Strong Revenue Growth and Strategic Advances Across Key
Segments, Enhances Commitment to ESG and Sustainable
Development
- Impressive Financial Growth: The group reported a 43.5%
increase in revenue, driven by a 156% boost in cell therapy revenue
and a 75.4% rise in gross profit, showcasing strong performance
across key segments.
- Focused on Innovation and Efficiency: Investing heavily in
R&D and market expansion, aiming to drive sustainable growth,
enhance global presence, and continue its leadership in technology
and ESG practices.
- Strong ESG Commitment: Joined the UNGC and ranked in the top
35% in EcoVadis' sustainability ratings. It's also committed to
science-based climate targets and holds international
certifications for environmental and data security management.
PISCATAWAY, N.J., Aug. 9, 2024
/PRNewswire/ -- GenScript Biotech Corporation (HKEX: 1548.HK), a
leading global technology and service provider of life science
R&D and manufacture, today reported its first half 2024
financial results for the six months ended June 30, showcasing impressive revenue growth,
significant improvements in gross profit, and strategic advances
across its business segments. GenScript is also deepening its
commitment to environmental, social, and governance (ESG)
practices, marking a significant step towards sustainable
development.
Sherry Shao, GenScript's rotating
CEO, said, "In the first half of 2024, the Group showcased strong
market adaptability and growth potential. With a diversified
business strategy, exceptional innovation, and efficient
operations, GenScript not only maintained solid profitability in
the life sciences sector but also saw promising growth in cell
therapy product sales. Our subsidiary, Bestzyme, has also
outperformed the industry, thanks to years of hard work from the
team. While the CDMO sector has been under pressure due to current
investment challenges, we're starting to see signs of recovery.
We're ready to accelerate our business in the second half of the
year. GenScript will continue to strengthen its core competencies
across all business lines and foster synergies across divisions to
achieve shared growth with our global partners."
Strong Financial Performance
During the Reporting Period, GenScript generated revenue of
approximately US$561.4 million,
reflecting a robust 43.5% increase from US$391.3 million in the Prior Period. This growth
was largely driven by the cell therapy segment, which saw a
remarkable 156% increase, reaching approximately US$280.3 million compared to US$109.5 million previously. On the other hand,
revenue from the non-cell therapy business was around US$281.1 million.
Gross profit surged to approximately US$307 million, a 75.4% increase from
US$175 million in the Prior Period.
The cell therapy segment was a key contributor to this growth, with
its gross profit soaring by 323.4% to approximately US$175.3 million.
Improved Loss and Adjusted Net Loss
GenScript's loss for the Reporting Period narrowed to
approximately US$215.6 million,
compared to US$245.8 million in the
Prior Period. The adjusted net loss saw a significant improvement,
decreasing to approximately US$69
million from US$162
million.
For the non-cell therapy business, the adjusted net profit
before eliminations was approximately US$29.2 million, a 13.1% decrease from
US$33.6 million. Meanwhile, the
adjusted net loss for the cell therapy business before eliminations
narrowed to approximately US$98.3
million from US$195.7
million.
Segment Highlights
- Life-Science Services and Products: Revenue in this
segment grew by 9.6% to approximately US$222.4 million, driven by major upgrades in
platforms and automation, especially in molecular biology, peptide,
and protein technologies. Enhanced manufacturing efficiency in
Singapore, Mainland China, and the
U.S., along with strong commercial operations in the U.S. and
Europe, fueled this growth.
Adjusted gross profit increased by 8.5% to approximately
US$119.9 million, maintaining a
stable margin. Adjusted operating profit rose significantly by
23.8% to approximately US$47.8
million.
- Biologics Development Services: This segment saw a
revenue decline of 37.9% to approximately US$40.4 million, impacted by reduced demand and
increased competition. Adjusted gross profit fell by 69.7% to
approximately US$5.9 million, with
the adjusted gross profit margin decreasing to 14.7%. Adjusted
operating loss widened to approximately US$18.9 million, driven by higher operating costs
related to U.S. expansion and strategic investments. The Company
plans to refine pricing strategies and enhance global market
presence to address these challenges.
- Industrial Synthetic Biology Products: Revenue increased
by 43.4% to approximately US$26.1
million, driven by a market rebound and growing demand in
Mainland China and beyond. Adjusted gross profit rose by 52.8% to
approximately US$11 million, with the
adjusted gross profit margin improving to 42.2%. Adjusted operating
profit improved to approximately US$2.3
million, reflecting higher capacity utilization and process
improvements.
- Cell Therapy: Revenue from the cell therapy segment grew
by 155.7% to approximately US$280.5
million. This growth was fueled by collaboration revenue
from CARVYKTI sales under the Janssen Agreement and increased
license revenue from agreements with Janssen and Novartis Pharma
AG. The adjusted operating loss narrowed to approximately
US$119.4 million from US$205.9 million. The Company invested
approximately US$196.3 million in
research and development, focusing on cilta-cel and solid tumor
programs, and incurred approximately US$52.4
million in adjusted selling and distribution expenses and
US$49.1 million in adjusted
administrative expenses.
Deepening ESG Commitment
In addition to its financial achievements, GenScript is
advancing its commitment to sustainability and ESG practices. This
year, the Company officially joined the United Nations Global
Compact (UNGC), underscoring its commitment to adhere to ten
sustainable development principles and drive more responsible,
inclusive, and sustainable global business practices.
The Group has also been recognized for its ESG performance,
ranking in the top 35% in EcoVadis' sustainability assessments.
This recognition highlights the Company's efforts in environmental
protection, labor rights, supply chain management, fair operations,
and the execution of sustainable development strategies. Further
demonstrating its dedication, the Company has joined the Science
Based Targets initiative (SBTi) and submitted its Science-Based
Targets Commitment, reflecting its proactive stance on global
climate change and commitment to aligning with the Paris
Agreement's temperature goals.
In environmental management, GenScript is focused on optimizing
its carbon footprint through international certifications such as
ISO 14064, ISO 14001, and ISO 50001. These certifications enhance
energy efficiency and cut greenhouse gas emissions. Additionally,
the Company has earned ISO 27001 certification, ensuring top-notch
data security and customer privacy protection.
Looking Ahead
GenScript remains focused on driving sustainable growth through
strategic investments, operational efficiency, and innovation. The
Group will continue to enhance its global market presence, optimize
supply chain management, and leverage its cutting-edge technologies
to deliver exceptional value to its stakeholders while advancing
its ESG objectives.
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SOURCE GenScript Biotech Corporation