CHENGDU—Chengdu Kanghua Biological Products Co., Ltd (SHE: 300841) has reported a significant upswing in its financial performance for the first half of 2024, with revenues reaching RMB 741 million (USD 104 million), marking a 16.81% increase year-on-year. Net profits attributable to shareholders have also seen robust growth, climbing to RMB 307 million (USD 43 million), a 23.51% rise over the same period. The company’s net cash flow from operating activities has surged by 44.37% to RMB 176 million (USD 25 million), indicating a substantial enhancement in its cash flow position.
Kanghua Bio’s flagship product, the freeze-dried human rabies vaccine (human diploid cells), which holds the distinction of being the first of its kind in China, accounted for 85.68% of the total revenues. The company’s dominance in the market is attributed to its technological prowess, strong brand influence, and extensive market channels.
The company’s international footprint has been further solidified through a licensing agreement with HilleVax, signed in January of this year. This deal granted HilleVax the rights to develop, manufacture, and commercialize Kanghua Bio’s recombinant hexavalent norovirus vaccine outside of China. The agreement included a USD 15 million upfront payment, with the potential for up to USD 255.5 million in development and sales milestone payments, and single-digit royalties on annual net sales. The upfront payment was settled in March, adding to Kanghua Bio’s financial momentum.
Kanghua Bio’s robust pipeline is supported by its advanced vaccine technology platforms, including a recombinant protein VLP platform, a polysaccharide protein binding vaccine platform, an inactivated vaccine platform, and a novel adjuvant platform. These platforms have facilitated the development of a diverse range of vaccines, such as the recombinant hexavalent norovirus vaccine, quadrivalent nasal spray influenza vaccine, ACYW135 meningococcal conjugate vaccine, human rabies vaccine (human diploid cell), and the herpes zoster mRNA vaccine.- Flcube.com
