BioArctic (OM:BIOA B) Is Up 18.7% After Novartis Partnership and Strong Earnings Turnaround Has The Bull Case Changed?

• In late August 2025, BioArctic reported strong second-quarter and half-year results, with sales rising to SEK 392.12 million and SEK 1.68 billion respectively, and moved from a net loss to solid profitability on both periods versus the previous year.
• Novartis also announced a collaboration and license option agreement with BioArctic for its BrainTransporter technology, offering an upfront US$30 million payment and the potential for further milestone and royalty payments if development progresses, highlighting increased interest in BioArctic’s neurodegeneration platform from leading pharmaceutical partners.
• Next, we’ll explore how the Novartis partnership could impact BioArctic’s investment narrative, given the company’s growing technology appeal.

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BioArctic Investment Narrative Recap

To be a BioArctic shareholder, you need to believe that the company’s expertise in neurodegeneration, anchored by royalty streams from Leqembi and potential partnerships, can create sustainable value while managing significant commercial and scientific risks. The recent Q2 results and Novartis collaboration highlight BioArctic’s ability to attract leading partners and generate strong revenue, yet they do not fundamentally alter the key short-term catalyst, the growth trajectory of Leqembi royalties, or the risk of over-reliance on this income stream if commercialization stalls.

Among recent developments, the new agreement with Novartis stands out for its relevance. By securing an upfront US$30 million payment and the possibility of substantial milestones, BioArctic broadens its revenue base and underlines its BrainTransporter platform’s appeal, potentially reducing vulnerability to fluctuations in Leqembi’s market success and improving resilience as the pipeline advances toward commercialization milestones.

In contrast, investors should also be aware that if Leqembi’s rollout faces delays or setbacks, the company could face ...

Read the full narrative on BioArctic (it's free!)

BioArctic's outlook projects SEK2.2 billion in revenue and SEK444.0 million in earnings by 2028. This is based on a 12.8% annual revenue growth rate, but earnings are expected to decrease by SEK458.0 million from the current SEK902.0 million.

Uncover how BioArctic's forecasts yield a SEK280.50 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Fair value estimates from eight Simply Wall St Community members span from SEK21.30 to SEK580, showcasing broad disagreement on BioArctic’s prospects. While recent partnerships add new revenue streams, the company remains exposed if Leqembi’s market expansion slows, inviting you to consider diverse views on future performance.

Explore 8 other fair value estimates on BioArctic - why the stock might be worth less than half the current price!

Build Your Own BioArctic Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your BioArctic research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free BioArctic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BioArctic's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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