Investment Rating - The report maintains a "Buy" rating for the company, King’s Ray Bio (1548 HK), with a target price of HKD 28.75, indicating a potential upside of 122.9% from the current closing price of HKD 12.90 [6][7]. Core Insights - The non-cell therapy business of King’s Ray Bio is expected to stabilize and improve starting from the second half of 2024, driven by a recovery in new orders and robust growth in life sciences services [1][2]. - The company has adjusted its revenue and profit forecasts to reflect a more cautious outlook for the non-cell therapy business while being optimistic about the sales potential of Carvykti [2][3]. - The report highlights a significant increase in revenue from the life sciences segment, which grew by 10% year-on-year, and a notable 44% increase in revenue from the industrial enzyme segment [1][2]. Financial Forecast Adjustments - Revenue projections for 2024 have been adjusted to USD 1.230 billion, reflecting a decrease of 2.7% from previous estimates, while 2025 and 2026 projections have been increased by 4.5% and 2.4%, respectively [3]. - The gross profit for 2024 is forecasted at USD 667 million, with a gross margin of 54.2%, which is a decrease from the previous forecast of 55.8% [3]. - The adjusted net profit for 2024 is projected to be a loss of USD 165 million, improving to a profit of USD 65 million in 2025 and USD 190 million in 2026 [3][7]. Business Segment Performance - The life sciences services segment is valued using a P/E method with a target multiple of 15.0x, contributing significantly to the overall valuation of the company [5]. - The CDMO (Contract Development and Manufacturing Organization) business is under pressure in the short term, but new orders for protein/antibody drugs have shown recovery, indicating potential for future growth [2][3]. - The report emphasizes the importance of the company's strategic focus on innovation and capacity expansion in driving long-term growth [2][5].

Investment Rating - The report maintains a "Buy" rating for King’s Ray Biotechnology (1548.HK) [3][5] Core Insights - King’s Ray Biotechnology reported a revenue of $561 million for the first half of 2024, representing a year-on-year growth of 43.5%. The revenue from non-cell therapy decreased by 0.2% to $281 million, while cell therapy revenue surged by 156.0% to $280 million. The gross profit reached $307 million, up 75.4%, and the net loss narrowed to $216 million, with an adjusted net loss of $69 million [2] - The strong sales growth of CARVYKTI is attributed to ongoing market promotion and capacity expansion, with Q2 revenue reaching $186 million, a 60% increase year-on-year and an 18% increase quarter-on-quarter. The company expects to double CARVYKTI's production capacity compared to 2023 [2] - The life sciences segment generated $220 million in revenue, a 9.6% increase, with an adjusted gross profit of $120 million, up 8.5%. The rapid growth in the feed enzyme and industrial enzyme sectors was highlighted, with revenue from the feed enzyme segment increasing by 43.3% to $26.1 million [3] Financial Forecasts - The projected net profit for King’s Ray Biotechnology for 2024-2026 is estimated at -$63 million, $80 million, and $370 million respectively, with corresponding EPS of -$0.03, $0.04, and $0.17 [3][9] - Revenue is expected to grow significantly, with forecasts of $1.278 billion in 2024, $1.852 billion in 2025, and $2.987 billion in 2026, reflecting growth rates of 52.2%, 44.9%, and 61.3% respectively [9] - The gross margin is projected to improve from 48.78% in 2023 to 59.44% by 2026, indicating enhanced profitability [9] Operational Developments - The company is expanding its production capabilities with several key initiatives, including the launch of clinical production at the Novartis facility and the physical expansion of the New Jersey Raritan plant expected to be completed by the end of 2024 [2] - The CARTITUDE-5 clinical trial has successfully completed enrollment, and the CARTITUDE-4 trial's second interim analysis has shown positive overall survival data, further validating CARVYKTI's clinical efficacy and safety [2]

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [3][8][17] Core Insights - In the first half of 2024, Genscript Biotech reported revenue of $561 million, representing a 43.5% increase year-over-year. The non-cell therapy segment contributed $281 million (-0.2%), while the cell therapy segment saw a significant increase to $280 million (+156.0%). The net loss was reduced to approximately $216 million from a loss of $246 million in the previous period [5][17] - CARVYKTI's commercialization is progressing well, with net sales of $343 million in the first half of 2024. The company has received label expansion approvals from regulatory bodies, enhancing its market position [6][17] - The non-cell therapy segment is expected to see further profitability improvements due to technological innovations and operational efficiencies [6][17] Revenue and Profit Forecast - Revenue projections for Genscript Biotech are as follows: $1.44 billion in 2024 (+72%), $2.38 billion in 2025 (+65%), and $3.53 billion in 2026 (+48%). Net profit is expected to improve significantly, reaching $259 million in 2025 and $666 million in 2026 [10][13][14] - The cell therapy segment is projected to generate $820 million in revenue in 2024, with a substantial increase in profitability anticipated in subsequent years [8][10] Segment Analysis - The life sciences segment is expected to achieve $470 million in revenue in 2024, with a year-over-year growth rate of 14% and an adjusted operating profit of $94 million (+20%) [8][17] - The CDMO segment is forecasted to generate $95 million in revenue in 2024, reflecting a decline of 13% due to reduced demand and increased competition [8][17] - BestJet is projected to achieve $57 million in revenue in 2024, with a growth rate of 32% driven by market recovery and demand growth [8][17] Valuation - The total equity valuation of Genscript Biotech is estimated at $6.99 billion, translating to a target price of HK$25.61 per share based on a total share capital of 2.128 billion shares [8][17]

Investment Rating - The report maintains a "Buy" rating for GenScript Biotech (1548 HK) with a target price of HKD 26.04 [2][6] Core Views - GenScript Biotech's 1H24 revenue reached USD 561 million, a 43.5% YoY increase, with a net loss of USD 216 million, narrowing by USD 30 million YoY [2] - The cell therapy division contributed 50% of total revenue in 1H24, driven by CARVYKTI sales and milestone payments [2] - The non-cell therapy division saw a slight revenue decline of 0.2% YoY, with life sciences and synthetic biology showing growth, while CDMO faced challenges [2] - The report forecasts a turnaround in net profit, with expected figures of -USD 118 million, USD 146 million, and USD 596 million for 2024E, 2025E, and 2026E, respectively [2] Cell Therapy Division - CARVYKTI sales are expected to improve in 2H24 due to expanded indications and increased production capacity [3] - The company anticipates reaching an annual production capacity of 10,000 cases by the end of 2025, supported by new facilities and partnerships [3] - R&D expenses for the cell therapy division are expected to peak in 2024 [3] Non-Cell Therapy Division - Life sciences revenue grew by 9.6% YoY in 1H24, with adjusted operating profit increasing by 23.8% [4] - CDMO revenue declined by 43% YoY due to market competition and funding challenges, with a full-year guidance of -15% to -10% revenue growth [4] - Synthetic biology revenue surged by 43.4% YoY, driven by strong demand for feed and industrial enzymes [4] Valuation - The report values GenScript Biotech at HKD 55.4 billion using the SOTP method, with HKD 24.9 billion attributed to the non-cell therapy division and HKD 30.5 billion to the cell therapy division [10][11][13] - The non-cell therapy division is valued at a 5.25x PS multiple, reflecting a 20% discount to comparable companies [11] - The cell therapy division's valuation is based on a 20% discount to Legend Biotech's Nasdaq market capitalization, considering GenScript's 48% stake [13] Financial Forecasts - Revenue for 2024E, 2025E, and 2026E is projected at USD 1.17 billion, USD 1.82 billion, and USD 3.02 billion, respectively [2][8] - Adjusted EBITDA is expected to turn positive in 2025E, reaching USD 382 million, and further increasing to USD 1.44 billion in 2026E [15] - The company's ROE is forecasted to improve significantly, from -5.81% in 2024E to 15.06% in 2026E [15]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 Genscript Biotech Corporation （於開曼群島註冊成立的有限公司） （股份代號：1548） 截至二零二四年六月三十日止六個月 之未經審核合併中期業績公告 | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Investment Rating - The report assigns a "Buy" rating to King’s Ray Biotech (1548 HK) with a target price of 27.75 HKD, indicating a potential upside of 122.4% [5]. Core Insights - King’s Ray and its subsidiary Legend Biotech reported a narrower loss for 1H24, which was below expectations. King’s Ray's revenue is projected to grow between 29.1% to 50.6%, reaching approximately 505 to 590 million USD, while the net loss (non-attributable) is expected to narrow to 213 to 226 million USD compared to 246 million USD in 1H23. The adjusted net loss, excluding non-recurring items, is anticipated to significantly decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23, also better than expectations [1][2]. Summary by Sections Financial Performance - King’s Ray's revenue growth is projected at 29.1% to 50.6%, reaching 505 to 590 million USD. The net loss is expected to narrow to 213 to 226 million USD, down from 246 million USD in 1H23. The adjusted net loss is forecasted to decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23 [1]. - Legend Biotech is expected to report a net loss of 75 to 87 million USD, with an adjusted net loss of 95 to 110 million USD, significantly reduced from a net loss of 311 million USD in 1H23 [1]. Business Segments - The non-cell therapy business of King’s Ray is expected to generate revenue of approximately 260 to 350 million USD in 1H24, aligning with market expectations. The life sciences services segment is anticipated to achieve a growth rate of 15-20% for the full year [2]. - R&D expenses are projected to increase by 8-25% to 225 to 260 million USD, primarily for ongoing development activities related to ciltacel and solid tumor projects [1]. Future Outlook - The adjusted net loss for King’s Ray in 2H24 is expected to further narrow year-on-year and quarter-on-quarter, with a target of achieving overall breakeven by 2025 [2].

Financial Data and Key Metrics Changes - The company has not disclosed specific financial data or key metrics changes in the provided content [1][2] Business Line Data and Key Metrics Changes - The cell therapy business has shown significant clinical results, with 94% of patients achieving complete remission after treatment with the product Conviction, indicating strong potential for future Phase III trials [3][4] - In a subgroup analysis for second-line patients, the risk of disease progression was reduced by 65% compared to standard therapy, with a 73% reduction in high-risk patients [6][7] Market Data and Key Metrics Changes - The company has not provided specific market data or key metrics changes in the provided content [1][2] Company Strategy and Development Direction and Industry Competition - The company aims to expand its global footprint and enhance product and service competitiveness, focusing on research and development to create more valuable products for customers [19][20] - The management emphasizes compliance and providing high-quality products to meet unmet clinical needs as key strategies for overcoming challenges in the international market [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the external environment's uncertainties but expresses confidence in the company's ability to adapt and continue growth [17][18] - The company is actively increasing resources in government relations, public relations, and legal compliance to address inquiries from the U.S. House of Representatives [15][16] Other Important Information - The company has over 300 patents and more than 900 patents pending, highlighting its commitment to intellectual property [12] - The company has established production facilities in various locations, including mainland China, Singapore, and New Jersey, to better serve global customers [14] Q&A Session Summary Question: Will there be adjustments or upgrades to the business model due to external uncertainties? - Management reiterated its commitment to expanding global operations and enhancing product competitiveness without any changes to its long-term development strategy [18][19] Question: Has there been any discussion regarding the stock prices of subsidiaries and potential buybacks? - Management noted that both cell therapy and non-cell therapy businesses are experiencing rapid growth and significant potential profitability, which is not fully reflected in current market prices [20][21] Question: What is the current status of the collaboration with Legend Biotech and any potential impacts on synergies? - Management confirmed that all business operations and collaborations are proceeding normally without any changes [22][23] Question: What are the key considerations for clients in different business segments? - Management stated that clients prioritize delivery quality, speed, and price, which remain consistent across all service offerings [25][26]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 27.75, indicating a potential upside of 156.0% from the current price of HKD 10.84 [3][12]. Core Insights - The approval of Carvykti for a new indication in multiple myeloma (MM) is expected to drive significant sales growth, with sales in Q1 2024 reaching USD 157 million, a year-on-year increase of 118.1% [1]. - The company aims to ramp up production capacity to 10,000 doses by the end of 2025, with new production facilities expected to come online in late 2024 and 2H 2025 [1]. - The report highlights the potential for the CDMO segment to outperform expectations due to a recovering financing environment, with a projected revenue growth of 15-20% for the life sciences services segment [1][2]. Financial Summary - Revenue projections for the company are revised slightly downwards for 2024 and 2025 to USD 1.265 billion and USD 1.684 billion, respectively, but long-term sales forecasts for Carvykti have been increased to a peak sales estimate of USD 6.5 billion [2][3]. - The company is expected to achieve a net profit of USD 13 million in 2025, with a significant turnaround from a projected loss of USD 126 million in 2024 [3][13]. - The report provides a detailed financial forecast, indicating a revenue growth of 50.6% in 2024 and 33.1% in 2025 [3][13]. Business Segments and Valuation - The report outlines the valuation of different business segments, with the cell therapy segment being the most valuable at USD 10.783 billion, accounting for 69% of the total company valuation [9]. - The life sciences services segment is valued at USD 1.312 billion, while the CDMO segment is valued at USD 1.056 billion [9]. - The overall target valuation for the company is set at USD 7.554 billion, translating to a target price of HKD 27.75 per share [9].

Revenue Distribution and Growth - Life Science Services and Products accounted for 48.2% of the company's total revenue, while Biologics Development Services, Industrial Synthetic Biology Products, and Cell Therapy accounted for 12.7%, 5.1%, and 33.9% respectively[5] - The company's revenue distribution by region for 2023 was approximately $506.0 million (60.2%) in the US, $162.5 million (19.4%) in Mainland China, $99.5 million (11.9%) in Europe, $53.2 million (6.3%) in the Asia-Pacific region (excluding Mainland China), and $18.3 million (2.2%) in other regions[9] - Group revenue increased by 34.2% to $839.5 million in 2023, compared to $625.7 million in 2022[14] - Non-cell therapy external revenue grew by 8.9% to $554.5 million in 2023, up from $509.0 million in 2022[14] - Cell therapy external revenue surged by 144.2% to $285.0 million in 2023, compared to $116.7 million in 2022[14] - Revenue in 2023 reached $839.529 million, a significant increase from $625.698 million in 2022[17] - Total revenue for the year ended December 31, 2023, was approximately $839.5 million, a 34.2% increase compared to $625.7 million in the previous year[28] - Revenue breakdown by business unit: Life Science Services and Products (48.2%), Biologics Development Services (12.7%), Industrial Synthetic Biology Products (5.1%), and Cell Therapy (33.9%)[29] - Revenue by region: United States ($506.0 million, 60.2%), Mainland China ($162.5 million, 19.4%), Europe ($99.5 million, 11.9%), Asia-Pacific excluding Mainland China ($53.2 million, 6.3%), and other regions ($18.3 million, 2.2%)[27] - Life Science Services and Products revenue increased to $412.9 million in 2023 from $360.5 million in 2022[30] - Cell Therapy revenue grew significantly to $285.1 million in 2023 from $117.0 million in 2022[30] - The company's total revenue for 2023 was approximately $839.5 million, a 34.2% increase compared to $625.7 million in 2022, driven by growth in non-cell therapy business and CARVYKTI sales[50] Gross Profit and Net Loss - Group gross profit increased by 34.7% to $409.6 million in 2023, up from $304.1 million in 2022[14] - Non-cell therapy gross profit (before elimination) rose by 5.3% to $270.6 million in 2023, compared to $257.1 million in 2022[14] - Cell therapy gross profit (before elimination) jumped by 173.1% to $140.9 million in 2023, up from $51.6 million in 2022[14] - Group net loss narrowed to $355.1 million in 2023 from $428.0 million in 2022[15] - Adjusted net loss decreased to $298.2 million in 2023, compared to $359.4 million in 2022[15] - Non-cell therapy adjusted net profit (before elimination) was $58.1 million in 2023, slightly down from $62.4 million in 2022[15] - Cell therapy adjusted net loss (before elimination) improved to $356.6 million in 2023 from $422.1 million in 2022[15] - Gross profit for 2023 was $409.553 million, up from $304.083 million in 2022[17] - Net loss attributable to the company's owners in 2023 was $95.477 million, a decrease from $226.851 million in 2022[17] - Gross profit for 2023 was approximately $409.6 million, a 34.7% increase from $304.1 million in 2022[28] - The company's net loss narrowed to approximately $355.1 million in 2023, compared to $428.0 million in 2022[28] - Adjusted gross profit for Life Science Services and Products increased to $224.5 million in 2023 from $201.1 million in 2022[30] - The company reported an adjusted net loss of $298.2 million for 2023, an improvement from the $359.4 million loss in 2022[49] - The company's adjusted operating loss for the cell therapy segment in 2023 was $394.5 million, compared to $422.1 million in 2022, with R&D investment costs of $356.9 million[47] Business Units and Subsidiaries - The company's Life Science Services and Products division has been cited in over 87,745 peer-reviewed academic journal articles as of December 31, 2023[6] - The company's CDMO division, GenScript ProBio, provides end-to-end services from concept to commercialization for antibody/protein therapy, cell therapy, and gene therapy development[8] - Legend Biotech, a subsidiary of the company, is developing advanced cell therapy platforms including CAR-T, γδ T cells, and NK cell immunotherapies[8] - Bestzyme, another subsidiary, focuses on industrial enzyme and functional protein production using synthetic biology for industries such as feed, alcohol, food, and home care[8] - The company's cell therapy subsidiary, Legend Biotech, treated over 1,000 patients with CARVYKTI in 2023[20] - The company's synthetic biology business saw significant growth, with AI technology deployment improving R&D efficiency[20] - The company is actively conducting clinical trials to expand CARVYKTI's target market for early-stage multiple myeloma patients[21] - The company optimized its management team and market strategy to address production difficulties in its Bestzyme business[22] - The company operates in four business units: (i) Life Science Services and Products, (ii) Biologics Development Services, (iii) Industrial Synthetic Biology Products, and (iv) Cell Therapy[155] - The company's products and services are used by scientists and researchers for basic life science research, translational biomedical research, and early-stage drug development activities[155] - The company's cell therapy products are used to treat refractory diseases, including cancer and inflammatory diseases[155] Financial Position and Investments - Non-current assets increased to $1,034.191 million in 2023 from $781.433 million in 2022[17] - Cash and cash equivalents rose to $1,446.403 million in 2023 from $1,023.999 million in 2022[17] - The company's cash and cash equivalents increased to approximately $1.4 billion as of December 31, 2023, compared to $1.0 billion in 2022[69] - The company's property, plant, and equipment increased by 16.6% to $608.1 million as of December 31, 2023, compared to $521.6 million in 2022[66] - The company's contract costs increased by 8.5% to $17.9 million as of December 31, 2023, compared to $16.5 million in 2022[65] - The company's cash inflow from financing activities was approximately $1.1 billion, primarily due to the issuance of new ordinary shares and warrants by Legend[70] - Capital expenditures for the period included $4.1 million for intangible assets (software, patents, and licenses), $98.8 million for cooperative use rights, and $153.6 million for property, plant, and equipment[71] - The company held significant financial assets valued at $137.5 million as of December 31, 2023, including $105.3 million in liquid financial products and $31.9 million in non-liquid investments[72] - The company invested in low-risk, highly liquid financial products such as money market funds and credit-linked notes, with expected annual returns ranging from 1.4% to 5.9%[72] - As of December 31, 2023, the company held $75.0 million in credit-linked notes, with $43.0 million issued by J.P. Morgan Financial and $32.0 million by J.P. Morgan Structured Products B.V.[77] - The credit-linked notes provided fixed annual interest rates of 5.20%, 5.35%, 5.80%, and 5.92%, with the company assessing the risk of credit events as extremely low[77] - The company's total investment in financial products as of December 31, 2023, was $117.5 million, with a fair value of $118.3 million[76] - The company's financial products included non-principal-guaranteed floating income products and credit-linked notes, with investments in major banks and financial institutions in China, Hong Kong, the Netherlands, and the U.S.[76] - The company's financial products were not used as collateral for borrowing, and no defaults were reported by the issuing banks or financial institutions[76] - The company's investment strategy focused on enhancing cash utilization through financial products, with purchases approved by the CFO or subsidiary CFOs[74] - The company's financial products were primarily issued by major banks such as China Merchants Bank, Bank of China, and J.P. Morgan, with maturities ranging from 1 day to approximately 2 years[76] - The fair value gains on financial assets measured at fair value through profit or loss were approximately $2.4 million, with investment income of approximately $4.4 million during the reporting period[79] Financing and Loans - Probio Cayman raised a total of $150.0 million through the sale of 300,000,000 Probio A Class Preferred Shares and warrants[58] - Probio Cayman completed a Series C financing round, raising approximately $224.0 million by issuing 319,998,370 Probio C Class Preferred Shares[59] - The fair value of Probio A Class Preferred Shares, Probio C Class Preferred Shares, and Probio warrants was assessed at approximately $350.2 million as of December 31, 2023[59] - Probio Cayman completed a Series B financing round, raising approximately $37.3 million by issuing 57,314,000 Probio B Class Preferred Shares[60] - Nanjing Bestzyme Biotechnology Co., Ltd. raised RMB 250.0 million (approximately $35.2 million) through a Series A financing round, acquiring 10.4168% equity[61] - Probio Cayman completed a Series C financing round, raising a total of $224.0 million by issuing 319,998,370 Series C preferred shares[82] - Nanjing Bestzyme completed a Series A financing round, raising RMB 250.0 million (approximately $35.2 million) by issuing new registered capital of RMB 37,609,070 (approximately $5.3 million)[82] - Legend Biotech completed multiple financing rounds, including a private placement and registered direct offering, raising funds through the sale of shares at prices ranging from $26.12 to $64.0 per share[84] - GenScript Japan Inc. secured a long-term mortgage loan of JPY 10.0 million (approximately $71,000) from Mizuho Bank at a floating interest rate of TIBOR plus 0.25%[88] - Nanjing GenScript Biotech Corporation borrowed short-term loans totaling RMB 94.0 million (approximately $13.3 million) from Citibank at a fixed annual interest rate of 2.4%[88] - Nanjing GenScript Biotech Corporation borrowed short-term loans totaling RMB 50.0 million (approximately $7.1 million) from China Merchants Bank at a fixed annual interest rate of 2.5%[88] - Nanjing GenScript Biotech Corporation borrowed short-term loans totaling RMB 121.2 million (approximately $17.1 million) from China CITIC Bank at fixed annual interest rates ranging from 1.4% to 1.7%[88] - Jiangsu GenScript Biotech Corporation borrowed short-term loans totaling RMB 23.7 million (approximately $3.4 million) from China CITIC Bank at fixed annual interest rates ranging from 1.4% to 1.5%[88] - Nanjing Probio borrowed a short-term interest-bearing loan of RMB 10.0 million (approximately USD 1.4 million) from China Merchants Bank with a fixed annual interest rate of 2.6% for daily operations[89] - Nanjing Probio borrowed a short-term interest-bearing loan of RMB 72.4 million (approximately USD 10.2 million) from CITIC Bank with a fixed annual interest rate of 1.5% to 1.7% through bank bill discounting[89] - Jiangsu Probio borrowed a short-term interest-bearing loan of RMB 10.0 million (approximately USD 1.4 million) from China Merchants Bank with a fixed annual interest rate of 2.6% for daily operations[89] - Jiangsu Probio borrowed a long-term interest-bearing loan of RMB 41.6 million (approximately USD 5.9 million) from China Construction Bank and Jiangsu Bank with a fixed annual interest rate of 4.2%, using land use rights as collateral for factory construction[89] - Legend received prepaid funds totaling USD 250.0 million from a partner, with interest payable of USD 31.3 million as of December 31, 2023[91] - The group's current ratio improved to 4.8 (from 3.2 in 2022), and the debt-to-asset ratio decreased to 39.6% (from 46.5% in 2022)[94] - The group has USD 60.0 million in outstanding foreign exchange forward and option contracts as of December 31, 2023, to manage currency risk[98] - The group's assets in Tokyo, Japan, valued at approximately JPY 1.2 billion (USD 8.3 million), were mortgaged for a JPY 10.0 million (USD 71,000) loan[92] - Jiangsu Probio's land use rights valued at RMB 35.7 million (USD 5.0 million) were mortgaged for a RMB 41.6 million (USD 5.9 million) loan[92] R&D and Clinical Trials - The company plans to invest in R&D to enhance capabilities in cell and gene therapy (CGT) and other advanced therapies[34] - R&D expenses for 2023 increased by 10.9% to $432.8 million, compared to $390.1 million in 2022, driven by increased investment in cilta-cel clinical trials and other pipeline projects[55] - The company is actively conducting clinical trials to expand CARVYKTI's target market for early-stage multiple myeloma patients[21] - Legend Biotech submitted a supplemental Biologics License Application to the FDA to expand the indication of CARVYKTI® for multiple myeloma treatment[43] - CARVYKTI® (cilta-cel) received FDA approval in April 2024 for the treatment of relapsed or refractory multiple myeloma in adult patients who have received at least one prior line of therapy, including a proteasome inhibitor and an immunomodulatory agent, and are lenalidomide-resistant[44] - CARVYKTI® is currently marketed in the U.S., Germany, and Austria, with growing commercial demand from both the U.S. and Europe[44] - The cell therapy segment revenue for 2023 was approximately $285.1 million, a 143.7% increase compared to $117.0 million in 2022, driven by collaboration revenue from CARVYKTI sales under the Janssen agreement[47] - The cell therapy segment's adjusted gross profit for 2023 was approximately $143.9 million, a 171.5% increase compared to $53.0 million in 2022[47] - Legend Biotech received milestone payments of $15 million and $20 million from Janssen for regulatory submissions in Europe and the US, respectively[107] - Legend Biotech entered into a licensing agreement with Novartis, receiving a $100 million upfront payment and potential milestone payments of up to $1.01 billion[107] Operational Efficiency and Market Strategy - The company optimized its management team and market strategy to address production difficulties in its Bestzyme business[22] - The company's inventory turnover days decreased to 62 days in 2023 from 71 days in 2022[17] - The company plans to increase R&D investment, enhance operational efficiency through digital transformation, and expand global production capacity to mitigate supply chain risks[111] - In the life sciences division, the company aims to improve throughput and reduce costs through automation and AI-driven R&D capabilities[112] - The group plans to expand production capacity globally, including molecular biology and protein business capacity in China and overseas markets, and GMP production facilities for plasmids and vectors in China and the US[95] - The company aims to expand production capacity in the US, Singapore, and mainland China to support long-term growth[34] - The company intends to increase market penetration in North America and expand production capacity to reduce supply chain risks[39] - The company plans to leverage its synthetic biology capabilities to provide innovative products in new application areas[41] Employee and Management - As of December 31, 2023, the company had a professional team of approximately 6,937 members[5] - The company's total employee compensation expenses (excluding equity-settled share-based compensation) amounted to approximately $449.8 million, representing 53.6% of total revenue[113] - The company has adopted multiple equity incentive plans, including pre-IPO and post-IPO share option plans, to reward employees and directors for their contributions[114][115] - Total number of employees as of December 31, 2023, is 6,937, with production staff accounting for 53.4% (3,706 employees), sales and marketing for 9.2% (639 employees), administration for 15.7% (1,090 employees), R&D for 9.8% (677 employees), and management for 11.9% (825 employees)[116] - The company's compensation policy for directors and senior management is based on the company's operating performance, individual performance, and comparable market data, and is regularly reviewed by the Remuneration Committee[116] - The company invests in continuous education and training programs for employees to enhance their skills and knowledge, covering technical knowledge, environmental protection, health and safety management systems, and mandatory training required by applicable laws and regulations[117] - The board of directors consists of 13 members, including 4 executive directors, 3 non-executive directors, and 6 independent non-executive directors

证券研究报告 公 2024年04月07日 司 报 告 金斯瑞生物科技(01548) │ 行 业： 医药生物/生物制品 港 投资评级： 买入（维持） 股 - 传奇生物CARVYKTI，全球首款获批MM二线治疗的BCMA靶向疗法 当前价格： 13.54港元 公 目标价格： 27.47港元 司 事件： 点 基本数据 评 研 美国东部时间2024年4月5日，金斯瑞子公司传奇生物宣布，美国FDA已 总股本/流通股本(百万股) 2,124.03/2,124.03 究 批准CARVYKTI用于治疗既往至少接受过一线治疗，包括一种蛋白酶体抑制 流通市值(百万港元) 28,759.33 剂（PI）和一种免疫调节剂（IMiD)且对来那度胺耐药的复发或难治性多发 每股净资产(元) 5.01 性骨髓瘤（RRMM）患者。在全球已获批的包括 CAR-T 疗法、双特异性抗体 资产负债率(%) 38.36 和抗体药物偶联物（ADC）在内的 B 细胞成熟抗原 (BCMA) 靶向疗法中， 一年内最高/最低(港元) 24.95/12.56 CARVYKTI是首个且唯一获批用于多发性骨髓瘤患者二线治疗的。 股价相对走势 ➢ 全球首款CAR-T获批二 ...