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South China Morning Post
7 days ago
- Business
- South China Morning Post
Innovent, BeOne are poised for profits in 2025, in milestone for Chinese biotech start-ups
Innovent likely to post a first-half net profit of US$36.4 illion, and BeOne's first-half net rofit is expected to come in at US$42 million A pair of Hong Kong-listed mainland Chinese biotechnology firms are poised to turn a profit this year as their revenue from novel drugs finally outstrips costs related to research and development and marketing, according to analysts. 'Chinese biotechs have matured significantly and are creating value for Chinese patients and government payers,' said Tony Ren, head of Asia healthcare research at Macquarie Capital, in a report on July 16. '[Some will] likely turn profitable soon and no longer rely on investors for funding.' Suzhou-based Innovent Biologics, the first Chinese company to be approved to sell a drug for weight loss and diabetes, is expected to swing to a first-half net profit of 260 million yuan (US$36.4 million) from a year-earlier loss of 392.6 million yuan, according to an estimate from Zhang Jialin, Nomura's head of China healthcare research. According to a consensus estimate from Bloomberg, the company was expected to post a net profit of 472 million yuan for 2025, its first full-year profit since going public. Innovent, founded in 2011, was one of the first batch of firms to go public in 2018 under a Hong Kong listing regime that allowed drug and medical device developers with no profit or revenue to sell shares. Innovent Biologics is expected to post a first-half net profit of 260 million yuan compared with a loss of 392.6 million yuan a year earlier. Photo: Handout In the second half, Zhang estimated that Innovent would book 1 billion yuan in sales from mazdutide, a glucagon-like peptide-1 (GLP-1) weight loss drug launched in July. That would amount to a sixth of the company's total expected revenue for this year, making it a key contributor to the improved bottom line. Novo Nordisk's semaglutide, the first GLP-1 drug launched in China last year for weight loss, generated revenue of 770 million yuan in the first quarter. A researcher using a micropipette pipette in a lab. Photo: Shutterstock BeOne, a developer of oncology drugs that was established in 2010, was expected by analysts to post a net profit of US$42 million for the first half and a full-year profit of US$109.5 million. The company will announce its first-half results on August 6. Newsletter Every Saturday SCMP Global Impact By submitting, you consent to receiving marketing emails from SCMP. If you don't want these, tick here {{message}} Thanks for signing up for our newsletter! Please check your email to confirm your subscription. Follow us on Facebook to get our latest news. The company's profit growth was driven primarily by sales of its blood cancer drug zanubrutinib in the US and Europe, Zhang said. Innovent and BeOne, along with other Chinese biotech firms like Akeso, have booked billions of yuan in upfront revenue over the past few years from licensing drug candidates to multinational partners for overseas development. But despite an increase in deals in recent years, milestone payments in the drug development process were hard to predict because collaborations were often cut short due to shifting competitive considerations and regulatory hurdles, Macquarie's Ren said. For example, the US Food and Drug Administration (FDA) in March 2022 rejected an application from Eli Lilly to sell Innovent's lead oncology drug, sintilimab, to treat the most common type of lung cancer in the US, even though it was approved in China a year earlier. While the FDA recommended that an additional multi-regional clinical study be conducted, the drug has still not been approved in the US. In mid-2019, Celgene returned to BeOne the exclusive right to develop and commercialise the Chinese firm's immunotherapy drug candidate, tislelizumab, ahead of Celgene's impending acquisition by Bristol-Myers Squibb. The American drug firm already had an approved treatment in the same category. Celgene terminated the deal by paying BeOne US$150 million. In 2021, BeOne re-licensed the rights for the same drug to Switzerland's Novartis, which in 2023 returned them, citing a changing market landscape. BeOne subsequently took over the drug's development and won approvals to launch it in the European Union and the US. 'Most licensing deals, including ones from China, are small [in actual payments] and hardly affect the licensers' financial performance over the medium to long term,' Ren said.
South China Morning Post
7 days ago
- Business
- South China Morning Post
Innovent, BeOne are poised for profits in 2025, in milestone for Chinese biotech start-ups
A pair of Hong Kong-listed mainland Chinese biotechnology firms are poised to turn a profit this year as their revenue from novel drugs finally outstrips costs related to research and development and marketing, according to analysts. Advertisement 'Chinese biotechs have matured significantly and are creating value for Chinese patients and government payers,' said Tony Ren, head of Asia healthcare research at Macquarie Capital, in a report on July 16. '[Some will] likely turn profitable soon and no longer rely on investors for funding.' Suzhou-based Innovent Biologics , the first Chinese company to be approved to sell a drug for weight loss and diabetes, is expected to swing to a first-half net profit of 260 million yuan (US$36.4 million) from a year-earlier loss of 392.6 million yuan, according to an estimate from Zhang Jialin, Nomura's head of China healthcare research. According to a consensus estimate from Bloomberg, the company was expected to post a net profit of 472 million yuan for 2025, its first full-year profit since going public. Innovent, founded in 2011, was one of the first batch of firms to go public in 2018 under a Hong Kong listing regime that allowed drug and medical device developers with no profit or revenue to sell shares. Innovent Biologics is expected to post a first-half net profit of 260 million yuan compared with a loss of 392.6 million yuan a year earlier. Photo: Handout In the second half, Zhang estimated that Innovent would book 1 billion yuan in sales from mazdutide, a glucagon-like peptide-1 (GLP-1) weight loss drug launched in July. Advertisement That would amount to a sixth of the company's total expected revenue for this year, making it a key contributor to the improved bottom line. Novo Nordisk's semaglutide, the first GLP-1 drug launched in China last year for weight loss, generated revenue of 770 million yuan in the first quarter.
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Business Standard
24-07-2025
- Business
- Business Standard
Macquarie replaces CFO Alex Harvey as regulatory probes intensify
By Adam Haigh and Ambereen Choudhury Macquarie Group Ltd.'s Alex Harvey will step down as chief financial officer, abruptly ending his almost three-decade career despite being seen as a contender to lead the Australian giant that's beset by regulatory probes. Harvey, 54, will also leave Macquarie's executive committee at the end of December and retire the following year after handing over to deputy CFO Frank Kwok, according to a statement Thursday from the Sydney-based firm. Harvey has spent the past eight years as CFO. The company didn't say why he was departing. The move comes as Chief Executive Officer Shemara Wikramanayake appears before investors, along with Chair Glenn Stevens, at the firm's annual general meeting in Sydney on Thursday. They are expected to face questions amid scrutiny over senior executive compensation following a string of probes. Harvey is one of multiple internal candidates who were seen as potential successors to the current chief. Wikramanayake has been in the role since 2018. 'We still have a very strong bench at multiple levels,' Stevens said on a call with reporters. 'We are pretty confident in that group of people' and the board meets with them all regularly, he said. Macquarie also said that first-quarter profit fell from a year earlier. Improved performance in its banking and financial services division, as well as in Macquarie Capital, was overshadowed by lower contributions from asset management and its commodities and global markets division. Macquarie has among the highest-paid bankers in Asia. Harvey's annual remuneration increased to A$8.2 million ($5.4 million) in fiscal year 2025 from A$7.9 million a year earlier, according to its annual report. He also had a A$10.36 million loan from Macquarie as of the end of March — one of only two key managers who took out borrowings from the firm. Harvey joined Macquarie in 1998, and was CEO of Macquarie Group Asia from 2011 to 2014. He took on additional responsibilities in January to be head of people and engagement, on top of his role as head of financial management and CFO. While Macquarie's remuneration system is strongly supported by shareholders, Stevens said, some shareholders have the view that the board hasn't adequately reflected risk shortcomings in decisions. Stevens said the firm continued to work on strengthening its risk culture. The bank has 142 'matters involving conduct or policy breaches that resulted in formal consequences,' according to company presentation slides. That is up from 131 in 2024, it said. Australia's markets regulator is suing Macquarie's local securities business, alleging that it misreported millions of short sales for more than 14 years. The Australian Securities and Investments Commission's case, announced in May, was the fourth time in a little over a year that it brought action against Macquarie. It reignited concern about governance across the firm, whose operations range from investment banking to asset management. 'Where shortcomings are identified, the board holds staff accountable, seeks to incentivize future improvement and reflects on what the issue might tell us about the organization's culture,' Stevens said in the statement.
Yahoo
26-05-2025
- Business
- Yahoo
Summer stock picks: How to play vacation trends
Summer is here! Millions of Americans will hit the road to visit theme parks or watch their favorite band perform. In the video above, Macquarie Capital senior equity research analyst Paul Golding shares some of his favorite summer stock picks. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
05-05-2025
- Business
- Business Standard
State Bank of India, Kotak Mahindra Bank shares fall on soft earnings
Shares of State Bank of India (SBI) and Kotak Mahindra Bank tumbled on Monday after the banks reported weak quarterly earnings in the fourth quarter (Q4) of 2024-25 (FY25) over the weekend. While SBI's share price declined 1.26 per cent, Kotak Mahindra Bank's shares shed over 4.5 per cent on Monday. Shares of SBI closed at ₹790 on the BSE while Kotak Mahindra Bank's shares closed at ₹2,085.05. SBI's net profit declined 10 per cent year-on-year (Y-o-Y) to ₹18,643 crore in Q4FY25 due to higher provisions. Net interest income (NII) of the lender grew only 2.69 per cent Y-o-Y to ₹42,775 crore. The lender's net interest margin (NIM) dropped to 3 per cent in Q4FY25, from 3.1 per cent in the previous quarter, and 3.3 per cent in the year-ago period. 'SBI posted a slightly soft quarter, as credit growth moderated to 12.4 per cent Y-o-Y due to pre-payments in the corporate book, while higher operational expenditure (staff cost and deposit insurance) and provisions (standard assets, investment, and production-linked incentives) caused a 5 per cent earnings miss,' according to an Emkay report. 'Management kept NIM guidance at 3 per cent in FY26, which is surprising as it factors in a 100 bps (basis points) rate cut in this cycle. It expects NIM decline on account of rate cuts to be limited given the repo-linked book exposure at 29 per cent and some transmission potential through deposit cuts,' Macquarie Capital said in its report. Kotak Mahindra Bank reported a 14 per cent Y-o-Y decline in net profit to ₹3,552 crore in Q4FY25, owing to higher provisions, and higher operational expenses. The bank's NII was up 5 per cent Y-o-Y to ₹7,284 crore while other income was up 7 per cent Y-o-Y to ₹3,182 crore. Its NIM stood at 4.97 per cent in Q4FY25, compared to 5.28 per cent in the corresponding period a year ago. Slippages in the quarter were higher on a Y-o-Y basis but lower sequentially. Loan growth was modest at 13.5 per cent Y-o-Y and 3.2 per cent quarter-on-quarter, amid a decline in corporate banking as well as credit cards. Personal loans, business loans, and consumer loans have picked up significantly after the lifting of the Reserve Bank of India embargo. According to Macquarie Capital's report, the management has indicated that while slippages in the personal loan segment have started declining, credit cards and microfinance slippages remain elevated. Accordingly, it expects credit costs to remain elevated over the next two quarters. 'While FY25 growth remained modest, the bank expects the same to rebound to 1.5-2x of nominal GDP (gross domestic product) growth backed by faster growth in the consumer segment and unsecured loans that should also support the overall yields,' Motlial Oswal said in its report.
