Zhitong Financial APP News, Genscript Biotech Corporation (01548) issued an announcement that the group's subsidiaries Probio Technology Limited (vigorous Biology) and Legend Biotech Corp Technology Co., Ltd. (Legend Biotech Corp) have completed a series of financing one after another, resulting in fair value losses on non-cash financial liabilities. The company believes that these financing will help Vivo improve its research, development and production capacity in gene and cell therapy (GCT) and antibody drug CDMO (contract development and production organization), and help Legend Biotech Corp promote research and development, clinical trial progress and cilta-cel commercial promotion.
The Group also continues to increase its investment in talents. The Group expects equity-based share compensation expenses of approximately $33.9 million to $38.3 million, compared with about $14.5 million for the same period in 2021. The Group will continue to implement team building and employee motivation programs.
The adjusted net profit of the group business, excluding the cell therapy business, maintained steady growth, with an expected growth of about 10.3% to 20.9%. The acellular therapy business is expected to make an adjusted net profit of approximately $29 million to $31.8 million, compared with approximately $26.3 million for the same period in 2021. The increase is mainly due to the continued improvement in the profitability of the Group's CDMO and synthetic Biology businesses.
The adjusted net profit / (loss) of the Group's business does not include: equity-settled share compensation expenses; exchange gains and losses; consultancy fees and other related costs arising from investigations; fair value losses on financial liabilities; fair value gains and losses on non-current financial assets, and public offering service fees.
Invest in cell therapy business: Legend Biotech Corp is expected to make an adjusted loss of about $196 million to $229 million, mainly from research and development expenditure of about $135 million to $158 million, mainly due to continued investment in its main candidate Cedar Oren and other potential candidates.
Fair value loss of non-cash financial liabilities: due to changes in the fair value of the Class A preferred shares of Vivo, warrants exercisable to subscribe for ordinary shares of Vivo and warrants exercisable to subscribe for Legend Biotech Corp's common shares, the Group expects to make a fair value loss of approximately US $42.1 million to US $48.3 million. It is expected that the change in fair value after conversion will eventually lead to an increase in share premium, which in essence has no impact on the net assets of Boom and Legend Biotech Corp.
Overall, the Group expects an adjusted loss of approximately $115 million to $137 million for the six months ended June 30, 2022, compared with an adjusted loss of approximately $130 million for the same period in 2021.
As of June 30, 2022, the Group had cash and cash equivalents of approximately $782 million and time deposits of approximately $463 million. As of June 30, 2022, Legend Biotech Corp had cash and cash equivalents of about US $380 million and time deposits of about US $408 million.