Qyuns Therapeutics (2509) H1 2024 earnings summary

Executive summary

• Clinical-stage biologics portfolio targets autoimmune and allergic diseases across dermatology, rheumatology, respiratory and gastrointestinal indications; 9 candidates, 20 IND approvals and 10 ongoing clinical trials.

• H1 revenue was RMB44.919 million, mainly from licensing and related R&D services; net loss narrowed to RMB183.139 million from RMB265.642 million YoY.

• Pipeline advanced with QX005N Phase III starts and QX013N’s first-in-human trial; QX001S commercialization was targeted for Q4 2024, subject to approval.

Financial highlights

• Revenue was RMB44.919 million, cost of sales RMB7.163 million and gross profit RMB37.756 million, primarily from licensing agreements and related R&D services.

• R&D expense fell 13.98% YoY to RMB145.226 million; administrative expense declined to RMB70.331 million from RMB98.768 million, mainly due to lower share-based payment expense.

• Operating loss was RMB169.234 million versus RMB257.783 million; net loss was RMB183.139 million versus RMB265.642 million, and basic and diluted loss per share were RMB0.79 versus RMB1.28.

• Finance costs rose to RMB13.942 million from RMB7.896 million, mainly due to higher bank borrowings; other net income fell 23.55% YoY to RMB7.40 million.

• Net operating cash outflow narrowed to RMB66.846 million from RMB168.373 million; cash and cash equivalents reached RMB468.436 million at June 30, 2024, versus RMB216.300 million at year-end 2023.

Outlook and guidance

• QX001S BLA review was ongoing; commercialization with Zhongmei Huadong was targeted for Q4 2024, subject to approval.

• QX002N ankylosing spondylitis Phase III enrollment was expected to finish in Q3 2024, with trial completion projected for H2 2025.

• QX006N SLE Phase Ib enrollment was expected to finish in Q3 2024; QX004N psoriasis Phase II primary-endpoint data were reported read out in August 2024.

• Priorities included advancing core pipelines, strengthening dermatology leadership, improving CMC quality and production efficiency, expanding commercial partnerships and overseas opportunities, and developing talent.

• Unused IPO proceeds were allocated primarily to QX002N and QX005N development, with spending timelines extending through end-2025.