Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ArcticZymes Technologies ASA (FRA:B4V, Financial) has hired a new VP of sales, Paul Blackburn, who brings over 20 years of experience in life sciences, which is expected to strengthen the sales team.
- The company has made significant progress in negotiations for a SAN Enzyme agreement and is advancing in CDMO partnerships, aiming to become a standard on CDMO platforms.
- A new RNA restriction enzyme publication has generated significant interest, highlighting ArcticZymes' innovative capabilities.
- The company is undergoing a commercial transformation to become a solution provider rather than just a raw material supplier, aiming to enhance customer-centricity.
- Despite a challenging macroeconomic environment, ArcticZymes has managed to grow its biomanufacturing business over the last three quarters, showing resilience and adaptability.
Negative Points
- Q3 was challenging for ArcticZymes Technologies ASA (FRA:B4V) with a revenue of NOK24.1 million and an EBITDA loss of NOK2.3 million, primarily due to a weak performance in the molecular tools segment.
- The company faced a lack of major orders from a key account in the molecular tools segment, impacting sales negatively.
- Expenses have increased by 12% compared to the previous year, partly due to extraordinary items and increased commercial activities.
- The company is facing increased competition in the salt active nuclease market, which could impact its market position.
- The macroeconomic environment remains challenging, particularly affecting smaller gene and cell therapy biotechs, which are part of ArcticZymes' core customer group.
Q & A Highlights
Q: Can you provide more details on the significant investments being made and their impact on OPEX?
A: It's still early to provide exact numbers. Our new VP of Sales, Paul Blackburn, is working on a plan that will be approved by the board in December. We need to be bold in our approach to penetrate the market faster, given the increased interest from customers and competition.
Q: What caused the lack of orders from a key customer in the molecular tools segment, and what can be expected for Q4?
A: The key customer has enough stock of our core enzymes, affecting orders. We expect an improvement in Q4, but it depends on ongoing discussions with the key partner. It's premature to provide specific numbers.
Q: How many CDMOs have tested MSN or SAN GMP?
A: We have seen increased interest from CDMOs in the viral vector field. We are working closely with one specific CDMO, progressing towards becoming a standard nuclease, which is a significant achievement.
Q: Can you provide details on the number of unique customers for SAN GMP?
A: We are seeing increased traction with the SAN HQ launch, but specific details on customer numbers are not disclosed due to competitive reasons. Our customer base has expanded throughout 2024.
Q: Why prioritize SAN HQ GMP Neo before MSN GMP, and how does it differ from other SAN products?
A: The prioritization was based on getting the most enzymes out quickly. The MSN version of GMP couldn't be launched faster due to development processes, so we opted for the Neo version first.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
