An important milestone in the first half of 2025 has been the completion of the HeROPA study and review of the clinical results. The 12-month read-out showed encouraging results on key secondary endpoints.

"We see a solid rationale in continued development of HRO350, including the future commercial potential. The primary focus going forward will be to continue working with securing potential partners for further development. However, these processes take time", says CEO of Arctic Bioscience, Christer L. Valderhaug.

The development in the nutraceutical business in the first half of the year has been affected by the recall issue that arose at the beginning of the year, delaying customer deliveries and revenues for the first half year and increasing cost of goods sold. Despite these issues, there is a positive revenue and margin development compared to last year. The level of activity in Arctic Algae has also increased significantly with increased project funding and external project revenues.

"It is encouraging to see that we have a continued positive development in our nutraceutical business where we continue to innovate and grow our business. We have a solid foundation of growing recurring B2B-business and we are eager to expand our B2C-subscription business beyond the Norwegian market. In addition, we have a strong focus on adapting our cost level and the implemented cost measures are already yielding results, with a significant decrease in our operating costs during the first half of the year", says Valderhaug.

In July, Arctic Bioscience launched a new skin care product, Romega Skin Refine, which has already been well received in the Norwegian market. The product will also be launched in the Chinese and Swedish markets later this year and with more geographies to follow during 2026. Romega Skin Refine is our first significant step into the beauty segment, a market with significant market potential.  

"Product development is the core of our business. It is exciting to enter a large, new segment, and I have good faith that we can succeed with the strategy we are now implementing to further diversify our product range", ends Christer L. Valderhaug.    

Financials

Key figures - H1 2025:

• Revenues from sales: NOK 17,2 million (NOK 16,7 million)
• Gross profit: NOK 5,8 million (NOK 5,1 million)
• Gross margin: 33,4 % (30,6 %)
• Adjusted EBITDA: NOK -13,6 million (NOK -20,9 million)
• Available liquidity end of period: NOK 5,5 million (NOK 49,8 million)

Comparable figures for H1 2024 in brackets.

Sales revenues for the first six months amounted to NOK 17,2 million. This is an increase of NOK 0,5 million compared to the same period in 2024. Some delays in delivery of finished goods due to the recall issue held the turnover rate somewhat back in the first half of the year compared to budget, but is expected to materialize again in the second half of 2025. The American market had a positive development in the first half year, with a revenue of NOK 5,2 million during the first six months, compared to NOK 1,4 million in the same period of 2024.

Gross profit for the period was NOK 5,8 million, corresponding to a gross margin of 33,4 %. Compared to the same period in 2024 this is an increase of NOK 0,7 million, and a margin increase of 2,8 percentage points.

Other income in this period amounts to NOK 1,5 million. This is up from NOK 0,5 million in the same period in 2024. The increase is mainly related to higher activity levels in Arctic Algae, resulting in higher income from government grants and sales of services from this company.

Adjusted EBITDA ended at NOK -13,6 million in H1 2025, compared to NOK -20,9 million in H1 2024. Both personnel expenses and other operating costs have been significantly decreased. In total, operating costs were NOK 6,4 million lower in the first half year of 2025 compared to the same period in 2024. This is mainly due to the implemented cost-reduction initiatives in the Group.

Available liquidity at the end of H1 2025 amounts to NOK 5,5 million.

Outlook

Given the encouraging results from the 12 months HeROPA readout, Arctic Bioscience will evaluate strategic opportunities for further development and regulatory engagement for HRO350. We believe there is a major market potential for HRO350 in mild-to-moderate psoriasis and the company will seek partnerships for further development.

The liquidity situation is closely monitored. The dialogue with the Group's financing partners is close and good. The Board is continuously assessing liquidity measures beyond what has already been implemented and will implement such measures if deemed necessary. Further HRO350 project development, beyond phase 2b, will be funded separately through partnership or specific project funding.

Based on purchase orders received for the second half of 2025 and general order outlook, it is expected an increase in nutraceutical revenues in the second half of the year.

Webcast

Arctic Bioscience will host a webcast and Q&A session to present the results today at 11:00 CET. The presentation can be accessed through the company's website, or with the following link:

https://teams.microsoft.com/l/meetup-join/19%3ameeting_NTliNzJmNjUtNjQxYy00OTY4LWI5ODItODAwYzQwNjc5OGFj%40thread.v2/0?context=%7b%22Tid%22%3a%22ce618813-5158-40b5-b6d0-2f2cd3f39b20%22%2c%22Oid%22%3a%22d4224f98-c1a8-4e9b-a246-0571136c0f7b%22%7d

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