Jiangsu Recbio Technology (2179) H2 2023 earnings summary

Executive summary

• Vaccine R&D portfolio exceeded 10 candidates, led by REC603 in Phase III; 2023 revenue was nil and net loss was RMB572.4m.

• REC603 follow-up advanced in China, REC610 completed Phase I enrollment in China, and overseas commercialization work included a January 2024 REC603 agreement with SPIMACO.

Financial highlights

• 2023 loss before tax and net loss were both RMB572.4m, versus RMB736.0m in 2022; loss attributable to owners was RMB572.0m versus RMB722.7m.

• Basic and diluted loss per share improved to RMB1.19 from RMB1.52; other income and gains fell 32.0% to RMB100.6m.

• R&D costs decreased 31.9% to RMB487.8m, including clinical trial expenses of RMB197m and pre-IND expenses of RMB20m; no R&D costs were capitalized.

• Administrative expenses decreased 7.4% to RMB143.8m; finance costs rose to RMB13.6m from RMB3.5m, while other expenses increased to RMB19.3m, including asset and inventory impairment charges.

Outlook and guidance

• REC603 Phase III follow-up reached the 24-month visit, with the 30-month visit underway; interim analysis will use pathological endpoints, and BLA submission is planned for 2025 subject to conditions being met.

• REC625 preclinical studies are planned for completion in 2024; unused global offering proceeds are expected to be fully utilized by end-2025.

• Priorities include accelerating R&D, clinical trials and commercialization, strengthening R&D capabilities, and advancing international business development.