Revenue of $1,083 billion (+40.26%) was achieved in 2023; net loss to mother was $1,511 million, up slightly year-on-year loss; net loss of $1,543 million was deducted. The increase in revenue was mainly due to the increase in sales of tetracip and verdicitumab. The increase in losses was mainly due to the continuous advancement of R&D pipelines, the fact that several innovative drugs are in the critical testing and research stage, and R&D expenses have increased dramatically. In addition, commercial sales investment team building expenses and academic promotion activities have increased. The company's gross profit margin was 77.43%, and the sales/management/R&D expenses ratio was 71.58%/28.09%/120.62%, respectively. Revenue for Q1 to Q4 of 2023 was $168/2.54/347/313 million, respectively.
The commercialization and promotion of core products is good, and the sales team is well built. Two core products, Taiai? (Tetasip), Edihi? (verdicitumab) entered the medical insurance catalogue, and sales volume continued in 2023.
As of December 31, 2023, the company's autoimmunity commercialization team had about 750 people, covering more than 2,200 hospitals in more than 300 prefecture-level cities in 32 provincial administrative units across the country; by the end of 23, it had completed drug access for more than 800 hospitals. During the same period, the oncology commercialization team had nearly 600 people, covering more than 2,000 hospitals in nearly 250 prefecture-level cities in 31 provincial administrative units across the country; by the end of '23, drug access had been completed for more than 650 hospitals.
The product pipeline continues to advance: ① The company submitted an NDA to CDE in August 2023; indications including immunoglobulin A nephropathy (IgAN), primary dry syndrome (PSS), myasthenia gravis (MG), and optic neuromyelitis spectrum disease (NMOSD) are ongoing in phase III clinical trials in China. ② At the end of '21, verdicitumab was approved for UC indications. Phase 3 clinical trials with 1LUC combined PD1 registration are underway; phase II clinical trials of perioperative muscle-invasive bladder cancer (MIBC) with PD1 are underway; and multiple phase II/III clinical trials for gastric cancer (GC) and breast cancer (BC) are underway.
Profit forecast and rating: The company's revenue for 2024-2026 is expected to be $16.86/24.88/$3.364 billion, respectively, up 55.7%/47.6%/35.2% year-on-year. Commercialization continues to be optimized, subsequent pipelines continue to advance, potential overseas expectations. Give it an “gain” rating.
Risk warning: risk of R&D falling short of expectations, increased risk of market competition, risk of changes in industry policies