ARCTIC BIOSCIENCE Highlights Q4 2023:
- The HeROPA clinical trial fully recruited in
January 2024 - Available liquidity end of 2023 of
NOK 109,6 million - Agreement on debt funding of
NOK 65 million to finance new inhouse manufacturing line - Total revenues from the nutraceutical business impacted by movement in customer's delivery plans into 2024 and manufacturing delays
- Positive order backlog for 2024 for the nutraceutical business
- 2023 adjusted EBITDA in line with expectations and according to earlier guided range
2023 has been an eventful year for Arctic Bioscience, culminating in a significant milestone in
During 2023, Arctic Bioscience has attended several pharma and biotech conferences presenting the company and our assets and held meetings with a number of potential commercial and development partners.
"With the recruitment in place, the HeROPA clinical trial is now moving forward towards the 6 months data read-out, which will mark a substantial milestone for Arctic Bioscience. On the commercial side, we will continue our positive dialogues with pharma companies regarding potential partnership deals for HRO350", says CEO
The nutraceutical business performed well in the first half of the year with strong sales growth compared to 2022, but the last part of the year was affected by changes in customer's delivery plans as well as manufacturing delays at the end of the year. In the last couple of years, the nutraceutical business has evolved well. Particularly in
"Together with our partner in
Financials
Key figures - Q4 2023:
- Revenues from sales:
NOK 9,9 million (NOK 10,6 million ) -
Gross profit:
NOK 1,7 million (NOK 4,7 million ) - Gross margin: 17,1 % (44,9 %)
-
Adjusted EBITDA:
NOK -9,9 million (NOK -8,8 million )
Comparable figures for Q4 2022 in brackets. The consolidated figures for Q4 2023 includes effects from the acquired company Arctic Algae AS.
Key figures as of year end 2023:
- Revenues from sales:
NOK 33,8 million (NOK 34,3 million ) -
Gross profit:
NOK 9,8 million (NOK 11,6 million ) - Gross margin: 29 % (34 %)
-
Adjusted EBITDA:
NOK -38,6 million (NOK -31,0 million ) -
Available liquidity end period:
NOK 109,6 million (NOK 144,2 million )
Comparable figures as of the end 2022 in brackets. The 2023 figures are unaudited. The consolidated figures as of end 2023 includes effects from Arctic Algae AS from Q2 2023.
Sales revenues amounted to
Gross margin was reduced to 17,1 % in Q4 2023, compared to 44,9 % for the same period in 2022. The main explanation for this change is related to the mix of sold products. As a larger part of deliveries of finished goods has been moved into 2024, the gross margin is affected, also for the year in total which showed a gross margin of 29 % compared to 34 % in 2022.
Adjusted EBITDA ended at
The liquidity position at the end of 2023 amounts to
Debt funding of
The full-scale manufacturing facility project was set on hold at the beginning of 2022 due to global unrest, rising material prices and the need to re-adapt the size of the facility to future needs. Since then, we have explored alternative inhouse manufacturing solutions which are better adapted to future operations and demands. Based on a concept development project, the company is moving forward with a GMP manufacturing line that will secure the production volumes in the years to come, both for our pharmaceutical and nutraceutical operations.
As part of the concept development project, funding solutions have been negotiated. In
Outlook
With all needed patients now recruited into the HeROPA clinical trial, we expect the read-out of the 6 months primary end points in H2 2024. This read-out will lay the foundation for a clinical phase III study and subsequent commercialization of our HRO350 candidate. We continue pursuing potential commercial partnerships for HRO350, processes which will have strong focus in the forthcoming periods.
When Arctic Bioscience was listed on Euronext Growth in 2021, it was stated that one of the main reasons for both the capital increase and the listing was to fund the HRO350 phase IIb study. This study is now well underway. At end of 2023 the financial position is satisfying. Arctic Bioscience has constant focus on ensuring a satisfactory capitalization to secure progress in the ongoing projects. In 2024 the company will work with various financing alternatives to secure the future funding of the company's activities post the 6 months data readout.
Going forward we see positive prospects for our nutraceutical business, both with regards to building our customer base and by introducing new products into the markets. We are aiming for solid sales growth in the coming years and forecast a break-even contribution from the nutraceutical business by end of 2025.
Webcast
Arctic Bioscience will host a webcast and Q&A session to present the results today at
https://channel.royalcast.com/landingpage/hegnarmedia/20240301_1/
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
For further information, please contact:
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.
Arctic Bioscience is led by a highly skilled team of talents with diverse and highly relevant background.
https://news.cision.com/arctic-bioscience-as/r/arctic-bioscience---q4-2023-operational-update---foundation-for-an-exciting-2024,c3938609
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