Highlights H1 2025:
· Encouraging top-line results from the HeROPA clinical study on key secondary
endpoints
· New long-term funding of NOK 30 million secured in January 2025
· Nutra revenues of NOK 17,2 million (NOK 16,7 million) with a gross margin of
33,4 % (30,6 %)
· New skin care product launched - Romega Skin Refine set for international
expansion
· Operating costs reduced with NOK 6,4 million compared to first half 2024
· Improved adjusted EBITDA year to date in 2025, NOK -13,6 million (NOK -20,9
million)
· Positive development in Arctic Algae with good progress in exciting R&D
projects
An important milestone in the first half of 2025 has been the completion of the
HeROPA study and review of the clinical results. The 12-month read-out showed
encouraging results on key secondary endpoints.
"We see a solid rationale in continued development of HRO350, including the
future commercial potential. The primary focus going forward will be to continue
working with securing potential partners for further development. However, these
processes take time", says CEO of Arctic Bioscience, Christer L. Valderhaug.
The development in the nutraceutical business in the first half of the year has
been affected by the recall issue that arose at the beginning of the year,
delaying customer deliveries and revenues for the first half year and increasing
cost of goods sold. Despite these issues, there is a positive revenue and margin
development compared to last year. The level of activity in Arctic Algae has
also increased significantly with increased project funding and external project
revenues.
"It is encouraging to see that we have a continued positive development in our
nutraceutical business where we continue to innovate and grow our business. We
have a solid foundation of growing recurring B2B-business and we are eager to
expand our B2C-subscription business beyond the Norwegian market. In addition,
we have a strong focus on adapting our cost level and the implemented cost
measures are already yielding results, with a significant decrease in our
operating costs during the first half of the year", says Valderhaug.
In July, Arctic Bioscience launched a new skin care product, Romega Skin Refine,
which has already been well received in the Norwegian market. The product will
also be launched in the Chinese and Swedish markets later this year and with
more geographies to follow during 2026. Romega Skin Refine is our first
significant step into the beauty segment, a market with significant market
potential.
"Product development is the core of our business. It is exciting to enter a
large, new segment, and I have good faith that we can succeed with the strategy
we are now implementing to further diversify our product range", ends Christer
L. Valderhaug.
Financials
Key figures - H1 2025:
· Revenues from sales: NOK 17,2 million (NOK 16,7 million)
· Gross profit: NOK 5,8 million (NOK 5,1 million)
· Gross margin: 33,4 % (30,6 %)
· Adjusted EBITDA: NOK -13,6 million (NOK -20,9 million)
· Available liquidity end of period: NOK 5,5 million (NOK 49,8 million)
Comparable figures for H1 2024 in brackets.
Sales revenues for the first six months amounted to NOK 17,2 million. This is an
increase of NOK 0,5 million compared to the same period in 2024. Some delays in
delivery of finished goods due to the recall issue held the turnover rate
somewhat back in the first half of the year compared to budget, but is expected
to materialize again in the second half of 2025. The American market had a
positive development in the first half year, with a revenue of NOK 5,2 million
during the first six months, compared to NOK 1,4 million in the same period of
2024.
Gross profit for the period was NOK 5,8 million, corresponding to a gross margin
of 33,4 %. Compared to the same period in 2024 this is an increase of NOK 0,7
million, and a margin increase of 2,8 percentage points.
Other income in this period amounts to NOK 1,5 million. This is up from NOK 0,5
million in the same period in 2024. The increase is mainly related to higher
activity levels in Arctic Algae, resulting in higher income from government
grants and sales of services from this company.
Adjusted EBITDA ended at NOK -13,6 million in H1 2025, compared to NOK -20,9
million in H1 2024. Both personnel expenses and other operating costs have been
significantly decreased. In total, operating costs were NOK 6,4 million lower in
the first half year of 2025 compared to the same period in 2024. This is mainly
due to the implemented cost-reduction initiatives in the Group.
Available liquidity at the end of H1 2025 amounts to NOK 5,5 million.
Outlook
Given the encouraging results from the 12 months HeROPA readout, Arctic
Bioscience will evaluate strategic opportunities for further development and
regulatory engagement for HRO350. We believe there is a major market potential
for HRO350 in mild-to-moderate psoriasis and the company will seek partnerships
for further development.
The liquidity situation is closely monitored. The dialogue with the Group's
financing partners is close and good. The Board is continuously assessing
liquidity measures beyond what has already been implemented and will implement
such measures if deemed necessary. Further HRO350 project development, beyond
phase 2b, will be funded separately through partnership or specific project
funding.
Based on purchase orders received for the second half of 2025 and general order
outlook, it is expected an increase in nutraceutical revenues in the second half
of the year.
Webcast
Arctic Bioscience will host a webcast and Q&A session to present the results
today at 11:00 CET. The presentation can be accessed through the company's
website, or with the following link:
https://teams.microsoft.com/l/meetup
-join/19%3ameeting_NTliNzJmNjUtNjQxYy00OTY4LWI5ODItODAwYzQwNjc5OGFj%40thread.v2/0
?context=%7b%22Tid%22%3a%22ce618813-5158-40b5-b6d0
-2f2cd3f39b20%22%2c%22Oid%22%3a%22d4224f98-c1a8-4e9b-a246-0571136c0f7b%22%7d
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.