Sweden's BICO Q3 sales rise on supply, license agreements

Overview

• Sweden life sciences tech firm's Q3 net sales rose 20% yr/yr

• Q3 adjusted EBITDA margin improved to 26.7% from 4.4% yr/yr

• Company recorded SEK 296 mln impairment tied to Biosero amid Lab Automation business challenges

Outlook

• Company to focus commercial resources and R&D on Precision Biology powered by AI

• BICO to reduce exposure to large-scale integrated Lab Automation projects

• Company says financial targets remain unchanged under new strategy

Result Drivers

• SUPPLY AND LICENSE AGREEMENTS - Co said Q3 growth was supported by SCIENION supply and license agreements

• INSTRUMENTS AND CONSUMABLES - Growth in desktop instruments and consumables contributed to results, while Lab Automation project business remained challenging

• COST DISCIPLINE - Co said ongoing cost discipline and improved commercial execution supported profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for BICO Group AB is SEK25.50, about 3.2% above its November 10 closing price of SEK24.70

Reuters Recommended Reads

• Nov 10 - Sweden's Genovis Q3 net sales rise 34% on record genomics segment

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• Nov 10 - 908 Devices Q3 revenue growth beats estimates; hikes forecast

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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.)