Laekna Inc (2105) H1 2024 earnings summary

Executive summary

• Seven clinical trials were underway at June 30, 2024; LAE102 entered Phase I and the LAE002/fulvestrant Phase III trial began in China ahead of schedule.

• H1 net loss narrowed to RMB143.7m from RMB217.0m as clinical programs advanced across breast, prostate and ovarian cancers.

Financial highlights

• Revenue was not a material reported activity; operating loss was RMB142.4m versus RMB145.0m, and loss for the period was RMB143.7m versus RMB217.0m.

• R&D expense rose 23.3% to RMB126.1m, mainly due to AFFIRM-205 Phase III development and milestone costs; administrative expense fell 15.6% to RMB30.4m as listing costs declined.

• Other income increased to RMB14.1m from RMB3.2m, primarily due to bank-deposit interest; preferred-share fair-value losses were nil after conversion into ordinary shares, versus RMB71.2m in H1 2023.

• Basic and diluted loss per share was RMB0.40 versus RMB2.63; total comprehensive loss was RMB138.5m versus RMB285.8m.

Outlook and guidance

• Target primary completion of LAE102 Phase I single-ascending-dose study in Q4 2024 and LAE123 preclinical-candidate declaration by year-end 2024.

• Target LAE120 IND submission in Q4 2024 and LAE103 IND submission in Q2 2025; LAE103 IND-enabling studies have begun.

• Planned presentations: LAE002/fulvestrant Phase Ib biomarker data at ESMO in September 2024 and LAE002/sintilimab/nab-paclitaxel Phase I results at IGCS in October 2024.

• Priorities include advancing existing candidates, exploring combination therapies and aiming to move one internally discovered candidate into clinical development each year; LAE002 and LAE001 commercialization is expected within four years, subject to R&D progress.