Genasylum Biotech 2025 Annual Report: Loss Reduction Exceeds 30%, Tumor Drug Market Reaches Dual-Antibody Watershed

21st Century Business Herald Reporter Ji Yuanyuan

In an innovative drug industry still experiencing a capital winter, with the main theme of “cost reduction and efficiency enhancement,” Junshi Biosciences has delivered its 2025 performance report.

On the evening of March 13, Junshi Biosciences (1877.HK, 688180.SH) released its 2025 annual report, showing the company achieved operating revenue of 2.498 billion yuan during the reporting period, a year-on-year increase of 28.23%. Net loss attributable to shareholders narrowed to 875 million yuan, a significant reduction of 31.68% year-on-year. Excluding the impact of stock-based compensation related to equity incentive plans, net loss attributable to shareholders would further decrease to 799 million yuan, with a reduction of 38%.

The core highlight of this financial report is not just the loss reduction. Data shows that Junshi Biosciences’ sales expense ratio decreased from 50.53% in 2024 to 42.15%, while its core product, Toripalimab (Tuoyi®), still achieved sales of 2.068 billion yuan domestically, a year-on-year increase of about 38%.

Some securities analysts in the pharmaceutical industry told 21st Century Business Herald that, based on the financial data, Junshi Biosciences is shifting from the past strategy of “burning money to scale” toward “refined operations.” Although the company is still operating with negative cash flow, the continued narrowing of losses indicates it is getting closer to the true breakeven point.

However, competition in domestic PD-1 drugs has already entered the “second half,” and as the benefits of Toripalimab’s indications reach their peak, can Junshi Biosciences build new competitive advantages with next-generation IO therapies like PD-1/VEGF bispecifics in this fierce market?

In 2025, Junshi Biosciences’ business strategy underwent significant changes, most visibly reflected in refined cost management.

Annual report data shows that despite a 28% increase in operating revenue, the growth of various expenses was much lower than revenue growth. Sales expenses increased by only 6.95% year-on-year, far below the 40.32% growth rate of drug sales revenue; management expenses even decreased by 5.50% year-on-year.

“Through management optimization, our commercial team has improved sales efficiency, and per capita output continues to increase,” Junshi Biosciences repeatedly mentioned in the annual report. This indicates that the previous logic of “using a large sales team to gain market share” is being overturned.

On the R&D front, Junshi Biosciences maintained a certain level of investment, with R&D expenses reaching 1.342 billion yuan in 2025, up 5.24% year-on-year. Notably, the proportion of R&D investment to operating revenue decreased from 65.45% last year to 53.72%. The company disclosed that it has established a full-process tracking management system for R&D projects from initiation to submission, with over 2,000 clinical trial enrollees.

From cash flow perspective, net cash flow from operating activities was -520 million yuan, significantly improved from -1.434 billion yuan in the same period last year. This shows the company continues to rely on its core products’ “self-sustaining” growth. Toripalimab remains the main driver of revenue, with domestic sales reaching 2.068 billion yuan in 2025, up about 38%.

This growth rate is still considerable among domestic PD-1 drugs, but it is undeniable that as indications expand, the market competition for PD-1 monotherapy has entered a red ocean phase.

As of now, Toripalimab has been approved for 12 indications domestically, all included in the latest national medical insurance catalog, becoming the only anti-PD-1 drug listed for kidney cancer, triple-negative breast cancer, and melanoma. For melanoma, with the inclusion of first-line treatment indications in the insurance, patients’ annual out-of-pocket costs have dropped from about 40,000-50,000 yuan to around 10,000 yuan. The logic of “price for volume” still holds, but as the base increases, the growth dividend from insurance coverage is diminishing at the margin.

The analyst mentioned earlier pointed out that the homogeneity competition in the domestic PD-1 market is far from over, with competitors continuously catching up in the number of indications. Currently, the competitive landscape has shifted from early price wars to building barriers through “broad coverage, strong international expansion, and superior formulations.”

Fortunately, overseas markets are becoming new growth engines. The annual report shows that Junshi Biosciences’ overseas revenue in 2025 increased by 102.37% year-on-year. So far, Toripalimab has been approved in over 40 countries and regions, including the US, EU, Australia, Singapore, and Middle East. Through partnerships with Coherus, Hikma, Dr. Reddy’s, and others in more than 80 countries, Junshi Biosciences’ commercialization network is expanding from Europe and America to the Middle East, Africa, and Southeast Asia.

For innovative drug companies, going abroad is not only about increasing revenue but also reshaping valuation logic. If Toripalimab can achieve stable sales overseas, Junshi Biosciences will break free from the pricing dilemma of relying solely on domestic insurance negotiations.

If the 2025 performance is a realization of past investments, then pipeline layout determines future heights. Among Junshi Biosciences’ pipeline, the most watched is undoubtedly JS207 (PD-1/VEGF bispecific).

Why is PD-1/VEGF bispecific so important? Because in the field of tumor immunotherapy, PD-1/VEGF bispecifics are considered the next-generation cornerstone therapy to replace first-generation PD-1 monotherapy.

However, the competition in the PD-1/VEGF bispecific track is more crowded than expected. According to data from Pharma Magic Cube, over 20 PD-(L)1/VEGF products are in clinical stages globally, all related to Chinese companies. With so few potential buyers, once giants like Pfizer, Merck, BMS, and AbbVie enter the market, there are limited seats left for latecomers.

In 2025, BD transactions around PD-1/VEGF bispecifics have been frequent. For example, on May 20, 2025, Sanyou Pharmaceuticals licensed exclusive global (excluding mainland China) development, manufacturing, and commercialization rights for SSGJ-707 to Pfizer. The upfront payment was $1.25 billion, setting a new record for upfront payments in Chinese innovative drug licensing, pushing the initial licensing payment for domestic innovation drugs into the billion-dollar range. On June 2, 2025, BioNTech acquired global rights to BNT327 for less than $2.1 billion, then six months later, partnered with BMS for a total of $11.1 billion, with a difference of $9 billion, exemplifying the “buy low, sell high” strategy in innovative drugs.

Where does Junshi Biosciences’ JS207 stand in this race? Based on clinical progress, JS207 is in Phase II trials. The key data point is efficacy: in PD-L1 positive non-small cell lung cancer (NSCLC) patients, objective response rates (ORR) reached 56.3% and 60.0% in the 10 mg/kg and 15 mg/kg dose groups, respectively. In October 2025, JS207 received FDA approval for a Phase II/III study comparing it with nivolumab as neoadjuvant therapy for resectable NSCLC, becoming the first PD-1/VEGF bispecific to be approved for confirmatory studies in this surgically eligible population worldwide.

This indicates JS207 not only has monotherapy potential but could also establish treatment barriers through combination therapy.

The real highlight is the “IO+ADC” combination strategy. With the advent of ADC era triggered by Daiichi Sankyo/AstraZeneca’s DS-8201, integrating immunotherapy with ADC has become a must for all pharmaceutical companies. Junshi Biosciences clearly recognizes this and is currently conducting Phase II combination trials of JS207 with its own EGFR/HER3 bispecific ADC (JS212).

Industry experts believe that PD-1/VEGF bispecifics, as IO 2.0 versions, combined with ADCs, could cover a broader range of tumor types and overcome some ADC resistance mechanisms. In other words, future tumor treatment landscapes may shift from single-drug dominance to competition between “bispecific + ADC” combination regimens.

In the oncology field, after PD-1, PD-1/VEGF is considered the next truly “blockbuster” product. This presents obvious challenges for Junshi Biosciences.

On one hand, although JS207 is progressing rapidly in clinical trials, competitors like Kangfang Bio’s AK112 have already submitted NDA to the FDA, and Sanyou’s SSGJ-707 is about to start multiple global Phase III trials after licensing to Pfizer. Under the “fast fish eat slow fish” competition rule, differences in approval timing will directly impact market share.

On the other hand, MNCs are becoming more selective in choosing partners. The termination of collaborations like Yiming Kangke with Instil Bio has sounded an alarm: not all promising preclinical data translate into commercial value, and the financial strength and execution capability of partners have become more critical than the BD deal size.

Junshi Biosciences clearly recognizes this. Unlike simply “selling seedlings,” the company is trying to maximize JS207’s clinical value through parallel independent development and collaborations. In February 2026, Junshi Biosciences reached a strategic partnership with Deqi Pharmaceuticals to explore combined use of JS207 with oral CD73 small molecule inhibitor ATG-037. This “three-axis” strategy simultaneously targets immune checkpoints, angiogenesis, and adenosine pathways, building a differentiated competitive barrier.

In the autoimmune field, Junshi Biosciences is also preparing. The new drug application for the anti-IL-17A monoclonal antibody (Rokocetib) for moderate to severe plaque psoriasis has been accepted. If approved, it will be the second autoimmune product after Junmaikang®.

Looking back at China’s innovative drug industry in 2025, the keyword is undoubtedly “differentiation.” Leading companies rely on core products for self-sustaining growth and win favor from MNCs through efficient R&D; smaller companies struggle in financing and survival.

Junshi Biosciences’ 2025 annual report clearly demonstrates the company’s shift from “storytelling” to “execution.” Revenue growth, narrowing losses, and declining expense ratios are tangible results of internal management. Meanwhile, the “IO+ADC” combination of JS207 and JS212 reflects a hidden layout for the future.

However, on the proven gold track of PD-1/VEGF bispecifics, competition has shifted from “marathon” to “close combat.” The advantages of Kangfang Bio, Pfizer’s capital support, and Rongchang Bio’s late entry make this battle full of uncertainties.

For Junshi Biosciences, 2026 will be a critical year. Once a highly favored “star” in the capital market, the company has listed on both HKEX and SSE, establishing a dual “A+H” listing platform, and in 2022, conducted targeted A-share placements with UBS, GF Securities, and others.

Will Junshi Biosciences manage to break through in the fierce market competition with JS207 in the coming year? Can it secure a better position in tumor treatment? Will it end losses and turn profitable? These are the issues it must address to regain trust from the capital markets.