Release Date: September 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biovica International AB (OSTO:BIOVIC B, Financial) reported a 50% increase in US sales compared to the previous quarter, indicating strong growth in a key market.
- The company has successfully improved its cash flow by SEK8 million compared to the same period in the previous fiscal year.
- Biovica International AB has strengthened its financial position with a direct issue, raising SEK16.4 million initially, with an option for an additional SEK7.5 million.
- The company has signed new master service agreements and work orders with pharmaceutical companies, expanding its portfolio and potential revenue streams.
- Biovica International AB's product, DiviTum, continues to gain traction in clinical trials and has been presented at major conferences, enhancing its credibility and market potential.
Negative Points
- Despite the growth in US sales, the overall Q1 net sales remained flat at SEK1.7 million, indicating challenges in other revenue streams.
- Two expected pharma projects were delayed from Q1 to Q2, impacting the immediate revenue outlook.
- The company faces a significant challenge to reach its goal of becoming cash flow positive by the second half of 2025, requiring substantial revenue growth.
- There is a dependency on signing new agreements to accelerate growth, which introduces uncertainty in achieving financial targets.
- The process of including DiviTum in the NCCN guidelines is still in its early stages and may take considerable time and effort to complete.
Q & A Highlights
Q: What is the progress in the clinical IVD sales pipeline and the visibility ahead?
A: Anders Rylander, CEO, explained that Biovica has laid a good foundation with almost 30 institutions regularly ordering tests. The focus is on increasing the number of prescribers per institution and targeting integrated delivery networks (IDNs) for more aggressive growth. The strategy involves leveraging early adopters' success stories to expand within existing institutions and attract new ones.
Q: Can you provide insights into the pharma services outlook, especially after a low delivery quarter?
A: Henrik Winther, SVP of Business Development, noted that August showed a 300% increase in service testing compared to an average month. The company has kickstarted several large work orders and is negotiating new master service agreements, indicating promising growth in pharma services.
Q: What are the prospects for commercial partnerships on the clinical side?
A: Anders Rylander, CEO, mentioned that Biovica is exploring possibilities for partnerships with big diagnostic companies. The focus is on growing revenues, proving commercial potential, and strengthening data to enhance attractiveness for such deals.
Q: What steps are necessary for the inclusion of DiviTum in the NCCN guidelines, and what is the timeline?
A: Hector Tamburini, Head of US Operations, explained that the process involves preparing an extensive application with clinical evidence and input from key opinion leaders. The application is targeted for Q2 2025 for breast cancer guidelines.
Q: Are there any further cost reductions expected, or is the current burn rate constant?
A: Anders Moren, CFO, confirmed that the current burn rate is expected to remain constant, with a focus on increasing revenue with the existing organization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
