{"id":58163,"date":"2024-08-10T00:03:55","date_gmt":"2024-08-10T00:03:55","guid":{"rendered":"https:\/\/english.saigonbiz.com.vn\/2024\/08\/10\/genscript-biotech-reports-first-half-2024-results\/"},"modified":"2024-08-10T00:03:55","modified_gmt":"2024-08-10T00:03:55","slug":"genscript-biotech-reports-first-half-2024-results","status":"publish","type":"post","link":"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/","title":{"rendered":"GenScript Biotech Reports First Half 2024 Results"},"content":{"rendered":"<div>\n<p><b> <i>Strong Revenue Growth and Strategic Advances Across Key Segments, Enhances Commitment to ESG and Sustainable Development<\/i>\u00a0<\/b><\/p>\n<ul type=\"disc\">\n<li>Impressive Financial Growth: The group reported a 43.5% increase in revenue, driven by a 156% boost in cell therapy revenue and a 75.4% rise in gross profit, showcasing strong performance across key segments.<\/li>\n<li>Focused on Innovation and Efficiency: Investing heavily in R&amp;D and market expansion, aiming to drive sustainable growth, enhance global presence, and continue its leadership in technology and ESG practices.<\/li>\n<li>Strong ESG Commitment: Joined the UNGC and ranked in the top 35% in EcoVadis&#8217; sustainability ratings. It&#8217;s also committed to science-based climate targets and holds international certifications for environmental and data security management.<\/li>\n<\/ul>\n<p><span class=\"legendSpanClass\"><span class=\"xn-location\">PISCATAWAY, N.J.<\/span><\/span>, <span class=\"legendSpanClass\"><span class=\"xn-chron\">Aug. 9, 2024<\/span><\/span> \/PRNewswire\/ &#8212; GenScript Biotech Corporation (HKEX: 1548.HK), a leading global technology and service provider of life science R&amp;D and manufacture, today reported its first half 2024 financial results for the six months ended <span class=\"xn-chron\">June 30<\/span>, showcasing impressive revenue growth, significant improvements in gross profit, and strategic advances across its business segments. GenScript is also deepening its commitment to environmental, social, and governance (ESG) practices, marking a significant step towards sustainable development.<\/p>\n<p><span class=\"xn-person\">Sherry Shao<\/span>, GenScript&#8217;s rotating CEO, said, &#8220;In the first half of 2024, the Group showcased strong market adaptability and growth potential. With a diversified business strategy, exceptional innovation, and efficient operations, GenScript not only maintained solid profitability in the life sciences sector but also saw promising growth in cell therapy product sales. Our subsidiary, Bestzyme, has also outperformed the industry, thanks to years of hard work from the team. While the CDMO sector has been under pressure due to current investment challenges, we&#8217;re starting to see signs of recovery. We&#8217;re ready to accelerate our business in the second half of the year. GenScript will continue to strengthen its core competencies across all business lines and foster synergies across divisions to achieve shared growth with our global partners.&#8221;<\/p>\n<p><b>Strong Financial Performance<\/b><\/p>\n<p>During the Reporting Period, GenScript generated revenue of approximately <span class=\"xn-money\">US$561.4 million<\/span>, reflecting a robust 43.5% increase from <span class=\"xn-money\">US$391.3 million<\/span> in the Prior Period. This growth was largely driven by the cell therapy segment, which saw a remarkable 156% increase, reaching approximately <span class=\"xn-money\">US$280.3 million<\/span> compared to <span class=\"xn-money\">US$109.5 million<\/span> previously. On the other hand, revenue from the non-cell therapy business was around <span class=\"xn-money\">US$281.1 million<\/span>.<\/p>\n<p>Gross profit surged to approximately <span class=\"xn-money\">US$307 million<\/span>, a 75.4% increase from <span class=\"xn-money\">US$175 million<\/span> in the Prior Period. The cell therapy segment was a key contributor to this growth, with its gross profit soaring by 323.4% to approximately <span class=\"xn-money\">US$175.3 million<\/span>.<\/p>\n<p><b>Improved Loss and Adjusted Net Loss<\/b><\/p>\n<p>GenScript&#8217;s loss for the Reporting Period narrowed to approximately <span class=\"xn-money\">US$215.6 million<\/span>, compared to <span class=\"xn-money\">US$245.8 million<\/span> in the Prior Period. The adjusted net loss saw a significant improvement, decreasing to approximately <span class=\"xn-money\">US$69 million<\/span> from <span class=\"xn-money\">US$162 million<\/span>.<\/p>\n<p>For the non-cell therapy business, the adjusted net profit before eliminations was approximately <span class=\"xn-money\">US$29.2 million<\/span>, a 13.1% decrease from <span class=\"xn-money\">US$33.6 million<\/span>. Meanwhile, the adjusted net loss for the cell therapy business before eliminations narrowed to approximately <span class=\"xn-money\">US$98.3 million<\/span> from <span class=\"xn-money\">US$195.7 million<\/span>.<\/p>\n<p><b>Segment Highlights<\/b><\/p>\n<ol type=\"1\">\n<li><b>Life-Science Services and Products<\/b>: Revenue in this segment grew by 9.6% to approximately <span class=\"xn-money\">US$222.4 million<\/span>, driven by major upgrades in platforms and automation, especially in molecular biology, peptide, and protein technologies. Enhanced manufacturing efficiency in <span class=\"xn-location\">Singapore<\/span>, Mainland China, and the U.S., along with strong commercial operations in the U.S. and <span class=\"xn-location\">Europe<\/span>, fueled this growth. Adjusted gross profit increased by 8.5% to approximately <span class=\"xn-money\">US$119.9 million<\/span>, maintaining a stable margin. Adjusted operating profit rose significantly by 23.8% to approximately <span class=\"xn-money\">US$47.8 million<\/span>.<\/li>\n<li><b>Biologics Development Services<\/b>: This segment saw a revenue decline of 37.9% to approximately <span class=\"xn-money\">US$40.4 million<\/span>, impacted by reduced demand and increased competition. Adjusted gross profit fell by 69.7% to approximately <span class=\"xn-money\">US$5.9 million<\/span>, with the adjusted gross profit margin decreasing to 14.7%. Adjusted operating loss widened to approximately <span class=\"xn-money\">US$18.9 million<\/span>, driven by higher operating costs related to U.S. expansion and strategic investments. The Company plans to refine pricing strategies and enhance global market presence to address these challenges.<\/li>\n<li><b>Industrial Synthetic Biology Products<\/b>: Revenue increased by 43.4% to approximately <span class=\"xn-money\">US$26.1 million<\/span>, driven by a market rebound and growing demand in Mainland China and beyond. Adjusted gross profit rose by 52.8% to approximately <span class=\"xn-money\">US$11 million<\/span>, with the adjusted gross profit margin improving to 42.2%. Adjusted operating profit improved to approximately <span class=\"xn-money\">US$2.3 million<\/span>, reflecting higher capacity utilization and process improvements.<\/li>\n<li><b>Cell Therapy<\/b>: Revenue from the cell therapy segment grew by 155.7% to approximately <span class=\"xn-money\">US$280.5 million<\/span>. This growth was fueled by collaboration revenue from CARVYKTI sales under the Janssen Agreement and increased license revenue from agreements with Janssen and Novartis Pharma AG. The adjusted operating loss narrowed to approximately <span class=\"xn-money\">US$119.4 million<\/span> from <span class=\"xn-money\">US$205.9 million<\/span>. The Company invested approximately <span class=\"xn-money\">US$196.3 million<\/span> in research and development, focusing on cilta-cel and solid tumor programs, and incurred approximately <span class=\"xn-money\">US$52.4 million<\/span> in adjusted selling and distribution expenses and <span class=\"xn-money\">US$49.1 million<\/span> in adjusted administrative expenses.<\/li>\n<\/ol>\n<p><b>Deepening ESG Commitment<\/b><\/p>\n<p>In addition to its financial achievements, GenScript is advancing its commitment to sustainability and ESG practices. This year, the Company officially joined the United Nations Global Compact (UNGC), underscoring its commitment to adhere to ten sustainable development principles and drive more responsible, inclusive, and sustainable global business practices.<\/p>\n<p>The Group has also been recognized for its ESG performance, ranking in the top 35% in EcoVadis&#8217; sustainability assessments. This recognition highlights the Company&#8217;s efforts in environmental protection, labor rights, supply chain management, fair operations, and the execution of sustainable development strategies. Further demonstrating its dedication, the Company has joined the Science Based Targets initiative (SBTi) and submitted its Science-Based Targets Commitment, reflecting its proactive stance on global climate change and commitment to aligning with the Paris Agreement&#8217;s temperature goals.<\/p>\n<p>In environmental management, GenScript is focused on optimizing its carbon footprint through international certifications such as ISO 14064, ISO 14001, and ISO 50001. These certifications enhance energy efficiency and cut greenhouse gas emissions. Additionally, the Company has earned ISO 27001 certification, ensuring top-notch data security and customer privacy protection.<\/p>\n<p><b>Looking Ahead<\/b><\/p>\n<p>GenScript remains focused on driving sustainable growth through strategic investments, operational efficiency, and innovation. The Group will continue to enhance its global market presence, optimize supply chain management, and leverage its cutting-edge technologies to deliver exceptional value to its stakeholders while advancing its ESG objectives.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Strong Revenue Growth and Strategic Advances Across Key Segments, Enhances Commitment to ESG and Sustainable Development\u00a0 Impressive Financial Growth: The group reported a 43.5% increase in revenue, driven by a 156% boost in cell therapy revenue and a 75.4% rise in gross profit, showcasing strong performance across key segments. Focused on Innovation and Efficiency: Investing [&#8230;]\n","protected":false},"author":1,"featured_media":79226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-58163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pr-newswire"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.6 (Yoast SEO v21.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GenScript Biotech Reports First Half 2024 Results - Biz and Live in Saigon<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GenScript Biotech Reports First Half 2024 Results\" \/>\n<meta property=\"og:description\" content=\"Strong Revenue Growth and Strategic Advances Across Key Segments, Enhances Commitment to ESG and Sustainable Development\u00a0 Impressive Financial Growth\" \/>\n<meta property=\"og:url\" content=\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\" \/>\n<meta property=\"og:site_name\" content=\"Biz and Live in Saigon\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SaigonbizGroup\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-10T00:03:55+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/#\/schema\/person\/267b348e6cf32a66aab33637c2d399a6\"},\"headline\":\"GenScript Biotech Reports First Half 2024 Results\",\"datePublished\":\"2024-08-10T00:03:55+00:00\",\"dateModified\":\"2024-08-10T00:03:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\"},\"wordCount\":1024,\"publisher\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/#organization\"},\"articleSection\":[\"Pr Newswire\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\",\"url\":\"https:\/\/english.saigonbiz.com\/vn\/genscript-biotech-reports-first-half-2024-results\/\",\"name\":\"GenScript Biotech Reports First Half 2024 Results - 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