Viva Biotech (1873.HK) Announces 2023 Annual Results: Successful Implementation of Light-asset Strategy, Achieving Solid Growth and Promising Future
Highlights of the Annual Results as of
- Revenue reached
RMB2,155.6 million - Gross profit amounted to
RMB738.5 million - Adjusted non-IFRS net loss improved to
RMB208.8 million , representing a significant turnaround from a negative position compared to the corresponding period of last year - Successfully attracted strategic investors such as
Temasek ,Highlight Capital ,True Light Capital andInvestment Corporation ofDubai with a total financing size of nearlyUS$225 million
On
In addition, in 2023, the Group achieved breakthrough progress in overall financing and the introduction of strategic investors. We successfully attracted strategic investors such as
CRO Business Shows an Attractive Outlook in the Long Run Despite Slight Fluctuation in the Short Term
In 2023, the Company's revenue from CRO business achieved
As at
The cumulative number of CRO clients served had increased to 1,398, including the global top 10 pharmaceutical companies (by reported total revenue for 2023), and revenue from the top ten customers accounted for 25.7% of our total revenue. Clients of our CRO business are geographically diverse, of whom those from overseas contributed approximately 87.1% of our total revenue, and those from Chinese Mainland contributed approximately 12.9% of our total revenue.
During the Reporting Period, our utilization of synchrotron radiation source reached 2,059 hours. The Company established long-term cooperation with 13 synchrotron radiation source centers around the world, which are distributed in ten countries/regions, i.e.,
Expanding CDMO Capacity and Increasing CMC Projects
During the Reporting Period, the Group laid great emphasis on strategic cooperation and synergy with Langhua Pharmaceutical. In particular, we strengthened the capacity expansion and adjusted the business structure of CDMO. In addition, efforts were made to optimize and channel resources towards the CMC business.
In 2023, Langhua Pharmaceutical's revenue amounted to
As at
The number of CMC projects continues to grow, and the new business is still in the initial phase of profitability. Since its establishment, CMC has completed and is currently progressing with a total of 183 new drug projects. As at the end of the Reporting Period, CMC generated revenue of nearly
Successful Exits of Certain Incubation Portfolio Companies and Future Plans for Incubation Business through Establishment of Investment Funds
During the Reporting Period, the Company achieved complete or partial investment exits from six incubation portfolio companies, realizing corresponding investment returns. In addition, one startup company was newly invested and incubated, obtained through a stock-for-stock exchange. In addition, the Company made a new investment and provided incubation support to one startup company through stock-for-stock arrangement. As at
In 2023, 12 of our portfolio companies completed or was close to completing a new round of financing, raising approximately
As at the end of the Reporting Period, Viva has strategically invested in a series of high-quality assets, including portfolio companies such as Dogma, Arthrosi, Basking, Triumvira, Deka, Mediar, Cybrexa, and VivaVision. In the future, as these portfolio companies continue to develop successfully, secure ongoing financing, and realize exits, the initial investments will gradually enter the harvesting phase, providing sustained cash returns for the Group.
In addition, the fund raising in and setting up of the incubation fund of the Company in the early stage are progressing smoothly. It also intends to conduct incubation business through the establishment of investment funds in future, so as to mitigate pressure on Group-level liquidity and the appropriation of funds.
Technological Highlights and R&D Breakthroughs
For our CRO business, we have built several core technological platforms, including: the PROTAC/molecular glue technology platform, protein production& structural biology, Cryo-EM technology platform, membrane protein technology, hit discovery technology, Bioassay platform, computer-aided drug design (CADD) and artificial intelligence in drug discovery (AIDD) platform, antibody/biologics R&D service platform, medicinal chemistry, etc. During the Reporting Period, the Company has introduced several new platforms, including XDC platform, V-DEL technology platform, covalent compound library and molecular glue technology platform, and enhanced the peptide drug development platform. Furthermore, the Company has expanded the services offered by the antibody and large molecule drug R&D platform.
The CDMO business has further enhanced the construction of its R&D technology platform. In terms of API (Active Pharmaceutical Ingredient) R&D, Langhua Pharmaceutical has established a green chemistry technology platform, including enzyme reaction, continuous flow processes, catalyst and ligand screening platforms, enabling the efficient and cost-effective development of optimized synthetic routes. Additionally, in the field of formulation CMC (Chemistry, Manufacturing, and Controls), Langhua Pharmaceutical has established distinctive innovative platforms such as the insoluble drug solubilization technology platform, compound drug characterization, salt form and polymorph screening, etc.
During the Reporting Period, the development of the newly expanded emerging technology platforms within the Company showed promising progress. The V-DEL technology platform has introduced novel library construction strategies and innovative DNA-compatible reactions. Leveraging Viva's extensive experience in non-commercial building block molecules, it has launched various 100-billion grade DEL libraries for cyclic peptides, PROTAC, covalent inhibitors and fragments. Furthermore, based on Viva's competitive strength in protein production and structural biology, the platform engages in specialized screening activities driven by artificial intelligence and machine learning to facilitate next-generation data analysis and prediction, and efficiently integrates subsequent validation and synthesis processes to ensure seamless workflow.
Furthermore, regarding the latest progress in the peptide technology platform, it has achieved the capability to synthesize a wide range of peptides. Particularly, it focuses on the synthesis of challenging and technologically advanced peptide chains. Extensive research and technical expertise have been accumulated in peptide coupling, PDC, RDC, monocyclic peptides, stapled peptides, complex multi-cyclic peptides (involving peptide folding and selective folding), biotin-labeled peptides and fluorescent-labeled peptides. Viva's peptide technology platform envisions a collaborative approach with Viva's phage display platform and V-DEL platform, aiming to provide customers with one-stop comprehensive services encompassing the entire process from the discovery and validation of hit peptide chains to the identification and optimization of lead compounds, and ultimately the determination of candidate compounds.
In addition, the Company has made initial strides in establishing the XDC platform, an all-in-one conjugate development platform that integrates Viva's extensive R&D expertise in antibody drugs, peptide drugs, and small molecule chemical drugs. This platform is dedicated to delivering efficient and top-quality services for conjugate development to clients.
For development of Viva's existing emerging technology platforms, computer-aided drug design (CADD) and artificial intelligence in drug discovery (AIDD) platforms have been widely used in various stages of drug development, utilizing physical chemistry models, artificial intelligence algorithms, and leveraging supercomputing clusters. Various methods have been extensively applied in drug discovery. The computational chemistry division of the Company has developed a series of advanced algorithms tailored to specific projects (such as FEP) to address drug design challenges. Application of these cutting-edge technologies has significantly facilitated the progress of drug development projects compared to traditional computational tools and commercial software packages. In addition to traditional small molecule drug design, methods developed by the computational chemistry platform have also been applied to various drug modalities, achieving breakthroughs through experimental validation. This includes the development of antibodies, peptides, RNA-targeted small molecule drugs, and more. Overall, Viva's CADD and AIDD platforms have assembled a talented and multidisciplinary team, primarily consisting of individuals with advanced degrees (Masters and Ph.D.). This team possesses the expertise to develop proprietary algorithms and methods, as well as the capability to explore various drug modalities with the hardware support of computing force from the Shanghai Supercomputing Center.
Currently, the Company also provides services relevant to PROTAC/molecular glue drug R&D, and revenue generated in this regard accounted for almost 10.42% of total revenue from CRO business. Our services primarily include studies on protein production& structural biology, screening of PROTAC molecules, kinetics studies, drug metabolism, medicinal chemistry, Bioassay, CADD/AIDD, etc. As at
Overall, based on the existing technology platforms, the Company aims to serve the increasing demands of more customers, and consistently invests in expanding and integrating emerging technology platforms, thereby achieving channeling and synergy among different platforms, driving continuous growth in CRO revenue, and building a comprehensive and refined FIC drug R&D platform.
Staff and Facilities
As at
- The Group's new headquarters in Zhoupu,
Shanghai with a total area of approximately 40,000 square meters had been put into full operation. - The incubation center located in Faladi Road,
Shanghai has an actual usable area of approximately 7,576 square meters, including 5,552 square meters of laboratory area. - The park in Chengdu has a GFA of approximately 64,564 square meters, of which 12,210 square meters of properties had been put into use as at
December 31, 2023 , including 10,800 square meters of laboratory area. - The novel drug incubation center in Qiantang New District,
Hangzhou has a GFA of approximately 77,500 square meters. During the Reporting Period, the Company successfully established a collaboration with a local state-owned enterprise. Initially, the Company held full ownership, but it has now transitioned to a 30% equity participation. In the future, the Company plans to engage in cooperation through a leasing arrangement upon completion of construction. - A park in Suzhou with a total GFA of approximately 7,545 square meters, including nearly 5,305 square meters of laboratory area.
- A park in Jiaxing with a GFA of approximately 6,362 square meters, including nearly 5,335 square meters of laboratory area.
- Shanghai Supercomputing Center has been officially put into operation. At present, it can support computer aided drug design (CADD) calculation, artificial intelligence in drug discovery (AIDD) related calculation, and crystal structure and Cryo-EM (Micro-ED) calculation.
- The factory of Langhua Pharmaceutical in Taizhou,
Zhejiang has a GFA of approximately 35,168 square meters, including the Taizhou R&D center with an area of approximately 2,500 square meters. The R&D center of Ningbo Nuobai has an area of approximately 1,300 square meters and the office building of Ningbo Nuobai has an area of approximately 1,500 square meters.
Dr.
About
Established in 2008,
As of
SOURCE