Wuhan YZY Biopharma (2496) H1 2024 earnings summary

Executive summary

• Pre-revenue in H1 2024; net loss narrowed to RMB78.396m, while M701 advanced to Phase III for malignant ascites and Phase II for malignant pleural effusion.

• R&D remained the primary expense and cash use; cash and cash equivalents were RMB161.851m at June 30, 2024.

Financial highlights

• Revenue was nil in H1 2024 and H1 2023; net loss was RMB78.396m versus RMB86.568m.

• R&D expenses were RMB70.290m versus RMB71.598m; administrative expenses rose to RMB13.064m from RMB8.306m.

• Other income fell to RMB4.786m from RMB6.919m on lower government grants; other gains rose to RMB2.2m from RMB1.4m, primarily on FX gains.

• Listing expenses were nil versus RMB13.499m; finance costs rose to RMB2.029m from RMB1.435m, mainly due to higher bank borrowings.

• Basic and diluted loss per share improved to RMB0.40 from RMB0.48.

Outlook and guidance

• H2 2024 priorities include M701 Phase III for malignant ascites and Phase II for malignant pleural effusion, Y101D pancreatic cancer development, Y332 Phase I and preclinical candidates.

• M701 malignant ascites BLA submission is expected in Q1 2025; a CDE pre-BLA meeting is expected in Q1 2025, and MPE Phase Ib/II completion is targeted for Q2 2025.

• Y101D pancreatic cancer Phase Ib/II completion is expected in Q2 2025; commercialization for this indication is planned for H2 2028.

• M701 process characterization and validation are planned for commercial readiness; plans include a 300-person contract sales organization and an in-house team of ~20, with CSO negotiations in H2 2024.