①Affected by the decline in caffeine prices and other factors, CSPC Innovation Pharmaceutical's revenue and net income have both declined. ② CSPC Innovation Pharmaceutical has made progress in multiple in-pipeline projects. The Enlo Saliba antibody has been conditionally approved for listing this June. ③To enhance the industrialization of antibodies and ADCs, the company announced that CSPC Biotech will invest in two production line projects.
On August 16, Caixin reported that CSPC Innovation Pharmaceutical's revenue has declined due to the drop in caffeine prices and other factors. The company's main product sector -- functional materials revenue and gross margin have both declined to some extent.
At the same time, through its controlling stake in CSPC Biotech, CSPC Innovation Pharmaceutical has set up an innovative drug industry platform and made progress in multiple in-pipeline projects. The Enlo Saliba antibody has been conditionally approved for listing this June. Meanwhile, in order to enhance the industrialization capability of antibodies and ADCs, the company announced that CSPC Biotech will invest in two production line projects.
On the evening of today, CSPC Innovation Pharmaceutical released its 2024 semi-annual report. The company's revenue for the reporting period was 0.972 billion yuan, a year-on-year decrease of 27.71%; the net profit attributable to shareholders of the listed company was 0.137 billion yuan, a year-on-year decrease of 48.27%.
In fact, CSPC Innovation Pharmaceutical's performance has shown a downward trend in the first quarter of this year. In Q1, the company achieved revenue of 0.524 billion yuan, a year-on-year decrease of 27.08%, and net profit attributable to shareholders of the listed company was 79.0613 million yuan, a year-on-year decrease of 38.86%. Based on this calculation, in the second quarter of this year, CSPC Innovation Pharmaceutical's revenue and net profit attributable to shareholders of the listed company further decreased to 0.448 billion yuan and 57.9663 million yuan, respectively.
Regarding the decrease in revenue, CSPC Innovation Pharmaceutical explained in its financial report that it was due to the drop in caffeine prices. In addition, in the investor relations activity record form on June 26, the company stated that CSPC Biotech's R&D investment also had a certain degree of impact on the company's performance in the short term.
It is reported that caffeine products are CSPC Innovation Pharmaceutical's largest revenue generating product, and the company is also the world's largest producer of chemically synthesized caffeine. The production of caffeine products in the first half of this year was about 8,122 tons, with sales of about 7,288 tons. H1 functional material product sector, mainly composed of caffeine and acarbose, realized revenue of 0.844 billion yuan, accounting for 86.83% of the company's total revenue, a year-on-year decrease of 23.56%, and the gross margin decreased by 0.75 percentage points.
In addition to functional materials and health food, through its increased stake in CSPC Biotech, CSPC Innovation Pharmaceutical has extended its business chain to the field of innovative biopharmaceuticals. In January of this year, the transfer of related equity of CSPC Biotech had been completed.
During the first half of the year, CSPC Innovation Pharmaceutical made progress in some in-pipeline projects. In June, Enlo Saliba (trade name Enshuxing) was conditionally approved for listing, and the drug is used in the treatment of recurrent or metastatic cervical cancer with PD-L1 positive (CPS≥1) and has received preliminary clinical trial approvals.
During the reporting period, SYS6023 (ADC) for the treatment of advanced solid tumors has been approved for first-line indication trials; SYSA1801 injection, DP303c injection, and SYS6002 for injection (Nectin-4 ADC) have obtained new indications approval for clinical trials.
In February, DP303c’s Phase III trial targeting HER2-positive advanced breast cancer in China was the first to be launched, and is currently in the enrollment stage. In June, the SIKINUI monoclonal antibody injection was the first to start Phase III trials in China for the treatment of psoriasis, which is currently in the enrollment stage.
In addition, CSPC Innovation Pharmaceutical made progress on multiple biological drugs (monoclonal antibodies), including the injection of recombinant anti-IgE monoclonal antibody for the treatment of chronic spontaneous urticaria already submitted for listing application, and the injections of Patuximab and Wusinur for the treatment of multiple indications that are currently in key clinical trials phases. The company also has multiple products currently in early clinical development stages (phase I/II), including the injection of SYS6002 (Nectin-4 ADC), the injection of SYS6010 (EGFR-ADC), etc.
CSPC Innovation Pharmaceutical's investment in CSPC Biotech is still continuing, and it is continuously increasing its investment in the commercialization of antibodies and ADCs. The company announced today that its controlling subsidiary, CSPC Biotech, will invest in two production line projects: "CSPC Pharma CSPC Biotech Antibody Large Varietal Production Line Project" and "CSPC Pharma CSPC Biotech ADC New Product Commercial Production Line Project". The total investment of the two projects is estimated not to exceed 0.5 billion yuan and 400 million yuan, respectively.
CSPC Innovation Pharmaceutical believes that the above two projects are inevitable requirements for product commercialization, in line with the R&D progress of CSPC Biotech in the pipeline, and conducive to enhancing the company's industrialization capabilities in the field of innovative biopharmaceuticals.