Release Date: May 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BioArctic AB (BRCTF, Financial) reported a record high profit for Q1 2025, driven by significant one-time events including an upfront payment from Bristol Myers Squibb and milestone payments from Eisai.
- Leqembi, a treatment for Alzheimer's disease, has been approved in all major markets, including the US, Japan, China, and Europe, with continued growth in patient access.
- The company's brain transporter technology has garnered strong interest, leading to a significant partnership with Bristol Myers Squibb for the Pyroglutamate-Amyloid Beta antibody program.
- BioArctic AB (BRCTF) expects to maintain profitability moving forward, supported by continuous and growing royalties, reducing dependency on irregular milestones.
- The company is actively expanding its portfolio, with promising developments in Exidavnemab for neurodegenerative diseases and ongoing advancements in its brain transporter platform.
Negative Points
- The company's financials were heavily influenced by one-time payments, which may not be sustainable in the long term.
- There are potential bottlenecks in the European launch of Leqembi, such as PET diagnosis and infusion capacity, which could affect uptake compared to other regions.
- BioArctic AB (BRCTF) faces challenges in ensuring sufficient infusion capacity and the implementation of blood-based tests in the Nordic region and Europe.
- The company's cost structure is expected to increase significantly, with operating expenses projected to rise by 60% to 80% this year.
- The timeline for the MSA program remains uncertain, with potential commercialization not expected before 2030, indicating a long path to market for some pipeline products.
Q & A Highlights
Q: With Leqembi now approved in Europe, how do you see the Nordic launch progressing, and what are the expected costs and timelines for health economic analyses and subsidies?
A: We have started building our commercial organization and are hiring customer-facing resources. Eisai is leading the price and reimbursement discussions, which we expect to continue this year with a hopeful outcome next year. Marketing and sales costs are expected to increase by roughly 10% to 15% per quarter.
Q: Regarding the MSA program, is this an opportunity for 2030 and beyond, or do you see it progressing sooner?
A: We are happy to include MSA patients in the ongoing Phase 3 study, which will have the same readout as Parkinson's disease. We are exploring different approaches for MSA and other indications, with potential timelines extending beyond 2030.
Q: What kind of efficacy signals could we expect from the Phase 2a study in Parkinson's and MSA?
A: The Phase 2a study is primarily focused on safety, tolerability, and pharmacokinetics. We are exploring various biomarkers for future studies, but any signals will be exploratory at this stage.
Q: Are you expecting to be profitable purely from royalties, or will there be a milestone component in 2026?
A: Profitability will likely be a combination of royalties and sales milestones. We expect to be profitable with this mix, but specifics are not detailed.
Q: Can you elaborate on your intentions for partnerships or collaborations regarding the brain transporter platform?
A: We are progressing well with the brain transporter platform and are in discussions with external companies. Our model involves re-engineering assets for partners, but we cannot disclose specific ongoing discussions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.