In This Article:
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Revenue: Increased by 43.5% to approximately USD 561.4 million.
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Adjusted Net Loss: Narrowed to about USD 69 million.
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Life Science Group Revenue: USD 217.7 million, 9.5% growth.
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ProBio Revenue: Declined to USD 37.1 million.
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Bestzyme Revenue: Grew by 44% to USD 26.1 million.
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Legend Revenue: Increased by 156% to USD 280.3 million.
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Protein Business Growth: 30% year-over-year revenue growth.
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Adjusted Gross Profit (Life Science Group): Increased by 8.5% to approximately USD 120 million.
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Adjusted Operating Profit (Life Science Group): Increased by about 24% to USD 47.8 million.
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Adjusted Operating Loss (ProBio): USD 18.9 million.
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Adjusted Operating Profit (Bestzyme): USD 2.3 million.
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Legend Adjusted Net Loss: Narrowed to USD 119.4 million.
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Cash Position (Legend): Approximately USD 1.3 billion.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Genscript Biotech Corp (GNNSF) reported a strong top-line growth with a 43.5% increase in gross revenue, reaching approximately USD 561.4 million.
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The company significantly narrowed its adjusted net loss to about USD 79 million, showcasing improved financial performance.
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Genscript Biotech Corp (GNNSF) has strengthened its intellectual property position with over 350 patents and more than 1,000 patents in the application process.
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The Life Science Group achieved a 9.5% growth in external revenue, driven by enhanced synergy between gene synthesis and protein services.
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Legend, a segment of Genscript Biotech Corp (GNNSF), achieved a 156% year-over-year revenue growth, driven by strong demand for CARVYKTI and capacity expansion.
Negative Points
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ProBio, the biologic CDMO segment, experienced a decline in external revenue to USD 37.1 million due to headwinds in the biotech funding environment.
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The adjusted gross profit margin for ProBio dropped significantly due to price erosion and low capacity utilization.
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The geopolitical tensions have impacted the company's business, particularly in the US market, causing a temporary drop in orders.
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Genscript Biotech Corp (GNNSF) took a USD 37 million impairment on long-term assets and a USD 113 million fair value loss from ProBio preferred shares.
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The company faces challenges in maintaining profitability in the ProBio segment due to increased depreciation and operating costs from new capacity expansions.
Q & A Highlights
Q: Can you provide updates on the briefing request by the FLAG House committee and any potential changes in Legend's shareholding due to geopolitical tensions? A: Sherry Shao, Rotating CEO, stated that the company has engaged external resources for legal, government affairs, and public relations to review operations and supply chain protections. They have not received further requests from administrative agencies and do not believe they pose a national security concern. Robin Meng, Chairman of the Board, emphasized Legend's value and the board's commitment to shareholder interests.