InSilico Medicine Cayman (3696) Q4 2025 earnings summary

Executive summary

• Achieved significant advancements in AI-driven drug discovery, expanding the pipeline to 28–30 developmental candidates and 12 clinical-stage assets, with multiple global partnerships and a completed phase IIa trial for a first-in-class TNIK inhibitor for IPF.

• Secured major business development deals, including a $2.75 billion collaboration with Eli Lilly, raising total contract value to $7.4 billion and expanding into adjacent industries.

• Delivered strong software revenue growth and transformative upgrades to the AI platform, including the launch of MMAI Gym and new foundation models across multiple scientific domains.

• Completed the largest biotech IPO in Hong Kong in 2025, with subsequent inclusion in Stock Connect and record institutional and retail subscription levels.

Financial highlights

• 2025 revenue was $56.2 million, down $29.6 million or 34.5% year-over-year, mainly due to timing of pipeline development deals; software solutions revenue grew 23.8% year-over-year.

• Gross profit margin was 81.5%, with gross profit at $45.8 million, reflecting a shift in revenue mix.

• R&D expenses decreased by $10.5 million to $81.4 million, reflecting improved efficiency and lower CRO costs.

• Net loss increased to $352.3 million, primarily due to a $296.7 million non-cash loss from preferred share conversion at IPO; adjusted (non-IFRS) loss was $43.8 million.

• Cash and bank balances stood at $393.3 million at year-end, rising further after recent deal closings and IPO proceeds.

Outlook and guidance

• Targeting 8–10 new PCCs annually from 2026, with multiple new nominations and IND approvals expected, including phase III initiation for TNIK inhibitor and key milestones for ISM6331, Rentosertib, and ISM8969.

• Continued execution of MMAI Gym collaborations, quarterly platform updates, and further business development deals and platform upgrades.

• Focus on expanding out-licensing, strategic collaborations, and recurring revenue from AI platform commercialization.