Akeso (9926) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was RMB1,024.7 million, down from RMB3,676.9 million year-over-year, mainly due to a sharp decline in license income, while net product sales grew 23.96% to RMB939.4 million, driven by cadonilimab and ivonescimab.

• Gross profit from product sales increased 26.03% to RMB857.9 million, but total gross profit and profit declined due to reduced license income.

• The period ended with a net loss of RMB249.3 million, compared to a profit of RMB2,489.5 million in the prior year, reflecting the absence of one-time licensing gains.

• Key products cadonilimab and ivonescimab drove sales growth, with new indications, regulatory milestones, and rapid market uptake.

• Deep pipeline with 22 clinical-stage drug candidates and 50+ innovative assets across oncology, immunology, and metabolic diseases.

Financial highlights

• License income dropped sharply to RMB85.3 million from RMB2,919.0 million, impacting total revenue.

• R&D expenses increased to RMB594.4 million, and selling and marketing expenses rose to RMB516.0 million.

• Cash and equivalents totaled RMB5,693.6 million as of June 30, 2024.

• EBITDA for 2024H1 was RMB -124 million; net loss for the period was RMB -249 million, narrowing from previous periods.

• Operating loss continued to narrow, reflecting improved cost control and revenue growth.

Outlook and guidance

• Over 20 clinical trials for cadonilimab and more than 20 for ivonescimab are ongoing, targeting expanded indications and global markets.

• Commercialization preparations are underway for ebronucimab and ebdarokimab in metabolic and autoimmune diseases.

• Ongoing expansion of clinical pipeline, manufacturing capacity, and global regulatory submissions, with multiple NDAs and sNDAs under review.

• Continued focus on innovation and combination therapies leveraging internal assets and technology platforms.