Full Press Release Details
YS Biopharma Announces Unaudited Financial
Results for the First Half of Fiscal Year 2024
GAITHERSBURG, MD., January 22, 2024 /PRNewswire/
-- YS Biopharma Co., Ltd. (NASDAQ: YS) ("YS Biopharma") along with its subsidiaries ("YS Group" 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 unaudited consolidated financial results for the first
half of the fiscal year ended March 31, 2024 (the "first half of fiscal year 2024").
David Shao, Director, President, and CEO of the Company, commented, "During the first half of fiscal year 2024, though we continued
to experience the lingering impact of inventory issues from previous COVID-related disruptions at our YSJA rabies vaccine manufacturing
facilities, we executed various operational enhancements to overcome past setbacks. By improving our raw material supply, refining our
inventory management, and optimizing the production throughput, our vaccine production operation has returned to normal, and our inventory
situation is improving. With higher production throughput and a healthier inventory level of finished products, we expect that the second
quarter of our fiscal year 2024 will be the last to be impacted by the previously incurred production delays. Meanwhile, we expect YSJA
rabies vaccine revenues in the third quarter, ended December 31, 2023, to increase approximately 50% sequentially from the second quarter,
ended September 30, 2023. Our promising array of product candidates are advancing in the development, and we are optimistic about the
potential of our PIKA rabies vaccine to provide us with an important new advantage."
"At the same time, we are fortifying our
corporate governance and streamlining our decision-making process to bolster our foundation for long-term and sustainable growth,"
Dr. Shao continued. "We have taken steps to diversify our Board composition with the addition of global pharmaceutical industry
leadership and US capital market expertise to our company, a move which has thus far been lauded by our shareholders. Under the stewardship
of our board of directors, we will continue to innovate and capitalize on resurgent demand from the market."
Ms. Brenda Wu, CFO of the Company, added, "For
the first half of fiscal year 2024, our revenues were RMB273.1 million, mainly due to COVID-related disruptions affecting raw material
supply chains, manufacturing operations, and production output at our YSJA rabies vaccine production facilities. Our gross profit for
the period was RMB220.9 million, and we expanded our gross profit margin by 4.3 percentage points to 80.9%. Our cash and cash equivalents
totaled RMB259.9 million at the end of the period. Looking ahead, we will continue to strategically enhance our business and capitalize
on growth opportunities as we strive to deliver long-term value for our shareholders."
YSJATM Rabies Vaccine
YS Biopharma's marketed vaccine product,
YSJATM rabies vaccine, was the first aluminum-free lyophilized rabies vaccine launched in China. Since the Company commenced
production at its current GMP-compliant facilities in February 2020, and, since it commenced the product's commercialization in
late 2020, market intake of the Company's YSJA rabies vaccine has been consistent and strong. As of September 30, 2023, YS Biopharma
had sold more than 23.5 million doses of YSJATM rabies vaccines to approximately 1,718 Chinese Center(s) for Disease Control
and Prevention ("CDC") customers, which represents over 59.6% of CDC customers in China since October 2020.
YS Biopharma continues to advance its portfolio
of innovative product candidates under various clinical development stages, including PIKA rabies vaccine, PIKA recombinant COVID-19 vaccine,
PIKA YS-ON-001, and PIKA YS-HBV-002.
PIKA Recombinant COVID-19 Vaccine
First Half of Fiscal Year 2024 Financial
Total revenues were RMB273.1 million (US$38.0
million) in the first half of fiscal year 2024, compared to RMB399.5 million in the same period of fiscal year 2023, representing a decrease
of 31.6%. This was primarily due to COVID-related disruptions affecting the Company's manufacturing operations and production, which
reduced batch approvals and doses available for sale; offset by the increases in product price by approximately RMB3.0 per dose.
Gross profit was RMB220.9 million (US$30.8 million),
representing an 80.9% gross margin, compared to RMB305.8 million, or a 76.5% gross margin, in the same period of fiscal year 2023.
Selling and Marketing Expenses
Selling and marketing expenses in the first half
of fiscal year 2024 were RMB157.7 million (US$22.0 million), compared to RMB150.2 million in the same period of fiscal year 2023. This
increase was primarily attributable to an increase in promotional and marketing services fees as the Company continued to promote its
YSJA rabies vaccine.
General and Administrative Expenses
General and administrative expenses in the first
half of fiscal year 2024 were RMB67.6 million (US$9.4 million), compared to RMB49.6 million in the same period of fiscal 2023. This change
was primarily attributable to increase in 1) professional service fees, due to the Company's status as a publicly-listed entity,
2) management salaries, and 3) provision for trade receivables and inventories.
Research and Development Expenses
Research and development expenses were RMB178.9
million (US$24.9 million) in the first half of fiscal year 2024, compared to RMB123.9 million in the same period of fiscal 2023. The increase
was primarily driven by an increase in testing and clinical trial fees associated with the Company's COVID-19 vaccine, PIKA rabies
vaccine, and hepatitis B vaccines.
Net loss for the first half of fiscal year 2024
was RMB174.5 million (US$24.3 million), compared with RMB11.1 million in the same period of 2023.
As of September 30, 2023, the Company had cash
and cash equivalents of RMB259.9 million (US$36.2 million), compared with RMB370.4 million as of March 31, 2023.
YS Group 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, Coronavirus, Hepatitis B, Influenza, Shingles, and other virus infections.
YS Biopharma operates in China, the United States, 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 investor.ysbiopharm.com.
Exchange Rate Information
This announcement contains translations of certain
RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from
RMB to U.S. dollars are made at a rate of RMB7.1798 to US$1.00, the exchange rate set forth in the central parity rate release of the
People's Bank of China on September 30, 2023.
Cautionary Statement Regarding Forward-Looking
press release contains "forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical or current fact included in this press release are forward-looking statements, including
but not limited to statements regarding the expected growth of the Company, the development progress of all product candidates, the progress
and results of all clinical trials, the Company's ability to source and retain talent, and the cash position of the Company following
the closing of the Business Combination. Forward-looking statements may be identified by the use of words such as "estimate,"
"plan," "project," "forecast," "intend," "will," "expect," "anticipate,"
"believe," "seek," "target" or other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These statements are based on various assumptions, whether identified in this
press release, and on the current expectations of YS Biopharma's management and are not predictions of actual performance.
These statements involve risks,
uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially
different from those expressed or implied by these forward-looking statements. Although YS Biopharma believes that it has a
reasonable basis for each forward-looking statement contained in this press release, YS Biopharma cautions you that these statements
are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. In
addition, there are risks and uncertainties described in the final prospectus relating to the Business Combination , and other
documents filed by YS Biopharma from time to time with the SEC. These filings may identify and address other important risks
and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking
YS Biopharma cannot assure you that the forward-looking
statements in this press release will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties,
including, among others, the ability to recognize the anticipated benefits of the Business Combination, costs related to the transaction,
the impact of the global COVID-19 pandemic, the risk that the transaction disrupts current plans and operations as a result of the consummation
of the transaction, the outcome of any potential litigation, government or regulatory proceedings, the sales performance of the marketed
vaccine product and the clinical trial development results of the product candidates of YS Biopharma, and other risks and uncertainties,
including those included under the heading "Risk Factors" in the post-effective amendment No. 1 to Form F-1 filed with the SEC on August