Arctic Bioscience – Nutra growth and positive progress on pharma
Highlights Q3 2026:
- Sales revenues up 26% year to date compared with the same period last year
- Strong order backlog for the reminder of the year
- Good cost control supports improved EBITDA
- HRO350 phase 3 study design being developed in preparation for EMA scientific advice
Arctic Bioscience continued to grow sales of nutraceutical products during the first nine months of 2026. Sales revenue increased by 26% compared with the same period last year. Several markets recorded strong growth, with revenue in the Americas more than doubling. Delays at certain subcontractors continue to affect delivery schedules and the timing of revenue recognition between quarters. The order backlog entering the fourth quarter supports a strong finish to the year.
“Our long-standing customers continue to demonstrate their loyalty to our products. Their repeat business reflects the quality we deliver, and the market need we address. Higher raw material costs over the past year have required us to increase prices, but we have not seen any material impact on demand. In recent months, we have attended several major trade fairs in Asia and the US, generating strong interest and new customer leads that we will continue to develop,” says CEO Christer L. Valderhaug.
In recent months, the company has continued to develop its plans for HRO350. Extensive analysis of the phase IIb study data provides the basis for the phase 3 study design. The next step is to seek scientific advice from the European Medicines Agency (EMA) on the proposed design. This process will be initiated in the fourth quarter.
“Our team has carried out extensive analysis of the phase IIb study results. These analyses are central to designing a phase 3 protocol and will inform discussions with potential partners about further clinical development. Advice from the EMA will help refine the study design for the next phase,” says medical director Runhild Gammelsæter.
Financials
Key figures – Q3 2026:
- Revenues from sales: NOK 9.3 million (NOK 8.7 million)
- Other income: NOK 0.5 million (NOK 0.9 million)
- Gross profit: NOK 3.7 million (NOK 1.9 million)
- Gross margin: 39.7 % (21.6 %)
- Adjusted EBITDA: NOK -5.5 million (NOK -7.8 million)
Comparable figures for Q3 2025 in brackets.
Key figures as of end of Q3 2026:
- Revenues from sales: NOK 32.6 million (NOK 25.9 million)
- Other income: NOK 2.3 million (NOK 2.4 million)
- Gross profit: NOK 10.6 million (NOK 7.6 million)
- Gross margin: 32.6 % (29.4 %)
- Adjusted EBITDA: NOK -17.7 million (NOK -21.4 million)
- Available liquidity end of period: NOK 1.4 million (NOK 7.5 million)
Comparable figures as of end of Q3 2025 in brackets.
Sales revenues in the third quarter amounted to NOK 9.3 million, compared with NOK 8.7 million in the same period in 2025. Year-to-date sales revenue increased by NOK 6.7 million, or 26%, compared with the same period last year. The Americas continued to perform strongly, generating NOK 14.9 million in sales revenue, more than double the amount recorded in the corresponding period in 2025 and accounting for 46% of total sales revenue. Sales to Asia increased by 15%, while combined sales to Norway and Europe declined by 10% compared with the same period last year.
Other income amounted to NOK 0.5 million in the third quarter, compared to NOK 0.9 million in Q3 2025. Year-to-date other income was broadly stable at NOK 2.3 million, compared to NOK 2.4 million in the corresponding period last year. In 2026, other income was generated entirely by Arctic Algae through service sales and the recognition of public grants as revenue.
The gross margin in the third quarter was 39.7%, compared with 21.6% in Q3 2025. Year-to-date gross profit improved, supported in part by product price adjustments to offset higher raw material costs. The gross margin for the first nine months was 32.6%, an increase of 3.2 percentage points compared with the same period in 2025.
The company has maintained its focus on cost control in 2026, building on previously implemented cost-reduction measures. Operating costs for the first nine months were NOK 1 million lower than in the corresponding period in 2025. In addition, personnel expenses related to development projects were capitalized to a lesser extent than in previous years.
Adjusted EBITDA was NOK -5.5 million in the third quarter, compared with NOK -7.8 million in Q3 2025. For the first nine months, adjusted EBITDA was NOK -17.7 million, compared with NOK -21.4 million in the corresponding period last year.
Available liquidity at the end of the third quarter was NOK 1.4 million.
Outlook
A robust order pipeline and recurring customer demand support a positive outlook for the Nutra business. Deliveries postponed to the fourth quarter, together with a strong order backlog, support expectations for continued sales growth in 2026. Near-term priorities are to fulfil orders and support new product listings.
Customer launches are broadening product applications and market reach. NeuroReserve REO3™ and Bevimi broaden applications in the US, while Napiers and Genstory extend reach in the UK and South Korea, respectively. These developments include launches after the end of the third quarter.
Supply security, diversified sourcing and product differentiation remain important priorities. Proprietary marine lipids and the new Romega 30 Algae product support this positioning. The company will focus on securing critical inputs and adjusting prices to reflect cost inflation, with the aim of protecting margins and supply continuity.
Planning for the further development of HRO350 continues. Work on the design of a phase 3 protocol will continue in the coming months with the advice from experts and the European Medicines Agency (EMA). Partnership discussions will continue in parallel. Further publications from the HeROPA study are expected to increase visibility and support engagement with potential partners.
The company continues to monitor liquidity closely and maintain strict financial discipline. The Board is evaluating additional financing initiatives beyond those completed so far in 2026. Further development of the pharmaceutical portfolio is expected to be financed separately.
Webcast
Arctic Bioscience will host a webcast and Q&A-session today at 10:00 to present the highlights from the Q3 update. The presentation can be accessed through the following link:
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.