Cutia Therapeutics (2487) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 178.3% YoY to RMB95.6m, while adjusted net loss was RMB161.0m.

• Pipeline progress included CU-30101’s NMPA application acceptance and CU-20401’s completion of last-patient enrollment in Phase II.

Financial highlights

• Revenue increased to RMB95.6m from RMB34.3m YoY; gross profit rose 136.8% to RMB50.3m.

• Gross margin was 53%, down from 62% YoY amid product-mix changes, but up ~5 percentage points from H2 2023.

• IFRS net loss narrowed to RMB200.9m from RMB1,640.3m, primarily because preferred-share fair-value losses ceased after conversion upon listing.

• Adjusted net loss was RMB161.0m versus RMB90.0m; adjusted loss/revenue ratio narrowed to 1.68x from 2.62x.

• Selling and distribution expenses rose 78.3% to RMB103.5m, R&D costs increased 9.8% to RMB99.0m, and basic and diluted loss per share improved to RMB0.66 from RMB15.84.

Segment performance

• Revenue was primarily generated by in-licensed and distributed scalp disease and care products and routine skin care products; all revenue came from PRC customers.

• During the 618 campaign, combined GMV for scalp disease and care and skin care products increased nearly fivefold YoY; Bailleul minoxidil spray ranked No. 1 in Tmall Global’s dermatology drug category for 16 consecutive months.

• HAIRGEOGRA selenium sulfide lotion revenue grew 121x YoY in H1; Phyto-C O-Live represented over 70% of skin care product sales volume.

• Interest-based e-commerce revenue contribution increased significantly YoY; newly launched HAIRGEOGRA OTC minoxidil liniment broadened the scalp product portfolio.