Ascletis Pharma Inc (1672) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell to nil from RMB46.5m as lower COVID-19 treatment demand eliminated ritonavir sales; net loss widened to RMB130.3m from RMB16.6m, mainly on higher R&D spending.

• Cash, deposits and other capital resources totaled RMB2,117.2m at June 30, 2024, expected to fund R&D and operations through 2028.

Financial highlights

• Revenue was nil vs RMB46.5m YoY; cost of sales was nil vs RMB7.9m, and gross profit was nil vs RMB38.6m.

• Other income and gains fell 34.7% to RMB49.0m from RMB75.0m; total income declined 59.7% to RMB49.0m from RMB121.5m.

• R&D expense rose 43.5% to RMB132.4m; administrative expense increased 59.4% to RMB41.4m, mainly on staff costs and consulting fees.

• Net loss widened to RMB130.3m from RMB16.6m; basic and diluted loss per share was RMB0.1282 vs RMB0.0152.

Outlook and guidance

• H2 priorities included completing ASC41 NASH Phase II and ASC40 acne Phase III enrollment, completing the ASC40 rGBM Phase III study, and discussing ASC40 NASH registrational trials with NMPA.

• Plans included advancing ASC41, ASC40 and metabolic-disease discovery, optimizing R&D to preserve cash, and pursuing license-out opportunities.

• Strategic decisions were planned for ASC22 in CHB and HIV functional cure, and ASC10/ASC11 for COVID-19; capital resources were expected to support operations through 2028.