Street Calls of the Week
Investing.com -- Shares of BioArctic AB (STO:BIOA-B) climbed 5% as the company reported its full-year results, which were largely in line with expectations.
The notable increase in Q4 Leqembi royalty income, which soared by 38% quarter-over-quarter and more than tenfold year-over-year (YoY), contributed to the positive investor sentiment.
The Swedish biopharmaceutical company, known for its research in neurodegenerative diseases, had already shared the critical Q4 Leqembi royalty figure of SEK 97 million when its partner Eisai reported last week. Looking ahead, BioArctic anticipates continued royalty growth from Leqembi and expects to receive additional milestone payments from Eisai.
In December, BioArctic secured a major deal with BMS valued at up to $1.35 billion, plus royalties, marking the first licensing agreement for its BrainTransporter technology (BTT). The company expressed that the technology platform is "generating significant interest" and foresees "great opportunities for new collaborations going forward."
Furthermore, BioArctic is projecting profitability by 2025 and has reported a robust financial position, concluding 2024 with cash and cash equivalents of SEK 779 million, which will support the ongoing development of its internal R&D projects.
Investors are also closely monitoring the European approval process for Leqembi. An analyst from RBC commented on the situation, stating, "We still wait on updates around European Leqembi approval, after the European Commission asked the CHMP to consider two additional questions (to be discussed in February) after the CHMP adopted a positive opinion in November following re-examination last year.
We expect that this issue will likely be resolved within the next few months, and would anticipate the CHMP confirming its positive recommendation, but we recognise there’s a potential downside risk of non-approval."
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