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BioArctic's Impressive Interim Report: Q2 2026 Overview

BioArctic AB has unveiled its interim report for the second quarter of 2026, a period marked by significant advancements in both financial performance and strategic partnerships. The report reflects a critical time for the company as it navigates the developments surrounding its flagship drug, Leqembi, and expands its research capacity through collaborations.

Key Highlights of Q2 2026

During this quarter, BioArctic enjoyed several noteworthy developments:

• - Sales Forecast: Eisai, BioArctic's partner, provided a sales forecast for Leqembi, projecting revenues of JPY 143.5 billion (approximately SEK 8.4 billion) for the fiscal year 2026, indicating a robust growth rate of 63% compared to the previous year.
• - Strategic Collaboration with Eli Lilly: BioArctic has entered into a significant research agreement with Eli Lilly, focusing on a potential treatment utilizing BioArctic's proprietary BrainTransporter™ technology with an undisclosed Eli Lilly drug candidate aimed at addressing neurodegeneration. This partnership secures BioArctic an upfront payment of USD 30 million, with the total deal potentially reaching USD 800 million including royalties.
• - Leqembi Iqlik Launch: Following FDA approval for the Leqembi Iqlik subcutaneous autoinjector targeting early Alzheimer's patients, the product was launched in the United States in August, providing greater flexibility for administration and enhancing patient accessibility.

Financial Performance

The financial summary for the quarter includes:

• - Net Revenues: SEK 247.5 million, down from SEK 392.1 million year-on-year.
• - Royalty Income: SEK 179.4 million came from Leqembi, which reflects an increase compared to SEK 162.5 million from the same period last year.
• - Operating Profit: A loss of SEK 6.5 million, showing a decrease from a profit of SEK 179.1 million in the previous year.
• - Net Profit: The loss of SEK 11.2 million represented a decline from a profit of SEK 96.6 million in the previous year.
• - Cash Flow: Operating activities generated SEK 137.8 million, while overall cash and cash equivalents rose to SEK 1,990 million.

CEO Insights

Gunilla Osswald, CEO of BioArctic, emphasized the significance of the agreement with Eli Lilly, asserting it as a testament to BioArctic's innovative strength and positioning within the global pharmaceutical landscape. She remarked, "The agreement is not merely a strategic business deal; it underscores the confidence in our BrainTransporter technology and reinforces BioArctic's stature as an attractive partner for potential future innovations."

Additionally, the quarter saw the initiation of a research collaboration with Mesenkia Therapeutics, targeting glioblastoma treatments that could open new avenues in oncology research for BioArctic.

Advancements in Alzheimer's Care

The FDA's approval of the Leqembi Iqlik autoinjector notably advances patient treatment processes. This self-administered option provides greater independence to Alzheimer's patients and relieves pressure on healthcare systems. Coupled with evolving blood-based diagnostics, it presents a promising scenario for broader patient access and treatment expansion.

BioArctic reports that globally, sales of Leqembi reached JPY 29.3 billion, with a notable uptick in patient numbers contributing to this increase. At the AAIC (Alzheimer's Association International Conference) held in July, findings showcased the efficacy of Leqembi, indicating that over 75% of early Alzheimer's patients remained stable under treatment, with nearly 7% showing improvement.

Research Pipeline

On top of its advancements with Leqembi, BioArctic boasts a robust upcoming pipeline focusing on neurodegenerative diseases. Among their notable candidates is exidavnemab, confirmation of which indicating favorable safety profiles was recently received, and plans for Phase 2b trials in multiple system atrophy and Parkinson's-related dementia are anticipated to commence in early 2027.

Conclusion

In summary, BioArctic's Q2 2026 report illuminates a crucial growth trajectory complemented by illustrious collaborations and advancements in Alzheimer's treatment methodologies. The balance of current and emerging research equips BioArctic with the potential to further influence the landscape of neurological healthcare. The company is poised for continued growth in the coming years, underpinned by a solid financial footing and an innovative product pipeline.

For more details, BioArctic invites stakeholders to join a webcast where the CEO and CFO will provide deeper insights and address inquiries regarding the report.