Genscript Bio (01548) fell nearly 5% in the afternoon, as of the time of publication, it dropped by 4.58% to HKD 12.08, with a turnover of 87.4963 million Hong Kong dollars.
According to the Securities Times app, Genscript Bio (01548) fell nearly 5% in the afternoon, as of the time of publication, it dropped by 4.58% to HKD 12.08, with a turnover of 87.4963 million Hong Kong dollars.
On the news front, Genscript announced that Legend Biotech's financial performance will no longer be consolidated into the company's financial statements, and the company will treat it as an investment in an associated company. Bocom Intl pointed out that the accounting treatment change will bring a positive one-time impact on the profit side. With the deconsolidation of Legend, Genscript's operational level profit will more accurately reflect the situation of the non-cell therapy business. With the non-cellular business revenue growth rate expected to recover to around 20% in 2025-26, the path to turning losses into profits will become clearer. It is expected that from 2024, Genscript will fully enter the profitable range.
Furthermore, there were rumors in the market earlier this year that Genscript was considering selling Legend Biotech, but the rumors have not materialized so far. Wei Shinui, CFO and Vice President of Investor Relations of Genscript, stated that this change is more of an accounting change and does not alter the economic interests between Genscript and Legend Biotech. Additionally, Legend Biotech remains a very important asset for Genscript, and both Genscript and the company's management still have high expectations for the cell therapy business. At present, the company will not make any strategic adjustments.