BioArctic AB (BRCTF) Q1 2025 Earnings Call Highlights: Record Profits and Strategic Partnerships Propel Growth

BioArctic AB (BRCTF) reports a surge in revenue and profit, driven by strategic alliances and expanding market presence, while addressing future challenges.

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May 22, 2025
Summary
  • Leqembi Sales: Global Q1 sales were JPY14.7 billion (~$96 million), an 11% increase from Q4 last year, and a 380% increase from Q1 2024.
  • Royalties: Recorded royalty for the quarter was SEK96.6 million, with an underlying royalty of SEK101.7 million after currency adjustments.
  • Revenue: Increased from SEK30 million last year to SEK1,290 million this year, driven by a $100 million upfront payment from BMS and milestone payments from Eisai.
  • Operating Expenses: Increased to SEK203 million, with SEK72 million attributed to currency effects on the BMS upfront payment.
  • Operating Profit: Almost SEK1.1 billion in Q1, with expectations for full-year profit to align with Q1 results.
  • Net Result: SEK55 million below operating profit, due to a negative financial net of SEK9 million and a tax of SEK44 million.
  • Cash Balance: Approximately SEK800 million at the end of Q1, with an additional billion received post-quarter.
  • Future Sales Forecast: Eisai forecasts a 73% growth in Leqembi sales globally for fiscal year 2025, reaching JPY76.5 billion.
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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.