BioArctic AB has secured a major strategic partnership with Bristol Myers Squibb (BMS) in a deal valued at up to USD 1.35 billion, marking a significant expansion of its neurodegenerative disease portfolio. The agreement, pending regulatory approval, includes an upfront payment of USD 100 million and potential milestone payments of up to USD 1.25 billion, plus tiered low double-digit royalties on global sales.
The licensing agreement covers BioArctic's antibodies BAN1503 and BAN2803, targeted for Alzheimer's disease treatment. Under the terms, BMS will assume full responsibility for development and global commercialization efforts of these compounds.
Strong Commercial Progress for Leqembi
Leqembi (lecanemab), the company's flagship drug for early Alzheimer's disease, continues to gain traction in the market. Fourth quarter results show royalties of SEK 97 million, representing a 38% increase from the previous quarter. The treatment has now reached more than 20,000 patients across three continents, with approvals in ten markets globally.
Recent regulatory developments include FDA approval for less frequent intravenous maintenance dosing, allowing four-week intervals after the initial 18-month treatment period. Additionally, the FDA is reviewing the subcutaneous maintenance therapy application, with a decision expected by August 2025.
Breakthrough in Brain Drug Delivery Technology
BioArctic's proprietary BrainTransporter technology has demonstrated remarkable results in enhancing antibody delivery to the brain. The platform shows promise for achieving faster and more potent efficacy in brain-targeted treatments while potentially reducing side effects and required dosing.
"What we have now presented shows that the technology is clearly differentiated from what has previously been generated in the field," stated Gunilla Osswald, CEO of BioArctic. "It has the potential for both faster and stronger efficacy for treatments targeting the brain with fewer side effects and lower doses."
Clinical Development Progress
The company has made significant strides in its clinical program, including the initiation of the phase 2a EXIST study for exidavnemab in Parkinson's disease. The study has already completed first-phase recruitment, demonstrating efficient execution of the company's first independently conducted clinical trial in neurodegenerative disease.
Financial Performance
For the fourth quarter of 2024, BioArctic reported:
- Net revenues of SEK 101.2 million
- Operating loss of SEK 53.5 million
- Cash and cash equivalents of SEK 779 million at year-end
Looking ahead to 2025, BioArctic expects continued growth in Leqembi royalties and additional milestone payments from Eisai. The company's strong financial position, bolstered by the BMS agreement, supports ongoing investment in its research portfolio and potential new collaborations.
