In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Xbrane Biopharma AB (FRA:7XB) secured a significant transaction with Albotech, selling its XP03 program and laboratory activities for 275 million Swedish crowns, improving its financial position.
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The company plans to repay its current debt, including a 150 million Swedish crowns convertible bond, and reduce its fixed cost base to approximately 40 million Swedish crowns annually.
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Xbrane Biopharma AB (FRA:7XB) reported a strong volume growth of 36% in Q1 2025 for its Lucentis biosimilar, with a profit share of nearly 20 million Swedish crowns.
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The company has a strategic focus on its Lucentis and Optivo biosimilar candidates, aiming to optimize cash flows and potentially expand its market share.
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Xbrane Biopharma AB (FRA:7XB) has a promising partnership with Valorum Biologics for the US market, which is valued at $10 billion, and anticipates a significant opportunity upon FDA approval.
Negative Points
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The sales ramp-up for the Lucentis biosimilar has been slower than anticipated due to educational activities and the need for a prefilled syringe version.
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Xbrane Biopharma AB (FRA:7XB) faces cash flow imbalances, requiring careful financial management to balance cash in and out until the launch of new products.
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The company reported a negative operating cash flow of 69 million Swedish crowns in Q1 2025, mainly due to sales of inventory items and changes in accounts payables and receivables.
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There is uncertainty regarding the timeline for FDA approval of the Lucentis biosimilar, as additional documentation was requested, delaying the process.
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Xbrane Biopharma AB (FRA:7XB) needs to secure further financing to support its investment in the Optivo biosimilar program, which requires about 200 million Swedish crowns.
Q & A Highlights
Q: Can you provide an update on how suppliers have been accommodating regarding deferred payments and your financing plans post-Albotech transaction? A: We have worked actively with our main manufacturing partners to defer payments, and they have been understanding. We plan to settle these debts in June with proceeds from the Albotech transaction. Post-transaction, we will have a reduced fixed cost base of 40 million Swedish crowns, and profit sharing from Europe should cover this. However, we need to finance the substantial investment into the Xevein program, which is about 200 million Swedish crowns net. We expect to balance cash flows over time, especially with inventory conversion into cash during 2026 and 2027. Martin, CEO