Genscript Biotech (1548) H1 2024 earnings summary

Executive summary

• Revenue rose 43.5% year-over-year to $561.4 million in H1 2024, driven by strong cell therapy growth, especially from Carvykti, and stable non-cell therapy business.

• Adjusted net loss narrowed to $69.0 million, reflecting improved profitability in core segments and explosive revenue growth from CARVYKTI.

• Gross profit increased 75.4% to $307.0 million, with cell therapy gross profit up 323.4% year-over-year.

• Global employee base exceeded 7,000, with 12% focused on R&D, and business in about 100 countries.

• Sustainability initiatives recognized with EcoVadis Bronze Medal and UN Global Compact signatory status.

Financial highlights

• Legend Biotech external revenue surged 156% year-over-year to $280.3 million, driven by CARVYKTI uptake.

• Life Science Group revenue grew 9.5% to $217.7 million, with adjusted operating profit up 24%.

• Bestzyme revenue increased 44% to $26.1 million, with operating profit margin at 8.8%.

• ProBio revenue declined to $37.1 million due to biotech funding headwinds; adjusted EBITDA -$3.1 million.

• Group cash position strong, with Legend holding $1.3 billion and cash and cash equivalents at $399.3 million as of June 30, 2024.

Outlook and guidance

• Life Science full-year revenue growth expected at 10%-15%, gross margin ~55%.

• ProBio revenue projected to decline 10%-15% for 2024, but sequential improvement expected in H2.

• Bestzyme revenue guidance raised to 25%-35% growth, gross margin ~40%.

• Legend Biotech to complete Raritan site expansion by end-2024 and target 10,000 annual doses by end-2025.

• Plans to expand global manufacturing capacity, especially for cell therapy and synthetic biology.