Norway's ArcticZymes Q3 revenue rises on Biomanufacturing growth

Overview

• Norway enzyme maker's Q3 revenue rose 15% yr/yr, led by Biomanufacturing sales

• Q3 EBITDA declined yr/yr, impacted by currency movements

• Company launched first RNA medicine products after quarter, expanding into new market

Outlook

• Company aims to deliver sustainable double-digit growth from existing and new enzyme markets

• Priorities include scaling Biomanufacturing, expanding Asia-Pacific distribution, and developing RNA enzyme portfolio

• Company remains mindful of geopolitical and macroeconomic risks, including currency volatility and trade policy

Result Drivers

• BIOMANUFACTURING GROWTH - Biomanufacturing sales rose 44% yr/yr, with sales to contract drug manufacturers more than doubling, driven by increased use of enzymes in new medicine production

• MOLECULAR TOOLS ORDER TIMING - Molecular Tools revenue fell 8% yr/yr in Q3, mainly due to some customer orders moving into the fourth quarter

• CURRENCY IMPACT - Weaker US dollar and euro against the Norwegian krone reduced reported Q3 sales and EBITDA

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Arcticzymes Technologies ASA is NOK26.00, about 23.8% above its November 4 closing price of NOK21.00

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 43 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)