Intervacc (IVACC) Q3 2024 earnings summary

Executive summary

• Strangvac sales in Sweden increased by 70% year-over-year for the first nine months of 2024, reflecting strong acceptance among horse owners and veterinarians and positive field reports.

• Despite increased use, reported turnover declined due to batch-based distributor sales, causing quarterly revenue fluctuations.

• Over 10,000 horses have been vaccinated with Strangvac, providing valuable field experience and efficacy data.

• Manufacturing process improvements were completed, resolving a short out-of-stock situation in Sweden by late October.

• Strangvac received extended patent protection in the UK to May 2036, and peer-reviewed vaccination guidelines were published.

Financial highlights

• Net sales for Jan–Sept 2024 were SEK 7,660 thousand, up from SEK 6,389 thousand year-over-year; Q3 net sales were SEK 2,531 thousand, down from SEK 3,024 thousand in Q3 2023.

• Operating result for Q3 2024 was SEK -22,514 thousand, compared to SEK -36,935 thousand in Q3 2023; Jan–Sept operating loss was SEK -58,800 thousand.

• Result after financial items for Jan–Sept 2024 was SEK -57,456 thousand, an improvement from SEK -71,584 thousand year-over-year.

• Q3 2024 operating profit included a non-cash obsolescence charge of SEK -6,100 thousand; Q3 2023 included SEK -21,200 thousand in write-downs and provisions.

• Cash flow from operating activities for Jan–Sept 2024 was SEK -38,486 thousand; for Q3 2024, SEK -13,200 thousand.

Outlook and guidance

• Increased market momentum and positive sentiment for Strangvac are expected to support further sales growth.

• Intensified sales efforts are planned following manufacturing improvements and new vials with longer shelf life.

• Ongoing efforts to expand market penetration and accelerate commercialization are underway.

• Approval process for Strangvac in the US is ongoing, targeting further international expansion.

• Financing work is ongoing, with expectations of a strengthened capital structure in the near future.