FAST NEWS: Henlius expects first-ever annual profit on strong drug sales

The latest: Shanghai Henlius Biotech Inc. (2696.HK) said on Monday it expects to report a net profit of 500 million yuan ($69.5 million) or more for 2023, reversing a loss of 695 million yuan in 2022 and marking its first-ever annual profit.

Looking up: The company’s move into the black was driven by growing sales for its core product, Hanquyou, increased revenue from its innovative product, Hansizhuang, as well as better cost controls.

Take Note: The company reported a profit of 408 million yuan for the first three quarters of last year, meaning it earned a profit of less than 100 million yuan in the fourth quarter at the bottom end of its guidance.

Digging Deeper: Founded in 2010, Henlius is a biopharmaceutical company owned by Fosun Pharma (2196.HK; 600196.SH), one of China’s leading drug makers. The company debuted on the Hong Kong Stock Exchange in 2019 and made a major breakthrough the same year when it attained approval for rituximab, China’s first biosimilar for the treatment of non-Hodgkin lymphoma and chronic lymphocytic leukemia. As of the third quarter of last year, Henlius has commercialized five products for 18 approved indications, fueling strong sales growth that helped it achieve its first-ever profit in the first half of last year.

Market Reaction: Henlius shares rose on Tuesday, closing up 1.6% at HK$14.08 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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