Arctic Bioscience (ABS) Q4 2024 TU earnings summary

Executive summary

• Achieved record-high Q4 2024 sales, driving 29% year-over-year revenue growth and improving gross margin to 32.7% from 29.0% in 2023.

• Secured NOK 30 million in funding in January 2025 to support liquidity and move toward cash-positive operations.

• Advanced HRO350 phase IIb clinical trial, with 12-month readout expected by end of Q1 2025.

• Established joint venture with Kotler to expand in China and Southeast Asia.

• Received NOK 2.3 million grant for orphan drug development targeting premature infants.

Financial highlights

• 2024 sales revenue reached NOK 43.5 million, up 29% year-over-year; Q4 2024 revenues were NOK 15.6 million, up 57% year-over-year.

• Gross margin improved to 32.7% in 2024 (Q4: 34.4%), up from 29.0% in 2023 (Q4 2023: 17.1%).

• Gross profit was NOK 14.2 million in 2024, NOK 4.5 million higher than 2023.

• Adjusted EBITDA improved to NOK -36.8 million in 2024 from NOK -38.6 million in 2023.

• Available liquidity at year-end 2024 was NOK 7.0 million.

Outlook and guidance

• 12-month HRO350/HeROPA trial data expected by end of Q1 2025; full dataset available by mid-2025.

• Cost reduction initiatives and new funding expected to support transition to positive cash flow in 2026.

• Further HRO350 development beyond phase IIb to be funded via partnerships or project-specific funding.

• Continued focus on product innovation, market expansion, and operational improvements in 2025.