LakeShore Biopharma Reports Fiscal Year 2024 Financials

LakeShore Biopharma Co., Ltd., a global biopharmaceutical entity, reported its financial results for the fiscal year ending March 31, 2024. Despite facing challenges due to supply chain disruptions impacting the production of its YSJATM rabies vaccine, the company has resolved these issues and is moving forward with optimism into Fiscal Year 2025.

For Fiscal Year 2024, LakeShore recorded revenues of RMB573.4 million (US$80.8 million), a decline from the previous year's RMB687.2 million. This decrease was attributed to supply chain and production challenges which affected raw material availability and overall output. However, the company managed to improve its gross margin to 79.5%, up from 77.7% in the previous fiscal year, achieving a gross profit of RMB455.7 million (US$64.2 million).

Mr. Dave Chenn, Chairman and Interim CEO, highlighted that operational improvements had normalized production, resolving inventory shortages. The company continued to lead the rabies vaccine market in China and made notable advancements in its product pipeline. The next-generation PIKA rabies vaccine progressed through Phase III clinical trials, and other pipeline products met significant milestones.

Looking forward, LakeShore Biopharma aims to drive revenue growth, control expenses, and enhance profit margins in Fiscal Year 2025. Strategies include cost reductions, organizational restructuring, strengthened internal controls, and strategic resource allocation. The company anticipates double-digit year-over-year revenue growth and expects to achieve breakeven by the end of Fiscal Year 2025.

Ms. Rachel Yu, Interim CFO, emphasized the company's focus on maximizing long-term shareholder returns and leveraging new market opportunities. As of March 31, 2024, the company held cash and cash equivalents of RMB246.6 million (US$34.7 million).

In terms of product development, LakeShore Biopharma's YSJATM rabies vaccine remains a market leader in China, with over 27.3 million doses sold to CDC customers. The company's clinical pipeline continues to advance, with notable progress in the PIKA rabies vaccine trials, which have shown promising interim results, achieving primary endpoints and potentially meeting the World Health Organization's goal of a one-week rabies vaccine regimen.

Other products in the pipeline include PIKA YS-ON-001, an immunological therapeutic agent for cancer, which completed its Phase I trial in 2023, and PIKA YS-HBV-002, a second-generation immunotherapeutic vaccine for chronic hepatitis B, which received clinical trial approval in the Philippines and is preparing for Phase I trials.

Financially, the company experienced a net loss of RMB433.5 million (US$61.1 million) for Fiscal Year 2024, compared to a loss of RMB145.5 million in the previous year. This was due to ongoing challenges including COVID-19-related disruptions and increased impairment losses on inventory, property, plant, and equipment. Selling and marketing expenses rose to RMB301.3 million (US$42.5 million), as did general and administrative expenses, which increased to RMB140.1 million (US$19.7 million). Research and development expenses slightly decreased to RMB302.8 million (US$42.7 million).

As the company moves into Fiscal Year 2025, it is poised to capitalize on its robust product pipeline and strategic initiatives aimed at driving growth and achieving financial stability.