INNOVENT BIO's revenue in the first half of 2023 increased by 20.6% compared to the same period last year, while net loss significantly narrowed by 85.4% according to the Earnings Report.

The rapid growth in product sales and the launch of new products have become the main driving force behind the revenue of INNOVENT BIO in the first half of this year.

On Wednesday, August 23, innovative pharmaceutical company INNOVENT BIO released its financial report for the first half of 2023. The report shows that the company's revenue in the first half of this year reached 2.702 billion yuan, an increase of 20.6% compared to the same period last year. The loss during this period was 139 million yuan, a significant decrease of approximately 85.4% compared to the same period last year. The basic loss per share was 0.09 yuan, and the adjusted gross profit margin was 80.8%, an increase of 2.2% compared to the same period last year.

During this period, product revenue reached 2.458 billion yuan, a year-on-year increase of 20.4%. The growth accelerated in the second quarter, with product revenue increasing by over 35% compared to the same period last year.

The financial report points out that during the reporting period, the company adhered to a long-term strategy of sustainable development and global innovation, achieved strong revenue growth, continued to advance the clinical development of diversified pipelines, and operated with a healthier and sustainable business model. During this period, the company's product revenue increased by 20.4% compared to the same period last year, mainly benefiting from the continuous growth in overall sales of the product portfolio, including the strong sales performance of Daboshu® (Sintilimab Injection); the impact of the epidemic on sales activities has also dissipated since the beginning of 2023.

From the expense side, research and development expenses decreased from 1.175 billion yuan in the same period last year to 923 million yuan. Research and development expenses were mainly used for the clinical trials of late-stage and prioritized pipelines, exploration and development of early-stage pipelines, and preclinical research. Sales and marketing expenses were 1.347 billion yuan, accounting for 49.9% of total revenue or 54.8% of product revenue.

On the evening of August 16, INNOVENT BIO announced that the National Medical Products Administration had officially approved the new drug application for Toripalimab Injection (trade name: Xinbile), which is used to treat primary hypercholesterolemia and mixed dyslipidemia in adult patients. It became the first domestically produced anti-PCSK9 monoclonal antibody approved in China.

With the approval of Xinbile, INNOVENT BIO will have a total of 10 commercialized products. Previously successfully commercialized products include Sintilimab Injection, Bevacizumab Injection, Adalimumab Injection, Rituximab Injection, Pembrolizumab, Alectinib, Ramucirumab Injection, Selpercatinib Capsules, and IBI303 Injection.

INNOVENT BIO Seizes Another Opportunity

Recent news from the United States may bring INNOVENT BIO another opportunity: the popularity of weight-loss drugs has made Livzon Group, a pharmaceutical company, become the leader in the pharmaceutical market with a market value exceeding 500 billion US dollars. The birth of the next global drug king, "GLP-1 with dual targets," is no longer in doubt.

Another dual-target product from Lilly is Mazdutide, developed in collaboration with INNOVENT BIO. This is a GLP-1R/GCGR dual-target agonist.

In May of this year, INNOVENT BIO announced that the high-dose 9mg Mazdutide achieved the primary endpoint in a 24-week Phase II clinical study of obese subjects in China. The weight loss achieved after 24 weeks of treatment in the Chinese obese population with an average BMI of 34.3kg/m2 was 15.4% (14.7kg) compared to placebo.

In simple terms, INNOVENT BIO's Mazdutide achieves better weight loss efficacy compared to similar drugs at relatively low doses and shorter durations of use.

Analysis indicates that INNOVENT BIO's Mazdutide is the fastest-developing dual-target weight loss drug in China. It has entered Phase III clinical trials for both type 2 diabetes and obesity, while most other products under development are still in Phase II or Phase I. The first-mover advantage is expected to help the company quickly capture the market and achieve rapid growth.

Based on the progress of research and development, it is highly likely that the 6mg dose group of Mazdutide will release complete Phase III clinical data by the end of this year or early next year. It is expected to be officially approved for market launch by the end of 2024 or early 2025, thereby obtaining a two to three-year exclusivity period.