Financials
R&D picking up pace in H225
BioVersys reported its FY25 results, representing the first full year of financials
following its IPO in February 2025, which raised gross proceeds of CHF76.7m. As a
clinical-stage company, BioVersys does not yet generate product revenues; however,
it reported CHF0.8m in revenue during the year, which was related to its research
collaboration agreement with Shionogi, signed in July 2025 for its preclinical asset
BV500, targeting non-tuberculous mycobacteria infections. As a reminder, the agreement
includes upfront and near-term payments of up to CHF5.5m (CHF1.5m upfront and up to
CHF4m in technology access fees), in addition to potential regulatory and commercial
milestone payments of up to CHF479m, contingent on Shionogi exercising its licence
option (which we anticipate could occur by 2027, subject to successful development
progress). Based on the structure of the agreement, we estimate that the remaining
CHF4.7m of the near-term payments will be received and recognised as revenue across
FY26 and FY27.
In addition to collaboration revenues, BioVersys reported CHF2.5m in R&D tax credits,
grant income and subsidies (FY24: CHF1.2m), reflecting increased development activity.
Given that these credits largely reflect reimbursements of eligible R&D expenditures
from government programmes, we expect them to fluctuate in line with the company’s
development activity. Overall, operating income for FY25 increased to CHF3.3m, compared
to CHF1.2m in FY24.
Operating expenses for FY25 totalled CHF23.2m (FY24: CHF19.9m), with the increase
primarily driven by higher R&D investment. R&D expenses rose 27.5% y-o-y to CHF16.5m
(FY24: CHF12.9m), accounting for approximately 71% of total operating costs. As expected,
R&D spend was weighted towards the second half of the year (CHF10.3m in H225 vs CHF6.2m
in H125), reflecting the ramp-up of preparatory activities for the BV100 registrational
Phase III trial. G&A expenses remained broadly stable at CHF6.7m, compared to CHF7.0m
in FY24, indicating a relatively controlled corporate overhead base despite increased
development activity. Overall, BioVersys reported an operating loss of CHF20.0m in
FY25, representing a 6.6% increase from CHF18.7m in FY24. Notably, this was below
management’s prior guidance of CHF29m. In our view, this variance is likely attributable
to the timing of certain R&D expenditures shifting into FY26, rather than any structural
change in the underlying cost base.
Estimates revision
FY26 is expected to represent a significant step-up in development activity, driven
by the initiation of the BV100 Phase III registrational study (RIV-TARGET), the Phase
IIb real world study (RIV-CARE) and the Phase II study for alpibectir in TB meningitis
(TBM). Management has guided for an operating loss of CHF40–45m for FY26 and a period
end cash balance of c CHF43m, implying a substantial increase in R&D spend as the
BV100 programme progresses through its pivotal stage. Reflecting this guidance, we
revise our FY26 R&D estimates upwards to CHF37.0m, from CHF21.7m previously, to account
for a greater concentration of Phase III-related costs being recognised during the
year. We expect the bulk of the BV100 trial-related expenditure to be incurred in
FY26, with FY27 increasingly focused on later-stage activities, including data package
preparation and regulatory submission.
On the revenue side, we forecast BioVersys to receive CHF2.4m in near-term payments
from Shionogi in FY26, alongside CHF2.3m in R&D tax credits and grant income (versus
CHF1.6m in our prior estimates), reflecting the higher anticipated level of development
activity. Based on the FY25 run-rate and observed cost discipline, we revise our FY26
G&A estimate downwards to CHF8.0m (from CHF9.6m previously). Taken together, we project
an operating loss of CHF40.4m for FY26, positioning our estimate at the lower end
of management’s guided range.
For FY27 we forecast operating income of CHF6.8m (including CHF2.4m from Shionogi)
and an operating loss of CHF34.7m, reflecting continued, albeit gradually moderating,
development expenditure as key programmes advance towards later-stage milestones.
Funded into 2028
BioVersys ended FY25 with a gross cash balance of CHF82.5m, supported by IPO proceeds
and the drawdown of the final CHF7.5m tranche of its European Investment Bank (EIB)
loan facility in December 2025. Net cash at year-end stood at CHF60.8m. Based on our
updated cash burn projections and factoring in upcoming debt maturities (including
the first CHF5m EIB tranche due in August 2027, unless refinanced), we estimate that
the company has sufficient funding to support its planned clinical and operational
activities into 2028. However, we note that a modest bridging financing requirement
(c CHF10–20m) could arise in early 2028, ahead of the anticipated commercial launch
of BV100 and the subsequent ramp-up in revenues.
