#China #Beijing #LakeShore Biopharma #Fiscal Year 2025 #rabies vaccine

LakeShore Biopharma's Financial Highlights for FY2025

LakeShore Biopharma Co., Ltd. has announced its financial results for the Fiscal Year ending March 31, 2025, revealing a strong performance despite ongoing challenges in the competitive biopharmaceutical industry. The company reported a total revenue of RMB 615 million, marking a 7.2% increase from the previous year. Moreover, gross profit soared to RMB 507.2 million, an 11.3% growth, coupled with an enhanced gross margin that rose from 79.5% to 82.5%. This reflects a commendable recovery following the disruptions caused by the COVID-19 pandemic.

Financial Performance Breakdown

A deep dive into LakeShore’s financials reveals key areas of focus:

• - Total Revenue: The company achieved revenues of RMB 615 million, up from RMB 573 million in FY2024, driven primarily by revitalized operational activities.
• - Gross Profit: Recorded at RMB 507.2 million, this increase is attributed predominantly to heightened sales volume and improved average pricing amid a recovering market.
• - Operating Expenses: Total operating expenses dropped by 34.2% year-over-year to RMB 593.5 million, indicating enhanced cost management strategies.
• - Net Loss: The net loss showed a significant narrowing to RMB 100 million, compared to a RMB 433.5 million loss a year prior, demonstrating the effectiveness of operational enhancements and strategic adjustments.
• - EBITDA: The EBITDA stood at RMB -48.5 million, a marked improvement from RMB -368.7 million, illustrating better cost control and operational focus.

Strategic Moves Ahead

Xu Wang, the CEO, expressed contentment with these results, emphasizing the company's strategic adaptability in resource allocation to fortify the commercial viability of its flagship YSJATM rabies vaccine. The company aims to bolster market share through multiple strategies, including:
1. Expanding Coverage: Enhancing accessibility to more regions.
2. Attracting Talent: Recruiting highly capable commercial sales officers (CSOs).
3. Driving Demand: Collaborating with healthcare facilities to boost market demand.
4. Talent Development: Continuous training and recruitment of commercial talent.
5. Advancing Clinical Trials: Accelerating Phase III trials for the vaccine, aiming for market approval by 2026.

Vaccine Development and Market Impact

LakeShore Biopharma’s contribution to the rabies vaccine market is notable. The YSJATM rabies vaccine, which is characterized as China’s first aluminum-free lyophilized vaccine, has been clinically utilized successfully for over 22 years, accounting for approximately 110 million doses administered to combat rabies. Since its launch in October 2020, the vaccine has achieved impressive distribution milestones, reaching 67.7% coverage across 1,911 county-level CDCs in China.

As of now, the company has embarked on a Phase III clinical trial for a simplified four-dose regimen of the YSJATM vaccine, which aims to enhance its competitiveness in the market. The trials, approved by the NMPA, signify a pivotal step in accelerating the company’s product lineup to meet the rising demand for rabies immunization in a dynamic market landscape.

Outlook for FY2026

Looking forward, LakeShore Biopharma has set its sights on a revenue target between RMB 550 million and RMB 650 million for FY2026, navigating through potential market dynamics and competitive pressures. The company’s leadership remains cautiously optimistic, reflecting a strategy resilient to external challenges while committed to delivering innovative health solutions.

In summary, LakeShore Biopharma exemplifies the adaptability and focus required in today’s challenging biopharmaceutical sector, leveraging its operational advancements and strategic insights to build a sustainable future in vaccine development.