Still no details on regulatory timeline - Q3 review

Lifecare’s Q3 report contained limited progress on the central questions for the investment case, which we view as regulatory timing and funding. The company manufactured its first functional CGM implants in Bergen but has not disclosed quantitative performance data or demonstrated a controlled manufacturing process. Following the Q3 numbers and an update for the number of shares at quarter-end, we lower our fair value range to NOK0.20–0.50 (0.20–0.60) per share.

Q3 in numbers. Revenue and other income was NOK0.4m, while the operating loss came in at NOK12m, versus NOK66m in Q3 2025. The lower loss reflects the reduced cost base following restructuring, although operating cash outflow of NOK5m benefited from a NOK6m working-capital release. Cash declined by cNOK7m Q/Q to NOK30m at end-Q3. Management reiterated that the current operating plan provides a cash runway into Q2 2027. However, no detailed update was provided on the funding required to execute the broader clinical and commercial programme.

Manufacturing remains work in progress. Lifecare manufactured functional implants in Bergen during Q3, with additional batches completed in October. This provides access to implants for in vitro testing and process development. However, the company still needs to demonstrate reproducibility, traceability and quality controls, while sterilisation validation, biocompatibility work, verification and technical documentation remain outstanding. No specific timetable has been provided for submission of the pivotal CE-mark study.

Overall, we believe the report does not materially reduce execution risk or improve visibility on the pivotal study. We therefore make no material changes to our estimates. We lower our fair value range to NOK0.20–0.50 per share to reflect the updated number of shares at quarter-end.