Everest Medicines (1952) H1 2024 earnings summary

Executive summary

• Revenue surged to RMB301.5 million for H1 2024, up from RMB8.9 million year-over-year, driven by NEFECON® and XERAVA® launches and expansion in China and Singapore.

• Gross profit margin rose to 76.6% (83.0% excluding intangible asset amortization), reflecting new product launches.

• Net loss increased to RMB632.4 million, mainly due to a one-time impairment loss on mRNA COVID-19 vaccine intangible assets.

• Adjusted loss (excluding non-recurring items) improved to RMB212.6 million, down RMB114.3 million year-over-year.

• Cash and equivalents stood at RMB1,925.5 million as of June 30, 2024.

Financial highlights

• Revenue reached RMB301.5 million in H1 2024, up 158% from H2 2023 and over 30x from H1 2023, mainly from NEFECON® and XERAVA®.

• Gross margin at 83% (excluding amortization), exceeding long-term guidance of 80%.

• Non-IFRS net loss narrowed by 35% year-over-year to RMB212.6 million, excluding one-time and non-cash items.

• Cash and bank deposits stood at RMB1.93 billion as of June 30, 2024.

• R&D expenses decreased to RMB253.2 million, while distribution and selling expenses rose to RMB200.4 million.

Outlook and guidance

• Full-year revenue guidance maintained at RMB700 million for 2024, supported by continued NEFECON® and XERAVA® growth.

• Targeting cash flow break-even by end of 2025.

• Anticipated commercial launch of etrasimod (VELSIPITY®) in Macau and further expansion in China and Hong Kong in H2 2024.

• Four products expected on market by 2025, with combined peak sales potential of over RMB10 billion.

• Ongoing pipeline development with key data readouts for NEFECON®, EVER001, and zetomipzomib expected in H2 2024.