The Zhitong Finance App learned that Daiwa released a research report saying that Insili Intelligence (03696) BD and PCC output reached a record high, and that the sharp increase in revenue in the first half of this year was mainly driven by accelerated external licensing activities. Revenue for the first half of the year increased 287.2% year over year to US$106 million, and the main business of drug discovery and pipeline development increased significantly.
The value of newly signed foreign authorized transactions reached 7.3 billion US dollars, which is equivalent to about 7% of China's total BD value during the same period, bringing the total value of the company's foreign authorized transactions to 11 billion US dollars. New external authorized partners include Eli Lilly, Takeda, Servier, Sanofi, SK Biopharmaceuticals, Kangzhe Pharmaceuticals, Qilu, and Tenacia.
Management reiterated that the 2026 revenue guidance was unchanged at US$150 million to US$200 million, and expected the company to reach adjusted non-IFRS net profit break-even in 2026; in the following years, net profit is expected to gradually rise from 2026 levels.
The company expects 12 preclinical drug candidates (PCC) in 2026 and targets about 10 each year thereafter. Insilicon Intelligence nominated a record number of 9 PCCs in 2026. Management expects the total number of PCC outputs to reach 12 by the end of 2026, and maintain about 10 PCCs per year thereafter. With an AI-driven platform, the company can develop a PCC within 12 to 18 months at an average cost of 3 million to 5 million dollars, which is about one-quarter to one-fifth of the traditional development time, and about one-tenth the cost of its US peers.
The company currently has 33 PCC assets in the pipeline. Among them, the most advanced ISM001-055 (TNIK) has entered the IPF Phase 3 clinical trial in China. The data reading is expected to be in 2029; the sub-advanced ISM5411 has entered the IBD phase 2 clinical trial. The company has also begun producing macromolecular modal PCCs. PCCs for ADC and PROTAC are expected to appear in 2026, while cyclic peptides may be in 2027.