On July 31, 2023 Akeso Inc. ("Akeso", the "Company"; 9926.HK), a commercial-stage biopharmaceutical company focused on developing and commercializing first-in-class and best-in-class innovative medicines globally, reported that it is expected that the Company will record a profit of not less than RMB2.3 billion for the six months ended June 30, 2023 (Press release, Akeso Biopharma, JUL 31, 2023, View Source [SID1234633556]). This is the first time for the Company to achieve half-year profits.

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The turnaround from loss to profit during the Reporting Period was mainly attributable to:

In respect of Ivonescimab (AK112, PD-1/VEGF) independently developed by the Company, the Company has entered into the collaborative and licensing agreement with Summit Therapeutics (details of which are set out in the announcement of the Company dated December 6, 2022). The Company has received the total upfront payment equivalent to US$500 million in full during the first quarter of 2023 (details of which are set out in the announcements of the Company dated January 26, 2023 and March 6, 2023). Part of such upfront payment was recognized as licensing fee income which significantly contributed to the revenue of the Company for the Reporting Period, and amounted to approximately RMB2.9 billion. The revenue recognition of the remaining portion of the upfront payment will be recognized as revenue in batches going forward.

In respect of the Company’s innovative product 开坦尼 (cadonilimab, PD-1/CTLA-4), since its launch in June 2022, it has recorded significant increase of the patients as well as product sales, which reflects the excellent clinical value of cadonilimab. In addition, 安尼可(penpulimab, PD-1) also continued to contribute to the growth in the Company’s product sales revenue during the Reporting Period.

The Company has continued to optimise its cost management capabilities in a scientific and efficient way and has achieved better results in cost control while accelerating innovative products development and pipelines advancement.