Beijing Luzhu Biotechnology (2480) H1 2024 earnings summary

Executive summary

• Pipeline comprised three clinical-stage candidates—LZ901, K3 and K193—and four preclinical candidates at June 30, 2024; revenue remained nil.

• H1 2024 net loss widened 38.5% YoY to RMB109.9m, mainly due to higher R&D spending on LZ901’s China Phase III trial.

• LZ901 Phase III enrollment was completed; China BLA filing is targeted no later than January 2025, with commercialization expected in Q4 2025.

Financial highlights

• Other income increased 82.3% YoY to RMB9.7m, mainly from government grants; administrative expenses rose 9.0% to RMB45.0m.

• R&D expenses rose 142.4% YoY to RMB80.4m, mainly reflecting LZ901’s China Phase III trial.

• Net other gains fell 62.8% YoY to RMB6.3m, reflecting lower FVTPL fair-value and foreign-exchange gains.

• Loss before tax and period loss were RMB109.9m versus RMB79.4m; basic and diluted loss per share were RMB0.54 versus RMB0.41.

Outlook and guidance

• China LZ901 BLA filing targeted no later than January 2025, with commercialization expected in Q4 2025.

• Complete the LZ901 U.S. Phase I trial in H2 2024 and initiate K3’s China Phase III trial in 2025.

• Complete K193’s China Phase I trial in 2025; advance pipeline development and commercialization capabilities in China and overseas.