Highlights:

• Revenue of the Group for the year ended December 31, 2020 was approximately US$390.8 million, representing an increase of 42.9% as compared with approximately US$273.4 million for the year ended December 31, 2019
• Gross profit of the Group for the year ended December 31, 2020 was approximately US$255.9 million, representing an increase of 41.9% as compared with approximately US$180.3 million recorded for the year ended December 31, 2019
• The adjusted net profit* of non-cell therapy business was approximately US$44.4 million, representing an increase of 105.6% as compared with approximately US$21.6 million for the year ended December 31, 2019, and the adjusted net loss* of cell therapy business was approximately US$213.3 million, whilst the adjusted net loss* of cell therapy business was approximately US$131.9 million for the year ended December 31, 2019
• Loss of the Group for the year ended December 31, 2020 was approximately US$281.4 million, whilst loss was approximately US$117.5 million for the year ended December 31, 2019. The adjusted net loss* of the Group was approximately US$168.9 million, whilst the adjusted net loss* of approximately US$110.3 million was recorded for the year ended December 31, 2019

NANJING, China, March 27, 2021 /PRNewswire/ — Genscript Biotech (HKEX: 1548.HK) (GenScript), a global leading biotech company, today announced its audited financial results for the year ended December 31, 2020.

“In 2020, the outbreak of COVID-19 pandemic presented both challenges and opportunities to the life science community. Thanks to concerted efforts of all GenScript people, the Group delivered historically strong results amid the outbreak,” said Patrick Liu, Rotating CEO of GenScript. “In the past year, our business segments tided over difficulties, turned challenges into opportunities and achieved many breakthroughs. In the future, we will move forward with dedication and create more value for both our investors and customers. We are committed to our mission of “making people and nature healthier through biotechnology” and strive for human wellbeing.”

Financial Results Highlits for the Year Ended December 31, 2020

Revenue                                            

In 2020, the Group recorded revenue of  approximately US$390.8 million, representing an  increase of 42.9% from approximately US$273.4 million in 2019. This was primarily attributable to (i) the strong growth in business of specially-functioned protein and antibody which meet market demands on key products related to COVID-19, (ii) the continuing increase from life-science services and products from major strategic customers and new competitive services and products, (iii) the  increase of contract revenue derived from Legend’s collaboration with Janssen with new milestone achieved, and (iv) the increase in both the number of customers and their purchase volume of industrial synthetic biology products.

Gross Profit

In 2020, the Group’s gross profit increased by 41.9% to approximately US$255.9 million from approximately US$180.3 million in 2019. The increase in gross profit was primarily attributable       to the (i) strong growth in life-science and biologics development business and high gross margin products, especially for COVID-19, and (ii) significant improvement on capacity utilization of materials and labor efficiency in industrial synthetic biology products.

Selling and distribution expenses

The selling and distribution expenses increased by 52.4% to approximately US$107.3 million in    2020 from approximately US$70.4 million in 2019. This was mainly attributable to the (i) increased investment into the commercial talent pool by recruiting more experienced personnel and improving incentive packages, and (ii) increased expenses for the global expansion of our business.

Administrative expenses

In 2020, the administrative expenses increased by 63.3% to approximately US$90.3 million from US$55.3 million in  2019. This was  mainly caused by  (i)  competitive compensation package for  our employees including shared-based payment provided to recruit experienced talents for all business segments, (ii) the reinforcement of some key administrative functions such as information technology, supply chain and finance to build up capable and professional administrative team to support the Group’s overall business expansion, and (iii) the expansion of the European and Asia- Pacific Regional centers to accelerate the Group’s global market penetration.

Research and development expenses

The  research and  development expenses increased by  41.6% to  approximately US$263.4 million  in 2020 from approximately US$186.0 million in 2019. This was mainly due to the (i)  investment    in COVID-19 related projects and other new challenging  research  and  development  projects,  which significantly strengthened our competitiveness in the market and improved our production efficiency, (ii) increase in clinical trial expenses and preclinical study costs, especially in the cell therapy segment, and (iii) increase in compensation package including shared-based payment for research and development personnel.

*Adjusted net profit/(loss)

About GenScript Biotech Corporation

GenScript Biotech Corporation (Stock Code: 1548.HK) is a global biotechnology group. Based on its leading gene synthesis technology, GenScript has developed four major platforms including the global cell therapy platform, the biologics contract development and manufacturing organization (CDMO) platform, the contract research organization (CRO) platform and the industrial synthesis product platform. GenScript’s business operation spans over 100 countries and regions worldwide with legal entities located in the US, the Chinese mainland, Hong Kong of China, Japan, Singapore, Netherlands and Ireland.