Bioretec: Building a new beginning

Translation: Original published in Finnish on 11/14/2025 at 07:00 am EET

Source: Inderes

Bioretec’s Q3 business review highlighted the company’s situation and the commercial challenges of the RemeOs product family. Growth of the new product family will have to wait until 2026. The company is seeking new commercial momentum through recruitments, revisions to the distribution model, and a strategy update at the end of the year. In addition to improvements in the business, damaged investor confidence must be rebuilt over time. We cut our estimates due to the weak outlook, based on which we lower our target price to EUR 1.05 (was EUR 1.2) and reiterate our Accumulate recommendation. The risk of capital loss in the investment remains high, which is balanced by a very low absolute valuation.

Revenue and earnings were largely in line with our expectations

Bioretec's Q3 revenue was 0.72 MEUR (Q3’24: 0.69 MEUR) and operating result -1.82 MEUR (Q3’24: -1.40 MEUR). Revenue was below our 1.0 MEUR estimate, but the operating loss of -2.1 MEUR was smaller than we expected. The revenue miss was not a particular surprise, considering the company's recent challenges and the comment made in October about the lack of acceleration in sales in H2'25. According to the CEO, the old Activa product family is still selling well, but the commercial breakthrough of RemeOs products is a work in progress. The company has started rebuilding commercialization through new recruitments and a new distribution model. However, we still have to wait until next year for the results. The cost structure remained heavy as the company invested in recruitment and working capital. At the end of the period, the company’s cash assets stood at 7.3 MEUR. We consider the need for at least one financing round to be clear.

The new management continues to clean the slate

The CEO's review openly communicates the need for corrective actions and a strategy update. This is a welcome signal after recent challenges in accounting and distribution contracts. The company is making a clear revision in its US strategy by shifting from a warehousing distribution model to a direct distribution model. Investments in local presence and sales expertise in the US, as well as appointments to international sales management, support the new direction. Investments will mean a faster cash burn. Cost savings are sought through change negotiations in Finland.

Bioretec plans to publish a strategy update by the end of the year. The update will include a new commercialization strategy, the status of the product development pipeline, and new financial targets. This update is important for restoring confidence and gaining a clearer picture of the company's future direction and potential. In our opinion, the Q3 report provided a more realistic picture of the company's current situation. The commercialization of RemeOs products will require more time and greater investment than anticipated.

Estimates cut based on the outlook

We lower our estimates for the coming years based on the report's message regarding the commercial difficulties of RemeOs products. Activa products also do not appear to be growing strongly enough to support the company alone. We also include our expectation of an 8 MEUR share issue for next year to our model.

Low valuation and high risks

The valuation of the stock has fallen to a very low absolute level due to the difficulties. On the other hand, the risk of losing capital in the stock is still at a high level in our opinion, so the investment involves strong binary characteristics. EV/S multiples (2026 6x) and the cash flow model (EUR 1.1) indicate moderate pricing. In our opinion, owners should be prepared for possibly several financing rounds or accept the risk of dilution of their holding due to financing rounds.