BioArctic (the Company) develops drug candidates for Alzheimer’s disease and Parkinson’s disease in collaboration with pharma companies. The Company enters into research collaborations and license agreements with the partners and receives compensation for the research work as well as milestone payments and royalties, which the Company uses to finance new projects. Milestone payments are normally received when the project achieves certain predefined development goals, e.g. the start of clinical trials or when clinical trials proceed from one phase to the next. Due to the nature of BioArctic’s income, these revenue streams occur irregularly in time and are difficult to predict.
BioArctic’s revenue and profit are mainly based on income of non-recurring character under the research collaboration and license agreements that the Company has entered into. BioArctic will continue focusing on developing and expanding the Company’s project portfolio. The available financial resources and the reported result should therefore generally be reinvested in the operations to finance BioArctic’s long-term objectives and strategy. The Board’s intention is not to propose any dividend to the shareholders before the Company generates long-term sustainable profitability. Any future dividends and the size thereof will be determined based on the Company’s long-term growth, earnings trend and capital requirements, taking into account the current objectives and strategy. Dividends shall, in so far as dividends are proposed, be well-balanced with respect to the objectives, scope and risks of the operations.