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1. Company Snapshot

1.a. Company Description

BioArctic AB (publ), a research-intensive biopharmaceutical company, develops biological drugs for patients with neurodegenerative disorders in Sweden.The company develops BAN2401, an immunotherapy, which is in Phase III clinical trials targeting the toxic amyloid-beta oligomers/protofibrils in Alzheimer's disease; and is in preclinical trials for treating Down's syndrome with dementia and traumatic brain injury, as well as BAN2401 Back-up, a disease modifying antibody treatment that is in late preclinical Phase for patients with early Alzheimer's disease.It also develops ABBV-0805, a monoclonal antibody for treating Parkinson's disease; and SC0806, a biodegradable device that is in Phase I/II clinical trial for spinal cord injuries.


In addition, the company develops imaging and biochemical biomarkers for Alzheimer's and Parkinson's disease; and blood-brain-barrier technology that enables the passage of antibodies and other substances into the brain through the blood brain barrier, as well as focuses on developing ND3014 antibodies for treating neurodegenerative disorders; AD1801, AD1502, AD1503, AD-BT2802, AD-BT2803, and AD2603 for the treatment of Alzheimer's disease; and PD1601 and PD1602 for the treatment of Parkinson's disease.It has research collaboration agreement with Eisai and AbbVie.The company was formerly known as BioArctic Neuroscience AB and changed its name to BioArctic AB (publ) in 2016.


BioArctic AB (publ) was founded in 1992 and is based in Stockholm, Sweden.

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1.b. Last Insights on BIOA

The recent 3 months performance of BioArctic AB (publ) was negatively impacted by the European Commission's decision to refer the marketing authorisation approval decision of lecanemab to the Appeal Committee. This development has introduced uncertainty regarding the EU approval process for lecanemab, a key asset in BioArctic's pipeline. Additionally, the European Commission's decision may delay the potential launch of lecanemab in the EU, which could have a negative impact on the company's revenue growth. Furthermore, the recent decline in European markets, driven by higher-than-expected U.S. trade tariffs, has created a challenging environment for high-growth tech stocks, including BioArctic.

1.c. Company Highlights

2. BioArctic's Q3 2025 Earnings: A Closer Look

The company's financial performance in Q3 2025 was marked by an EPS of -0.98, significantly lower than the estimated -0.29. The actual EPS figure indicates a substantial loss, which may be attributed to various factors, including operational expenses and investment in research and development. As Anders Martin-Lof, CFO, mentioned, "the operating loss was SEK 29 million in Q3, and the company expects a similar loss in Q4."

Publication Date: Nov -19

📋 Highlights

Revenue Growth and Leqembi Sales

Leqembi sales decreased by 22% in Q3 due to a stockpiling effect in China. However, without this effect, growth would have been 14%. Recorded sales in the US increased by 12% to $69 million, and in Japan by 13% to $42 million. The EU launch initiated in Austria and Germany is starting well, but will take time to impact royalties. Analysts estimate next year's revenue growth at -36.2%, indicating a potential decline in sales.

Valuation Metrics

To understand what's priced into BioArctic's stock, we can look at various valuation metrics. The company's P/E Ratio is 23.23, P/B Ratio is 12.17, and P/S Ratio is 13.34. Additionally, the EV/EBITDA ratio is 19.83, indicating a relatively high valuation. The ROE is 73.79%, and ROIC is 50.86%, suggesting strong profitability. The Net Debt / EBITDA ratio is -0.75, indicating a healthy debt position.

Leqembi Iqlik and Regulatory Filings

The company is making progress with Leqembi Iqlik, the subcutaneous auto-injector, which was approved in the US in August and launched as of early October. Reimbursement for the Iqlik is expected to be included on formulary in 2027. Gunilla Osswald mentioned that the company is confident Eisai will reach their forecast for the full year, and the supplementary BLA filing for Leqembi Iqlik in the US is underway.

Pipeline Progress and Collaborations

BioArctic is advancing its pipeline with new projects, including the alpha-synuclein antibody Exidavnemab in Phase IIa and a new misfolded protein target, Huntingtin, for Huntington's disease. The company has three BrainTransporter collaborations with Eisai, BMS, and Novartis, and is exploring new modalities, such as enzyme proteins and genetic medicines.

3. NewsRoom

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New Leqembi-data presented at CTAD 2025 suggests potential to delay disease progression by up to 8.3 years with continued treatment

Dec -04

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New data on lecanemab to be presented at CTAD conference

Nov -19

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Why BioArctic (OM:BIOA B) Is Up 6.3% After Leqembi Royalties and Novartis Partnership Boost Sales

Nov -14

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Leqembi® approved for IV maintenance treatment in the United Kingdom

Nov -13

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BioArctic (OM:BIOA B): Exploring Valuation After Steady Share Price Gains and Recent Business Milestones

Nov -13

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Interim Report for the period July - September 2025: BioArctic

Nov -13

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Invitation to presentation of BioArctic's third quarter report for July - September 2025 on November 13 at 9.30 a.m. CET

Nov -04

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Sales of Leqembi® totaled 18 billion yen in the third quarter 2025

Oct -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Innovative Biological Drugs

Expected Growth: 9.27%

BioArctic AB's 9.27% growth in innovative biological drugs is driven by increasing demand for Alzheimer's and Parkinson's disease treatments, strategic partnerships, and a strong pipeline of novel antibody-based therapies. Additionally, the company's focus on neurodegenerative diseases and its proprietary technology platform contribute to its growth momentum.

7. Detailed Products

BAN2401

A immunotherapy treatment for Alzheimer's disease, targeting toxic beta-amyloid oligomers

SC0806

A treatment for complete spinal cord injury, aiming to restore motor function and sensation

AD1502

A diagnostic tool for early detection of Alzheimer's disease, using a blood-based biomarker

SC602

A treatment for Parkinson's disease, targeting alpha-synuclein pathology

8. BioArctic AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

BioArctic AB (publ) has a moderate threat of substitutes due to the availability of alternative treatments for Alzheimer's disease, such as Aduhelm and Lecanemab. However, the company's focus on developing a disease-modifying therapy with a unique mechanism of action reduces the threat of substitutes.

Bargaining Power Of Customers

BioArctic AB (publ) has a low bargaining power of customers due to the lack of alternative treatments for Alzheimer's disease. The company's product, if approved, will be a first-in-class treatment, giving it significant pricing power.

Bargaining Power Of Suppliers

BioArctic AB (publ) has a low bargaining power of suppliers due to its partnership with Eisai, a large pharmaceutical company. This partnership reduces the company's dependence on suppliers and gives it greater control over its supply chain.

Threat Of New Entrants

BioArctic AB (publ) faces a high threat of new entrants due to the growing interest in Alzheimer's disease research and the potential for new companies to enter the market. However, the company's strong intellectual property position and partnership with Eisai reduce the threat of new entrants.

Intensity Of Rivalry

BioArctic AB (publ) operates in a moderately competitive market with several companies developing treatments for Alzheimer's disease. However, the company's unique approach and partnership with Eisai reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.47%
Debt Cost 3.95%
Equity Weight 99.53%
Equity Cost 3.24%
WACC 3.24%
Leverage 0.48%

11. Quality Control: BioArctic AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Basilea Pharmaceutica

A-Score: 5.4/10

Value: 5.4

Growth: 8.1

Quality: 8.2

Yield: 0.0

Momentum: 5.5

Volatility: 5.3

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Gubra

A-Score: 4.5/10

Value: 6.8

Growth: 2.4

Quality: 9.9

Yield: 5.0

Momentum: 2.5

Volatility: 0.3

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Hyloris Pharma

A-Score: 3.8/10

Value: 6.2

Growth: 6.2

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

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Compugen

A-Score: 3.8/10

Value: 6.8

Growth: 7.4

Quality: 4.4

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

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BioArctic

A-Score: 3.2/10

Value: 1.5

Growth: 2.6

Quality: 9.9

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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MediWound

A-Score: 2.9/10

Value: 6.0

Growth: 3.3

Quality: 3.3

Yield: 0.0

Momentum: 3.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

307.6$

Current Price

307.6$

Potential

-0.00%

Expected Cash-Flows