Q1 2027 Biovica International AB Earnings Call

September 10, 2026

Fredrik Thor [Equity Research Analyst: Hello, and welcome to this live Q with Biovica. First off, we will have a presentation from Biovica and from Theis Kipling and Anders Morén. After that, we will have a Q&A session. Please feel free to send in your questions through our webpage. Please, Biovica, go ahead and do your presentation.

Fredrik Thor: Hello, and welcome to this live Q with Biovica. First off, we will have a presentation from Biovica and from Theis Kipling and Anders Morén. After that, we will have a Q&A session. Please feel free to send in your questions through our webpage. Please, Biovica, go ahead and do your presentation.

Speaker #1: This is the live Q&A with Biovica. First off, we will have a presentation from Biovica and from Thijs Kipling and Anders Morén. After that, we will have a Q&A session, and please feel free to send in your questions through our web page.

Speaker #1: So, please Biovica, go ahead and do your presentation.

Speaker #2: Thank you very much. So, good morning here from San Diego in the U.S., and welcome to Biovica's Q1 2026-2027 earnings call. My name is Thijs Kipling, I'm the CEO of Biovica, and I'm joined today by our CFO, Anders Morén.

Theis Kipling: Thank you very much. Good morning here from San Diego in the US, and welcome to Biovica's Q1 2026, 2027 Earnings Call. My name is Theis Kipling, I am the CEO of Biovica, and I am joined today by our CFO, Anders Morén. Before we get into the results, slide two contains our standard forward-looking statements disclaimer, and I would encourage you to read it at your convenience. Today's presenters are, beyond myself, also our CFO, Anders Morén, who will take part in the Q&A session later in the presentation. We will begin with a brief introduction to Biovica, followed by our Q1 highlights and financial update. Then we close with a few summary remarks before opening the call for Q&A. We welcome you, as mentioned, to submit written questions through the chat.

Speaker #2: Before we get into the results, slide 2 contains our standard forward-looking statements disclaimer, and I'd encourage you to read it at your convenience. Today's presenters are beyond myself, also our CFO, Anders Morén, who will take part in the Q&A session later.

Speaker #2: In the presentation, we will begin with a brief introduction to Biovica, followed by our Q1 highlights, a financial update, and then we will close with a few summary remarks before opening the call for Q&A.

Speaker #2: We welcome you, as mentioned, to submit written questions through the chat. These will be answered in writing and appended to the end of the presentation, which will be published on Biovica, and joining us today, as mentioned, is the analyst Fredrik Tord from Redeye.

Theis Kipling: These will be answered in writing and appended to the end of the presentation, which will be published on Biovica. Joining us today, as mentioned, is the analyst Fredrik Thor from Redeye. In the next few slides, I would like to introduce Biovica and highlight several aspects of the company that I believe make for a particular compelling investment case. DiviTum TKa is our FDA 510(k) cleared blood test that monitors and predicts treatment response in hormone receptor-positive metastatic breast cancer, providing clinical insight as much as 83 days before imaging. Biovica is listed on Nasdaq First North, headquartered in Uppsala, Sweden, with our CLIA and CAP-accredited laboratory in San Diego, California, serving all 50 states here in the US. I would like to highlight what I see as the core of our investment case.

Speaker #2: In the next few slides, I'd like to introduce Biovica and highlight several aspects of the company that I believe make for a particularly compelling investment case.

Speaker #2: David from TKA is our FDA 510(k) cleared blood test that monitors and predicts treatment response in hormone receptor-positive metastatic breast cancer. Providing clinical insight as much as 83 days before imaging.

Speaker #2: Biovica is listed on Nasdaq First North, headquartered in Uppsala, Sweden, with our CLIA, and CAP accredited laboratory in San Diego, California, serving all 50 states here in the U.S.

Speaker #2: I'd like to highlight what I see as the core of our investment case. First, that David's platform itself, a quantitative proliferation signal from a single blood draw, giving oncologists information before imaging confirms what biology is already showing.

Theis Kipling: First, the DiviTum platform itself, a quantitative proliferation signal from a single blood draw, giving oncologists information before imaging confirms what biology is already showing. Second, that 83-day lead time is validated against the standard imaging, and we are seeing real patient cases where it flags response and resistance. Third, we built the commercial infrastructure to act on this. Our CLIA and CAP-accredited lab has processed more than 900 tests over the past 12 months across 32 active accounts with a 75% prior year retention. Behind all of this sits a strong and expanding evidence base, more than 30 publications across 5,000 plus patients and six cancer types, with our FDA 510(k) clearance giving us credibility with both physicians and with payers. Our lab model is centralized with a gross margin structure above 85%, so revenues will scale faster than our fixed cost base.

Theis Kipling: First, the DiviTum platform itself, a quantitative proliferation signal from a single blood draw, giving oncologists information before imaging confirms what biology is already showing. Second, that 83-day lead time is validated against the standard imaging, and we are seeing real patient cases where it flags response and resistance. Third, we built the commercial infrastructure to act on this. Our CLIA and CAP-accredited lab has processed more than 900 tests over the past 12 months across 32 active accounts with a 75% prior year retention. Behind all of this sits a strong and expanding evidence base, more than 30 publications across 5,000+ patients and six cancer types, with our FDA 510(k) clearance giving us credibility with both physicians and with payers. Our lab model is centralized with a gross margin structure above 85%, so revenues will scale faster than our fixed cost base.

Speaker #2: Second, that 83-day lead time is validated against standard imaging, and we're seeing real patient cases where it flags response and resistance. And third, we build the commercial infrastructure to act on this.

Speaker #2: Our CLIA and CAP accredited lab has processed more than 900 tests over the past 12 months across 32 active accounts, with a 75% prior year retention.

Speaker #2: Behind all of this, sits a strong and expanding evidence base. More than 30 publications across 5,000-plus patients and 6 cancer types, with our FDA 510(k) clearance giving us credibility with both physicians and with payers.

Speaker #2: Our lab model is centralized, with a cross-margin structure above 85%, so revenues will scale faster than our fixed cost base. We also see multiple paths for upsides.

Theis Kipling: We do see multiple paths for upsides. Our hormone receptor-positive metastatic breast cancer beachhead expansions into early breast cancer, a patient pool roughly five times larger, and beyond that, our pharma services and CDx collaborations. Let me turn to the commercial traction we are seeing in our US lab and services business. We have now 46 accounts to date, including recurring use by major academic and community oncology networks. Repeat ordering across these leading institutions signals real workflow integration and not one-off sampling. Test volumes have grown for nine quarters straight, up 63% since fiscal year 2024 and 2025. That momentum is accelerating into this fiscal year. Looking at the underlying ordering behavior, 75% of our active accounts ordered more than once. 75% also of our providers sent in samples multiple times.

Speaker #2: Our hormone receptor-positive metastatic breast cancer beachhead expands into early breast cancer—a patient pool roughly five times larger—and beyond that, our pharma services and CDX collaborations.

Speaker #2: Let me turn to the commercial traction we're seeing in our U.S. lab and services business. We have now 46 accounts to date, including recurring use by major academic and community oncology networks, and repeat ordering across these leading institutions signals real workflow integration and not one-off sampling.

Speaker #2: Test volumes have grown from 9 quarters straight up 63% since fiscal year 2024 and 2025, and that momentum is accelerating into this fiscal year.

Speaker #2: Looking at the underlying ordering behavior, 75% of our active accounts ordered more than once, 75% also of our providers sent in samples multiple times.

Speaker #2: We've retained 81% of accounts from the prior year, and 26 out of 36 active accounts ordered in three or more months. Taken together, this is what gives me confidence in the durability of demand over here in the U.S.

Theis Kipling: We retained 81% of accounts from prior year. 26 out of 36 active accounts ordered in three or more months. Taken together, this is what gives me confidence in the durability of demand over here in the US. Looking ahead, we are targeting study activation this fiscal year with a large integrated delivery network partnership, which we expect to open a pathway to NCCN guideline inclusion and to further accelerate volume growth beyond what we are already seeing. As mentioned earlier, hormone receptor-positive metastatic breast cancer remains our beachhead. Based on roughly 100,000 US patients, we estimate this opportunity of approximately north of $400 million US in available market. This is our immediate focus, and it is where we intend to win through clinical adoption, continued evidence generation, publications, and over time, guideline inclusion.

Speaker #2: Looking ahead, we're targeting study activation this fiscal year, with a large integrated delivery network partnership, which we expect to open a pathway to NCCN guideline inclusion and to further accelerate volume growth beyond what we're already seeing.

Speaker #2: As mentioned earlier, hormone receptor-positive metastatic breast cancer remains our beachhead. Based on roughly 100,000 U.S. patients, we estimate this opportunity here of approximately north of 400 million U.S.

Speaker #2: dollars, in available market. This is our immediate focus, and it is where we intend to win, through clinical adoption. Continued evidence generation publications and, over time, guideline inclusion.

Speaker #2: At the same time, we're working closely with the research community to build evidence in the early breast cancer patient pool, with clinical trials for this indication starting in Q4 of this year.

Theis Kipling: At the same time, we are working closely with the research community to build evidence in early breast cancer patient pool with clinical trials for this indication starting in Q4 of this year, which has the potential to expand our addressable market. Beyond that, we see a longer-term platform opportunity across multiple indications, including lung, GI, blood cancers from 2028 and onward, supported by our granted ICI biomarker patent and algorithm IP that is currently in progress. Let me now turn to our pharma business, which remains a key source of revenue and platform optionality. We see the total addressable pharma opportunity here at approximately $8 billion US by 2030, with the US representing more than 40% of that. We see three distinct revenue opportunities.

Speaker #2: Which has the potential to expand our addressable market. Beyond that, we see a longer-term platform opportunity across multiple indications, including lung, GI, blood cancers, from 2028 and onward, supported by our granted ICI biomarker patent and algorithm IP, that is currently in progress.

Speaker #2: Let me now turn to our pharma business, which remains a key source of revenue and platform optionality. We see the total addressable pharma opportunity here at approximately 8 billion U.S.

Speaker #2: dollars by 2030, with the U.S. representing more than 40% of that. We see three distinct revenue opportunities. First, services and kit sales linked to drug development programs.

Theis Kipling: First, services and kit sales linked to drug development programs, typically $50,000 to $400,000 US per project, which is where our pharma revenue is generated today. We currently have 24 ongoing collaborations spanning across CDK4/6, PI3K, SERDs, and other oncology programs, representing approximately 30 million SEK in ongoing contract value. Second is companion diagnostic collaborations worth roughly between $5 million US to $50 million US per development program. Several of our current engagement, they have CDx potential, and those discussions are also ongoing, although we do not have any signed CDx contracts or either any CDx revenue as of today. Third is CDx product sales, worth more than $50 million US a year per approved product, which obviously represents the longer-term highest value opportunity. However, there are no CDx products on the market for us today, but this is where we expect to be over time.

Speaker #2: Typically, 50 to 400,000 U.S. dollars per project, which is where our pharma revenue is generated today. We currently have 24 ongoing collaborations spanning across CDK46, PIK3, SERDS, and other oncology programs.

Speaker #2: Representing approximately 30 million Swedish kronor in ongoing contract value. Second is companion diagnostic collaborations, worth roughly between 5 million U.S. to 50 million U.S.

Speaker #2: per development program. Several of our current engagements, they have CDX potential, and those discussions are also ongoing, although we do not have any signed CDX contracts or either any CDX revenue as of today.

Speaker #2: Third is CDx product sales, worth more than $50 million per year per approved product, which obviously represents the longer-term, highest value opportunity.

Speaker #2: However, there are no CDx products on the market for us today, but this is where we expect to be over time. Looking at our current work orders, 11 of our partners are Tier 1 companies with more than $10 billion U.S.

Theis Kipling: Looking at our current work orders, 11 of our partners are tier 1 companies with more than $10 billion US in annual revenue. One is tier 2 and 12 in tier 3. By drug class, CDK4/6 inhibitors remain our largest focus at 15 programs, followed by SERDs at 4, IO programs at 3, PI3K at 2, which reflects where the market is today and also where we are beginning now to diversify. My full quarter as CEO has been about decisive action, cost discipline, a strengthened leadership team, and accelerating momentum in our pharma services business. On the pharma side, pharma services revenue nearly doubled year over year, up 95%, with pharma test services revenue growing 187% on growing demand for pharmacodynamic biomarkers. We also made some difficult but necessary decisions on costs.

Theis Kipling: Looking at our current work orders, 11 of our partners are Tier 1 companies with more than $10 billion US in annual revenue. One is Tier 2 and 12 in Tier 3. By drug class, CDK4/6 inhibitors remain our largest focus at 15 programs, followed by SERDs at 4, IO programs at 3, PI3K at 2, which reflects where the market is today and also where we are beginning now to diversify. My full quarter as CEO has been about decisive action, cost discipline, a strengthened leadership team, and accelerating momentum in our pharma services business. On the pharma side, pharma services revenue nearly doubled year over year, up 95%, with pharma test services revenue growing 187% on growing demand for pharmacodynamic biomarkers. We also made some difficult but necessary decisions on costs.

Speaker #2: dollars in annual revenue. One is Tier 2, and 12 in Tier 3. By drug class, CDK46 inhibitors remain our largest focus at 15 programs followed by SERDS at 4, IO programs at 3, PIK3 at 2, which reflects where the market is today.

Speaker #2: And also where we're beginning now to diversify. My full quarter, as CEO, has been about decisive action: cost discipline, a strengthened leadership team, and accelerating momentum in our pharma services business.

Speaker #2: On the pharma side, pharma services revenue nearly doubled year over year, up 95%, with pharma test services revenue growing 187%, on growing demand for pharmacodynamic biomarkers.

Speaker #2: We also made some difficult but necessary decisions on costs. We have streamlined the organization, which carried a near-term cost in the P&L, but sharpens our cost base going forward.

Theis Kipling: We have streamlined the organization, which carried a near-term cost in the P&L but sharpens our cost base going forward. We ended our agreement with Tempus AI so that we can focus our US commercial resources more directly. Finally, on leadership, I am happy to say that Maria Ekdahl will be joining us as CFO, and our nomination committee has proposed a renewed board ahead of the 2026 AGM coming up next week. Together, I believe that these changes, they leave us as a leaner, more focused Biovica heading into the rest of the year. Let me now turn the focus to the Q1 highlights. Net sales were SEK 4 million, up 56% year over year, or 57% in local currency, driven primarily by pharma services. Operating cash flow was SEK -16 million, which is a modest improvement versus last year's SEK -17 million.

Speaker #2: And we ended our agreement with Tempus AI so that we can focus our U.S. commercial resources more directly. Finally, on leadership, I'm happy to say that Maria Ekdahl will be joining us as CFO, and our nomination committee has proposed a renewed board ahead of the 2026 AGM coming up next week.

Speaker #2: Together, I believe that these changes, they leave us as a leaner more focused Biovica heading into the rest of the year. Let me now turn the focus to the Q1 highlights.

Speaker #2: Net sales were 4 million Swedish kronor, up 56% year over year, or 57 in local currency, driven primarily by pharma services. Operating cash flow was in Swedish kronor minus 16, which is a modest improvement versus last year's minus 17.

Speaker #2: And our cash position stood at 51.6 million Swedish kronor, up from 16.3 million the prior year. On the U.S. side, IVD test revenues were in Swedish kronor 1,084,000 kronor, up 1% year over year, or 2% in local currency.

Theis Kipling: Our cash position stood at SEK 51.6 million, up from SEK 16.3 million the prior year. On the US side, IVD test revenues were SEK 1,084,000, up 1% year over year or 2% in local currency. However, with volumes that increased roughly 20%. That said, a shift towards commercial payer coverage is for now holding back revenue and improving payer collection naturally is a priority for us moving ahead. On the pharma side, revenue was SEK 2.9 million, up 95% year over year, 96% in local currency, with pharma test services up 187%, driven by new work orders from existing global pharma partners. Put simply, Q1 delivered strong pharma services growth and a leaner cost base, while US IVD revenue was held back by payer mix headwinds, despite actually seeing continued and higher volumes.

Speaker #2: However, with volumes that increased roughly 20%. That said, a shift towards commercial payer coverage is for now holding back revenue. And improving payer collection, naturally, is a priority for us moving ahead.

Speaker #2: On the pharma side, revenue was SEK 2.9 million, up 95% year over year—96% in local currency—with pharma test services up 187%, driven by new work orders from existing global pharma partners.

Speaker #2: So put simply, Q1 delivered growth, pharma strong pharma services growth, and a leaner cost base. While U.S. IVD revenue was held back by payer mix headwinds, despite actually seeing continued and higher volumes.

Theis Kipling: Before I close, I want to update you on a capital raise that we are executing to fully fund the business through to the next level. We are carrying out now a SEK 29.2 million rights issue of new Class D shares with preferential subscription rights for existing shareholders at a subscription price of SEK 0.3 per share, a discount of approximately 23% to the theoretical ex-rights price. Importantly, the rights issue is expected to be fully covered. Our largest shareholder, HDF and family, has agreed to guarantee the amount in full. So the issue is backed up for its complete amount. The board's resolution on the rights issue was given on 9 September 2024, subject to approval at an extraordinary general meeting, with the subscription period targeted to open on 7 October 2024.

Speaker #2: Before I close, I want to update you on a capital raise that we're executing to fully fund the business through to the next level.

Speaker #2: We're carrying out now a 209.2 million Swedish kronor rights issue of new Class B shares, with preferential subscription rights for existing shareholders at a subscription price of 0.3 Swedish kronor per share, at discount of approximately 23% to the theoretical expiry rights price.

Speaker #2: Importantly, the rights issue is expected to be fully covered. Our largest shareholder, HDF and family, has agreed to guarantee the amount in full. So the issue is backstopped for its complete amount.

Speaker #2: The board's resolution on the rights issue was given on September 9, subject to approval and an extraordinary general meeting, with the subscription period targeted to open on October 7.

Speaker #2: Together with the cost actions, we have already taken this capital injection will give us the runway that we need to execute on our strategy.

Theis Kipling: Together with the cost actions we have already taken, this capital injection will give us the runway that we need to execute on our strategy. Let me now close with a few summary remarks before we open the call for Q&A. We have built real momentum. Our direction is clear, and I believe our position in the market is very unique. What took us here to where we are now will not take us to where we want to be next, and I want to be very clear-eyed about that as we look ahead. On performance, this has been a leaner and more focused Biovica. Pharma services revenue nearly doubled year-over-year, and the cost actions we have taken, they sharpen our cost base going forward.

Speaker #2: Let me now close with a few summary remarks before we open the call for Q&A. We've built real momentum. Our direction is clear, and I believe our position in the market is very unique.

Speaker #2: What took us here to where we are now won't take us to where we want to be next. And I want to be very clear-eyed about that as we look ahead.

Speaker #2: On performance, this has been a leaner and more focused Biovica. Pharma services revenue nearly doubled year over year, and the cost actions we have taken have sharpened our cost base going forward.

Speaker #2: On commercial traction, we secured our ninth working order and expanded MSA from existing global pharma partners, signed a new lab services agreement with the U.S.

Theis Kipling: On commercial traction, we secured our ninth working order and expanded MSA from existing global pharma partners, signed a new lab services agreement with the US Cancer Center, and published also a new phase III data. Looking ahead, our execution priorities are a leaner cost base following the Q1 restructuring, a sharper US commercial focus, and continued pharma momentum. On market position, I see ctDNA and DiviTum TKa as complementary, not competing. DiviTum delivers a frequent read on treatment response before imaging, regardless of a tumor's mutation profile. As I have said before, we are not the mutation detector, we are the proliferation monitor. The earliest, the simplest signal that a drug is actually working. That is where our FDA clearance, our evidence base, and our growing number of active US accounts puts us.

Speaker #2: Cancer Center, and published also a new Phase 3 data. Looking ahead, our execution priorities are a leaner cost base, following the Q1 restructuring, a sharper U.S.

Speaker #2: commercial focus, and continued pharma momentum. And on market position, I see ctDNA and Divitum TKA as complementary, not competing. Divitum delivers a frequent read on treatment response before imaging, regardless of a tumor's mutation profile.

Speaker #2: As I've said before, we are not the mutation detector; we are the proliferation monitor. We provide the earliest and simplest signal that a drug is actually working.

Speaker #2: That is where our FDA clearance, our evidence-based, and our growing number of active U.S. accounts puts us. And I obviously look very much forward to maintaining a close dialogue with the investor community and to keep on sharing further updates as we continue to execute on our strategy.

Theis Kipling: I obviously look very much forward to maintaining a close dialogue with the investor community and to keep on sharing further updates as we continue to execute on our strategy. With that, Fredrik, I am happy to open the call for questions.

Speaker #2: And with that, Frederik, I'm happy to open the call for questions.

Speaker #1: Perfect. And thank you for the presentation. So first off, a few questions from the investors and participants online. So the first question is: improving commercial payer coverage and revenue collection is now an active priority.

Fredrik Thor [Equity Research Analyst: Perfect, and thank you for your presentation. First off, a few questions from the investors and participants online. The first question is, improving commercial payer coverage and revenue collection is now an active priority. Could you update us on where you stand with Medicare as well as private insurance coverage?

Fredrik Thor: Perfect, and thank you for your presentation. First off, a few questions from the investors and participants online. The first question is, improving commercial payer coverage and revenue collection is now an active priority. Could you update us on where you stand with Medicare as well as private insurance coverage?

Speaker #1: Could you update us on where you stand with Medicare as well as private insurance coverage?

Speaker #2: Yes, absolutely. So we're in a very good position, and I was actually very positively surprised when stepping into the company to see how far we have actually developed.

Theis Kipling: Yes, absolutely. So we are in a very good position. I was actually very positively surprised when stepping into the company to see how far we have actually developed. We have Medicare pricing already, and we actually have many of these commercial payers that are paying us. However, many of these commercial payers are, in most cases, waiting to see that we will have guideline inclusion to support them continuing to pay us at a stable price. So we are seeing quite some fluctuation within these private insurers that makes the price we are being acknowledged go up and down, and sometimes even a zero. But the team that we have is very experienced in managing this, and we have a plan also on how to proactively mitigate and continue to strengthen the position. That is in short how I at least look upon this.

Speaker #2: We have Medicare pricing already, and we actually have many of these commercial payers that are paying us. However, many of these commercial payers are in most cases waiting to see that we will have guideline inclusion to support them continuing to pay us at a stable price.

Speaker #2: So we're seeing quite some fluctuation within these private insurers that makes the price we're being acknowledged go up and down in sometimes even a several but the team that we have is very experienced in managing this, and we have a plan also on how to proactively mitigate and continue to strengthen the position.

Speaker #2: So that's in short how we how I at least look upon this. So it's good. It's positive.

Theis Kipling: It is good. It is positive.

Speaker #1: Got it. And was the reimbursement changes are you targeting in the near to medium term to help drive IVD sales?

Fredrik Thor [Equity Research Analyst: Got it. What reimbursement changes are you targeting in the near to medium term to help drive IVD sales?

Fredrik Thor: Got it. What reimbursement changes are you targeting in the near to medium term to help drive IVD sales?

Speaker #2: No real reimbursement changes planned. I mean, let's see—if we get into a CTX development program, that might be a trigger for more reimbursement changes.

Theis Kipling: No real reimbursement changes planned. Let us see if we get into a CDx development program. That might be a trigger for more reimbursement changes. But right now, we are covered, we have good pricing, and we have very strong acknowledgement. Naturally now, as we see these headwind challenges as I described from commercial payers, that is actually a reflection of how we are getting adopted more broadly in the community. So essentially, you can flip it and say that it is a positive, and now we just need to make sure that we get the guideline support that will sustain that reimbursement level that we know that we can secure.

Speaker #2: But right now, we're covered. We have good pricing. And we have very strong acknowledgement. And naturally, now as we see these headwind challenges, as I described, from commercial payers, that's actually a reflection of how we are getting adopted more broadly in the community.

Speaker #2: And that is so essentially, you can flip it and say that it's a positive. And now we just need to make sure that we get the guideline support that will sustain that reimbursement level that we know that we can secure.

Speaker #1: And you mentioned the guideline support. Maybe you can develop a bit on what that means and how you could get there.

Fredrik Thor [Equity Research Analyst: You mentioned the guidelines support. Maybe you can develop a bit on what it means and how you could get there.

Fredrik Thor: You mentioned the guidelines support. Maybe you can develop a bit on what it means and how you could get there.

Speaker #2: Yeah. Absolutely. I mean, this is we're talking about a very serious disease, right? And naturally, we need to have evidence to support us. And the trigger there will be whenever we're going to have enough, then we will be also adopted into guidelines.

Theis Kipling: Yes, absolutely. We are talking about a very serious disease. Naturally, we need to have evidence to support us. The trigger there will be whenever we are going to have enough, then we will be also adopted into guidelines. That is a long route. The company has been pursuing it since a long time, more than 5,000 patients across clinical studies. Yet we have not really shown in full the outcome, the utility data through a prospective study. That is what we are working on. I am very confident in saying that once we are in guidelines, I firmly believe we will get into guidelines, then that is going to be the main trigger to have true and full-on adoption here in the United States.

Speaker #2: That's a long route. The company has been pursuing it for since a long time, more than 5,000 patients across clinical studies. But yet we have not really shown full the outcome, the utility data through a prospective study.

Speaker #2: And that's what we are working on. I'm very confident in saying that once we are in guidelines—I firmly believe we will get into guidelines—then that's going to be the main trigger to have true and full-on adoption here in the United States.

Speaker #1: And you mentioned a prospective study. Maybe if you can develop a bit on that as well, and plans for that timeline and so on.

Fredrik Thor [Equity Research Analyst: You mentioned a prospective study. Maybe if you can develop a bit on that as well and plans for that timeline and so on.

Fredrik Thor: You mentioned a prospective study. Maybe if you can develop a bit on that as well and plans for that timeline and so on.

Speaker #2: Absolutely. Yes, absolutely. So this is we have several plans in the making, and on the progress that will help us with the utility that we need.

Theis Kipling: Yes, absolutely. We have several plans in the making and under progress that will help us with the utility that we need. One of which is this potential IDN opportunity with study activation that was also alluded to and explained in the slide. This is something the company has been working on since quite a while. Since I joined, obviously, I have checked in on that opportunity, and I can confirm it is absolutely real and it is very much live. It is not over the finish line yet, but we are pushing it in the right direction. It is a true partnership. So I am very confident that we will deliver and that IDN study activation will most likely give us in full what we need, but we are naturally supplementing that through additional engagements with other of these academic institutions who are publishing on our behalf.

Speaker #2: One of which is this potential IDN opportunity with study activation, which was also alluded to and explained in the slide. This is something the company has been working on for quite a while.

Speaker #2: Since I joined, obviously, I've checked in on that opportunity. And I can confirm it's absolutely real, and it's very much alive. It's not over the finish line yet, but we're pushing it in the right direction.

Speaker #2: It's a true partnership, so I'm very confident that we will deliver and that IDN study activation will most likely give us, in full, what we need. But we are naturally supplementing that through additional engagements with other academic institutions who are publishing on our behalf.

Theis Kipling: And together, over time, this is what will bring us into guidelines. You will need to be patient because this is not something that happens overnight. I am expecting this is going to take several years. Best case, I think 2 or 3 years as I look at it. But in that period, we will see revenue and adoption continue.

Theis Kipling: And together, over time, this is what will bring us into guidelines. You will need to be patient because this is not something that happens overnight. I am expecting this is going to take several years. Best case, I think two or three years as I look at it. But in that period, we will see revenue and adoption continue.

Speaker #2: And together, over time, this is what will bring us into guidelines. But you will need to be patient because this is not something that happens overnight.

Speaker #2: I'm expecting this is going to take several years, most best case, I think two, three years as I look at it. But in that period, we will see revenue and adoption continue.

Speaker #1: Got it. And a question here from a viewer: You mentioned that you are on a solid path towards a potential companion diagnostic collaboration. What makes you more confident about the developments that are needed to enable a deal?

Fredrik Thor [Equity Research Analyst: Got it. A question here from a viewer. You mentioned that you are on a solid path towards a potential companion diagnostic collaboration. What has made you more confident and what developments are needed to enable a deal?

Fredrik Thor: Got it. A question here from a viewer. You mentioned that you are on a solid path towards a potential companion diagnostic collaboration. What has made you more confident and what developments are needed to enable a deal?

Speaker #2: Yeah, good question. I mean, this is the business that I come from, the field I know, but we also have a really strong competence in our organization who've been who's true expert in building this and have done this.

Theis Kipling: Good question. This is the business that I come from, the field I know, but we also have a really strong competence in our organization who is a true expert in building this and have done this. It is obviously an assessment subjectively made by the company. But it also is conversations that are openly had and taken with the pharma partners. So we know that they are looking into this being an optionality on their side. It is not the same as I can confirm that it is a done deal. It is not because that is not where we are today, but we are pursuing this. We have multiple programs and we are building up the funnel to become more than two handful over time. Then we believe that at least one of them will materialize and hopefully more.

Speaker #2: So it's obviously an assessment subjectively made by the company. But it also is conversations that are open. We had and taken with the pharma partners.

Speaker #2: So we know that they are looking into this being an option on their side. It's not the same as saying I can confirm that it's a done deal.

Speaker #2: It is not because that is not where we are today, but we are pursuing this. We have multiple programs, and we're building up the funnel to become more than two handfuls over time.

Speaker #2: And then we believe that at least one of them will materialize. And hopefully more. So this is also part of why we changed the strategy to be pharma-focused first of all, because we know this business, we know the opportunities, and we also know, obviously, the diligence that you need to put in.

Theis Kipling: This is also part of why we changed the strategy to be pharma-focused, first of all, because we know this business, we know the opportunities, and we also know obviously the diligence that you need to put in. The good thing is that the biomarker, it really delivers, it really works. So I think it is more of a matter of time before we will get into that position.

Speaker #2: And the good thing is that the biomarker it really delivers. It really works. So I think it's more of a matter of time. Before we will get into that position.

Speaker #1: And in your slides, I believe you showed the commercial potential bit of these CDx collaborations. Maybe if you can develop a bit on that, and how you would get reimbursed, and potential milestones and so on.

Fredrik Thor [Equity Research Analyst: In your slides, I believe you showed the commercial potential a bit of these CDx collaborations. Maybe you can develop a bit on that and how you would get reimbursed and potential milestones and so on.

Fredrik Thor: In your slides, I believe you showed the commercial potential a bit of these CDx collaborations. Maybe you can develop a bit on that and how you would get reimbursed and potential milestones and so on.

Speaker #2: So these numbers are not something that are made up, right? This is actually from concrete evidence and experience, both from myself and also Henrik Winter, who's our head of the pharma business.

Theis Kipling: These numbers are not something that are made up. This is actually from concrete evidence and experience, both from myself and also Henrik Winther, who is our head of the pharma business. He has done this obviously many times before. We know this is typically what it entails. The way that it would work, if when a pharma partner would want DiviTum to be included in one or the other way as a CDx development, then that is a whole new way of engaging with the pharma partner around the program that would derive the data, but also prepare the assay to become truly launched alongside the drug. I have been in this world before, and I can confirm that is a truly exciting place to be. The funding flow is very significant and the opportunity is even higher.

Speaker #2: So he has done it, obviously, many times before. So we know this is typically what it entails. And so the way that it would work, if when a pharma partner would want dividend to be included as one or the other way as a CDX development, then there would be that's a whole new way of engaging with the pharma partner around a program that would derive the data but also prepare the assay to become truly launched alongside the drug.

Speaker #2: I've been in this world before, and I can confirm that that is a truly exciting place to be. The funding flow is very significant, and the opportunities even higher.

Speaker #2: But it's not the same as saying that this is a slam-down guaranteed thing that will happen, but with Henrik and the team, we feel comfortable that we're developing the business, the biomarker, into that direction, making it a lot more robust.

Theis Kipling: But it is not the same as saying that this is slammed on guaranteed thing that will happen. But with Henrik and the team, we feel comfortable that we are developing the business, the biomarker into that direction making it a lot more robust. We have a lot higher confidence, and that is also what you are seeing from the increased number of applications, but also the increased number of press releases that we have issued here the past months over the summer. This is pharma partners who take a decisive decision. They see the biomarker works. They decide to continue to include the biomarker into their multi-million USD development programs. They do not do that just to treat us well. They do that because they see that our biomarker, it works, and it can deliver value to them.

Theis Kipling: But it is not the same as saying that this is slammed on guaranteed thing that will happen. But with Henrik and the team, we feel comfortable that we are developing the business, the biomarker into that direction making it a lot more robust. We have a lot higher confidence, and that is also what you are seeing from the increased number of applications, but also the increased number of press releases that we have issued here the past months over the summer. This is pharma partners who take a decisive decision. They see the biomarker works. They decide to continue to include the biomarker into their multi-million US dollar development programs. They do not do that just to treat us well. They do that because they see that our biomarker, it works, and it can deliver value to them.

Speaker #2: We have a lot higher confidence. And that's also what you're seeing from the increased number of publications, but also the increased number of press releases that we have issued here in the past months, over the summer.

Speaker #2: These are pharma partners who take a decisive decision. They see the biomarker works, so they decide to continue to include the biomarker in their multimillion US dollar development programs.

Speaker #2: And they don't do that just to treat us well. They do that because they see that our biomarker it works and it can deliver value to them.

Speaker #2: And our collective responsibility, together with pharma, is naturally making this a tool that can make a significantly improved benefit for patients. And if we deliver on that, then we're in a completely different company.

Theis Kipling: Our collective responsibility together with pharma is naturally making this a tool that can make a significant improved benefit for patients. If we deliver on that, then we are in a completely different company.

Speaker #1: You mentioned the value a bit for the pharma companies as well, but maybe you could elaborate a bit more on what value they get?

Fredrik Thor [Equity Research Analyst: You mentioned the value of it also for the pharma companies, but maybe we can develop a bit more. What value do they get? Obviously understanding better how their compound works and so on, but it could be interesting to hear a bit more of what they get, what value they get.

Fredrik Thor: You mentioned the value of it also for the pharma companies, but maybe we can develop a bit more. What value do they get? Obviously understanding better how their compound works and so on, but it could be interesting to hear a bit more of what they get, what value they get.

Speaker #1: I mean, obviously, understanding better how the company works and so on, but could it be interesting to hear a bit more what they get?

Speaker #1: What value do they get?

Speaker #2: Yeah, so on the pharma side, there are lots of cases, but I would encourage the audience to look at the kind of the greatest and largest drug in the world, Keytruda from Merck, and how they did this.

Theis Kipling: Yeah. On the pharma side there are lots of cases, but I would encourage the audience to look at the greatest and largest drug in the world, KEYTRUDA from Merck, how they did this. There are other companies, Bristol Myers Squibb with Opdivo, both cancer drugs, who kind of initially framed the CDx and complementary diagnostics world. There is a lot of public available evidence on what happens, and we believe that we can do sort of the same, right? We can make sure that we can lower the risks on pharma in regards to having success with their drugs by potentially even identifying what patients will have the biggest benefit of their drug, but also at what drug concentration, and so many other things. The breadth of the opportunities is also what excites me. It is not a one-off, a single-trick opportunity.

Speaker #2: And they're other companies Bristol-Myers Squibb with Opdivo both cancer drugs who kind of initially framed the CDX and complementary diagnostics world. There's a lot of public available evidence on what happens.

Speaker #2: And we believe that we can do sort of the same, right? And we can make sure that we can lower the risks for pharma in regard to having success with their drugs by potentially even identifying which patients will have the biggest benefit from their drug, but also at what drug concentration, and so many other things.

Speaker #2: So and that's the breadth of the opportunities is also what excites me. It's not a one-off, a single-trick opportunity. There are a number of opportunities that we are pursuing together with pharma.

Theis Kipling: There are a number of opportunities that we are pursuing together with pharma, and we know that there is a lot of empirical evidence that this creates a lot of value for the pharma company, and that only happens because it delivers a lot of benefit to the patients.

Speaker #2: And we know that there is a lot of empirical evidence that this creates a lot of value for the pharma company. And that only happens because it delivers a lot of benefit to the patients.

Speaker #1: Got it. And we've got a few questions about the rights issue and basically your cash flow projections when they expect to be cash flow positive yeah, maybe if you can develop a bit on that.

Fredrik Thor [Equity Research Analyst: Got it. We got a few questions about the rights issue and basically your cash flow projections, when they expect to be cash flow positive. Yeah, maybe you can develop a bit on that.

Fredrik Thor: Got it. We got a few questions about the rights issue and basically your cash flow projections, when they expect to be cash flow positive. Yeah, maybe you can develop a bit on that.

Speaker #2: Yeah, so let's start with the rights issue. Obviously, we're very excited that we have secured this to this part, because that significantly de-risks the overall business case.

Theis Kipling: Yeah. Let's start with the rights issue. Obviously, we are very excited that we have secured this to this part because that significantly de-risks the overall business case. We have a few milestones overall that I am pursuing. I want to bring this IDN study activation through across the finish line because I think that will help us transform the company. The third thing will be the CDx program. Now with the capital raise we are making now, I think we are doing it with the highest respect for the existing shareholders. In that sense, we are mindful of the dilution. We have taken the necessary amount that will take us to the next level. We are not going to comment on when we believe we will be cash flow positive or breaking even, simply because of these triggers that I have just mentioned.

Speaker #2: And we have a few milestones overall that I'm pursuing. I want to bring this idea in. Study activation through across the finish line because I think that will help us transform the company.

Speaker #2: And the third thing will be the CDX program. Now with the capital raise, we're making now, I think we're doing it as at with the highest respect for the existing shareholders.

Speaker #2: And in that set, we're mindful of the dilution. We've taken the necessary amount that will take us to the next level. We're not going to comment on when we believe we will be cash flow positive or break even.

Speaker #2: And simply because of these triggers that I've just mentioned, there is a reality in the case they deliver and another reality if they have postponed or failing.

Theis Kipling: There is a reality in the case they deliver and another reality if they are postponed or failing. For that reason, I cannot get any closer to any timeline.

Speaker #2: And that's for that reason, I cannot get any closer to any timeline.

Speaker #1: Got it. And you mentioned this a bit, but the timing of the issue—right now, maybe if you can elaborate on that—is it to be able to deliver on your strategy, of course, but why at this specific time?

Fredrik Thor [Equity Research Analyst: Got it. You mentioned this a bit, but the timing of the issue right now, maybe if you can develop on that. Easy to be able to deliver on your strategy, of course, but why at this specific time?

Fredrik Thor: Got it. You mentioned this a bit, but the timing of the issue right now, maybe if you can develop on that. Easy to be able to deliver on your strategy, of course, but why at this specific time?

Theis Kipling: Yeah. Exactly. Well, there is a saying, obviously, you should raise money when you can, not when you need it, and I think we are essentially in that position. This gives us the time, right? I am fully committed. I know this biomarker works, so all I need essentially is time to implement the strategy, get the right commercial focus within the company. With time, I know that we will deliver on the milestones that I have mentioned. To do that, then we decided to raise money now when we can, and without being in dire need. I think that is a very clever way of acting. I know there can be different opinions on doing this, but long term, this is protecting the company, and it is boosting our chances to double down on the success that we have right ahead.

Speaker #2: Yes, exactly. Well, as I was saying, obviously, you should raise money when you can, not when you need it. And I think we're essentially in that position.

Speaker #2: This gives us the time, right? I mean, I am fully committed. I know this biomarker works. So all I need, essentially, is time to implement the strategy and get the right commercial focus within the company.

Speaker #2: And with time, I know that we will deliver on the milestones that I've mentioned. And for that, to do that, then we decided to raise money now when we can, when we and without being a dire need.

Speaker #2: And I think that is a very clever way of acting. I know there can be different opinions on doing this, but long term, this is protecting the company and it's boosting our chances to double down on the success that we have right ahead.

Fredrik Thor [Equity Research Analyst: Mm-hmm. Got it. Can you go through the reason for the Tempus termination and your view of partnerships going forward?

Speaker #1: Got it. And can you go through the reason for the Tempus termination, and your view of partnerships going forward?

Fredrik Thor: Got it. Can you go through the reason for the Tempus termination and your view of partnerships going forward?

Speaker #2: Yeah. So, we deliberately reviewed the partnership and quickly confirmed that there was no longer that appetite or shared ambition as when the contract was initiated.

Theis Kipling: Yeah. We deliberately reviewed the partnership, and they could quickly confirm that there were no longer that appetite or shared ambition as when the contract was initiated. For those who have followed Tempus, they also made an acquisition of Personalis, and I think in that mix, obviously, they have a ton of additional new priorities. I need to deliver on this now, right? I do not want to be sitting back waiting for somebody else to maybe make a decision that this is a good idea. I would rather take the control back, and I am happy that we have done it because now we control our own destiny. Following that decision, we have been approached by several very interesting potential partners, and hence that is also why I am partly here in San Diego again this week to entertain some of those conversations. But it gives us the rights.

Speaker #2: And for those who have followed the Tempus, they also made a acquisition of Personalis. And I think in that mix, obviously, they have a ton of additional new priorities.

Speaker #2: So and I need to deliver on this now, right? And I don't want to be sitting back waiting for somebody else to maybe make a decision that this is a good idea.

Speaker #2: I'd rather take the control back, and I'm happy that we have done it, because now we control our own destiny. Following that decision, we have been approached by several very interesting potential partners.

Speaker #2: And hence, that's also why I'm partly here in San Diego again this week. To entertain some of those conversations. But it gives us the rights.

Speaker #2: We sit on the decision, and I think there's a lot of financial benefit in doing so. When will we do another partnership?

Theis Kipling: We sit on the decision, and I think there is a lot of financial benefit in doing so. Will we do another partnership? Maybe if the deal is right and the opportunity is what we are also seeing fits our purpose. But it might also be that we will go without a partner for the next couple of years simply because we are seeing that we have so much traction and adoption on our own remit here within our own cost costume and the current organization that we have. We have a very talented organization, and I am very confident that these guys, they continue to deliver a lot further before we need to reach out to all the corners of community oncology over here in the United States.

Speaker #2: Maybe. If the deal is right and the opportunity is what we are also seeing is fits our purpose, but it might also be that we will go without a partner for the next couple of years, simply because we are seeing that we have so much traction and adoption on our own.

Speaker #2: We remit here within our own cost structure and the current organization that we have. We have a very talented organization, and I'm very confident that these guys will continue to deliver.

Speaker #2: A lot further before we need to reach out to all the corners of community oncology over here in the United States. So, I know that's a little bit of a vague answer, but I think the lead behind it was a decisive action to take back the power.

Theis Kipling: I know that is a little bit of a vague answer, but I think the leap behind it was a decisive action to take back the power, and that puts us in a much stronger position as of today.

Speaker #2: And that puts us in a much stronger position as of today.

Speaker #1: Yep. Got it. And the proposed board is quite a change from the current board. And this is, of course, an owner question, but can you give your take on this changes and maybe what competencies they can add, the new board?

Fredrik Thor [Equity Research Analyst: Yep. Got it. The proposed board is quite a change from the current board. This is, of course, an owner question, but can you give your take on these changes and maybe what competencies they can add, the new-

Fredrik Thor: Yep. Got it. The proposed board is quite a change from the current board. This is, of course, an owner question, but can you give your take on these changes and maybe what competencies they can add, the new-

Theis Kipling: Yeah

Fredrik Thor [Equity Research Analyst: board?

Fredrik Thor: board?

Speaker #2: Yeah, I mean, you're right. This is not a CEO decision; this is an owner decision. And having said that, obviously, I'm personally sad to see some of the existing board members leaving the board.

Theis Kipling: You are right, this is not a CEO decision. This is an owner decision. Having said that, obviously, personally sad to see some of the existing board members leaving the board. They have been instrumental in getting us to where we are now and also securing the capital raise. Obviously, as a company, we owe them a big and heartfelt thank you for the service that they have done for many of them since quite many years. Reflecting on the new board, I think it is actually quite unusual for a small company like Biovica to have such a strong competence, especially with three US folks coming into the board. One guy, a very senior strategist, former senior partner from McKinsey also.

Speaker #2: They have been instrumental in getting us to where we are now. And also securing the capital raise. So obviously, as a company, we owe them a big and heartfelt thank you.

Speaker #2: For the service that they have done for Biovica, and for many of them, since quite many years. And reflecting on the new board, I think it's actually quite unusual, for a small company like Biovica, to have such strong competence.

Speaker #2: And especially with three US folks coming into the board, one guy very senior strategist, former senior partner from McKinsey, also and we have competence spanning across strategy, financial, investor, aspects, reimbursement.

Theis Kipling: We have competence spanning across strategy, financial investor aspects, reimbursement, so that we are going to be joined by two executives who are experts within market access and reimbursement. Obviously, those are deep experts within that field, and they can help us also get above and beyond some of these immediate headwinds that I mentioned that we have within the private payers. So I am very content, very excited, I think with the optimized organization that we have, the strengthened balance sheet. Now with all this competence that will also open up network. I am very excited. I think the future is honestly very bright when I look upon on behalf of the company.

Speaker #2: So we're going to be joined by two executives who are experts within market access and reimbursement. And obviously, those are deep experts within that field, and they can help us also get above and beyond some of these immediate headwinds that I mentioned that we have within the private payers.

Speaker #2: So I'm very content, very, very excited. I think with the optimized organization that we have, strength and balance sheet, now all this competence, that will also open up network.

Speaker #2: I'm very excited. I think the future is honestly very bright. When I look upon on behalf of the company.

Fredrik Thor [Equity Research Analyst: Sounds promising. You mentioned this a bit, of course, but the pros of having a US board, is it that they can open more doors, have more contacts? Maybe you can give some practical examples of how they can assist you.

Fredrik Thor: Sounds promising. You mentioned this a bit, of course, but the pros of having a US board, is it that they can open more doors, have more contacts? Maybe you can give some practical examples of how they can assist you.

Speaker #1: Sounds promising. And you mentioned this a bit, of course, but the pros of having a US board—is it that they can open more doors, have more contacts? Maybe you can give some practical examples of how they can assist you?

Speaker #2: Yeah. I mean, that's essentially it. I think it's surprisingly when you're in even though it's a massive country, it's a small, small world within oncology diagnostics.

Theis Kipling: Yeah, that's essentially it. I think it's surprising, even though it's a massive country, it's a small world within oncology diagnostics. That means, obviously, that these professionals, these are experts who have been executives in the field since many years, have a very good reputation. Following that, obviously, they have a very strong network. Network is power, network is everything. Network is what will help us accelerate many of the things that we have in our medium, long-term plan also. That's how I expect that we will be leveraging those competence and those resources in the years ahead of us.

Speaker #2: So that means, obviously, that these professionals, these are experts who have been executives in the field since many years, have a very good reputation.

Speaker #2: And following that, obviously, they have a very strong network. And network is power, and network is everything. And network is what will help us accelerate many of the things that we have in our medium- and long-term plan also.

Speaker #2: So and that's how I expect that we will be leveraging those competence and those resources in the years ahead of us.

Speaker #1: And you have announced a few master services agreements this summer, both expanded and new. Can you maybe just go through what this means? What does a master services agreement mean, and how can you leverage that for the future?

Fredrik Thor [Equity Research Analyst: You have announced a few master services agreements this summer, both expanded and new. Can maybe just go through what this means? What does a master services agreement mean, and how can you leverage that for the future?

Fredrik Thor: You have announced a few master services agreements this summer, both expanded and new. Can maybe just go through what this means? What does a master services agreement mean, and how can you leverage that for the future?

Theis Kipling: Yeah, let's start with the master service agreement. That's the playing field that we define together with a pharma partner. Then you have work orders, which we also have pressed with these. It was a very busy summer, and I think that is going to continue. Essentially what it means is pharma deciding full inclusion of our biomarker. They obviously do a very robust due diligence on us and our biomarker even before we get to talk about a master service agreement. Then they confirm, okay, this is going to work. This is definitely worth the investments. They're making considerable investments into having the biomarker included. They do that because they see that this is going to de-risk and optimize their potential in having very successful development programs that can become high revenue-generating commercial products at the end. That's what we're seeing.

Speaker #2: Yeah. I mean, so it's a lot. Let's start with the master service agreement. That's kind of the playing field that we define together with the partner, pharma partner.

Speaker #2: And then you have work orders, which we also have press release. And there have been very it was a very busy summer. And I think that that is going to continue.

Speaker #2: Essentially, what it means is pharma deciding on the inclusion of our biomarkers. So, they obviously do a very robust due diligence on us and our biomarker.

Speaker #2: Even before we get to talk about a master service agreement, then they confirm, "Okay, this is going to work. This is definitely worth the investment."

Speaker #2: They're making considerable investments into having the biomarker included, and they do that because they see that this is going to de-risk and optimize their potential in having very successful and relevant programs that can become high revenue-generating commercial products at the end.

Speaker #2: So, and that's what we're seeing. So this is a confirmation for us. It's a confirmation of what the team has done for many years.

Theis Kipling: This is a confirmation of us. It's a confirmation of what the team has done for many years, and it is a confirmation of the fact that the biomarker is highly trustworthy and that it works.

Speaker #2: And it is a confirmation of the fact that the biomarker is highly trustworthy and that it works.

Speaker #1: And as a follow-up, can you maybe give us some more color on the strong growth in the pharma services the last, yeah, this quarter and the last year?

Fredrik Thor [Equity Research Analyst: And as a follow-up here, can you maybe give us some more color on the strong growth in the pharma services this quarter and the last year?

Fredrik Thor: And as a follow-up here, can you maybe give us some more color on the strong growth in the pharma services this quarter and the last year?

Speaker #1: Obviously, from.

Theis Kipling: Yeah, absolutely. This is adoption in making also. This is how it looks like. Everybody in this field of pharma, they are all watching each other, and they are also publishing. Many of these pharma companies who we are partnering with, they are publishing their studies, and that inspires other pharma companies to look at that and essentially replicate. That is what is helping us with the momentum. It is driven by the highly competent team that we have behind the scenes here at Biovica. There is a concrete example as of Monday last week, where we did a webinar together with one of our pharma partners, Biotheranostics, who did a very strong representation of how they view the biomarker, and I would encourage everybody to go and listen to that webinar. That will give you a very good insight to what this actually means and also how we can expand.

Speaker #2: Yeah, I mean, absolutely. I mean, this is adoption in the making also, right? This is how it looks like. So, everybody who's in this field of pharma, they're all watching each other.

Speaker #2: And they're also publishing. So, many of these partner companies—pharma companies who we're partnering with—they're publishing their studies. And that inspires other pharma companies to look at that and essentially replicate. And that's what is helping us with the momentum.

Speaker #2: But it's driven by the highly competent team that we have behind us, the senior team at Biovica. There's a concrete example—as of Monday last week, we did a webinar together with one of our pharma partners, Biotherics, who gave a very strong representation of how they view the biomarker.

Speaker #2: And I would encourage everybody to go and listen. To that webinar, that will give you a very good insight to what this actually means and also how we can expand.

Speaker #2: But there were almost 200 registered people attending, and half of those actually gave us consent and wrote in the comments, "Please contact us."

Theis Kipling: There were almost 200 registered people attending, and half of those actually gave us consent and actually wrote in the comments, "Please contact us." From that, we actually had a couple of tier 1 pharmas or big pharma who have approached us and wants to hear more about the biomarker. This is going to continue. We are far from saturated, the number of pharma companies. As you saw, we have a very good split between tier 1, so the big guys, plus $10 billion US annual revenue, and then we have tier 3. Typically what happens in this field is when these tier 3 smaller companies, they see proof of concept and their pharma or their development programs kind of reach that proof of concept and it is de-risked, then many cases, they are acquired by tier 1 pharma companies.

Theis Kipling: There were almost 200 registered people attending, and half of those actually gave us consent and actually wrote in the comments, "Please contact us." From that, we actually had a couple of Tier 1 pharmas or big pharma who have approached us and wants to hear more about the biomarker. This is going to continue. We are far from saturated, the number of pharma companies. As you saw, we have a very good split between Tier 1, so the big guys, plus $10 billion US annual revenue, and then we have Tier 3. Typically what happens in this field is when these Tier 3 smaller companies, they see proof of concept and their pharma or their development programs kind of reach that proof of concept and it is de-risked, then many cases, they are acquired by Tier 1 pharma companies.

Speaker #2: From that, we actually had a couple of tier-one pharma, so big pharma, who have approached us and want to hear more about the biomarker.

Speaker #2: So this is going to continue we're far from saturated. The number of pharma companies and as you saw, we have a very good split between tier one.

Speaker #2: So the big guys plus 10 billion US annual revenue. And then we have tier three. And typically what happens in this field is when these tier three smaller companies they see proof of concept and their pharma or their development programs kind of reach that proof of concept, and it de-risk, then many cases they are acquired by tier one pharma companies.

Speaker #2: So in that sense, there's a long longitudinal effect and livelihood of the overall engagement that we have. Because obviously, when they potentially would acquire a tier three, they will definitely continue with the development programs, and here we are already included.

Theis Kipling: In that sense, there is a long longitude effect and likelihood of the overall engagement that we have. Obviously when they potentially would acquire a tier 3, they will definitely continue with the development programs, and here we are already included. Just that also will take us into broader coverage within this highly promising world of pharma and CDx development.

Theis Kipling: In that sense, there is a long longitude effect and likelihood of the overall engagement that we have. Obviously when they potentially would acquire a Tier 3, they will definitely continue with the development programs, and here we are already included. Just that also will take us into broader coverage within this highly promising world of pharma and CDx development.

Speaker #2: So just that also will take us into broader coverage within this highly promising world of pharma and CDX development.

Fredrik Thor [Equity Research Analyst: Mm-hmm. You mentioned that in the webinar, there was a lot of interest, of course. Maybe if you can expand on how do you stay contact with them and how does the process look from that first contact to a potential agreement?

Speaker #1: And you mentioned that in the webinar, there was a lot of interest, of course. And maybe if you can expand on kind of how do you take contact with them and how does the process look from that first contact to a potential agreement?

Fredrik Thor: You mentioned that in the webinar, there was a lot of interest, of course. Maybe if you can expand on how do you stay contact with them and how does the process look from that first contact to a potential agreement?

Speaker #2: Agreed. So this is a way of strengthening how we are, how we think, and how we act much more commercially than we have done in the past.

Theis Kipling: So this is a way of strengthening how we think and how we act much more commercially than we have done in the past. Here we are communicating. We are actually asking our dear customers to speak on our behalf and through highly scientific content. This is the way forward, is science prevails. It's what we live for. This is then in turn inspiring other pharma companies or oncologists who want to learn more. Either they reach out directly to us, which we have seen a lot of them do, then there's a lot of others who have written in the form, giving us consent to approach them. That means here we're seeing almost 200 potential leads.

Theis Kipling: Agree so this is a way of strengthening how we think and how we act much more commercially than we have done in the past. Here we are communicating. We are actually asking our dear customers to speak on our behalf and through highly scientific content. This is the way forward, is science prevails. It's what we live for. This is then in turn inspiring other pharma companies or oncologists who want to learn more. Either they reach out directly to us, which we have seen a lot of them do, then there's a lot of others who have written in the form, giving us consent to approach them. That means here we're seeing almost 200 potential leads.

Speaker #2: So here we are communicating we are actually asking our dear customers to speak on our behalf and through highly scientific content. And this is the way this is the way forward.

Speaker #2: Science prevails. It's what we live for. And this is then in turn inspiring other pharma companies or oncologists who want to learn more and they either they reach out directly to us, which we have seen a lot of them do, and then there's a lot of others who have written in the content in the form giving us content consents to approach them.

Speaker #2: So that means here we're seeing almost 200 potential leads. Half of them are very hot leads, and most of them will become actual customers as we now approach them, engage them, and present the data that we have.

Theis Kipling: Half of them are very hot leads, and most of them will become actual customers as we now approach them and engage them and present the data that we have. This is something we're going to continue doing. We have a large conference coming up in October in Boston with the CDx Summit Pharma Focus, where we also have a pharma partner speaking on our behalf, and we are currently planning to do a similar additional webinar again in January. This is a new way of working, a proven model I've worked with in prior companies. I know this is what transforms lead generation, and that is essentially giving us the customer expansion, and essentially that drives revenue growth.

Speaker #2: And this is something we're going to continue doing. We have a large conference coming up in October in Boston. The CDX Summit Pharma focus where we also have a pharma partner speaking on our behalf and we are currently planning to do a similar additional webinar again in January.

Speaker #2: So this is a new way of working—a proven model I've worked with in prior companies. I know this is what transforms lead generation, and that is essentially giving us the customer expansion, and essentially that drives revenue growth.

Fredrik Thor [Equity Research Analyst: Mm-hmm. Sounds promising. Also this summer, I believe two new publications were published in Clinical Cancer Research, the journal. What type of evidence is this, and how can this also assist in your discussions?

Speaker #1: Sounds promising. And then also this summer I believe two new publications were published in clinical cancer research, the journal. What type of evidence is this and how can this also assist in your discussions?

Fredrik Thor: Sounds promising. Also this summer, I believe two new publications were published in Clinical Cancer Research, the journal. What type of evidence is this, and how can this also assist in your discussions?

Speaker #2: Yeah, I mean, this is what we live for. But also, this is the interesting thing of working with the academic institutions, but also pharma, that they also, they really want to publish their data, their findings.

Theis Kipling: Yeah. This is what we live for. This is the interesting thing of working with the academics institutions, but also pharma, that they really want to publish their data, their finding. This is what we have now seen, and that is what we are continuing to be seeing in the time ahead. There will be a number of new publications coming. We have a number of these large conferences where it is typically presented by whoever is behind those publications. This is how we differentiate ourselves, how we substantiate ourselves. The power obviously is in the data, and we have an increasing volume of data and also increasing volume of publications, which I am very pleased to see.

Speaker #2: And this is what we have now seen and that's what we are continuing to be seeing in the time ahead. There will be a number of new publications coming.

Speaker #2: We have a number of these large conferences where it's typically presented by whoever is behind those publications. So, this is how we differentiate ourselves, how we substantiate ourselves, and the power, obviously, is in the data. We have an increasing volume of data and also an increasing volume of publications, which I'm very, very pleased to see.

Speaker #1: And I got the follow-up question on the IDN opportunity that we discussed previously about the study. Perspective study. And can you maybe just go through why what's the kind of the purpose of perspective study and the kind of the evidence level of that compared to other forms of trials?

Fredrik Thor [Equity Research Analyst: I got a follow-up question on the IDN opportunity that we discussed previously about the study, prospective study. Can you maybe just go through what is the purpose of prospective study and the evidence level of that compared to other forms of trials?

Fredrik Thor: I got a follow-up question on the IDN opportunity that we discussed previously about the study, prospective study. Can you maybe just go through what is the purpose of prospective study and the evidence level of that compared to other forms of trials?

Speaker #2: Yeah. So you can either have a backward-looking retrospective study or you can have a forward-looking prospective study, where you follow patients. Here, we're looking at a potential study that will be prospective and will have essentially two arms, randomized.

Theis Kipling: Well, you can either have backward-looking retrospective study, or you can have forward-looking prospective study where you follow patients. Here we are looking at a potential study that will be prospective, and will have essentially two arms randomized. You are going to follow the arm where they actually make decisions on the data from DiviTum versus the arm where they do not. This is assuming that we get the study over the finish line, which is what I am working hard on doing, and assuming that this study is successful, confirming that once you act on the DiviTum information with thymidine kinase, then there is an improved outcome for the patient. That is clinical utility data. That is what you will need in order to be included in guidelines.

Speaker #2: So, you're going to follow the arm where they actually make decisions on the data from Davidson, versus the arm where they don't. And this is assuming that we get the study over the finish line, which is what I'm working hard on doing.

Speaker #2: And assuming that this study is successful, confirming that when once you act on the Davidson information with diamethyl kinase, then there is an improved outcome.

Speaker #2: For the patient. And that is clinical utility data—that is what you will need in order to be included in guidelines. And that is what we're working with, not only related to this IDN, but we're complementing it with additional and other study engagements that will further strengthen our position and our clinical utility.

Theis Kipling: That is what we are working with, not only related to this IDN, but we are complementing it with additional and other study engagements that will further strengthen our position and our clinical utility.

Speaker #1: Got it. And a final question was about the operating expenses, and you took some costs in this quarter for reconstruction. So, what's the case about operating costs for the remainder of the year?

Fredrik Thor [Equity Research Analyst: Got it. A final question was about the operating expenses. You took some costs in this quarter for reconstruction. What is about operating costs for the remaining of the year? I believe you gave some guidance the last quarter, so is there a change to that or the same?

Fredrik Thor: Got it. A final question was about the operating expenses. You took some costs in this quarter for reconstruction. What is about operating costs for the remaining of the year? I believe you gave some guidance the last quarter, so is there a change to that or the same?

Speaker #1: I believe you gave some guidance the last quarter. So maybe is there a change to that or the same or yeah?

Theis Kipling: I will ask Anders to chime in on that question.

Speaker #2: I'll ask Anders to chime in on that question.

Speaker #1: Sure.

Speaker #3: Sure. Thank you. Well, the we had 2.2 million in restructuring costs that we took in during the quarter. The annualized savings on that is about 3 and a half to 3.7 million which we expect to come into the quarters ahead of us on top of that restructuring initiatives.

Anders Morén: Sure. Thank you. We had SEK 2.2 million in restructuring costs that we took in during the quarter. The annualized savings on that is about SEK 3.5 to 3.7 million, which we expect to come into the quarters ahead of us. On top of that restructuring initiatives, we have a number of cost containment initiatives or cost discipline initiatives that Theis referred to earlier. For instance, we have reduced the space rented. We are in the middle of a project changing our ERP system. We have started to only produce our reports in English, as you saw now that we have not produced bilingual reports, et cetera. We will not give any guidance on how much that will be reducing the current cost base.

Speaker #3: We have a number of sort of cost containment initiatives or cost discipline initiatives that ties referred to earlier. We have, for instance, we have reduced the space rented we are in the middle of a project changing our ERP system we have started going with produce our reports in English as you saw now that we haven't produced bilingual reports etc.

Speaker #3: So we'll not give any guidance on how much that will be sort of reducing the current cost base but my expectation is that over time that will start funneling through the P&L and reduce the quarterly cost or operating expense spend quite significantly but it's not happening overnight but over time it will definitely improve our spending patterns.

Anders Morén: My expectation is that over time, that will start funneling through the P&L and reduce the quarterly cost or operating expense spend quite significantly, but it is not happening overnight. Over time, it will definitely improve our spending patterns.

Fredrik Thor [Equity Research Analyst: Got it. We are soon out of time. Do you have any closing remarks from your side, Theis or Anders?

Fredrik Thor: Got it. We are soon out of time. Do you have any closing remarks from your side, Theis or Anders?

Speaker #1: Got it. And we're soon out of time. Do you have any closing remarks from your side ties or Anders?

Speaker #2: Yeah. I can obviously stop thinking everybody's for listening in. And then just reiterate that I'm this is month number five. We've done a lot already in the previous four months.

Theis Kipling: Yeah, I can obviously start by thanking everybody for listening in. Then just reiterate that this is month number 5. We have done a lot already in the previous 4 months. I am very happy to see the support from our large shareholders and excited to see how we are going to strengthen the balance sheet, because that gives us the time we need to execute on the strategy, which I really am excited about. I really look forward to keeping you guys updated on progress, because I really believe that we have a bright future ahead of us. With that, I thank everybody for the time here today.

Theis Kipling: Yeah, I can obviously start by thanking everybody for listening in. Then just reiterate that this is month number five. We have done a lot already in the previous four months. I am very happy to see the support from our large shareholders and excited to see how we are going to strengthen the balance sheet, because that gives us the time we need to execute on the strategy, which I really am excited about. I really look forward to keeping you guys updated on progress, because I really believe that we have a bright future ahead of us. With that, I thank everybody for the time here today.

Speaker #2: I'm very happy to see the support from our large shareholders and excited to see how we're going to strengthen the balance sheet, because that gives us the time we need to execute on the strategy, which I really am excited about. I really look forward to keeping you guys updated on progress.

Speaker #2: Because I really believe that we have a bright future ahead of us. So with that, I thank everybody for their time here today.

Fredrik Thor [Equity Research Analyst: Thank you.

Fredrik Thor: Thank you.

Browse all earnings call transcripts

Q1 2027 Biovica International AB Earnings Call

Request TrialDemo

Biovica International

Earnings