RemeGen (9995) Q2 2024 earnings summary

Executive summary

• Revenue rose to RMB739.7 million for H1 2024, up 76% year-over-year, driven by higher sales of telitacicept and disitamab vedotin.

• Expanded commercialization with Telitacicept and Disitamab Vedotin, both included in the NRDL and listed in hundreds of top-grade hospitals.

• Advanced clinical pipeline across autoimmunity, oncology, and ophthalmology, with multiple late-stage trials and regulatory milestones.

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

• No interim dividend declared for the period.

Financial highlights

• Gross profit increased to RMB570.4 million from RMB316.4 million year-over-year.

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

• Selling and distribution expenses rose 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.

• Basic and diluted loss per share was RMB(1.45), compared to RMB(1.30) in H1 2023.

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 and BLA submission, and global SLE Phase III trial progress.

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

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