ALTEOGEN (196170) Q2 2024 earnings summary

Executive summary

• Achieved a significant turnaround with net profit of ₩17.7B in H1 2024, compared to a net loss of ₩3.6B in H1 2023.

• Revenue for H1 2024 was ₩47.1B, down from ₩52.9B in H1 2023, reflecting timing of milestone payments.

• Operating profit reached ₩10.5B in H1 2024, reversing an operating loss of ₩9.7B in FY2023.

• Major revenue drivers were technology licensing and milestone payments from global partners.

Financial highlights

• H1 2024 revenue: ₩47.1B; operating profit: ₩10.5B; net profit: ₩17.7B.

• Gross margin improved to 61.4% in H1 2024 from 51.6% in H1 2023.

• R&D expenses were ₩29.8B (63.3% of sales), reflecting continued investment in pipeline.

• Cash and equivalents at H1 2024: ₩37.8B; total assets: ₩306.3B.

• Debt ratio improved to 64.9% from 73.2% at year-end 2023.

Outlook and guidance

• Multiple global licensing deals expected to generate further milestone and royalty income.

• Key pipeline products advancing: ALT-B4 (hyaluronidase), ALT-L9 (Eylea biosimilar), ALT-L2 (Herceptin biosimilar), ALT-P1 (long-acting growth hormone).

• New Sandoz partnership for hyaluronidase expected to drive future revenue.

• Continued focus on R&D and global commercialization partnerships.