InSilico Medicine Cayman (3696) investor relations material

Executive summary

• Achieved major upgrades to generative AI platform (Pharma.AI), expanding capabilities in Biology42, Chemistry42, and Science42, and launched new foundation models for drug discovery.

• Advanced clinical pipeline with six new AI-empowered preclinical candidates (PCCs), bringing total to 28, and progressed multiple assets into clinical trials, including ISM001-055 (Rentosertib) and ISM6331.

• Secured over US$1.3 billion in new business development deals, including significant out-licensing and co-development agreements with global and Chinese pharmaceutical leaders.

• Completed successful IPO and listing on the Hong Kong Stock Exchange, raising substantial capital for future growth.

Financial highlights

• Revenue for 2025 was US$56.2 million, down 34.5% year-over-year, mainly due to lower pipeline development revenue.

• Gross profit decreased 40.9% to US$45.8 million; gross margin fell to 81.5% from 90.4% due to revenue mix shift.

• Research and development expenses decreased 11.4% to US$81.4 million, reflecting improved efficiency and lower CRO costs.

• Loss for the year widened to US$352.3 million, mainly due to a US$296.7 million non-cash loss from conversion of preferred shares at IPO.

• Adjusted loss (non-IFRS) was US$43.8 million, up from US$22.7 million in 2024.

• Bank balances and cash rose to US$393.3 million at year-end, driven by IPO proceeds.

Outlook and guidance

• Plans to initiate Phase III trial of ISM001-055 for IPF in China in 2026 and advance multiple clinical programs globally.

• Focus on expanding out-licensing, strategic collaborations, and recurring revenue from AI platform commercialization.

• Continued investment in AI model development, automated labs, and pipeline expansion using IPO proceeds.