Ascentage Pharma (6855) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 surged 477.2% year-over-year to RMB823.7 million, driven by intellectual property income, product sales, commercialization rights, and service income.

• Net income reached RMB162.8 million, reversing a loss of RMB402.3 million in the prior year period.

• Major strategic partnership with Takeda included a US$100 million option payment and a US$75 million equity investment.

• Core product olverembatinib achieved significant sales growth, expanded regulatory approvals, hospital coverage, and inclusion in clinical guidelines.

Financial highlights

• Revenue: RMB823.7 million for H1 2024, up from RMB142.7 million in H1 2023.

• Net income: RMB162.8 million, compared to a net loss of RMB402.3 million year-over-year.

• Cash and bank balances: RMB1,100.3 million as of June 30, 2024.

• R&D expenses increased 43.4% to RMB444.1 million; selling and distribution expenses rose 7.6% to RMB89.6 million.

• Administrative expenses decreased 4.7% to RMB87.0 million.

Outlook and guidance

• NDA submission for lisaftoclax (APG-2575) in r/r CLL/SLL planned for 2024.

• Continued execution of registrational Phase III trials for olverembatinib and lisaftoclax in multiple indications.

• Focus on expanding global commercialization and strategic partnerships.

• Continued investment in R&D and commercialization.

• No interim dividend recommended for H1 2024.