Antengene (6996) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was RMB60.8 million, down 15.6% year-over-year, mainly due to a transition period after a commercialization partnership and a price reduction following NRDL inclusion, partially offset by increased sales volume.

• Loss for the period narrowed to RMB167.0 million from RMB218.7 million year-over-year, reflecting significant cost reductions in R&D, selling, and administrative expenses.

• Adjusted loss for the period (excluding share-based payments) was RMB152.6 million, a 19.5% improvement year-over-year.

• Major pipeline progress includes new approvals and indications for XPOVIO® (selinexor) in China, South Korea, Malaysia, and Thailand, and promising clinical data for late-stage and early-stage assets.

• Advanced a robust pipeline with multiple first- and best-in-class assets in global clinical development, including ATG-008, ATG-022, ATG-037, ATG-101, and ATG-031.

Financial highlights

• Revenue for 1H 2024 was RMB60.8 million, primarily from XPOVIO® sales in APAC, with a decrease due to price reduction and transition period, but offset by higher sales volume.

• R&D expenses decreased to RMB130.8 million, down from RMB226.1 million year-over-year, driven by lower employee and drug development costs and no licensing fees.

• Administrative expenses fell to RMB58.5 million, reflecting lower employee costs.

• Selling and distribution expenses decreased to RMB56.0 million, mainly due to the absence of milestone payments and reduced costs in Greater China.

• Cash and bank balances stood at RMB1,024 million as of June 30, 2024, supporting ongoing R&D and commercial initiatives.

Outlook and guidance

• Anticipates further regulatory approvals and reimbursement listings for XPOVIO® in Thailand, Indonesia, the Philippines, Vietnam, and Taiwan.

• Focus remains on advancing 9 clinical-stage products and expanding the pipeline through internal R&D and external partnerships.

• Plans to complete Phase II dose expansion for ATG-022 in gastric cancer and advance ATG-037 and ATG-101 into further clinical stages.

• Ongoing discussions with regulators for a registrational pathway for ATG-008 in advanced cervical cancer.

• Unutilized IPO proceeds of RMB508.35 million expected to be fully used by December 31, 2025, mainly for clinical and pre-clinical development.