 and SEK 56.24 year-over-year.

• Portfolio fair value declined by SEK 197 million, mainly due to negative share price developments and currency effects.

• Cash and equivalents stand at SEK 802 million, representing over 20% of NAV.

• SEK 73 million in cash generated from divestments, including A3P Biomedical and Agetis.

Outlook and guidance

• Focus remains on optimizing the portfolio, supporting companies to inflection points for sale or market entry.

• Plans to deploy about 10% of NAV per year, providing two years of investment runway.

• No current plans to reduce the number of holdings, but will prioritize core areas and co-investor alignment.

• Management expects a persistently challenging environment for biotech, with capital raising likely to remain difficult and valuations under pressure.

• Flerie will prioritize investments and maintain strategic discipline to weather market volatility.