Hong Kong – InSilico Medicine (INSILICO, 03696) released its 2025 annual results, reporting a top-line contraction and a sharp swing into deeper losses, largely driven by non-cash fair-value adjustments on preferred shares converted at IPO.
Revenue and Profitability • Total revenue declined 34.5% year on year to US$56.24 million. • Pipeline development income fell 68.8% to US$23.89 million, reflecting lower upfront payments (US$15.30 million vs. US$58.00 million in 2024). • Drug discovery fees surged to US$24.95 million, up from US$3.14 million, partially offsetting the pipeline shortfall. • Software solution sales rose 23.8% to US$4.91 million; other discovery revenue increased 16.8% to US$2.49 million. • Gross profit slipped 40.9% to US$45.85 million, with margin narrowing to 81.5% (2024: 90.4%) amid a higher mix of lower-margin drug discovery projects. • Reported net loss expanded to US$352.32 million (2024: US$17.10 million), hit by a US$296.70 million loss on fair-value changes of financial liabilities linked to the conversion of preferred shares at the December 2025 listing. • Adjusted loss (non-IFRS) widened to US$43.83 million (2024: US$22.67 million) after adding back share-based payments and listing expenses.
Cash and Balance Sheet • Cash and bank balances stood at US$393.34 million as of 31 December 2025, up from US$125.94 million, bolstered by IPO proceeds. • Net assets turned positive at US$452.03 million (2024: net liabilities of US$663.92 million) following the conversion of preferred shares. • Current ratio improved sharply to 1,399.3% (2024: 16.5%); the group remained debt-free with a 0% gearing ratio.
Cost Structure • R&D spend decreased 11.4% to US$81.38 million, mainly due to lower CRO fees after ISM001-055 completed its Phase IIa trial. • Selling and marketing expenses rose 14.4% to US$6.33 million, driven by higher share-based compensation. • Administrative costs were largely stable at US$17.42 million.
Pipeline and Platform Progress • Six new AI-generated pre-clinical candidates (PCC) were nominated, lifting the PCC count to 28. • Lead asset ISM001-055 (Rentosertib) for idiopathic pulmonary fibrosis published positive Phase IIa data in Nature Medicine; Phase III in China planned for 2026, with inhalation IND filed in January 2026. • ISM6331 (TEAD inhibitor), ISM3412 (MAT2A inhibitor), and ISM5411 (PHD1/2 inhibitor) advanced into Phase I/IIa trials; partnered assets ISM4808 (PHD inhibitor), ISM9682 (KIF18A inhibitor) and ISM8969 (NLRP3 inhibitor) also progressed clinically. • Upgrades across Biology42, Chemistry42 and Science42 enhanced the Pharma.AI platform, supplemented by the launch of multimodal chemistry model Nach01 and domain-specific Science MMAI Gym.
Business Development • New licensing and collaboration agreements signed with Eli Lilly, Servier, Qilu Pharmaceutical, China Medical System, Tenacia Biotechnology and others, cumulatively valued at over US$1.30 billion. • Out-licensing deal with TaiGen Biotechnology grants Greater China rights to ISM4808; co-development pact with Hygtia Therapeutics for CNS-penetrant NLRP3 inhibitor ISM8969 (potential US$66.00 million in milestones).
Post-Balance-Sheet Event • On 16 January 2026, the underwriters fully exercised the over-allotment option, issuing an additional 14.20 million shares and raising HK$341.59 million (approximately US$43.74 million) in gross proceeds.
Outlook Management targets three priorities for 2026: sustaining partnership deal flow, advancing Rentosertib into Phase III and other key trials, and monetising the Science MMAI Gym to build recurring revenue streams.
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