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Viva Biotech's 2025 Interim Results: A Deep Dive

On the 28th of August, 2025, Viva Biotech Holdings Group revealed compelling figures in their interim summary for the period ending June 30, 2025. The analysis showcased a remarkable transformation within the company, with the total revenue reaching an impressive RMB831.9 million. A notable increase in gross profit also marked the report, accumulating to RMB339.4 million, signifying a gross profit margin of 40.8%. This marks a 6.3 percentage point increment compared to the previous year, derived largely from an optimization of Langhua's operational framework, improved efficiencies within the CRO (Contract Research Organization) sector, and the promising entry into new business avenues.

The interim results highlighted a net profit of RMB148.6 million, reflecting a year-over-year rise of 3.1%. Furthermore, the adjusted non-IFRS net profit was reported at RMB183.5 million, showcasing a robust 9.1% increase from the previous year. Such gains were primarily supported by a resurgence in the CRO segment's performance, which has proven to be a cornerstone in this financial success.

CRO Revenue Overview: Resurgence and Growth

During this reporting period, the revenue gleaned from the CRO segment was RMB422.8 million, witnessing a substantial increase of roughly 9.6% on a year-over-year basis. Similarly, the adjusted gross profit for this unit reached RMB194.6 million, marking a 16.4% increase from the same period previous year. This revival in CRO revenue can be credited to an upturn in global biopharmaceutical investments observed in 2024, which not only rejuvenated overseas business but significantly lifted revenue streams from within China.

The client base for the CRO arm has expanded impressively, bringing the total number of clients to 1,669, encompassing all top ten pharmaceutical giants globally. Notably, revenue generated from these top-tier clients constituted 25.9% of the overall segment earnings. Geographically, overseas revenue has soared to approximately 85%, while revenue from domestic clients settled at about 15%, reflecting a diversified business outreach.

In the realm of protein structures, the CRO segment has delivered over 90,739 models cumulatively, with 8,023 of these completed in the first half of 2025. The company's research and development (RD) arm boasts over 2,187 independent drug targets, with over 89 newly achieved during this timeframe. Moreover, the exploration of new modalities, inclusive of peptides and molecular glues, has contributed a solid 15% to CRO revenue, with a vigorous year-over-year growth of nearly 19%. These advancements signal a thriving influx of revenue streams, fueled by innovative efforts including the incorporation of AI into drug discovery processes.

The New CDMO Projects: Forecasting Future Profitability

As part of its ambition to be a leading provider of comprehensive drug development services, Viva Biotech has made significant strides in its CDMO (Contract Development and Manufacturing Organization) operations. During the reporting period, the firm initiated critical preparatory actions for new CDMO commercialization projects. With progress already achieved in PPQ (Process Performance Qualification) production, the company is poised for significant profitability enhancements in its CMC (Chemistry, Manufacturing, and Controls) business.

Langhua Pharmaceutical reported revenue of RMB409 million, combined with an adjusted gross profit of RMB155.1 million, serving a clientele of 905 entities, with the top ten contributing to 68.3% of the total sales and maintaining a perfect retention rate within this group. Besides revenue from ongoing projects, Langhua is anticipating two major commercialization projects expected to launch around 2026 and 2027.

Additionally, the company is expanding its manufacturing capabilities, aiming to elevate its production capacity to meet increased demands efficiently. This growth trajectory is mirrored in their advancement of 279 new drug projects by their adept CMC RD team, demonstrating the successful implementation of strategic optimizations.

Exit from Portfolio Companies: Investment Returns Realized

The reporting period also saw successful exits from a range of portfolio companies, culminating in returns that neared RMB76.5 million. Of the 93 firms invested in, eight are either approaching a new funding round or have recently closed financing deals raising a total of approximately US$293.6 million. The overall RD efforts of these companies are seeing progress, with nearly 228 pipeline projects, indicating that both preclinical and clinical phases are thriving under the group's guidance.

Dr. Cheney Mao, the Chairman and CEO of Viva Biotech, emphasized the importance of a structure-based drug RD framework. He reiterated the company’s commitment to enhancing collaboration between biological and chemical segments, further fortifying their service platform that spans from drug research to manufacturing. The goal is to cultivate an ecosystem that supports biopharmaceutical innovators globally, all while streamlining operations across CRO and CDMO divisions for improved service delivery and business integration.

In conclusion, Viva Biotech's latest interim results not only reflect a robust growth trajectory but also set a promising foundation for the future of drug development and commercialization.