In April 2025 Arctic Bioscience announced encouraging top-line results from the HeROPA clinical study after 52 weeks of patient treatment. PGA 0/1, a measure indicating clear or almost clear skin, was a key secondary endpoint in this trial. A larger percentage of patients treated with HRO350 achieved a PGA 0/1 than placebo treated patients. Full statistical analysis and other endpoints will be presented in June. HRO350 was well tolerated throughout the study duration with no new safety concerns and no unexpected serious adverse events.

In January 2025 the company announced a new long-term funding of NOK 30 million, securing a financial runway and stability to develop the company further. Together with cost reduction initiatives and positive revenue growth expectations, the NOK 30 million loan facility is estimated to contribute to bringing the company into a positive cash flow position.  

"During the first quarter of 2025 several significant milestones were met, and we are looking forward to the full read-out results from the HeROPA study in June, as the preliminary 12-months read-out in April was encouraging. We are also very pleased to see so many patients benefiting from participating in this study. With new funding in place, we have headroom to evaluate the HRO350-strategy after all the data from the study are analyzed", says CEO Christer L. Valderhaug.

The nutraceutical business delivered according to budget in Q1 2025, and the growth expectations for 2025 remains solid. In Q2 we are planning to launch a new exiting consumer product in Norway, Sweden and China, with more countries to follow. We also expect to further expand our business with more B2B customers and with new geographies during the year.

The activity for Arctic Algae, the micro algae focused group company, is increasing and developing according to operational plans. The company is involved in different exiting research projects with external partners in addition to the planned internal development.

"We work diligently to achieve our operating plans and the prospects going forward are promising. At the end of 2024, we conducted a full review of our cost base and implemented several major cost-reduction measures. It is encouraging to note that this work is now also reflected in our cost results", ends Valderhaug.  

Financials

Key figures - Q1 2025:

• Revenues from sales: NOK 6,7 million (NOK 6,1 million)
• Other income: NOK 0,9 million (NOK 0,0 million)
• Gross profit: NOK 1,8 million (NOK 1,7 million)
• Adjusted gross profit: NOK 2,5 million (NOK 1,7 million)
• Gross margin: 27,0 % (28,8 %)
• Adjusted gross margin: 37,5 % (28,8 %)
• Adjusted EBITDA: NOK -9,1 million (NOK -12,7 million)
• Available liquidity end of period: NOK 21,7 million (NOK 74,6 million)

Comparable figures for Q1 2024 in brackets.

Sales revenue amounted to NOK 6,7 million in Q1 2025, an increase of NOK 0,6 million compared to the same period in 2024. The European market ex. Norway remains strong and accounted for 39 % of total sales in Q1 2025. Of the total sales revenue the B2C segment accounted for 18 % in Q1 2025.

Other income consists of public grants received in Q1 2025, mainly related to increased activity in Arctic Algae.

Gross margin in Q1 2025 ended at 27,0 %, 1,8 percentage points below the same period in 2024. Included in this is an extraordinary cost provision of NOK 0,7 million related to a recall issue uncovered late in the quarter. Adjusted for this extra provision, adjusted gross margin was 37,5 % in Q1 2025 compared to 28,8 % in the same quarter in 2024.

Adjusted EBITDA ended at NOK -9,1 million in Q1 2025, compared to NOK -12,7 million in Q1 2024. The improvement is a combination of increased income and the focus on cost-reduction initiatives that were implemented in the last half year of 2024. Both salary costs and other operating costs have been significantly reduced compared to the same period in 2024. 

The liquidity position at the end of Q1 2025 including unused credit facility amounts to NOK 21,7 million.

Outlook

Key top line results from the HeROPA clinical study were announced in April 2025 and showed encouraging results on key secondary endpoint with increasing durable efficacy up to week 52. In June 2025 the full statistical analysis for the Clinical Study Report will be ready. After this report is finalized, further progress for the clinical development program for HRO350 will be evaluated. Further development beyond phase 2b will be funded separately through partnership or specific project funding.

Given the prospects and market outlook for the nutraceutical business, Arctic Bioscience is aiming for solid sales growth both in 2025 and in the coming years and forecasts a break-even contribution from the nutraceutical business during 2026.

The work to establish a joint venture operation with Kotler Investment Ltd. to further develop the Chinese and Sout Asiatic market is ongoing.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.