27.02.2025
Highlights Q4 2024:
Arctic Bioscience had a strong ending to 2024 with highest ever quarterly sales of the company’s nutraceutical products. In Q4 2024 total sales amounted to NOK 15,6 million, a significant increase compared to the same period in 2023. 2024 had a sales increase of 29 % compared to 2023, ending at NOK 43,5 million. Especially the European market showed a strong growth, ending 50 % above sales in 2023.
“We guided on a total sales growth of 25 % to 30 % for 2024, and I am very pleased to see that we achieved this goal. We continue to develop our existing business and expanding with new exciting customers. Our plan for further development of the Asian markets is a key growth driver. Overall, the pace of development is very good”, says CEO Christer L. Valderhaug.
The HeROPA study did not meet its primary endpoint after 6 months of treatment due to an unexpectedly high placebo rate. We are now looking forward to the final read-out after 12 months of treatment, expected at the end of Q1 2025.
Arctic Bioscience is also in the process to develop a novel orphan designation drug candidate for brain development in extremely premature infants, Arctic Orphan. In Q4 2024 the company received a public grant from Innovation Norway of NOK 2,3 million to develop the pre-clinical material. The project will run alongside the HeROPA study and will provide a further basis for development of the company’s pharmaceutical business.
In January 2025 a NOK 30 million loan facility was secured. The establishment of this facility was in accordance with previously communicated strategic financing initiatives after the 6 months readout.
“I am very pleased that we were able to secure the new financing facility. This gives us headroom on our pathway towards cash positive operations. It also underlines the trust the investors have in our further development. I would also like to thank Innovation Norway for their strong support and important contribution to our innovation and international development. The potential in our nutraceutical business and our pharmaceutical projects gives very promising prospects for the future”, ends CEO Christer L. Valderhaug.
Financials
Key figures – Q4 2024:
Comparable figures for Q4 2023 in brackets.
Key figures as of year-end 2024:
Comparable figures as the end 2023 in brackets. The 2024 figures are unaudited.
Sales revenues in Q4 2024 were strong, and amounted to NOK 15,6 million, an increase of 57 % compared to the same period in 2023. Total revenues for 2024 amounts to NOK 43,5 million, representing a year-over-year growth of 29 %. The European market ex. Norway has still the highest market share of total revenues in 2024 with 42,8 %, followed by the APAC region with 30,0 %. The revenues from the European market had an annual growth of 50 % in 2024. The Norwegian market, including the B2C segment, delivered an annual growth of 15 % in 2024 compared to 2023.
Gross profit in Q4 2024 increased with NOK 3,7 million compared to the same period in 2023. Gross margin in Q4 2024 was 34,4 %, compared to 17,1 % in Q4 2023. The gross margin during 2024 has been stable, and full year gross margin was 32,7 %, compared to 29,0 % for 2023. The main explanation for this increase relates to higher prices and a more advantageous product mix of goods sold in 2024.
Adjusted EBITDA was NOK -7,4 million in Q4 2024, compared to NOK -9,9 million in the same quarter of 2023. In total for 2024, the adjusted EBITDA amounts to NOK -36,8 million, compared to NOK -38,6 million in 2023. Cost reduction initiatives were implemented in the last quarter of 2024. These initiatives are followed up closely and has been strengthen at the beginning of 2025. Effects from these will be materialized going forward in 2025.
Available liquidity end of 2024 amounted to NOK 7,0 million. In January 2025 a new loan facility of total NOK 30 million was established, which will strengthen Arctic Bioscience’s liquidity position going forward.
Outlook
The 12 months readout from the HeROPA study is expected end of Q1 2025 when all patients have completed 52 weeks of treatment.
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. Further development of the HRO350 in mild-to-moderate psoriasis, beyond the current phase IIb, will be funded separately through partnerships or specific project funding.
The growth potential for the nutraceutical business is very positive. In 2025 the company will continue its work to establish a joint venture operation together with Kotler Investment Ltd. to further develop the Chinese and Southeast Asiatic market.
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://channel.royalcast.com/landingpage/hegnarmedia/20250227_6/
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