Abbisko Cayman (2256) H1 2024 earnings summary

Executive summary

• H1 2024 marked the first profitable period, with net profit of RMB206.8m versus a RMB208.6m loss in H1 2023, driven primarily by the Merck pimicotinib license payment.

• The pipeline comprised 16 candidates, including 10 clinical-stage programs; global Phase III enrollment for pimicotinib in TGCT was completed.

Financial highlights

• Revenue rose to RMB497.3m from RMB19.1m YoY, primarily reflecting the one-time US$70m Merck upfront payment recognized as licensing revenue.

• Net profit was RMB206.8m versus a RMB208.6m loss YoY; profit before tax was RMB285.5m and included RMB78.7m of Germany withholding tax.

• R&D expense increased to RMB215.1m from RMB204.6m; administrative expense declined to RMB40.3m from RMB45.7m.

• Adjusted profit excluding share-based compensation was RMB215.4m versus an adjusted loss of RMB182.9m in H1 2023.

Outlook and guidance

• Priorities include advancing clinical candidates, expanding indications and combination studies, strengthening partnerships, and investing in R&D capabilities; no specific financial guidance was stated.

• ABSK043 was expected to complete its Phase I trial in Australia soon; a multicenter Phase II evaluation of ABSK043 with furmonertinib was planned.

• Pimicotinib development also includes Phase II studies in cGvHD and advanced pancreatic cancer.