Arcticzymes Technologies Asa · OSL:AZT
Arcticzymes Technologies Asa — Q4 2023 Earnings Presentation
27 slides from Arcticzymes Technologies Asa's earnings presentation, Feb 1, 2024
Slide 1: Q4 2023 Presentation
Q4 2023 Presentation February 1, 2024
Slide 2: Agenda
Agenda 1 Highlights – Q4 2023 2 Business updates and strategic priorities 3 Corporate development and partnerships 4 Financials 5 Q&A
Slide 3: Highlights Q4 2023
Highlights Q4 2023 Achieved Quarterly Research New Partnership Sales Council of agreement with 28.4 MNOK Norway grant Biomatter (28.2 MNOK) 11.8 MNOK EBITDA Launched T7 RNA Performance Polymerase 2.0 MNOK (1.3 MNOK)
Slide 4: New SAN HQ GMP
NEW SAN HQ GMP GMP-grade Salt Active Nuclease Launched Jan 30th, 2024
Slide 5: SAN HQ GMP launched
SAN HQ GMP launched SAN HQ GMP 2024 Jan 30 GMP-grade Salt Active Nuclease Crystal structure of SAN HQ nuclease The only provider of nucleases that perform optimally at both high salt and physiological conditions
Slide 6: SAN HQ GMP
SAN HQ GMP First GMP grade Biomanufacturing nuclease Launch January 30th and customers can order the product from second half of February Customer interest is growing in terms of requests for information But customers want to see the product in the market first The project has been an important lear
Slide 7: Nuclease market: Growth segments
Nuclease market: Growth segments Focus on AAV segment AAV Lentivirus Onclolytic Virus Addressable Market: Addressable Market: Addressable Market: 430-480 Mill USD 30 Mill USD (2023) 35-45 Mill USD (2023) Denarase: 16 MUSD Total: 252 Mill USD segment (2023) Benzonase: 400 MUSD CAGR: 18,5 % CAGR: 25,9
Slide 8: Building out the product portfolio
Building out the product portfolio Tentative 2024-2025 product planning Biomanufacturing ‘ET-Nx’ RNA Enzymes : Sequence specific riboendonuclease for RNA analytics SAN «X» GMP Nucleases: Prototypes Improved SAN «X» (specfic customer needs) M-SAN HQ GMP Nucleases: Strong addition to our «GMP grade» n
Slide 9: Funding granted from RCN
Funding granted from RCN Supports Advanced Therapeutics strategy New project funding from Research Council of Norway (RCN) granted. Main outputs: Project supports strategy in Advanced Therapeutics. Novel enzyme solutions Total of 11.8 MNOK over four years. New customers in RNA therapeutics Project i
Slide 10: Corporate Restructuring Q1 (Jan)
Corporate Restructuring Q1 (Jan) Closure of Oslo site to reduce costs and refocus strategically Background Company costs have increased significantly in the past years Costs must be reduced in certain part of company value chain A revision of the strategy puts increased focus on biomanufacturing, pa
Slide 11: Strategy and priorities
Strategy and priorities
Slide 12: The Road Forward
The Road Forward A focused and market driven growth strategy Mission Creating a leading specialist enzymes company A catalyst for innovation and progress for our partners Strategy Organic and partner-based growth strategy Expand Biomanufacturing capabilities and develop Molecular Tools Commercial In
Slide 13: Strategic priorities 2024
Strategic priorities 2024 => To deliver long term growth Penetrate biomanufaturing segment SAN “X” GMP and M SAN GMP BioMatter AI project External application partnership Sales channel strategy Develop RNA portfolio through new prototypes T7 RNA first tool launched in segment ET-NX exploration toget
Slide 14: Client Projects
Client Projects Full Portfolio – not “just” nucleases Our Proteinase is included in a new trial by a global A large North American CMO will be cancer detection company in a bid to gain approval for using SAN HQ GMP for their client in its cancer screening tools in the US market. stage II clinical tr
Slide 15: Product / Corporate Development & Partnerships
Product / Corporate Development & Partnerships
Slide 16: Corporate Development
Corporate Development Finding value to Support the Innovation Pipeline Market Driven Portfolio Strategy Ideation Joint Ventures OEM Licensing Opps External Services Strategic Alliance Internal M&A R&D Increase Speed to Market Cost-Effective Product Development Market Driven, Innovative Products Redu
Slide 17: Partnership with Biomatter
Partnership with Biomatter Upgrading Our Toolbox for Future Innovation Optimization Design Discovery Combine exploring the Fine-tune the Enzymes metagenome with AI to Create a new Enzyme find Enzymes you have Leverage Biomatter’s Intelligent ArchitectureTM platform to enhance internal discovery Proo
Slide 18: Financials
Financials
Slide 19: Sales per area – Molecular Tools
Sales per area Sales per area – Molecular Tools Commercial 35 30 25 Molecular Tools Sales in MNOK 20 ✓ Quarterly sales 16.1 MNOK 15 ✓ Accounts for 56% of total Q4 sales 10 ✓ Research and Diagnostics contribution to Q4 sales were 30% and 26%, respectively 5 ✓ Same sales levels as we have seen over th
Slide 20: Sales per area – Biomanufacturing
Sales per area Sales per area - Biomanufacturing Commercial 25 20 15 Biomanufacturing Sales in MNOK ✓ Quarterly sales 12.3 MNOK 10 ✓ Accounts for 44% of total Q4 sales ✓ East coast in North America continue to delay or even 5 cancel programs ✓ In discussion with several CDMO’s for future needs 0 Q1
Slide 21: 12 month rolling average quarterly sales
12 month rolling average quarterly sales Sales unchanged 12 month rolling average Sales growth is unchanged 45 Sales development Number of orders decreased from 366 in Sales development ex Covid-19 Q3 to 347 in Q4 40 23 new customers in Q4 35 30 25 Signs of improvements in the markets but MNOK same
Slide 22: Expenses and profitability
Expenses and profitability
Slide 23: Organisational changes
Organisational changes Decreasing number of employees… Number of employees 70 No new positions or hires in Q4 60 65 employees per 31.12.2023 50 40 Administration 11 % 30 R&D 40 % Business development and 20 marketing 21 % 10 QA and 0 regulatory Operations 2019 2020 2021 2022 Q4 2023 6% 22 % 23
Slide 24: Profitability and expenses
Profitability and expenses In line with previous quarters Sales & EBITDA 60 EBITDA Sales EBITDA Q4 MNOK 2.0 vs 1.3 50 12M MNOK 22.2 vs 41.5 MNOK (26.5 Covid adjusted) 40 Expenses decreased by 0.1 MNOK in Q4 and increased MNOK 30 by 1.2 MNOK for 12 M 20 Q4 YTD 2023 2022 2023 2022 10 Cost of materials
Slide 25: Cash flow and short-term investments
Cash flow and short-term investments + 3,1 MNOK in cash flow for Q4 Cash and STI position 280 Short term investments (STI) 30 Net Cash (MNOK) 25 260 Changes in Cash and STI (MNOK) 20 240 Changes in cash and STI (MNOK) 15 Net Cash (MNOK) 220 10 5 200 0 180 -5 160 -10 140 -15 Q1 2022 Q2 2022 Q3 2022 Q
Slide 26: Going forward!
Going forward! We did not deliver on all 2023 objectives but delivered on key milestones that will secure long term growth
Slide 27: Thank you Q&A
Thank you Q&A arcticzymes.com
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