China-based pharma firm RemeGen (HKG: 9995) released its Q3 2022 financial report, showing significant growth in revenues and research and development (R&D) spending. During the first three months of the year, the company generated RMB 570 million (USD 78.6 million) in revenues, up 397.47% year-on-year (YOY). It spent RMB 663 million (USD 91.5 million) on R&D, an increase of 26.29% YOY, and recorded net losses of RMB 688 million (USD 94.9 million).
Q3 Performance and Drivers
In the third quarter, RemeGen achieved revenues of RMB 219 million (USD 30.2 million), up 162.3% YOY. This growth was primarily driven by the inclusion of RC18 (telitacicept) and RC48 (disitamab vedotin) on the National Reimbursement Drug List (NRDL). Additional contributions came from technology service income from Seagen. During this period, the company’s operational cash flow increased due to extended load times for import materials used in commercial manufacturing, higher material expenses, an expanded manufacturing and sales workforce, and ongoing R&D activities.
Future Outlook
With strong revenue growth and increased R&D investment, RemeGen is well-positioned to continue advancing its pipeline and leveraging the benefits of NRDL inclusion to drive further market penetration and product adoption.-Fineline Info & Tech
