Biocytogen Pharmaceuticals (02315) accelerates its path towards high-quality development with both revenue and net profit soaring.

Since 2026, the domestic innovative drug sector has continued to thrive. The government has continuously released clear benefits through policies; for the first time, the government work report explicitly identifies biomedicine as an "emerging pillar industry," and the "14th Five-Year Plan for National Health" emphasizes the need for "full-chain support for the development and application of innovative drugs and medical devices." At the industry level, enthusiasm for innovation remains high, with the total value of licensing transactions for innovative drugs in China reaching approximately $110 billion in the first half of the year, marking a record high for the same period. Among the 38 innovative drugs approved during this time, 11 belong to new targets and new mechanisms, all of which are independently developed in China. Committed to becoming a "global source of new drugs," Biocytogen Pharmaceuticals (688796.SH, 02315.HK) was among the first to sense the warm trend in the industry. In the first half of 2026, the company's performance achieved a comprehensive leap, recording revenue of 941 million yuan, a year-on-year increase of 51.6%; net profit attributable to the parent company reached 241 million yuan, a significant year-on-year increase of 402.3%, maintaining profitability for five consecutive quarters. With the scale effect increasingly evident, net cash inflow from operations rose to 262 million yuan, surpassing net profit. Domestic business revenue reached 380 million yuan, with strong domestic demand becoming an important engine driving the company's rapid growth. Biocytogen Pharmaceuticals focuses on its proprietary gene editing technology, building an integrated drug R&D capability that covers target validation, antibody discovery, preclinical pharmacology and efficacy evaluation, and gene editing model development through the "fully human antibody molecule library + humanized mouse library" dual-platform approach. During the reporting period, the companys two major business lines advanced simultaneously, and the revenue structure continues to optimize. The innovative animal model sales business generated revenue of 446 million yuan in the first half of the year, up 62.4% year-on-year, solidifying its market leadership position. Sales of high-priced products such as dual-antibody/multivalent-antibody animal models increased, maintaining a high gross profit margin of 82.3%, further demonstrating the companys technological strength and competitive advantage in the field of innovative animal models. To meet the growing demand for orders, the new facility in Haimen, with over 100,000 cages, is gradually coming into production, providing ample space for subsequent capacity release. The antibody development business recorded revenue of 218 million yuan in the first half of the year, a year-on-year increase of 33.8%, and the "antibody library" is entering a rapid monetization phase. Leveraging the "Thousand Mice, Ten Thousand Antibodies" program, the company has built a library of over 1 million fully human antibody sequences surrounding more than 1000 potential druggable targets. With the collaborative empowerment of AI and automation, the antibody library is expected to expand rapidly to hundreds of millions, allowing new drug companies to directly select experimentally validated candidate molecules from the "antibody shelf," thus transforming antibody discovery from "searching in a haystack" to "supermarket shopping," significantly compressing the time and financial costs associated with new drug development. As of June 30, 2026, the company had signed over 455 cooperation/authorization agreements for its antibody business, with more than 105 signed in the first half of the year alone. Partners include multinational giants such as Merck, Gilead, and Johnson & Johnson, and the scope of cooperation is continuously expanding. In the first half of the year, the growth rate of income from preclinical products and services reached 57.9%, while R&D expenditures increased by about 27.8% year-on-year, indicating that revenue growth significantly outpaced expenditure growth, demonstrating a continuous improvement in operational efficiency. During the reporting period, the company officially launched the next-generation AI-driven antibody discovery platform, RenSuper Workstation. This platform relies on the long-standing accumulated data system of large-scale in vivo immunization and real-world validation from the RenMice fully human antibody mouse platform, integrating AI and high-throughput automation capabilities to form a closed loop of "intelligent screening + rapid verification." Welcome to visit RenSuper Workstation: https://www.rensuperbio.com/ Taking the RenNano fully human heavy-chain antibody (HCAb) platform as an example, this platform achieves a maximum screening hit rate of 98% and has obtained data validation on multiple challenging targets. Its automation capabilities cover the entire life cycle of antibody protein production, with stable outputs averaging 50100 mg and a throughput of 800 samples per day, which can reliably support large-scale antibody sample preparation and rapid verification needs. This platform is expected to drive the evolution of antibody discovery from "customized projects" to a new model that is "retrievable, scalable, and more efficient," further solidifying Biocytogen Pharmaceuticals' competitive moat in the field of antibody discovery. With the overall improvement of the innovative drug sector, Biocytogen Pharmaceuticals has entered a performance realization period. Looking ahead, the accelerated empowerment of AI selection and the orderly release of subsequent high-throughput automation capacity will provide greater certainty to support the company's long-term growth.