Laekna Reports 1H26 Turnaround on Licensing Income; Loss Narrows to RMB 2.55 Million

Bulletin Express09-18

Laekna, Inc. (LAEKNA-B) released its unaudited 2026 interim results, highlighting a sharp improvement in profitability driven by upfront and milestone payments from recent out-licensing deals.

Financial Highlights (Six Months Ended 30 June 2026) • Revenue: RMB 150.28 million, entirely from licensing LAE118 to Vasque Bio and LAE002 (afuresertib) to Qilu Pharma. • Gross Profit: RMB 129.42 million, reflecting an 86.1% gross margin. • R&D Expenses: RMB 97.00 million, down 7.8% year on year, mainly due to lower discovery research spend as several pre-clinical assets moved into clinical phases. • Administrative Expenses: RMB 58.63 million, up 38.5%, primarily on higher share-based payment charges. • Net Loss: RMB 2.55 million, a 98.0% reduction from the RMB 129.64 million loss in 1H25. • Cash & Time Deposits: RMB 1.12 billion at 30 June 2026 (cash RMB 941.82 million; time deposits RMB 180.66 million). • Bank Loans: RMB 153.10 million, all short term and fixed-rate (0.95%–3.85%). • Current Ratio: 6.02; the group remained in a net cash position.

Pipeline and Operational Progress • Metabolic Diseases: – LAE102 (anti-ActRIIA mAb) completed U.S. Phase I SAD study with favorable safety and body-composition signals; China Phase I MAD expansion data expected 2H26. – LAE103 (ActRIIB-selective mAb) dosed first subject in Australia; topline SAD data due Q3 2026. – LAE123 (ActRIIA/IIB dual mAb) on track for IND submission 2H26; LAE124 (DACRA) to start IND-enabling in 2H26.

• Oncology: – LAE002 + Fulvestrant (AFFIRM-205) met Phase III PFS primary endpoint in HR+/HER2- breast cancer; NDA accepted by China’s CDE in August 2026. – LAE002 + LAE001 demonstrated median rPFS of 8.1 months in Phase II mCRPC, outperforming historical SOC benchmarks; FDA has approved Phase III protocol. – LAE118 (PI3Kα pan-mutant inhibitor) received IND clearances in the U.S. and China; Vasque Bio licensed ex-Greater China rights, providing Laekna USD 10 million upfront and up to USD 517 million in milestones plus royalties.

Capital Management and Funding • Net proceeds of HKD 724.40 million from the 2023 IPO and HKD 808 million from two 2024-25 placings are being deployed primarily to advance core assets, expand the ActRII portfolio, build manufacturing capability, and for general corporate use. • Shareholder approval obtained in June 2026 to repurchase shares; 219,000 shares were bought back for approximately HKD 1.60 million in July 2026, pending cancellation.

Governance and Compliance • The company maintains three share-based incentive plans; 15.32 million RSUs were granted in 1H26. • Corporate governance fully aligned with Hong Kong’s CG Code except for the combined roles of Chairman and CEO held by founder Dr. Chris Xiangyang Lu. • Audit Committee reviewed the interim results; KPMG issued an unqualified review opinion.

Key Upcoming Milestones (2H26) • LAE102 Phase I MAD expansion read-out. • Initiation of LAE102 + GLP-1 agonist Phase II trial. • LAE103 SAD topline data. • LAE118 Phase I launch in PIK3CA-mutant solid tumours. • LAE123 IND filing; LAE124 IND-enabling start.

With licensing income offsetting development spend and a solid liquidity buffer exceeding RMB 1 billion, Laekna ends 1H26 with a substantially improved bottom line while advancing a diversified late- and early-stage pipeline. No interim dividend was declared.

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