29.10.2024
Highlights Q3 2024:
As communicated mid-October, the HeROPA study did not meet its primary end-point after 6 months due to an unexpectedly high placebo rate. The study will continue as planned for 52 weeks for the final read-out due in Q1 2025 and thus including the autumn and winter season for the majority of patients participating.
“The results from the 6-months read-out, with the high placebo rate, was surprising. We will use the time going forward until the end of the study to conduct further analysis of this data. After the complete data read-out beyond 52 weeks is conducted, we believe also that this data will provide more answers and may also give another development in total for the HeROPA-study. We still have strong confidence in our phospholipid-based technology platform for resolving inflammation, also supported by conducted and published cellular studies”, says CEO Christer L. Valderhaug.
Compared to the same quarter in 2023 the nutraceutical sales revenues were significantly higher with NOK 11,1 million in 2024 compared to NOK 4,8 million in Q3 2023. Year-to-date, total revenues have increased with 16,3 % compared to last year. The gross margin has remained stable, and the outlook for the remaining of the year is positive. At the start of October, a new partnership with Groupe Berkem was announced to strengthen the sales and distribution initiatives in North America.
“The nutraceutical business in total has developed well the last years with an annual average growth of 25-30 % , We see very positive prospects for further market expansion in the Asian markets with our nutraceutical business and we believe the collaboration with Groupe Berkem as our new sales and distribution partner in North America will bring positive results.”, ends Christer L. Valderhaug.
Financials
Key figures – Q3 2024:
Comparable figures for Q3 2023 in brackets.
Key figures as of end Q3 2024:
Comparable figures as of the end of Q3 2023 in brackets.
Sales revenue amounted to NOK 11,1 million in Q3 2024, an increase of NOK 6,3 million compared to the same period in 2023. Year to date revenues amounts to NOK 27,8 million, an increase of 16,3 % compared to 2023. The European market ex. Norway has the highest market share of total revenues as of end September with 41,6 %, followed by the APAC region with 34,8 %. The B2C segment has shown a stable and continued growth in 2024, with a year-over-year increase of 19 %.
Gross profit in Q3 2024 was NOK 3,7 million, representing a 33,5 % gross margin. The gross margin development has been stable through 2024 compared to the same period in 2023.
Adjusted EBITDA was NOK -8,4 million in Q3 2024, compared to NOK -10,4 million in the same quarter of 2023. Year-to-date, the adjusted EBITDA amounts to NOK -29,4 million, compared to NOK -28,7 million in 2023. The cost development throughout 2024 has been in line with the budget for the year.
Available liquidity at end of Q3 2024 amounts to NOK 17,4 million.
Outlook
The HeROPA-study will continue until all the patients have passed 52 weeks of treatment. Read-out of top-line results, including key secondary end-points, is expected in February/March 2025.
Arctic Bioscience will increase the focus on the nutraceutical business, where we see significant growth potential in several geographic regions. The results through 2024 have been positive, and we are aiming for a total year-over-year revenue growth in 2024 of 25-30 %.
The Company has an estimated available liquidity into Q1 2025. The company is working on various funding opportunities, and a liquidity contribution of around NOK 30 million is estimated to bring the company into a positive cash flow position. With a positive 12-month read-out, investments to plan and run a future phase 3 of the HRO350 program will be sought financed through partnerships.
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.