Luzhu Biotech Interim 2026: Net Loss Down 20.6%, Cash Climbs as Core Vaccine Nears Approval

Bulletin Express
Yesterday

Beijing-based Luzhu Biotechnology released its unaudited 2026 interim results, highlighting a narrower net loss and steady pipeline progress.

Financial Snapshot • Net loss narrowed 20.6% year-on-year to RMB61.62 million, driven by a 39.7% drop in R&D spending to RMB30.33 million and a 39.4% rise in other income to RMB6.76 million. • Administrative expenses rose 9.6% to RMB28.29 million, while finance costs surged 73.8% to RMB4.74 million after interest capitalization ended on certain projects. • Net assets declined to RMB598.50 million (31 December 2025: RMB660.12 million); gearing increased to 39.9%. • Cash and cash equivalents (including term deposits) rose to RMB127.70 million from RMB97.04 million six months earlier as the company shifted funds from wealth-management products. • Bank borrowings expanded to RMB299.78 million, with RMB60.15 million due within one year.

Pipeline & Operations • Core Product LZ901 (recombinant herpes zoster vaccine): Phase III China trial (≈26,000 subjects) posted 91.6% overall efficacy and 95.9% efficacy against PHN; BLA accepted by NMPA in February 2025 and remains under review. Commercial launch in China expected 1H 2027. • U.S. Phase I completed in September 2025 with favorable safety and immunogenicity; IND clearance was obtained in July 2022. • Head-to-head study versus Shingrix® finished in 2025, showing superior cellular immunity and a better safety profile for LZ901. • K193 (CD19-CD3 bispecific antibody) continues Phase I in China; completion targeted for 2027. • Recombinant RSV vaccine: IND accepted by NMPA on 22 July 2026; Phase I slated for late-2026/early-2027. • Additional pre-clinical assets include recombinant varicella, HSV-1, HSV-2 vaccines and bispecific antibodies K333 (CD33-CD3) and K1932 (longer half-life CD19-CD3).

Capex & Facilities • Capital commitments fell to RMB1.83 million (31 Dec 2025: RMB8.56 million) as major construction projects near completion. • New Beijing manufacturing facility is expected to start trial operations in 2H 2026.

Outlook Management will focus on securing LZ901 approval, launching commercial readiness, advancing early-stage assets, and exploring external collaborations while maintaining fiscal discipline.

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