#China #Shanghai #CDMO #Viva Biotech #CRO

Viva Biotech's 2025 Interim Results Overview

On August 28, 2025, Viva Biotech Holdings Group released its interim results for the first half of 2025, showcasing substantial growth in its operations. The company reported a revenue of RMB 831.9 million, along with a gross profit marking an impressive RMB 339.4 million. This equates to a gross profit margin of 40.8%, which is an increase of 6.3 percentage points compared to the previous year.

The net profit reached RMB 148.6 million, reflecting a year-over-year increase of 3.1%. Notably, the adjusted non-IFRS net profit rose to RMB 183.5 million, a 9.1% increase from the prior year. The positive momentum in revenues was driven by improvements in the operational efficiency of the Contract Research Organization (CRO) sector and the successful launch of new business segments.

CRO Revenue Recovery

In the first half, the CRO division witnessed a robust revenue uptick of approximately 9.6%, totaling RMB 422.8 million compared to last year's RMB 385.9 million. This growth is attributed to a resurgence in global biopharmaceutical investments post-2024 and an increase in innovative drug business development within China. Despite experiencing minor fluctuations in global investments since the second quarter of 2025, the CRO business has established a solid order backlog. This stability, combined with expectations of future interest rate cuts, suggests a promising outlook for the remainder of the year.

As of June 30, 2025, Viva Biotech had serviced 1,669 CRO clients, which included all ten of the largest global pharmaceutical companies. About 85% of the CRO revenue came from international clients, with mainland China contributing the remaining 15%. Furthermore, the company's success in delivering over 90,739 protein structures positions it as a leader in protein structure determination in the industry.

New Modalities Driving Growth

Evolving drug discovery methodologies are also contributing to growth. New modalities such as peptides, antibodies, and PROTACs accounted for around 15% of CRO revenue, showing an impressive nearly 19% increase year-over-year. This indicates a shift toward leveraging novel methodologies as a significant revenue driver within the business.

In terms of marketing and business development, the company has effectively integrated online digital strategies with offline networking to expand its global collaboration presence. Recognizing AI's essential role in drug discovery, the company has implemented AI-Driven Drug Discovery (AIDD) technologies, which are now utilized in 175 projects — contributing almost 10% to total CRO revenues.

CDMO Commercialization Projects

Alongside its CRO successes, Viva Biotech is expanding its Contract Development and Manufacturing Organization (CDMO) capabilities. The company acquired Zhejiang Langhua Pharmaceutical, allowing it to enhance its production infrastructure. Langhua's revenue for the first half of 2025 stood at RMB 409 million, with adjusted gross profit reaching RMB 155 million, representing a substantial increase in profitability.

This growth trajectory is supported by the company's focus on innovative CDMO commercialization projects, with significant advancements in production capacity expected in the coming years. The adjusted gross profit margin for Langhua's operations improved to 37.9%, driven by enhanced profitability and optimization strategies.

Investment Exits and Future Strategies

In terms of investment performance, the company made notable exits from several portfolio companies, generating nearly RMB 76.5 million in returns. As of the report's date, Viva had invested in 93 startups across North America, Europe, and China. These investments are positioned for continued growth as further rounds of financing are anticipated.

The company also ventured into establishing a RMB-denominated fund aiming to foster biopharmaceutical innovations, with an investment focus that seeks to develop high-quality pharmaceutical enterprises.

Conclusion

Dr. Cheney Mao, the Chairman and CEO, emphasized the company's commitment to enhancing its innovative drug discovery platform. With a robust framework centered on integrating biology and chemistry, Viva Biotech is set on a path to drive significant advancements in drug development and manufacturing solutions. By deepening the synergy between its CRO and CDMO sectors, the company is poised to optimize its operational capacities and expand its global footprint in the biopharmaceutical landscape.

The increasing emphasis on AI and digital strategies underlines a future-oriented approach, ensuring that Viva Biotech maintains its competitive edge in an evolving industry.