RemeGen (9995) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 769 million, up 57% year-over-year, driven by strong sales of telitacicept and disitamab vedotin.

• Net loss for Q3 2024 was RMB 291 million, with a nine-month net loss of RMB 1.07 billion.

• Gross profit margin remained at 100% for the period.

• Cash and cash equivalents stood at RMB 11.24 million as of September 30, 2024, while another report lists RMB 662.0 million.

• Revenue growth was driven by increased sales volumes of telitacicept and disitamab vedotin.

Financial highlights

• Revenue increased 57% year-over-year in Q3 2024, reaching RMB 769 million.

• R&D and administrative expenses rose 35% year-over-year to RMB 347 million in Q3 2024, mainly due to expanded clinical trials and increased headcount.

• Gross R&D spending for the first nine months was RMB 1.15 billion, representing 95.4% of operating revenue.

• Owners' equity decreased 31.1% to RMB 2.37 billion due to increased losses and R&D spending.

• Net cash outflow from operating activities was RMB 835.1 million for the first nine months.

Outlook and guidance

• Upcoming catalysts include Phase III data readouts and regulatory submissions for Telitacicept in MG, IgA nephropathy, and pSS in China, as well as global SLE trials.

• Disitamab Vedotin is expected to apply for full marketing approval for first-line UC in China and submit BLA for HER2-expressing breast cancer with liver metastasis.

• Revenue growth expected to continue, supported by strong sales of key products and expansion of R&D pipelines.