RemeGen Shares Surge Over 6% on Strong 2025 Profit Turnaround and Projected Cash Boost

Stock News03-06

RemeGEN (09995) rose more than 6%, with the stock up 6.44% to HK$81.75 at the time of writing, generating a turnover of HK$170 million. The company recently released its 2025 preliminary results, reporting total operating revenue of RMB 3.251 billion, an 89.36% year-on-year increase. Net profit attributable to shareholders was RMB 709 million, marking a turnaround from a loss in the same period last year. Basic earnings per share stood at RMB 1.29. The growth in revenue was primarily driven by increased sales of Telitacicept for Injection and Disitamab Vedotin for Injection. Additionally, the company granted Vor Biopharma Inc. exclusive global development and commercialization rights for Telitacicept outside Greater China, leading to a substantial rise in technology licensing revenue. Nomura released a research report forecasting that RemeGen's gross profit margin for the year will increase by 5.4 percentage points to 94.4%, benefiting from higher drug margins and a greater proportion of high-margin collaboration revenue. Due to a significant increase in cash reserves, the company's operating expenses are expected to rise by 28% year-on-year to RMB 3.5 billion, reversing last year's cost-saving trend. Specifically, research and development expenses and sales expenses are each projected to be RMB 1.6 billion, allocated to sponsoring new molecule development and clinical trials, as well as enhancing drug sales.

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