CK Life Sciences narrows H1 losses by 81%

CK Life Sciences Engineers reported a significant narrowing of its first-half losses, with the deficit dropping 81% year-on-year to HK$28.73 million. Chairman Li Ka-shing noted that the company is focusing more rigorously on pharmaceutical and diagnostic research to ensure efficient R&D spending and long-term value creation.

The reduction in losses is partly attributed to changes in how R&D expenses are accounted for. The company's drug development subsidiary, Polynoma, is undergoing a restructuring to be acquired by the US-based TransCode Therapeutics (RNAZ). Because the change in control has not yet been approved by RNAZ shareholders, the expenses for both entities were not included in CK Life Sciences' consolidated financial statements for the first half of the year.

The group's pharmaceutical R&D is driven by three main pillars: Dogwood Therapeutics (pain management), TransCode Therapeutics (RNA and oncology treatments), and Sequencio Therapeutics (cancer vaccines). TransCode's RNA candidate, TTX-MC138, has entered Phase 2a clinical trials.

On the revenue side, the group saw a 4.2% increase to HK$2.716 billion. This growth was supported by the healthcare products segment, which rose 5.9%, and agriculture-related businesses, which grew 2.2%, despite rising costs impacting marginal profits.