Swedish biotech BioArctic AB reported a second-quarter operating loss on Wednesday as expenses surged, even as royalties from its Alzheimer’s drug Leqembi climbed 27% year-over-year.
The company posted a SEK 6 million operating loss in Q2 2026, compared with a SEK 179 million profit in the same period last year, while net revenue remained flat at SEK 248 million. Operating expenses rose to SEK 232 million from SEK 193 million, with research and development accounting for roughly 75% of costs. BioArctic shares fell 5.1% to $327.40, leaving the stock near the bottom of its 52-week range of $257 to $364.40.
Leqembi royalties totaled SEK 179.4 million in the quarter, up 12% sequentially and 27% from a year earlier. Global Leqembi sales reached ¥29.3 billion ($184 million) in Q2, a 12% increase from the prior quarter and 27% higher year-over-year. U.S. sales rose 13% to ¥15.5 billion, while China grew 17% sequentially to ¥4.8 billion. Japan, however, declined 6% to ¥6.1 billion.
Eisai, BioArctic’s partner, raised its full-year fiscal 2026 Leqembi sales forecast to ¥143.5 billion ($910 million), up 63% from fiscal 2025. The company also highlighted the FDA approval of a subcutaneous formulation of Leqembi, branded Iqlik, in July, with a U.S. launch in August and Japanese approval expected in Q3 2026. Eisai’s interim analysis of the LEADER study showed 82.5% of patients were stable or improved, with severe ARIA-E occurring in 0.2% of cases.
BioArctic’s cash position strengthened to SEK 2.3 billion after receiving a $30 million upfront payment from Eli Lilly in July as part of their collaboration, which has a potential value of up to $800 million. The company also received a SEK 51 million upfront payment from Novartis and a EUR 20 million sales milestone from Eisai in May. Total deal values across five partnerships now exceed $3 billion.
Full-year 2026 operating costs are expected to rise 40% to 60% from 2025 levels, though BioArctic anticipates achieving full-year profitability. The company paid a SEK 177 million dividend in June, equivalent to SEK 2 per share. Management projects approximately SEK 880 million in royalties over the 12 months ending Q1 2027.
BioArctic also outlined progress on its pipeline, including the Phase 2a readout for exidavnemab expected in Q4 2026 and Phase 2b studies for Parkinson’s and MSA planned to begin in early 2027. The company described itself as a leader in antibody technology and its BrainTransporter platform, with Lilly’s selection of the latter for next-generation CNS therapies cited as validation.
