Key Takeaways:
RemeGen reported H1 revenue of RMB5.85 billion, up 436% from a year earlier, and swung to a net profit of RMB4.66 billion.
Second-quarter sales rose 808.6% year over year to a net profit of RMB4.33 billion, both exceeding market expectations, CLSA said in a report.
Gross profit reached RMB5.58 billion for the six months ended June 30. Research and development expenses fell 36% to RMB414.1 million, while selling and distribution costs rose to RMB549.6 million and administrative expenses to RMB262.4 million. Cash stood at RMB1.53 billion, and the gearing ratio improved to 15.6% from 50.2% at the end of 2025. Basic earnings per share came in at CNY8.32, versus a loss of CNY0.83 a year earlier.
The turnaround was driven by strong sales of telitacicept and disitamab vedotin plus a licensing deal with AbbVie for RC148. Shares rose 8.22% to HKD80.30 on the Hong Kong exchange. CLSA raised its target price to HKD144.8 from HKD136.9, lifting its fiscal 2026 sales forecast by 52.6% and net profit estimate by 136.8%, while cutting fiscal 2027 and 2028 forecasts.
Management maintained its guidance for operating breakeven for full-year 2026, with overseas progress of RC148, RC18 and RC48 proceeding as planned. The company received NMPA approval in June for telitacicept in Sjogren's syndrome and conditional approval for IgA nephropathy, expanding the drug's addressable market in China.
RemeGen plans to further commercialize telitacicept and disitamab vedotin and expand market presence in China, while accelerating clinical trials and regulatory filings for pipeline products. International collaborations with Vor Bio, Pfizer/Seagen, Santen China and AbbVie continue to advance global clinical programs.
The profit swing marks a turning point for the Yantai-based biotech, which had posted losses through 2025. Investors will watch whether telitacicept's new indications and the AbbVie partnership sustain momentum into the second half, with the full-year operating breakeven target as the key test.
This article is for informational purposes only and does not constitute investment advice.
