Beijing Luzhu Biotechnology (2480) H1 2023 earnings summary

Executive summary

• Pipeline comprised three clinical-stage and four preclinical-stage candidates at June 30, 2023.

• H1 net loss narrowed to RMB79.4m from RMB652.1m; adjusted loss was RMB52.9m versus RMB88.0m.

• Listed on the Hong Kong Stock Exchange on May 8, 2023; LZ901 completed China Phase II in May.

Financial highlights

• Revenue was nil in H1 2023 and H1 2022.

• Other income fell 16.1% YoY to RMB5.3m; net other gains rose 94.7% to RMB16.8m, including RMB10.2m fair-value gains and RMB6.6m net FX gains.

• Administrative expenses fell 7.5% to RMB41.2m and R&D expenses fell 39.9% to RMB33.2m, mainly due to lower amortized share-based payments.

• Listing expenses rose 111.5% to RMB26.5m; no such expenses were expected in future periods.

Outlook and guidance

• LZ901 China Phase III planned for Q3 2023, BLA filing for H2 2024 and commercialization for Q4 2025.

• LZ901 U.S. Phase I completion targeted for Q1 2024, Phase II planned from Q2 2024 to Q3 2025, and Phase III from Q4 2025 to Q2 2027; enrollment completed in July 2023.

• K3 China Phase III planned for Q1 2024, BLA submission for Q4 2024 or Q1 2025, and commercialization for Q4 2025.

• K193 Phase I completion targeted for Q1 2024 and Phase II planned from Q2 2024; other preclinical candidates include varicella and rabies vaccines, K333 and K1932.