FAST NEWS: Everest Medicines loss widens on drug commercialization
The Latest: Everest Medicines Ltd. (1952.HK) announced Tuesday its revenue for the first half of this year surged about 33 times to 302 million yuan ($42.3 million), while its net loss jumped 49% to 632 million yuan.
Looking Up: The revenue surge owed to rapidly growing sales of its antibacterial drug Xerava in Mainland China and Hong Kong, as well as the launch of its nephrology drug Nefecon in China and Singapore, and Nefecon sales in other regions.
Take Note: Everest’s cost of revenue soared more than 20 times to 70.44 million yuan as the result of drug commercialization expenses. Its distribution and selling expenses also tripled to 200 million yuan, resulting in the wider net loss.
Digging Deeper: Established in 2017, Everest develops cancer and autoimmune disorder drugs and listed in Hong Kong in 2020. The company began collaborating with foreign peers in 2019 when it received an exclusive license from Gilead Science (GILD.US) to develop and commercialize the latter’s Sacituzumab Govitecan breast cancer drug in China. But that agreement was terminated last year. Its revenue started to rise significantly in the second half of last year with the launch of its two current core drugs, Xerava and Nefecon. But its expenses have also been growing rapidly as it builds up its team to commercialize the drugs.
Market Reaction: Everest’s shares rose on Wednesday, closing up 1.4% at HK$21.30 by the midday break. The stock now trades at the middle to lower end of its 52-week range.
Translation by A. Au
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