Arctic Bioscience — Earnings Release 2025

Aug 28, 2025

Arctic Bioscience - Stable development with upside potential

Arctic Bioscience - Stable development with upside potential

Highlights H1 2025:

· Encouraging top-line results from the HeROPA clinical study on key secondary

endpoints

· New long-term funding of NOK 30 million secured in January 2025

· Nutra revenues of NOK 17,2 million (NOK 16,7 million) with a gross margin of

33,4 % (30,6 %)

· New skin care product launched - Romega Skin Refine set for international

expansion

· Operating costs reduced with NOK 6,4 million compared to first half 2024

· Improved adjusted EBITDA year to date in 2025, NOK -13,6 million (NOK -20,9

million)

· Positive development in Arctic Algae with good progress in exciting R&D

projects

An important milestone in the first half of 2025 has been the completion of the

HeROPA study and review of the clinical results. The 12-month read-out showed

encouraging results on key secondary endpoints.

"We see a solid rationale in continued development of HRO350, including the

future commercial potential. The primary focus going forward will be to continue

working with securing potential partners for further development. However, these

processes take time", says CEO of Arctic Bioscience, Christer L. Valderhaug.

The development in the nutraceutical business in the first half of the year has

been affected by the recall issue that arose at the beginning of the year,

delaying customer deliveries and revenues for the first half year and increasing

cost of goods sold. Despite these issues, there is a positive revenue and margin

development compared to last year. The level of activity in Arctic Algae has

also increased significantly with increased project funding and external project

revenues.

"It is encouraging to see that we have a continued positive development in our

nutraceutical business where we continue to innovate and grow our business. We

have a solid foundation of growing recurring B2B-business and we are eager to

expand our B2C-subscription business beyond the Norwegian market. In addition,

we have a strong focus on adapting our cost level and the implemented cost

measures are already yielding results, with a significant decrease in our

operating costs during the first half of the year", says Valderhaug.

In July, Arctic Bioscience launched a new skin care product, Romega Skin Refine,

which has already been well received in the Norwegian market. The product will

also be launched in the Chinese and Swedish markets later this year and with

more geographies to follow during 2026. Romega Skin Refine is our first

significant step into the beauty segment, a market with significant market

potential.

"Product development is the core of our business. It is exciting to enter a

large, new segment, and I have good faith that we can succeed with the strategy

we are now implementing to further diversify our product range", ends Christer

L. Valderhaug.

Financials

Key figures - H1 2025:

· Revenues from sales: NOK 17,2 million (NOK 16,7 million)

· Gross profit: NOK 5,8 million (NOK 5,1 million)

· Gross margin: 33,4 % (30,6 %)

· Adjusted EBITDA: NOK -13,6 million (NOK -20,9 million)

· Available liquidity end of period: NOK 5,5 million (NOK 49,8 million)

Comparable figures for H1 2024 in brackets.

Sales revenues for the first six months amounted to NOK 17,2 million. This is an

increase of NOK 0,5 million compared to the same period in 2024. Some delays in

delivery of finished goods due to the recall issue held the turnover rate

somewhat back in the first half of the year compared to budget, but is expected

to materialize again in the second half of 2025. The American market had a

positive development in the first half year, with a revenue of NOK 5,2 million

during the first six months, compared to NOK 1,4 million in the same period of

Gross profit for the period was NOK 5,8 million, corresponding to a gross margin

of 33,4 %. Compared to the same period in 2024 this is an increase of NOK 0,7

million, and a margin increase of 2,8 percentage points.

Other income in this period amounts to NOK 1,5 million. This is up from NOK 0,5

million in the same period in 2024. The increase is mainly related to higher

activity levels in Arctic Algae, resulting in higher income from government

grants and sales of services from this company.

Adjusted EBITDA ended at NOK -13,6 million in H1 2025, compared to NOK -20,9

million in H1 2024. Both personnel expenses and other operating costs have been

significantly decreased. In total, operating costs were NOK 6,4 million lower in

the first half year of 2025 compared to the same period in 2024. This is mainly

due to the implemented cost-reduction initiatives in the Group.

Available liquidity at the end of H1 2025 amounts to NOK 5,5 million.

Outlook

Given the encouraging results from the 12 months HeROPA readout, Arctic

Bioscience will evaluate strategic opportunities for further development and

regulatory engagement for HRO350. We believe there is a major market potential

for HRO350 in mild-to-moderate psoriasis and the company will seek partnerships

for further development.

The liquidity situation is closely monitored. The dialogue with the Group's

financing partners is close and good. The Board is continuously assessing

liquidity measures beyond what has already been implemented and will implement

such measures if deemed necessary. Further HRO350 project development, beyond

phase 2b, will be funded separately through partnership or specific project

funding.

Based on purchase orders received for the second half of 2025 and general order

outlook, it is expected an increase in nutraceutical revenues in the second half

of the year.

Webcast

Arctic Bioscience will host a webcast and Q&A session to present the results

today at 11:00 CET. The presentation can be accessed through the company's

website, or with the following link:

https://teams.microsoft.com/l/meetup

-join/19%3ameeting_NTliNzJmNjUtNjQxYy00OTY4LWI5ODItODAwYzQwNjc5OGFj%40thread.v2/0

?context=%7b%22Tid%22%3a%22ce618813-5158-40b5-b6d0

-2f2cd3f39b20%22%2c%22Oid%22%3a%22d4224f98-c1a8-4e9b-a246-0571136c0f7b%22%7d

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Christer L. Valderhaug

CEO

Mobile: +47 920 84 601

Email: christer@arctic-bioscience.com

Jone R. Slinning

CFO

Mobile: +47 948 75 469

Email: jone@arctic-bioscience.com

About Arctic Bioscience

Arctic Bioscience is a biotech company developing and commercializing

pharmaceutical and nutraceutical products based on unique bioactive marine

compounds.

The company is developing HRO350 - a novel oral drug candidate. HRO350 is being

developed for treatment of patients with mild-to-moderate psoriasis. This is a

large patient group in need of new effective medicines with beneficial safety

profile.

Nutraceuticals from Arctic Bioscience are sold globally as bulk ingredients as

well as finished goods under the ROMEGA® brand.

Arctic Bioscience is led by a highly skilled team of talents with diverse and

highly relevant background.