Intervacc (IVACC) Q3 2024 earnings summary

Executive summary

• StrangvacⓇ sales in Sweden rose 70% in the first nine months year-over-year, with strong market momentum and positive field reports from veterinarians and horse owners.

• Despite increased use, reported turnover declined due to batch sales timing to distributors, causing revenue fluctuations.

• 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 by leading experts.

• Ongoing US approval process for StrangvacⓇ, with published scientific articles supporting regulatory submissions.

Financial highlights

• Net sales for Jan–Sept 2024 were SEK 7.7 million, up SEK 1.3 million year-over-year; Q3 net sales were SEK 2.5 million, down from SEK 3.0 million in Q3 2023.

• Operating loss for Q3 2024 was SEK -22.5 million, improved from SEK -36.9 million in Q3 2023; Jan–Sept operating loss was SEK -58.8 million.

• Q3 2024 operating profit included a non-cash obsolescence charge of SEK -6.1 million; Q3 2023 included SEK -21.2 million in write-downs and provisions.

• Cash flow from operating activities for Q3 2024 was SEK -13.2 million, a slight improvement year-over-year.

• Equity at September 30, 2024, was SEK 180.4 million; cash and cash equivalents were SEK 49.3 million.

Outlook and guidance

• Intensified sales efforts for StrangvacⓇ are expected following manufacturing improvements and new vials with longer shelf life.

• The company aims to make StrangvacⓇ a core vaccine for horses and is preparing for pivotal clinical studies for its pig vaccine candidate.

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