Highlights Q1 2025:
· Encouraging top-line results from the HeROPA clinical study announced in
April
· New long-term funding of NOK 30 million secured in January 2025
· Sales development in nutraceuticals according to budget for Q1 2025 with
positive outlook
· Implemented cost-reducing initiatives are effective and visible in Q1 2025
In April 2025 Arctic Bioscience announced encouraging top-line results from the
HeROPA clinical study after 52 weeks of patient treatment. PGA 0/1, a measure
indicating clear or almost clear skin, was a key secondary endpoint in this
trial. A larger percentage of patients treated with HRO350 achieved a PGA 0/1
than placebo treated patients. Full statistical analysis and other endpoints
will be presented in June. HRO350 was well tolerated throughout the study
duration with no new safety concerns and no unexpected serious adverse events.
In January 2025 the company announced a new long-term funding of NOK 30 million,
securing a financial runway and stability to develop the company further.
Together with cost reduction initiatives and positive revenue growth
expectations, the NOK 30 million loan facility is estimated to contribute to
bringing the company into a positive cash flow position.
"During the first quarter of 2025 several significant milestones were met, and
we are looking forward to the full read-out results from the HeROPA study in
June, as the preliminary 12-months read-out in April was encouraging. We are
also very pleased to see so many patients benefiting from participating in this
study. With new funding in place, we have headroom to evaluate the HRO350
-strategy after all the data from the study are analyzed", says CEO Christer L.
Valderhaug.
The nutraceutical business delivered according to budget in Q1 2025, and the
growth expectations for 2025 remains solid. In Q2 we are planning to launch a
new exiting consumer product in Norway, Sweden and China, with more countries to
follow. We also expect to further expand our business with more B2B customers
and with new geographies during the year.
The activity for Arctic Algae, the micro algae focused group company, is
increasing and developing according to operational plans. The company is
involved in different exiting research projects with external partners in
addition to the planned internal development.
"We work diligently to achieve our operating plans and the prospects going
forward are promising. At the end of 2024, we conducted a full review of our
cost base and implemented several major cost-reduction measures. It is
encouraging to note that this work is now also reflected in our cost results",
ends Valderhaug.
Financials
Key figures - Q1 2025:
· Revenues from sales: NOK 6,7 million (NOK 6,1 million)
· Other income: NOK 0,9 million (NOK 0,0 million)
· Gross profit: NOK 1,8 million (NOK 1,7 million)
· Adjusted gross profit: NOK 2,5 million (NOK 1,7 million)
· Gross margin: 27,0 % (28,8 %)
· Adjusted gross margin: 37,5 % (28,8 %)
· Adjusted EBITDA: NOK -9,1 million (NOK -12,7 million)
· Available liquidity end of period: NOK 21,7 million (NOK 74,6 million)
Comparable figures for Q1 2024 in brackets.
Sales revenue amounted to NOK 6,7 million in Q1 2025, an increase of NOK 0,6
million compared to the same period in 2024. The European market ex. Norway
remains strong and accounted for 39 % of total sales in Q1 2025. Of the total
sales revenue the B2C segment accounted for 18 % in Q1 2025.
Other income consists of public grants received in Q1 2025, mainly related to
increased activity in Arctic Algae.
Gross margin in Q1 2025 ended at 27,0 %, 1,8 percentage points below the same
period in 2024. Included in this is an extraordinary cost provision of NOK 0,7
million related to a recall issue uncovered late in the quarter. Adjusted for
this extra provision, adjusted gross margin was 37,5 % in Q1 2025 compared to
28,8 % in the same quarter in 2024.
Adjusted EBITDA ended at NOK -9,1 million in Q1 2025, compared to NOK -12,7
million in Q1 2024. The improvement is a combination of increased income and the
focus on cost-reduction initiatives that were implemented in the last half year
of 2024. Both salary costs and other operating costs have been significantly
reduced compared to the same period in 2024.
The liquidity position at the end of Q1 2025 including unused credit facility
amounts to NOK 21,7 million.
Outlook
Key top line results from the HeROPA clinical study were announced in April 2025
and showed encouraging results on key secondary endpoint with increasing durable
efficacy up to week 52. In June 2025 the full statistical analysis for the
Clinical Study Report will be ready. After this report is finalized, further
progress for the clinical development program for HRO350 will be evaluated.
Further development beyond phase 2b will be funded separately through
partnership or specific project funding.
Given the prospects and market outlook for the nutraceutical business, Arctic
Bioscience is aiming for solid sales growth both in 2025 and in the coming years
and forecasts a break-even contribution from the nutraceutical business during
2026.
The work to establish a joint venture operation with Kotler Investment Ltd. to
further develop the Chinese and Sout Asiatic market is ongoing.
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.
For further information, please contact:
Christer L. Valderhaug
CEO
Mobile: +47 920 84 601
Email: christer@arctic-bioscience.com
Jone R. Slinning
CFO
Mobile: +47 948 75 469
Email: jone@arctic-bioscience.com
About Arctic Bioscience
Arctic Bioscience is a biotech company developing and commercializing
pharmaceutical and nutraceutical products based on unique bioactive marine
compounds.
The company is developing HRO350 - a novel oral drug candidate. HRO350 is being
developed for treatment of patients with mild-to-moderate psoriasis. This is a
large patient group in need of new effective medicines with beneficial safety
profile.
Nutraceuticals from Arctic Bioscience are sold globally as bulk ingredients as
well as finished goods under the ROMEGA® brand.
Arctic Bioscience is led by a highly skilled team of talents with diverse and
highly relevant background.