Ascletis Pharma Inc (1672) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 4.6% to RMB56.6m; net loss narrowed to RMB144.7m from RMB314.8m, supported by higher other income and lower R&D costs.

• Cash, cash equivalents and time deposits totaled RMB2,274.6m at year-end, expected to fund R&D and operations through 2028.

Financial highlights

• Gross profit was RMB26.0m versus a gross loss of RMB24.7m in 2022; revenue increased RMB2.5m, while cost of sales fell to RMB30.6m from RMB78.8m.

• Other income and gains rose 64.8% to RMB184.7m, including RMB60.6m gain from dilution of the Sagimet Biosciences stake and RMB99.3m bank interest income.

• Administrative expenses increased 228.5% to RMB115.6m, mainly from consulting fees and staff costs; selling and distribution expenses fell 97.7% to RMB0.4m.

• R&D costs declined 18.8% to RMB216.8m, reflecting improved project spending efficiency and lower intangible-asset depreciation and amortization.

• Basic and diluted loss per share was RMB13.47 cents versus RMB28.96 cents in 2022; no income tax expense was incurred.

Outlook and guidance

• 2024 priorities include completing ASC41 NASH Phase II enrollment, discussing ASC40 NASH registrational trials with NMPA, and completing ASC40 acne Phase III enrollment.

• Planned milestones include the prespecified interim analysis of ASC40 Phase III for recurrent glioblastoma and continued Phase I development of ASC61 for solid tumors.

• Management plans to advance global first- or best-in-class discovery, seek licensing-out opportunities, and continue pipeline optimization to improve efficiency and preserve cash.

• COVID-19 studies of ASC10 and ASC11 may proceed if infections and demand for additional oral treatments remain strong; strategic decisions are planned for 2024.