Zhaoke Ophthalmology (6622) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose to RMB49.769m from RMB11.304m, while net loss narrowed to RMB75.802m from RMB233.778m, aided by licensing income, higher sales and lower R&D spending.

• China CHAMP completed patient visits, dry-eye and presbyopia programs advanced, and commercial reach exceeded 1,200 hospitals and eye institutions across 30 provinces.

Financial highlights

• Revenue was RMB49.769m versus RMB11.304m YoY; gross profit was RMB42.840m versus RMB10.154m.

• Licensing income was RMB33.523m, including a product-licence milestone; ophthalmic drug sales were RMB13.572m and ophthalmic product sales RMB2.076m.

• Net loss narrowed to RMB75.802m from RMB233.778m; adjusted loss, excluding equity-settled share-based payment expenses, was RMB75.689m versus RMB218.178m.

• R&D expense fell to RMB89.797m from RMB205.346m; selling and distribution expense rose to RMB28.399m from RMB23.075m, while G&A fell to RMB31.303m from RMB42.570m.

• Other income was RMB44.514m versus RMB39.523m; basic and diluted loss per share were RMB0.14 versus RMB0.43.

Outlook and guidance

• H2 priorities include China CHAMP topline results and regulatory engagement on NVK002’s ANDA, which awaits supplementary materials requested by the CDE.

• TAB014 Phase III completion is targeted by year-end 2024, with NDA submission thereafter; over 90% of enrolled patients had completed dosing by August 2024.

• CsA Ophthalmic Gel priorities include formal acceptance and marketing approval, a new Phase III trial, pre-NDA discussion and NDA resubmission; an FDA IND is targeted by year-end 2024.

• Sequential CDE approvals for five glaucoma generics and Epinastine HCl are anticipated from H2 2024; NVK002 and CsA Ophthalmic Gel approvals remain priorities.