Lepu Biopharma Issues Positive Profit Alert for FY2025

Key Highlights from Lepu Biopharma’s Announcement

• Major Turnaround in Financial Performance: Lepu Biopharma Co., Ltd. has announced an expected net profit attributable to shareholders of not less than RMB 200 million for the year ended 31 December 2025. This marks a significant turnaround from the loss of approximately RMB 411 million reported for the year ended 31 December 2024, representing an improvement of at least RMB 611 million.
• Substantial Revenue Growth: The company attributes this expected profitability mainly to a strong uptick in revenue generated from domestic commercialization and licensing activities. Key drivers include:
  • PUYOUHENG (Pucotenlimab Injection): Continued significant revenue growth.
  • MEIYOUHENG (Becotatug Vedotin Injection): Preliminary revenue generated following its approval by the National Medical Products Administration (NMPA) in October 2025.
• Expansion of Licensing Activities: The company’s profitability has been further boosted by expansion in licensing activities, including:
  • Out-licensing of MRG007
  • Out-licensing of CTM012 and CTM013: These are two of Lepu Biopharma’s preclinical TCE assets.
• One-off Non-operating Gain: Lepu Biopharma recognized a one-off gain during the year due to the reclassification of one of its investments from ‘associate’ to ‘investment at fair value’. This was triggered by the company no longer having significant influence over the investee. The gain is non-recurring and non-operational, but it contributed to the overall net profit for FY2025.

Important Information for Shareholders and Potential Investors

• Price Sensitivity: This positive profit alert signals a strong financial recovery and could potentially have a significant impact on Lepu Biopharma’s share price. Shareholders and investors should take note that the turnaround is driven by both operational improvements and a one-off gain.
• Preliminary Assessment: The figures disclosed are based on unaudited consolidated management accounts and may differ from the final audited results. The final results announcement for the Reporting Period is expected to be published by the end of March 2026.
• Caution Advised: Investors are advised to exercise caution when dealing in Lepu Biopharma shares, as the information is subject to change pending the finalization of audited financials.
• Board Composition: The Board currently consists of Dr. Pu Zhongjie (Chairman), Dr. Sui Ziye (CEO), two non-executive directors, and three independent non-executive directors. This diverse leadership may be relevant to governance and future strategic decisions.

Detailed Analysis

The expected turnaround in profitability is a major milestone for Lepu Biopharma. The company has managed to reverse a substantial loss in FY2024 to a notable profit in FY2025, primarily driven by strong market uptake of its newly commercialized products and expansion into licensing. The approval of MEIYOUHENG in October 2025 has opened new revenue streams in the domestic market, while out-licensing activities of key preclinical assets have further reinforced top-line growth.

The one-off gain from investment reclassification, though not recurring, also contributed to the profit surge. Investors should distinguish between core operational profit and this non-operating gain when evaluating future earnings potential.

As the announcement is based on preliminary results and unaudited data, there is a risk that actual results may vary. Investors should wait for the final audited figures in March 2026 for confirmation.

Conclusion

Lepu Biopharma’s positive profit alert for FY2025 is a significant development likely to influence its share price. The combination of strong product commercialization, licensing expansion, and a one-off gain has enabled the company to achieve profitability after a year of losses. Shareholders and potential investors should monitor the upcoming final results announcement and exercise due diligence when trading the company’s shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on preliminary unaudited data and may be subject to change. Investors are encouraged to consult the company’s official audited results and seek professional advice before making any investment decisions.

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