Full Press Release Details
LakeShore Biopharma Announces Fiscal Year
2025 Financial Results
BEIJING, July 31, 2025 /PRNewswire/ -- LakeShore
Biopharma Co., Ltd (Nasdaq: LSB) ("LakeShore Biopharma" or the "Company"), a global biopharmaceutical company
dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious
diseases and cancer, today announced its financial results for the Fiscal Year ended March 31, 2025 ("FY2025").
are pleased to announce LakeShore Biopharma's FY2025 financial results with a 7.2% year-over-year growth in revenues and an 11.3%
year-over-year growth in gross profits. Our net loss narrowed by 77% year-over-year", stated Xu Wang, Director and Chief Executive
Officer. "While we didn't meet the revenue guidance of RMB665-700 million and our adjusted EBITDA guidance range of RMB76-89
million, we have achieved significantly improved results compared to last year, despite substantial challenges. These include intensified
competition in the rabies vaccine industry market, particularly in the second half of Fiscal Year 2025, pricing pressures in certain regions,
limited capacity of major vaccine distribution channels to absorb new inventories, and ongoing cash constraints stemming from our inability
to secure new bank credit lines due to the ongoing litigation with former Chairman, Mr. Yi Zhang.
Mr. Xu Wang further commented: "Looking
forward, we will strategically allocate our resources to maximize the commercial value of our flagship product, YSJATM
rabies vaccine. Specifically, we will strive to maintain and grow our market share through the following measures: 1) expanding our
coverage regions; 2) retaining and attracting high-performing CSOs; 3) driving end-market demand through collaboration with
hospitals and clinics; 4) continuing to train and recruit new commercial talents; and 5) advancing the Phase III trial of the
simplified four-dose regimen for the YSJATM rabies vaccine at full speed, with the goal of securing the market approval
by the fourth quarter of 2026. Additionally, we will continue to enhance operational efficiency, reinforce cost control measures, and
strengthen internal corporate governance."
YSJATM Rabies Vaccine
LakeShore Biopharma's YSJATM
rabies vaccine is China's first aluminum-free lyophilized rabies vaccine (Vero cell) and has been in clinical use for over 22 years.
As of March 31, 2025, approximately 110 million doses have been administered for post-exposure protection against rabies. Leveraging LakeShore
Biopharma's successful commercialization capabilities, the YSJATM rabies vaccine has demonstrated strong production scalability
and broad market acceptance. Since launching in October 2020, LakeShore Biopharma has distributed over 35.3 million doses to 1,911 county-level
CDCs in China, representing 67.7% of coverage.
Progress of Phase III Clinical Trial on simplified
four-dose regimen for YSJATM rabies vaccine
In October 2024, the NMPA approved LakeShore Biopharma
to initiate a Phase III clinical trial evaluating a simplified four-dose regimen for YSJATM, including the Zagreb (2-1-1) and
Modified Essen (1-1-1-1) regimens.
LakeShore Biopharma commenced this clinical trial
in December 2024 and successfully completed the 90-day subject follow-up in July 2025. The Company expects to finish the interim analysis
in the fourth quarter of 2025 and obtain the market approval in the fourth quarter of 2026.
The study aims to strengthen the competitiveness
of the YSJATM rabies vaccine in the rapidly growing rabies vaccine market, demonstrate its clinical superiority, and garner
broader recognition and support from hospitals, academic institutions, and industry stakeholders in China and globally.
Fiscal Year 2025 Financial Results
Total revenue rose by 7.2%, from RMB573.4 million
in FY2024 to RMB615.0 million in FY2025. This growth was primarily driven by steady recovery of the domestic economy following the
end of the COVID-19 emergency, with improved production and operations.
Gross profit rose by 11.3%, from RMB455.7 million
in FY2024 to RMB507.2 million in FY2025. This increase was primarily driven by higher sales volume. The gross profit margin also improved,
from 79.5% in FY 2024 to 82.5% in FY 2025. The margin expansion was due to higher average unit prices and lower unit costs.
Selling and Marketing Expenses
Selling and marketing
("S&M") expenses decreased by 6.6%, from RMB301.3 million in FY2024 to RMB281.4 million in FY2025. This decline was
mainly attributed to higher S&M spending in FY2024, driven by increased market promotion to strengthen market position and brand
recognition, and to address intensified competition following additional approvals for human
rabies vaccines in China.
General and Administrative Expenses
General and administrative expenses decreased
by 7.9%, from RMB140.1 million in FY2024 to RMB129.0 million in FY2025. This reduction was primarily due to ongoing improvements in our
cost control framework, achieved through systematic implementation of cost-saving and efficiency initiatives. These include optimization
of management processes, tightening control over non-core spending, and improving resource utilization.
Research and Development Expenses
Research and development
("R&D") expenses in FY 2025 were RMB146.4 million, down from RMB302.8 million in FY2024, mainly due to: 1) the
termination of COVID-19 vaccine commercialization, which led to reduced related testing and clinical costs; and 2) lower
R&D spending on the PIKA rabies vaccine as the trial progressed to a later stage, follow-ups completed and focus shifted to
lower cost data analysis.
Impairment Loss on Inventory, Property, Plant
and Equipment, and Other Assets
Impairment loss on inventory, property, plant
and equipment, and other assets decreased by 76.7%, from RMB157.4 million in FY2024 to RMB36.7 million in FY2025. This decrease was mainly
attributed to the smaller reduction in PP&E impairment of equipment related to COVID-19 vaccines recognized in the current Fiscal
Year compared to FY2024.
EBITDA and Adjusted EBITDA
and Adjusted EBITDA2 were RMB(48.5 million) and RMB0.6 million, compared to
RMB(368.7 million) and RMB(236.4 million) respectively, in FY2024.
Loss from Operations
Operating loss was RMB86.3 million, significantly
lower than an operating loss of RMB445.8 million in FY2024.
Net Loss and Adjusted Net Loss
Net loss was RMB100.0 million, and adjusted net
loss3 was RMB40.0 million, in contrast to net loss of RMB433.5 million and adjusted net loss3 of RMB266.3
million, respectively, in FY2024.
As of March 31, 2025, the Company had cash and
cash equivalents of RMB107.5 million, compared to RMB246.6 million as of March 31, 2024. Our short-term loan and borrowings reached RMB390.4
million, compared to RMB318.5 million as of March 31, 2024.
The Company anticipates total revenue in FY2026
to be between approximately RMB550 million and RMB650 million.
The above outlook is based on the information
available as of the date of this press release and reflects the Company's current and preliminary expectations regarding its business
situation and market conditions. The outlook is subject to changes, especially given uncertainties and situations related to market competitive
dynamics, regulatory policies and other factors beyond its control.
About LakeShore Biopharma
LakeShore Biopharma, previously known as YS Biopharma,
is a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines
and therapeutic biologics for infectious diseases and cancer. It has developed a proprietary PIKA immunomodulating technology
platform and a new generation of preventive and therapeutic biologics targeting Rabies, Hepatitis B, Influenza, and other virus infections.
The Company operates in China, Singapore, and the Philippines, and is led by a management team that combines rich local expertise and
global experience in the biopharmaceutical industry. For more information, please visit https://investor.lakeshorebio.com/.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers
and uses certain non-GAAP measures, including Adjusted EBITDA and adjusted net income (loss), as supplemental measures to review and assess
its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute
for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Adjusted EBITDA as net income (loss)