Arctic Bioscience As · OSL:ABS
Arctic Bioscience As — Q4 2023 Earnings Presentation
30 slides from Arctic Bioscience As's earnings presentation, Mar 1, 2024
Slide 1: Arctic Bioscience Q4 2023 update / prelim. FY 2023 results
Arctic Bioscience Presentation of financial results; Q4 2023 update / prelim. FY 2023 results March 1st 2024 Christer L. Valderhaug (CEO) Jone R. Slinning (CFO) Runhild Gammelsæter (Global Medical Director) 1
Slide 2: Disclaimer
Disclaimer Matters discussed in this accurate or technically correct, Company is aware and able to Presentation may constitute or and their methodology may be ascertain from the information include forward-looking statements. forward-looking and speculative. published by that third party, no Forward
Slide 3: Developing and commercializing pharmaceutical and nutraceutical products
Developing and commercializing pharmaceutical and nutraceutical products based on unique bioactive marine compounds, utilizing proprietary technology and methodology
Slide 4: Agenda
Agenda Intro and 2023 operational highlights 2023 operational review 2023 consolidated Group financial review (prelim.) Business outlook Q&A
Slide 5: Intro and 2023 operational highlights
Intro and 2023 operational highlights 5
Slide 6: 2023 highlights
2023 highlights Phase IIb clinical trial for HRO350, the HeROPA-study, fully recruited 6-months primary end-point read-out expected in H2 2024 Liquidity position according to 22% y/y B2C revenue growth Financial results in line development plans with earlier guiding Implemented measures have had pos
Slide 7: Operational review Nutra
Operational review Nutra 7
Slide 8: Global nutra business with distribution via B2C, B2B and partner channels
Global nutra business with distribution via B2C, B2B and partner channels Based on extracts from the caviar of wild-caught North Atlantic herring Phospholipid omega-3 products - especially rich in DHA
Slide 9: Nutra B2C/B2B Norway
Nutra B2C/B2B Norway • Arctic Bioscience sells ROMEGA® to consumers in Norway. In 2023 B2C sales revenues increased by 22% y/y • The primary growth in B2C revenues is driven by sales coming from the new “ROMEGA ® Hjerne” product • The ROMEGA® products are available through e-commerce subscription at
Slide 10: Nutra Americas & Europe
Nutra Americas & Europe • Nutra B2B in general had a revenue growth through 2023 of 12% y/y o Revenue in Europe grew by 46% o Revenues from Americas dropped by 27%. o Affected by changes in customer’s delivery plans • Several new US brands signed in 2023 and are expected to launch through 2024 • Mor
Slide 11: Nutra APAC
Nutra APAC • The sale of ROMEGA ® -products in China was strong and doubled y/y in 2023. However, being reflected in the 2024-revenues for Arctic Bioscience due to stock changes and manufacturing delays end of year • Arctic Bioscience sales revenue from China in 2023 dropped by 29% y/y • Key product
Slide 12: Operational review Pharma
Operational review Pharma 12
Slide 13: HRO350 market potential in mild-to-moderate psoriasis
HRO350 market potential in mild-to-moderate psoriasis Novel oral product meets an unmet medical need for patients with non-severe psoriasis Split of Disease Severity Large market potential in mild-to-moderate Moderate-to-Severe psoriasis Mild-to-Moderate and Severe • ~22.5M total psoriasis patients
Slide 14: Paediatric indication for HRO350: added potential
Paediatric indication for HRO350: added potential Potential first-line treatment for children with mild-to-moderate psoriasis Paediatric Investigation Plan (PIP) agreed Limited approved products in standads of care with the Paedatric Committee* of the EMA High unmet medical need • Drug development p
Slide 15: HeROPA phase IIb study progress and status per February 2024
HeROPA phase IIb study progress and status per February 2024 To investigate efficacy, safety, and dose of HRO350 versus placebo in mild-to-moderate psoriasis Recruitment complete: 519 patients 2021 2022 2023 2024 2025 All patients will be treated for 6 months - primary endpoint Data read-out estimat
Slide 16: HRO350 clinical program progress and timeline update
HRO350 clinical program progress and timeline update 2022 2023 2024 2025 2026 2027 2028 The HeROPA Phase IIb clinical trial Data read-outs Publications Cellular studies MoA Pharmacokinetic study Phase III clinical program Development of children´s formulation Paediatric clinical development* MAA in
Slide 17: Cellular data on HRO350 Mechanism-of-Action in psoriasis
Cellular data on HRO350 Mechanism-of-Action in psoriasis “Properties of phospholipids from Herring Roe in Psoriasis” supported by grant from the Research Council of Norway Most existing treatments for psoriasis work by reducing inflammation, commonly by inhibiting specific signaling substances from
Slide 18: Arctic Orphan (ABS302): orphan designation drug candidate for premature infants
Arctic Orphan (ABS302): Novel orphan designation drug candidate for brain development in extremely premature infants ~15 million premature births annually worldwide1 ~5% are extremely premature (< 28 weeks)2 Extremely premature infants are bereaved three months of the normal in utero development tim
Slide 19: 2023 consolidated group financial review (prelim.)
2023 consolidated group financial review (prelim.) 19
Slide 20: Key financial figures
Key financial figures SALES REVENUES GROSS MARGIN AVAILABLE LIQUIDITY +57% 34,3 33,8 34,0% 227,4 29,0% 24,0% 21,5 144,2 109,6 2021 2022 2023 2021 2022 2023 31.12.2021 31.12.2022 31.12.2023
Slide 21: Income statement
TNOK 2023 2022 Income statement Sales revenues down 1,5% y/y, mainly driven by postponement in Sales revenue 33 750 34 272 delivery plans into 2024 from some of our largest customers Other rev enues 6 197 • Positive development in B2C-segment in line with expectations, Cost of goods sold 23 976 22 6
Slide 22: Breakdown of Nutra revenue
Breakdown of Nutra revenue REVENUE BY BUSINESS LINE REVENUE BY REGION 40 000 40 000 35 000 35 000 30 000 30 000 29 % 38 % 25 000 25 000 16 % 20 000 20 000 90 % 87 % 22 % 15 000 15 000 37 % 10 000 10 000 25 % 5 000 5 000 14 % 18 % 10 % 13 % - - 2022 2023 2022 2023 B2C B2B Norway Europe Americas APAC
Slide 23: Cash flow statement
TNOK 2023 2022 Cash flow statement Profit/loss before tax -45 515 -34 024 Available liquidity end of period of MNOK 109,6 Ordinary depreciation 5 382 3 731 Change in inv entory 2 668 -6 936 Change in accounts receiv able 3 905 -5 771 Cash flow from operations MNOK -40,3 mainly driven by negative Cha
Slide 24: Financial position
TNOK 31.12.2023 31.12.2022 ASSETS Non-current assets: Financial I ntangible assets 140 658 107 043 Property, plant and equipment 26 438 22 332 position Total non-current assets 167 096 129 375 Current assets: I nv entories 32 794 35 462 Accounts receiv able 9 571 13 476 Other current assets 11 188 5
Slide 25: Business outlook
Business outlook 25
Slide 26: New inhouse manufacturing line in Ørsta
New inhouse manufacturing line in Ørsta • Earlier plans to build a full-scale manufacturing facility were set on hold at the beginning of 2022 • Since then, Arctic Bioscience has worked with alternative inhouse manufacturing solutions which are better adapted to future operations and demands • A con
Slide 27: Business outlook
Business outlook HeROPA clinical trial will be the main focus in 2024 • With all needed patients now recruited the 6-months primary end-point read-out is expected in H2 2024 • We continue pursuing potential commercial partnership for HRO350 – will have strong focus in the forthcoming periods Positiv
Slide 28: Financing outlook
Financing outlook Financing of future activities • 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 the end of 2023 the f
Slide 29: Q&A
ARCTIC "7 BIOSCIENCE Q&A
Slide 30: Contact
Contact CEO - Christer L. Valderhaug: [email protected] CFO - Jone R. Slinning [email protected] Medical Director - Runhild Gammelsæter: [email protected] Subscribe to news www.arctic-bioscience.com/investors/home