CANbridge Pharmaceuticals (1228) H2 2024 earnings summary

Executive summary

• Achieved significant milestones in drug pipeline, including commercial launches and regulatory approvals for Hunterase® and Livmarli® in China and Taiwan.

• Streamlined workforce from 100 to 67 employees by year-end, further reduced to 50 by March 2025 to cut costs.

• Focused on rare disease therapies, with 8 drug assets and 2 marketed products.

Financial highlights

• Revenue decreased by RMB17.8 million (17.3%) year-over-year to RMB85.1 million, mainly due to ending Nerlynx® distribution in Hong Kong.

• Gross profit fell to RMB54.3 million, with gross margin at 63.8% (up from 62.4%).

• Loss for the year increased by RMB63.8 million (16.8%) to RMB442.6 million, mainly due to RMB88.0 million write-off of right-of-use assets.

• Adjusted loss (excluding share-based payments and write-offs) decreased by RMB12.0 million to RMB346.9 million.

• Cash and bank balances dropped to RMB10.5 million from RMB137.5 million, reflecting operational outflows.

• Current ratio declined to 9.4% (from 64.0%), and gearing ratio rose to 26.0% (from 7.7%).

Outlook and guidance

• Expect CAN103 marketing approval in the first half of 2025.

• Plans to improve liquidity through new financing, cost controls, and licensing out pipeline assets.

• Focus on profitability from Hunterase® and Livmarli® to generate cash inflow.