Keymed Biosciences (2162) H1 2023 earnings summary

Executive summary

• H1 revenue rose to RMB327.1m from RMB100.0m, mainly from the CMG901 AstraZeneca license; profit was RMB48.1m and adjusted profit was RMB63.8m.

• Pipeline included nine clinical-stage and IND-enabling candidates; CM310 Phase III adult AD results met primary endpoints, with NDA filing expected in 2023.

Financial highlights

• Revenue was RMB327.1m vs RMB100.0m; gross profit was RMB312.1m vs RMB97.5m, and cost of sales was RMB15.0m vs RMB2.5m.

• Profit was RMB48.1m vs RMB2.5m; adjusted profit, excluding share-based payments, was RMB63.8m vs RMB25.7m.

• R&D expenses rose to RMB249.8m from RMB164.0m; administrative expenses increased to RMB82.4m from RMB51.0m.

• CMG901 licensing generated RMB326.5m collaboration revenue; CM326 contributed RMB0.4m, versus a RMB100.0m CM326 upfront payment recognized in H1 2022.

• Other income and gains fell to RMB80.0m from RMB130.3m, mainly as net FX gains declined to RMB31.1m from RMB99.7m; finance costs rose to RMB9.3m from RMB1.3m.

Outlook and guidance

• CM310 adult AD NDA submission was expected in 2023; the CRSwNP NDA submission was expected in 2024.

• Plans included advancing clinical programs in China and globally, preparing late-stage candidates for commercialization, and expanding cGMP-compliant manufacturing capacity.

• CSPC initiated Phase II/III CM310 and Phase II CM326 asthma studies; enrollment was ongoing as of the report date.