Brii Biosciences (2137) H1 2024 earnings summary

Executive summary

• Focused on advancing a functional cure for hepatitis B, with three differentiated HBV candidates (siRNA, monoclonal antibody, and therapeutic vaccine) all granted Breakthrough Therapy Designation in China.

• Strategic shift prioritizes HBV, with non-HBV assets (HIV, MDR/XDR, CNS) positioned for partnerships and further development.

• Presented pivotal clinical data at major conferences (AASLD, EASL, APASL) supporting combination regimens for HBV.

• Organizational optimization and pipeline prioritization led to significant cost reductions and operational efficiency.

• No material impact expected from partner VBI's restructuring; clinical supply for HBV trials secured.

Financial highlights

• Cash and equivalents stood at RMB2,477.8 million as of June 30, 2024, down from RMB2,661.4 million at year-end 2023, mainly due to R&D and operational expenses.

• Other income for H1 2024 was RMB70.9 million, a 17.5% decrease year-over-year, primarily due to lower government grants.

• R&D expenses for H1 2024 were RMB126.2 million, down 37.6% year-over-year, driven by lower third-party and employee costs.

• Administrative expenses for H1 2024 were RMB78.6 million, a 23.5% decrease year-over-year, mainly from workforce reduction in non-core areas.

• Net loss widened to RMB283.2 million, up 43.9% year-over-year, driven by RMB115.4 million in fair value losses on financial assets.

• No revenue recognized in H1 2024 due to discontinuation of COVID-19 programs.

Outlook and guidance

• Current cash position is expected to support R&D and operations through the end of 2027, with unutilized IPO proceeds to be used by then.

• Multiple critical data readouts from phase II HBV studies, including INSURE, MARCH, and SOLSTICE trials, are expected in Q4 2024.

• Additional HBV combination studies planned for late 2024.

• Continued focus on HBV cure programs, with non-HBV assets positioned for potential partnerships.

• No interim dividend declared for the period.