YS Biopharma Co., Ltd.

For the first nine months of fiscal 2024, revenue was RMB 438.1 million versus RMB 581.2 million a year ago, a 24.6% decline. Gross profit was RMB 351.7 million versus RMB 449.0 million, and gross margin improved to 80.3%, up three percentage points year over year. The company reported a net loss of RMB 260 million in the CEO’s remarks and RMB 252.3 million in the CFO’s remarks, reflecting presentation differences in the call. Cash and cash equivalents were RMB 222.6 million at December 31, 2023, versus RMB 370.4 million at March 31, 2023. Looking ahead, management expects product revenue in fiscal 2025, starting April 1, 2024, to increase at a double-digit rate compared with fiscal 2024, with continued efforts to improve the bottom line by the end of fiscal 2025.

David Shao framed the quarter as a recovery period after lingering inventory and supply-chain disruption at the YSJA rabies vaccine facility. He said production has returned to normal, inventory is improving, and the company is focusing on tighter internal controls, cost discipline, and organizational streamlining across the US, China, and Singapore. He also emphasized the strategic importance of PIKA rabies and said the company aims to build a stronger long-term foundation through operational efficiency, a refined inventory strategy, and a broad CDC sales network.

Brenda Wu said revenue declined to RMB 438.1 million from RMB 581.2 million, mainly because COVID-related manufacturing disruptions reduced batch approvals and doses available for sale, partially offset by an about RMB 3.0 per dose price increase for YSJA rabies vaccine. Gross profit was RMB 351.7 million, gross margin was 80.3%, and operating expenses rose in several areas, including selling and marketing to RMB 229.2 million, G&A to RMB 142.8 million, and R&D to RMB 244.7 million, driven by promotional spending, inventory and receivable provisions, and clinical/testing costs. She also reiterated cash of RMB 222.6 million and said the company is taking further measures to manage spending prudently and improve the bottom line in fiscal 2025.

Analysts focused on the commercialization path for PIKA rabies vaccine and management said the final interim report is expected next week, with study completion toward the end of December and final reports after closure in the first quarter of next year. Management said it is already discussing regulatory pathways, including conditional approval in some countries and rolling submissions, and estimated market authorization could take around one to two years depending on the country. On other pipeline assets, management said the chronic hepatitis B Phase 1 study is expected to start in May or June in the Philippines, where the company can test directly in chronic hepatitis B patients rather than healthy volunteers, and it is also considering a possible adjuvanted flu vaccine but has not confirmed it.