How Leqembi’s China Insurance Listing At BioArctic (OM:BIOA B) Has Changed Its Investment Story

• BioArctic’s partner Eisai has announced that Alzheimer’s drug Leqembi (lecanemab) has been added to China’s National Healthcare Security Administration “Commercial Insurance Innovative Drug List,” expanding access to early Alzheimer’s treatment in a key market following its June 2024 launch there.
• This move materially enhances the commercial potential of Leqembi in China, which could be important for BioArctic given its role in the drug’s development and its ongoing commercialization collaboration with Eisai in the Nordic region.
• We’ll now examine how Leqembi’s inclusion on China’s innovative drug list could reshape BioArctic’s investment narrative and risk-reward balance.

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BioArctic Investment Narrative Recap

To own BioArctic, you need to believe in the long run value of disease modifying Alzheimer’s therapies and the company’s ability to turn Leqembi royalties and partnerships into durable earnings. The China insurance listing strengthens the near term Leqembi adoption story, but the key catalyst still lies in how quickly real world usage and reimbursement broaden, while the main risk remains BioArctic’s reliance on one flagship asset in a complex, evolving treatment class.

Among recent developments, Health Canada’s conditional approval of Leqembi for certain early Alzheimer’s patients is especially relevant, as it underlines the continuing global expansion of the drug alongside China’s insurance progress. Together, these moves highlight how regulatory and access decisions across multiple regions can influence BioArctic’s royalty outlook and shape how investors weigh the upside from Leqembi against pipeline execution risk elsewhere in the business.

Yet behind the expanding access story, investors should also be aware of the concentration risk if Leqembi’s real world uptake or reimbursement were to...

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

BioArctic's narrative projects SEK2.4 billion revenue and SEK538.7 million earnings by 2028. This requires 8.4% yearly revenue growth and a decrease of about SEK561.3 million in earnings from SEK1.1 billion today.

Uncover how BioArctic's forecasts yield a SEK294.60 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Members of the Simply Wall St Community see fair value for BioArctic spread widely, from SEK21.30 to SEK580.00 across 11 views, which you can compare with the evolving Leqembi access story and its implications for BioArctic’s future earnings profile.

Explore 11 other fair value estimates on BioArctic - why the stock might be worth as much as 84% more than 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 2 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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