On July 18, 2024 Harbour BioMed (the "Company"; HKEX: 02142), a global biopharmaceutical company committed to the discovery, development, and commercialization of novel antibody therapeutics focusing on oncology and immunology, reported a positive profit alert for the six months ended June 30, 2024 (the "Reporting Period") (Press release, Harbour BioMed, JUL 18, 2024, View Source [SID1234644959]).
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Based on a preliminary review of the Company’s unaudited consolidated management accounts for the Reporting Period, total profit is expected to be between US$1 million and US$1.5 million, compared to approximately US$2.9 million for the six months ended June 30, 2023 (the "HY2023"). The anticipated decrease in profit for the Reporting Period is mainly due to a change in the revenue structure. Specifically, the proportion of fees received from the service business as a percentage of total revenue during the Reporting Period has increased compared to HY2023. However, this type of revenue has a relatively slim profit margin compared to the licensing revenue, which constituted a larger proportion of the revenue in HY2023. As a result, the overall profit for the Reporting Period has decreased.
Despite the anticipated decrease in profit for the Reporting Period compared to HY2023, the Company emphasizes that it expects to maintain an overall profit for the Reporting Period. This optimistic outlook is primarily attributable to:
A stable source of income and a diverse revenue mix. The milestone payments received from existing out-licensing and collaboration of innovative products from the Company’s portfolio contributed significantly to the revenue for the Reporting Period.
Various new Licensing and Collaboration Agreements centered on innovative products and cutting-edge antibody discovery technology.
Consistent enhanced cost control in business operations.
Dr. Jingsong Wang, Founder, Chairman and CEO of Harbour BioMed, commented: "Our business has shown remarkable resilience and adaptability in challenging market conditions, and our global operations continue to open new avenues for future growth. By leveraging Harbour BioMed’s core innovative capabilities, we are confident that we can enhance our value creation worldwide."