Genscript Biotech (1548) H1 2024 earnings summary

Executive summary

• Revenue rose 43.5% year-over-year to $561.4 million in H1 2024, driven by strong cell therapy growth, especially from CARVYKTI, and stable non-cell therapy business.

• Adjusted net loss narrowed to $69.0 million, reflecting improved profitability in core segments and explosive revenue growth from CARVYKTI.

• Gross profit increased 75.4% to $307.0 million, with cell therapy gross profit up 323.4% year-over-year.

• Over 7,200 global employees, business in ~100 countries, and a focus on R&D (~12% of workforce).

• Sustainability initiatives recognized with EcoVadis Bronze Medal and UN Global Compact signatory status.

Financial highlights

• Cell therapy external revenue surged 156% to $280.3 million; non-cell therapy external revenue was $281.1 million, down 0.2%.

• Life Science revenue grew 9.6% to $222.4 million; Bestzyme revenue increased 44% to $26.1 million.

• ProBio revenue declined 42.7% to $37.1 million, with adjusted EBITDA at -$3.1 million.

• Adjusted net profit for non-cell therapy business was $29.2 million; adjusted net loss for cell therapy was $98.3 million.

• Cash and cash equivalents stood at $399.3 million as of June 30, 2024.

Outlook and guidance

• Life Science full-year revenue growth expected at 10%-15%, gross margin around 55%.

• ProBio full-year revenue projected to decline 10%-15%, but sequential improvement expected in H2.

• Bestzyme revenue guidance raised to 25%-35% growth, gross margin around 40%.

• Legend targets 10,000 annual doses production capacity by end of 2025 and Raritan site expansion by end-2024.

• Plans to expand global manufacturing capacity, especially for cell therapy and synthetic biology.