Highlights Q1 2023:
- The phase IIb HeROPA clinical trial approved in all the five European countries where the trial will be conducted
- More than two-thirds of the planned clinical trial sites (clinics) in the five countries activated
- Future opportunities in the microalgae segment through the acquisition of Arctic Algae AS
- Growth in Nutra sales revenues of 39 % compared to Q1 2022
- Solid financial position with
NOK 130,6 million in cash by end of Q1 2023
During the first quarter of 2023, the foundation was laid for exciting future opportunities with new customers in the Nutra business. In addition, Arctic Bioscience has continued to deliver on important milestones related to the pharmaceutical development program. Approval of the HeROPA clinical trial by Medicines Authorities in five European countries demonstrates international endorsement and the high quality of our drug development plan. This has considerably reduced the implementation risk for our pharmaceutical development program.
"The first quarter of this year has been important and very positive for Arctic Bioscience. The approvals we received from the Medicines Authorities in European countries for our HeROPA study underpins the substantial and impressive work conducted by the Arctic Bioscience team in
Update on the HeROPA clinical trial - a phase IIb clinical trial for mild-to-moderate psoriasis:
Until now, forty clinics are active in the five countries participating in the HeROPA clinical trial. The first patient was included end of
Clinical Trial Application (CTA) processes and some aspects of global logistical operations have taken longer than expected. Arctic Bioscience have implemented additional measures to ensure timely recruitment of patients. More clinics have shown interest in joining the trial, and these are being enlisted for participation. The clinics are using their patient lists for recruitment, and the larger sites in central European countries have thousands of patients with psoriasis who may be eligible for inclusion. Recruitment is expected to proceed at speed throughout summer and into the fall.
Update on our sustainable marine nutraceutical supplement business:
The nutraceutical business had a positive development in sales volume in the quarter compared to the first quarter of last year. Several new B2B customers with strong brands in their respective markets have launched products with ROMEGAâ in USA and
The acquisition of the company Arctic Algae, which was announced in February this year, opens for future commercial opportunities in both the Nutra and Pharma segments.
Financials
Key figures - Q1 2023:
- Revenues from sales:
NOK 7,8 million - Gross profit:
NOK 1,2 million - Gross margin: 15 %
-
EBITDA:
NOK -12,1 million - Capex (gross):
NOK 4,5 million - Cash end period:
NOK 130,6 million
Sales revenues amounted to
The gross margin in Q1 2023 was affected by the product mix of goods sold and especially influenced by the development in exchange rates during the quarter. The effect of a strongly weakened krone on the gross margin during the quarter is calculated to approx. 10 percentage points. The negative gross margin effect in Q1 is potentially a timing issue, as it may be offset by increased sales volume in foreign currencies going forward, given a continued weak krone situation.
EBITDA in the quarter amounted to
Gross capital expenditures (capex) amounted to
The acquisition of Arctic Algae AS in Q1 2023 was carried out without a liquidity effect for the group. Final settlement between the parties takes place by converting debt into equity. The transaction itself was formally completed on
The liquidity position is still strong, with a total cash balance of
Subsequent events
On
Outlook
To ensure effective and timely recruitment in the HeROPA clinical trial, Arctic Bioscience is working on activating clinics according to plan. In addition, several new clinics have shown interest in joining the trial, and these are also being enlisted for participation. The company is working diligently on the competitive recruitment of 519 patients. The first data read-out will be six months after completion of recruitment (last patient first visit, LPFV).
The order intake in the Nutra business for 2023 is promising both from existing customers (recurring business) and new customers. Our commercial partnership in the Chinese market continues to develop positively and we experience continued strong growth.
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
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 team of highly competent people with experience in developing marine oils and experience from global pharmaceutical companies.
https://news.cision.com/arctic-bioscience-as/r/arctic-bioscience---q1-2023-operational-update---heropa-clinical-trial-approved-in-all-5-countries-a,c3765172
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