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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 Q4 2025 Earnings: A Year of Transformative Growth

BioArctic reported a significant improvement in financial performance for 2025, with revenues increasing eightfold to SEK 1.2 billion, driven primarily by the success of its flagship treatment, Leqembi. The company's royalty income from Leqembi sales reached SEK 127 million in Q4, a 31% year-over-year increase, despite a stronger Swedish krona. The earnings per share (EPS) for Q4 was -0.1, beating analyst estimates of -0.4. The operating profit for the full year was approximately SEK 1.26 billion, with an operating cash flow significantly stronger than the result, resulting in SEK 313 million in positive cash flow during Q4.

Publication Date: Mar -08

📋 Highlights
  • Record Financial Performance:: BioArctic achieved SEK 1.2 billion in full-year revenue (2025) with a full-year operating profit of SEK 1.26 billion, driven by Leqembi's global sales exceeding USD 500 million.
  • Leqembi Growth Momentum:: Q4 sales of Leqembi reached $134 million, a 55% YoY increase, with 80% of patients opting for continued treatment after 18 months and rising insurance coverage.
  • BrainTransporter Platform Advancement:: New data highlights the platform's potential for enhanced brain drug delivery, with applications expanding to oncology and next-gen therapies like exidavnemab (Phase IIa results expected 2026).
  • Global Reimbursement Expansion:: Leqembi secured reimbursement in Canada, Brazil, and Malaysia, with efforts ongoing in Nordic countries and Europe, alongside subcutaneous auto-injector launch plans.
  • Dividend Milestone:: BioArctic declared its first dividend of SEK 2 per share, reflecting profitability and a recurring dividend strategy, supported by operational cash flow of SEK 313 million in Q4.

Leqembi Sales and Royalties

Leqembi's global sales exceeded USD 500 million in 2025, with Q4 sales reaching JPY 20.7 billion (approximately $134 million), a 15% increase from the previous quarter and a 55% year-over-year increase. According to Anders Martin-Lof, "We've already reached more than 80% of Eisai's forecast for fiscal year 2025." The growth in Leqembi sales is expected to continue, driven by the introduction of the subcutaneous auto-injector and increased use of blood-based biomarkers.

Financial Outlook and Investments

BioArctic expects its operating expenses to increase by 50% to 70% in 2026 due to the progression of its project portfolio, including significant investments in exidavnemab and new candidate drugs. The company's strong financial position, with a positive cash flow, enables it to invest in its programs and projects. BioArctic has proposed a dividend of SEK 2 per share, a significant milestone for a biotech company.

Valuation and Growth Prospects

Analysts estimate BioArctic's revenue growth for the next year at 48.4%. With a current P/S Ratio of 13.23 and an EV/EBITDA ratio of 19.79, the market appears to have priced in significant growth expectations. The company's ROE of 51.72% and ROIC of 49.57% indicate strong profitability. The dividend yield is currently 0%, but the proposed dividend of SEK 2 per share is a positive sign for investors.

Pipeline Progress and Future Milestones

BioArctic is making progress in its pipeline, including the development of its BrainTransporter technology and the exidavnemab program. The company expects to reach a commercial milestone for Leqembi during the year, and Phase IIa results for exidavnemab are expected later in 2026. The progress in its pipeline and the growth of Leqembi sales are expected to drive the company's future growth.

3. NewsRoom

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The Nomination Committee's proposal for the election of Board members and Chairperson of the Board in BioArctic AB

Mar -27

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New data on long-term, real-world treatment with lecanemab presented at the 2026 AD/PD™ congress

Mar -23

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Latest data on long-term, real-world treatment with lecanemab will be presented at the AD/PD™ 2026 congress

Mar -11

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BioArctic (OM:BIOA B) Valuation Check After Recent Share Price Weakness And Leqembi Growth Expectations

Mar -08

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Number of shares and votes in BioArctic AB (publ) as of February 27, 2026

Feb -27

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BioArctic AB (BRCTF) Q4 2025 Earnings Call Highlights: Record Growth and Strategic Partnerships ...

Feb -18

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Invitation to presentation of BioArctic's fourth quarter report for October - December 2025 on February 18 at 9.30 a.m. CET

Feb -11

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BLA for subcutaneous formulation of Leqembi® designated for Priority Review in China

Feb -09

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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

Stock-Card
Basilea Pharmaceutica

A-Score: 5.7/10

Value: 4.8

Growth: 8.1

Quality: 8.2

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

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Hyloris Pharma

A-Score: 4.1/10

Value: 6.2

Growth: 6.2

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 1.7

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Gubra

A-Score: 4.0/10

Value: 6.2

Growth: 2.6

Quality: 9.9

Yield: 5.0

Momentum: 0.0

Volatility: 0.7

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Compugen

A-Score: 3.8/10

Value: 5.5

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 5.5

Volatility: 0.3

1-Year Total Return ->

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BioArctic

A-Score: 3.3/10

Value: 1.2

Growth: 2.6

Quality: 9.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

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: 3.0

Volatility: 1.7

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

338.4$

Current Price

338.4$

Potential

-0.00%

Expected Cash-Flows