Insili Intelligence (03696) announced interim results, adjusted profit of $52.27 million and turned a year-on-year loss into profit

According to the Zhitong Finance App, Insili Intelligence (03696) announced its 2026 interim results, with revenue of about US$106 million, an increase of about 2.87 times; gross profit of US$95.965 million, an increase of about 3.17 times; and R&D expenses increased 38.7% to US$49.3 million. Adjusted profit of US$52.27 million and net profit of US$355.37 million, both of which turned a loss into a profit year over year.

According to the announcement, the increase in R&D expenses is mainly due to (i) increased CRO costs due to the expansion of clinical pipelines and the addition of early development projects; (ii) increased labor costs due to the smooth progress of project delivery and increased number of employees and performance bonuses; and (iii) increased share compensation expenses generated by granting share options and restricted share units to our R&D team to motivate and retain talents.

Thanks to a number of external licensing and research cooperation agreements with global multinational and Asian pharmaceutical companies, business development momentum was particularly strong this year. As of the last practical date, the total value of transaction contracts announced in 2026 is approximately USD 7.3 billion. For the six months ended June 30, 2026, the Group's revenue from drug discovery and pipeline development business was US$103 million, an increase of 331.3% over US$23.9 million for the six months ended June 30, 2025. This major collaboration not only validates the ability of Insili's intelligent AI platform to empower the global biopharmaceutical industry, but is also the main driving force for the company's revenue growth.

Insilicon Smart announced a global R&D partnership with Eli Lilly in March 2026. The cooperation agreement grants Eli Lilly an exclusive global license to develop, manufacture and commercialize potentially best-in-class novel oral treatments for specific indications in the preclinical development phase. Additionally, the company will introduce Insili Smart's advanced Pharma. The AI platform combines Eli Lilly's development capabilities and deep expertise in the field of diseases, and collaborates with Eli Lilly to carry out multiple R&D projects, focusing on targets selected by Eli Lilly. The company is entitled to receive a down payment of US$115 million, with a maximum potential total transaction value of approximately US$2.75 billion. This collaboration highlights the high recognition and continued confidence of the world's leading pharmaceutical companies in the scalability and commercial value of the company's AI-driven drug development platform. In addition, the company has also entered into a strategic joint development agreement with Hengtai Biotech to promote research and development of ISM8969 (the company's AI-enabled NLRP3 inhibitor with brain penetration for the treatment of Parkinson's disease). This collaboration, where both parties each hold 50% of global interests, enables the two sides to fully utilize their respective advantages in clinical development and commercialization. As part of this partnership, the company is entitled to receive up to $66 million in down payments and milestone payments, demonstrating the huge potential of this best-in-class drug candidate for neurodegenerative diseases.