Jiangsu Recbio Technology (2179) H1 2024 earnings summary

Executive summary

• H1 2024 remained pre-commercial, with no revenue and an unaudited net loss of RMB249.6m, down from RMB276.9m YoY.

• Development centered on REC603, in Phase III follow-up, and REC610, which completed final vaccinations in its China Phase I trial; preparations advanced for manufacturing and overseas commercialization.

Financial highlights

• Loss attributable to owners was RMB249.1m versus RMB272.5m YoY; basic and diluted loss per share improved to RMB0.52 from RMB0.57.

• Other income and gains fell 40.4% YoY to RMB35.7m, mainly on lower FX gains and interest income, partly offset by RMB13m higher government grants.

• R&D costs declined 17.2% YoY to RMB205.2m; administrative expenses fell 30.0% to RMB54.7m, and selling and distribution costs fell to RMB1.5m from RMB5.4m.

• Other expenses rose to RMB14.8m from RMB0.1m, including inventory impairment of RMB9.1m, PPE impairment of RMB3.9m and other current-asset impairment of RMB1.8m.

• Operating cash outflow was RMB279.9m versus RMB370.7m in H1 2023; investing cash outflow was RMB64.4m and financing cash inflow RMB35.8m.

Outlook and guidance

• REC603 is in pivotal Phase III follow-up at month 36; an interim analysis using pathological endpoints is planned, with BLA submission to the NMPA targeted for 2025 if conditions are met.

• REC610 completed final vaccinations in its China Phase I study; Phase III initiation in China was expected in 2024, subject to anticipated clinical results.

• REC625 preclinical work was planned for completion in 2024; priorities include HPV 9-valent and recombinant shingles vaccines, commercialization, and international business development.

• Commercialization plans include building overseas channels and cooperating with industrial partners to develop a domestic marketing network.