Luye Pharma reported interim results for the six months ended 30 June 2026 showing resilient earnings underpinned by its central nervous system (CNS) franchise and disciplined cost control, even as headline revenue softened.
Financial Performance • Revenue fell 5.6% year-on-year to RMB 3.00 billion, mainly reflecting a 35.5% contraction in oncology sales following lower product and know-how income. • Gross profit slipped 11.8% to RMB 1.90 billion, bringing the gross margin to 63.4% (H1 2025: 67.8%). • EBITDA advanced 3.9% to RMB 1.25 billion. Net profit increased 6.5% to RMB 380.80 million, while profit attributable to shareholders rose 24.8% to RMB 390.50 million on a favourable product mix and lower selling expenses. Basic EPS improved to RMB 9.78 cents (H1 2025: 8.32 cents). • No interim dividend was proposed.
Segment Trends • CNS revenue surged 22.2% to RMB 1.06 billion, benefiting from stronger sales of Seroquel, Rykindo and other key products. • Cardiovascular (+5.9% to RMB 734.22 million), metabolism (+6.7% to RMB 192.17 million) and “other” therapies (+24.0% to RMB 179.97 million) also expanded. • Oncology revenue contracted to RMB 835.93 million amid weaker sales of certain legacy products and lower know-how income.
R&D and Pipeline Highlights At period-end the company managed 43 pipeline assets (28 in China; 15 in the US/EU/JP). Notable updates included: • Phase 2 completion for VMAT2/Sigma-1 compound LY03015 in tardive dyskinesia with positive efficacy data; US pharmacokinetic bridging study finished. • Phase 2 initiations for 5-HT2A/5-HT2C agent LY03017 (Alzheimer’s psychosis) and dual TAAR1/5-HT2C candidate LY03020 (schizophrenia). • Regulatory filings for denosumab biosimilars BA6101/BA1102 accepted by the US FDA and UK MHRA; BA6101 approved in Bolivia and Macau. R&D expenditure for the half-year reached RMB 256.89 million.
Balance Sheet & Liquidity • Total assets stood at RMB 34.87 billion; total equity was RMB 17.58 billion. • Net current assets improved to RMB 5.71 billion; current ratio was 1.45. • Gearing climbed to 58.6% after issuance of a US$180 million 5.25% convertible bond due 2031 and a US$89.74 million partial buy-back of the 2023 notes. Cash and cash equivalents increased to RMB 8.22 billion.
Outlook Management targets further profit growth through: 1) accelerated commercial ramp-up of recently launched products—including Baituowei, Zepzelca, Mimeixin, Ruoxinlin and multiple Boan Biotech biosimilars; 2) regulatory approvals for denosumab biosimilars in the US and UK during 2027; 3) key Phase 3 initiations (e.g., LY03015) and data read-outs across CNS and oncology pipelines; and 4) potential licensing agreements leveraging its innovation portfolio.