Biovica Reports Q1 Growth Amid Cash Burn

Biovica International AB reported first-quarter 2027 net sales of SEK4 million, a 56% increase year over year. The growth was primarily fueled by a near-doubling of pharma services revenue, which rose 95% to SEK2.9 million. According to GN markets/earnings (en-US) data, this performance was underpinned by new work orders from existing global partners, pushing pharma test services revenue up 187%. Despite the top-line expansion, the company continued to burn cash, with operating cash flow at minus SEK16 million, a slight improvement from minus SEK17 million in the same period last year.

The company’s financial position strengthened significantly, with the cash balance rising to SEK51.6 million from SEK16.3 million a year earlier. This liquidity boost is attributed to a rights issue of SEK29.2 million involving new Class B shares issued at SEK0.3 per share. The offering was fully covered and guaranteed by the largest shareholder, HDF and family, effectively de-risking the capital structure while providing the necessary runway for continued operations and cost restructuring.

US IVD Revenue Stalls

While pharma services drove overall growth, the US in-vitro diagnostics segment faced headwinds. US IVD test revenue increased only 1% year over year to SEK1.84 million, despite a 20% rise in test volumes. This divergence between volume and revenue is caused by a shift in reimbursement dynamics, where commercial payers are delaying stable pricing commitments pending guideline inclusion. CEO Theis Kipling noted that while Medicare pricing is established, private insurers are waiting for broader acceptance, creating revenue volatility that is currently being mitigated through proactive engagement.

Pharma Partnerships Expand

Biovica’s relationship with the pharmaceutical sector deepened during the quarter, with 24 ongoing collaborations representing approximately SEK30 million in contract value. Eleven of these partners are Tier I companies with annual revenues exceeding USD10 billion. The company reported 81% account retention from the prior year and noted that 75% of active accounts have ordered more than once. This sticky customer base supports the centralized lab model, which maintains a gross margin structure above 85%, providing a stable foundation for the company’s high-growth pharma services division.

Cost Base Restructuring

Management outlined a strategic realignment following the termination of the partnership with Tempus AI, a move driven by diverging commercial ambitions after Tempus acquired Personalis. Biovica is taking back control of its commercial destiny to better align with its core strengths. Simultaneously, cost restructuring actions are underway, expected to yield annualized savings of SEK3.5 to SEK3.7 million. These measures aim to sharpen the cost base and improve the path toward operational efficiency, although no specific timeline for cash flow positivity has been provided.