FAST NEWS: Antengene’s loss widens on lower forex income, rising R&D costs

The latest: Biopharmaceutical company Antengene Corp. Ltd. (6996.HK) reported last Friday its net loss for the first half of 2023 widened 51.5% year-on-year to 144 million yuan ($19.8 million).

Looking up: The company’s revenue rose 33.5% to 72.02 million yuan during the period, led by higher sales for Xpovio, its drug used to treat relapsed or refractory multiple myeloma.

Take Note: Antengene’s R&D costs increased by 26.2% to 226 million yuan for the period. At the same time, a decrease in its net foreign exchange gains led to a 27.9% drop in other income and gains to 121 million yuan. Those two factors were the main drivers behind the company’s widening loss.

Digging Deeper: Antengene was founded in 2018 with a focus on innovative anti-tumor drugs, and listed on the Hong Kong Stock Exchange in November 2020. In May 2021, its first commercialized product, Xpovio, was launched in China, bringing the company’s first recurring revenue. To boost Xpovio’s sales, the company entered into a collaboration with Hansoh Pharmaceutical (3692.HK) earlier this month giving Hansoh exclusive rights to commercialize the drug in Mainland China. Under that deal it will receive an initial payment of up to 200 million yuan, as well as future milestone payments of up to 535 million yuan.

Market Reaction: Antengene shares fell on Monday to close down 0.7% at HK$1.35 by the midday break. It now trades at the lower end of its 52-week range.

Translation by A. Au

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