CANbridge Pharmaceuticals (1228) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 30.3% YoY to RMB102.9m, while reported loss narrowed 21.7% to RMB378.8m; adjusted loss was RMB358.9m.

• Pipeline comprised 14 assets, including four marketed products and three late-clinical candidates; development priorities were sharpened amid volatile capital markets and limited biotech funding.

Financial highlights

• Revenue increased RMB23.9m YoY to RMB102.9m, mainly on higher Hunterase® and Livmarli® sales.

• Gross profit rose to RMB64.2m from RMB48.9m; gross margin was 62.4%, versus 61.9% in 2022.

• R&D expense fell 17.4% to RMB257.2m; administrative expense declined to RMB89.8m from RMB108.9m.

• Reported loss narrowed to RMB378.8m from RMB483.5m; adjusted loss, excluding share-based payment expenses, was RMB358.9m versus RMB456.7m.

• Basic and diluted loss per share was RMB0.89, compared with RMB1.14 in 2022.

Outlook and guidance

• CAN103 Phase 2 enrollment was completed; NDA submission was expected in H2 2024, with the trial intended as a potential registrational study.

• CAN008 Phase 2 results were anticipated in H1 2024; depending on results, an accelerated regulatory pathway in Greater China may be pursued.

• Pipeline prioritization and cost controls were planned alongside efforts to secure financing, extend borrowings, negotiate supplier payment extensions and pursue out-licensing.