If you are investing in a company whose goal is to find cures for diseases such as Alzheimer’s, Parkinson’s, and ALS, BioArctic is the right investment for you, as this company’s ambitions are certainly not lacking. In addition, there is evidence, as a drug called Lecanemab has actually been developed, tested, and brought to market for the first of these three. Decades of development work are turning into positive cash flow as of this writing, with marketing authorizations for the drug obtained in the USA in 2023, and subsequently in Japan and China for early-stage Alzheimer’s. The drug does not cure Alzheimer’s, but “only” stops its progression, but it is likely one of the only effective drugs for this disease now and in the near future, so the market should be guaranteed. In addition, there is the Parkinson’s drug Exidavnemab in the pipeline, which is currently only in phase 2a. Furthermore, the company is indeed developing a drug to prevent ALS, so BioArctic certainly cannot be accused of a lack of ambition.
For an investor, this company is already at this stage a good cash flow generating company, whose pipeline brings nice additional options for a long-term investor. The 2025 figures look strong in terms of both earnings and cash flow, and at least the risk of dilution seems small at this stage. The company should now be able to stand on its own, and the valuation looks very moderate. In addition, foreign (non-Swedish) investors have a very small ownership stake, so if its reputation starts to spread outside Sweden, this could be an interesting time for an investment. Of course, it must always be kept in mind that there are risks in this investment as well, for example, if unexpected side effects suddenly appear in the drugs despite all tests. Nevertheless, I believe that with BioArctic, an investor can get involved in good cash flow with reasonable risk, and at the same time, get to follow a remarkably interesting pharmaceutical company.