Live coverage of the earnings call | Deqi Medical's 2025 losses narrow, and management expects to achieve more collaborations gradually this year

The Daily Business News Reporter｜Zhen Sujing The Daily Business News Editor｜Xu Shaohang

On March 20, DQY Pharmaceutical (6996.HK) released its 2025 annual performance results announcement, and held a performance briefing session on March 23, disclosing full-year operating data and the latest progress in its core pipeline and technology platforms. Financial data shows that in 2025, DQY Pharmaceutical achieved operating revenue of RMB 105 million, up 14.56% year over year. After adjustments, its net loss for the year (after deducting net foreign exchange differences) was RMB 202 million, compared with a loss of RMB 304 million in the same period last year.

At the performance briefing, DQY Pharmaceutical’s management announced the latest progress of the company’s core clinical pipeline, clearly stating that DQY Pharmaceutical is a de-risked innovative drug company. It has completed overseas expansion, achieved commercialization in multiple markets, and has continued generating revenue. The company expects that this year it will gradually reach more cooperation arrangements through additional partnership models.

DQY Pharmaceutical’s Shanghai clinical research and development center started operations in 2017, and it listed on the Hong Kong Stock Exchange main board in November 2020, completing over USD 330 million in IPO fundraising. Currently, DQY Pharmaceutical’s R&D pipeline focuses on oncology and autoimmune diseases, including one commercial-stage product, five clinical-stage projects, and multiple preclinical-stage projects.

From the financial data perspective, DQY Pharmaceutical’s 2025 operating performance shows the characteristics of slight revenue growth, lower expenses, and a narrower loss.

According to the announcement, DQY Pharmaceutical’s 2025 operating revenue was RMB 105 million, up 14.5%. Among them, the Mainland China market’s contribution accelerated, mainly benefiting from improved penetration in the Hivio market and deeper commercialization cooperation. This is also DQY Pharmaceutical’s only currently commercialized product.

It is understood that Hivio (Selininsuo) is an oral selective nuclear export inhibitor for treating hematological malignancies and solid tumors. By the end of 2025, Hivio had received NDA approvals in 10 Asia-Pacific markets, and it was included in local reimbursement in 5 markets. Management said that while continuing to drive clinical breakthroughs, it will work to maintain Hivio’s ongoing commercialization in the Asia-Pacific region, continue focusing on deepening market penetration and expanding reimbursement coverage.

Tight control over cost and expense management has become a key reason for DQY Pharmaceutical’s narrower loss. In 2025, the company’s R&D costs were RMB 169 million, compared with RMB 259 million in the same period last year. The announcement shows that the reduction was mainly due to improved efficiency in clinical research and early-stage R&D activities. Sales and distribution expenses were RMB 69.2 million, down RMB 4.5 million from the same period last year. Due to optimized employee structure and improved operating efficiency, DQY Pharmaceutical’s administrative expenses in 2025 decreased to RMB 87.5 million, down RMB 18.8 million from the same period last year.

As a result, DQY Pharmaceutical’s net loss for 2025 was RMB 239 million, compared with RMB 319 million in the same period last year; the adjusted loss after deducting foreign exchange differences was RMB 202 million, narrowing by 33.7% year over year. In response, DQY Pharmaceutical said that this was mainly due to strengthening cost control and improving efficiency, thereby reducing the company’s R&D costs and administrative expenses.

A reporter noted that investors are paying close attention to DQY Pharmaceutical’s current cash flow situation. Management responded by saying, “As of the end of 2025, the company’s cash reserves were approximately RMB 734 million.” Management also stated that it is expected to receive milestone payments totaling up to more than USD 1.1 billion in the future, as well as tiered royalties based on future net sales.

Another key focus of the performance briefing is the progress of DQY Pharmaceutical’s core clinical pipeline and technology platform. The clinical data disclosures for two major products, ATG-022 and ATG-037, as well as the global licensing cooperation for its second-generation T-cell engager platform AnTenGager™ are the highlights shared at this performance briefing.

According to DQY Pharmaceutical’s disclosure, by the end of 2025 the company had 9 clinical studies ongoing in Mainland China, the United States, and Australia.

DQY Pharmaceutical said that currently, the frontline combination therapy study of ATG-022 in gastric cancer has been fully initiated. The company expects to announce the latest clinical data in the second quarter of 2026. The company plans to start a pivotal Phase III clinical trial for gastric cancer with its monotherapy in 2026 and to begin enrolling patients in the second half of 2026.

In the Q&A session with investors during DQY Pharmaceutical’s 2025 performance briefing, investors asked how to view the current situation in which products such as Claudin 18.2 monoclonal antibodies, ADCs, and CAR-T are competing in a crowded manner in the same track, as well as the company’s competitive strategy. The company’s management provided detailed responses.

Management said directly that the Claudin 18.2 track looks crowded, but most competing products are concentrated in the mid-to-high expressers population, meaning the “second tier” track is crowded. In contrast, ATG-022 has moved beyond this competitive category, forming a leading position in terms of efficacy, safety, and indication expansion. Currently, there is clinical study data on this product involving more than 100 patients in Australia and China. The company is confident that it can quickly initiate Phase III registration clinical trials and expand to other tumor types in addition to pancreas and the gastrointestinal tract as soon as possible.

Cover image source: The Daily Business News media database

A massive amount of information and precise interpretation are all available in the Sina Finance APP