Abbisko Cayman (2256) H2 2023 earnings summary

Executive summary

• Advanced a 16-candidate pipeline, including 10 clinical-stage programs; pimicotinib entered global Phase III for TGCT across China, the U.S. and Europe.

• FY2023 revenue was RMB19.1m, primarily one-time licensing income; net loss narrowed to RMB431.6m from RMB495.6m.

• Licensing deals with Allist and Merck established potential milestone and royalty streams; Merck’s US$70m upfront payment was received in February 2024.

Financial highlights

• Revenue rose from nil in FY2022 to RMB19.1m in FY2023, entirely from one-time license fee income under the Allist agreement.

• Other income and gains increased to RMB87.4m from RMB45.6m, driven mainly by bank interest income of RMB65.5m and government grants of RMB21.2m.

• R&D expense rose to RMB433.7m from RMB378.7m, reflecting later-stage trials and expanded early research; administrative expense fell to RMB96.4m from RMB118.4m.

• FY2023 net loss was RMB431.6m vs RMB495.6m; total comprehensive loss was RMB399.8m vs RMB295.3m, with lower translation gains YoY.

• Adjusted loss, excluding share-based compensation, was RMB384.2m vs RMB385.5m; adjusted R&D expense was RMB405.9m vs RMB313.6m.

Outlook and guidance

• Priorities include advancing the 16-candidate pipeline, expanding strategic partnerships, and sustaining R&D investment to pursue global markets and unmet medical needs.

• Three pimicotinib Phase III trials were ongoing in the U.S., Canada and Europe; global development activity also included Phase I programs for ABSK043, ABSK061, ABSK112 and ABSK121 outside mainland China.

• Post-period milestones included EMA orphan drug designation for pimicotinib in inoperable TGCT and first patient dosing for ABSK051 in China.