Innovent Biologics (1801) H1 2024 earnings summary

Executive summary

• Revenue grew 46.3% year-over-year to RMB3,952.3 million in 1H 2024, driven by strong product sales and new launches, with product revenue up 55.1% to RMB3,811.4 million.

• Gross profit margin improved to 84.1%, up 1.8 percentage points year-over-year, reflecting operational efficiency gains.

• Adjusted loss for the period decreased 15.9% to RMB160.2 million, and adjusted LBITDA improved by 39.9% to RMB160.8 million.

• Commercial portfolio expanded to 11 products, including the approval of DupertⓇ (KRAS G12C inhibitor) for advanced NSCLC in China.

• Maintained a strong financial position with RMB10,112.3 million in cash and equivalents as of June 30, 2024.

Financial highlights

• Total revenue for 1H 2024: RMB3,952.3 million (+46.3% YoY); product revenue: RMB3,811.4 million (+55.1% YoY); license fee income: RMB115.9 million.

• Gross profit margin: 84.1% (up 1.8pp YoY); S&M expense ratio: 48.6% of product revenue (down 5.9pp YoY); G&A expense ratio: 5.2% of total revenue (down 4.9pp YoY).

• R&D expenses increased to RMB1,399.4 million, reflecting continued investment in pipeline advancement.

• Loss for the period: RMB392.6 million, mainly due to lower non-cash FX gains and absence of a one-time tax credit; adjusted loss: RMB160.2 million.

• Bank balances, cash, and equivalents totaled RMB10,112.3 million as of June 30, 2024.

Outlook and guidance

• Anticipates approval and launch of two new oncology products in 2H 2024, expanding the portfolio to 12 by year-end.

• Preparing for commercialization of new CVM and general biomedicine assets, with key launches expected in 2025.

• Ongoing investment in R&D and global expansion to support long-term growth and innovation.