RemeGen (9995) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 76.5% year-over-year to RMB739.7 million, driven by strong sales of telitacicept and disitamab vedotin.

• Gross profit reached RMB570.4 million, with continued investment in R&D and commercialization.

• Net loss widened to RMB780.5 million from RMB703.4 million in H1 2023, mainly due to increased R&D expenses.

• Significant pipeline progress, including new approvals, clinical milestones, and expanded indications for core products.

• No interim dividend declared for the period.

Financial highlights

• Revenue increased to RMB739.7 million from RMB419.1 million year-over-year.

• Gross profit was RMB570.4 million for the period.

• R&D expenses rose to RMB806.2 million, reflecting expanded clinical trials and pipeline development.

• Selling and distribution expenses increased to RMB389.7 million, while administrative expenses decreased to RMB155.2 million.

• Cash and cash equivalents stood at RMB673.3 million as of June 30, 2024.

Outlook and guidance

• Focus on commercializing telitacicept and disitamab vedotin and expanding market presence in China.

• Plans to accelerate clinical trials and regulatory filings for pipeline products globally, especially in the U.S.

• Upcoming catalysts in 2024 include China MG Phase III data readout, BLA submission, and global SLE Phase III trial progress.

• Remaining proceeds from A Share Offering expected to be fully utilized by year-end 2024.

• Anticipates further regulatory submissions for disitamab vedotin in breast cancer and global presentations of clinical results.