CANbridge Pharmaceuticals (1228) H1 2024 earnings summary

Executive summary

• Achieved significant milestones in rare disease drug pipeline, including commercial launches and expanded insurance coverage for Hunterase® and Livmarli® in China, and positive pivotal trial data for CAN103 in Gaucher Disease with NDA submission expected in Q4 2024.

• Revenue rose 4.0% year-over-year to RMB44.8 million, driven by rare disease product sales, especially Livmarli®.

• Adjusted loss for the period increased 18.6% to RMB242.5 million, mainly due to higher R&D expenses for CAN103.

• Cash and bank balances declined to RMB49.1 million, reflecting operational outflows.

• Workforce streamlined to 79 employees by mid-August 2024 to reduce costs.

Financial highlights

• Revenue increased by RMB1.7 million (4.0%) year-over-year to RMB44.8 million for the six months ended June 30, 2024; excluding Nerlynx® sales in Hong Kong, revenue rose 24.4% mainly due to Livmarli® sales.

• Gross profit rose to RMB29.4 million (gross margin 65.7%, up from 62.0%).

• Research and development expenses increased by RMB30.3 million (21.2%) to RMB173.3 million, mainly due to CAN103 trials.

• Administrative expenses decreased by RMB12.5 million (26.0%) to RMB35.7 million due to cost containment.

• Loss for the period increased by RMB29.1 million (13.3%) to RMB247.3 million; adjusted loss (excluding share-based payments) increased by 18.6% to RMB242.5 million.

Outlook and guidance

• NDA submission for CAN103 in Gaucher Disease expected in Q4 2024.

• Focus on commercializing Hunterase® and Livmarli® to improve profitability and cash flow.

• Ongoing efforts to secure new financing, out-license assets, and control costs, including potential US R&D center shutdown.