Beijing Biostar Pharmaceuticals (2563) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 7.9% YoY to RMB71.9m; gross profit increased 30.5% to RMB61.1m, while the annual loss narrowed to RMB143.8m.

• R&D pipeline comprised one commercialized product and 19 projects; clinical development advanced across injectable and oral Utidelone formulations.

Financial highlights

• Revenue was RMB71.866m, up 7.9% YoY; cost of sales fell 45.6% to RMB10.780m.

• Gross profit rose 30.5% to RMB61.086m; gross margin expanded to 85.0% from 70.3%.

• Loss before tax and net loss were RMB143.776m, narrowing from RMB189.644m; loss per share improved to RMB0.41 from RMB0.54.

• R&D expenses decreased 8.1% to RMB116.292m; selling and distribution expenses fell 35.1% to RMB61.926m, while administrative expenses rose 19.2% to RMB52.339m.

• Cash, restricted bank balances and fixed deposits totaled RMB466.636m, up 37.1% YoY.

Outlook and guidance

• All patients in the Utidelone Injection HER2-negative breast cancer neoadjuvant Phase III study are expected to be enrolled in H2 2025; NSCLC Phase III enrollment is targeted by end-2025.

• A pre-NDA application for Utidelone Capsule plus capecitabine in advanced breast cancer is planned for Q4 2025.

• First enrollment in the international gastric cancer Phase II/III study was scheduled for mid-2025; first enrollment in China for the ovarian cancer study was scheduled for Q3 2025.

• Global development, production capacity investment and commercialization with Baheal Medical are priorities; overseas licensing or co-development partnerships are being explored.