Bioporto: Wrap up from interview with CEO Peter M. Eriksen
BioPorto pre-announced part of their 2023 report last week, which is scheduled to be published in full on April 4th. BioPortro expects revenue of DKK 40 mill. and an EBITDA of -80 mill. in 2024. More importantly, BioPorto also announced its new strategy which is expected to bring BioPorto to plus USD 100 mill. in annual revenue over the next 5 years.
This ambition is expected to be reached by leveraging the clearance of its ProNephro AKI test for pediatrics and young adults up to 22 years in US to obtain clearance for the test for adults as this market is typically considered to be 15-20 times bigger than the pediatrics market. To finance the preparation of the process for a FDA clearance of an adult test as well as preparing the commercialization process, BioPorto expects to raise capital during the 2nd quarter 2024.
Following the announcement, BioPorto’s interim CEO Peter Mørch Eriksen and Chairman of The Board John McDonough participated in an event with HCA where they explained the plans and took questions. Overall, managements key message was the ambition to take BioPorto from being a cash burning developing company to become a profitable diagnostic company within the next 5 years assuming a clearance of ProNephro AKI for adult use. From a practical perspective, expanding collaboration with test analyzer providers like Roche as well as achieving an IVDR indication in Europe are important short-term milestones to accelerate the commercialization process of ProNephro AKI for pediatrics. Also, the immediate initiation of a submission process to get FDA clearance for adult use of ProNephro AKI is pivotal and the primary reason to raise USD 20 million in capital in the first part of the strategy phase that runs until first half of 2025.
In 2026, BioPorto expect to submit to FDA for adult use and reach USD 15-25 million in revenue of ProNephro AKI for pediatrics and deliver positive cash flow if revenue comes in at the high end of the range. According to Chairman John McDonough the revenue estimate could prove conservative as adoption rate of new medical products for children is typically much faster than for adult. BioPorto expects the trial process for adult use on different test analyzers to be much faster and easier than the pediatric process as only analytical trials and not clinical trials ae needed. Asked at the event about possible patent expires in 2028 and 2029, management remained convinced that a likely leading market position for ProNephro AKI could be defended for long since new competitors would have to go through the same lengthy clinical trial process as BioPorto has been through.
To conclude, the BioPorto management was confident the ambitious plan was achievable, but investors have since the announcement of the plan been more reluctant to buy into the idea, probably as they await more details about the upcoming rights issue. Following the publication of the strategy plan, we have revisited our One-Pager and company guided DFC-model on BioPorto. It reflects the falling share price as the model shows that the market thinks there is a relatively low probability of success (PoS) of approximately 30 percent for BioPorto to leverage the current pediatric launch of ProNephro AKI to a successfully launch for adults in the coming years.
Watch the interview here: Interview with CEO Peter M. Eriksen
You can see the latest (One-pager) here: Bioporto (one-pager)
Disclaimer: HC Andersen Capital receives payment from Bioporto for a Digital IR/Corporate Visibility subscription agreement. /Henrik Ekman 08:20 AM 04-03-2024.
BioPorto
BioPorto er et dansk In-vitro diagnostisk (IVD) selskab med hovedkontor i København, Danmark. Selskabet blev grundlagt i 2000. BioPorto har allerede ét produkt på markedet, NGAL-testen, som er til tidlig diagnosticering af akutte nyreskade (AKI). Den er kommercielt tilgængelig i Europa, Canada, Asien og Israel. NGAL-testen har modtaget banebrydende betegnelser fra FDA for akutte nyreskader til babyer, børn og unge under 18 år for hvilken den i øjeblikket udfører dataanalyser efter afslutningen af indrulning af patienter til dets fase 3-studie, som vil føre til en ansøgning til FDA. Fremtidige planer inkluderer yderligere FDA-indsendelse til voksenindikation såvel som andre markeder.
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