Everest Medicines reported a sharp H1 2026 profit inflection, with non-IFRS net profit of RMB 97.23 million, reversing a year-earlier loss, as revenue surged 157% to RMB 1.15 billion.
The company’s IFRS net loss narrowed to RMB 5.94 million from a prior-year deficit of RMB 250 million, while regular operating profit under non-IFRS standards reached RMB 48.12 million. Gross margin stood at 73.7% under IFRS after adjustments for intangible asset amortization. Cash reserves totaled RMB 1.836 billion at end-June, rising to RMB 2.606 billion following a RMB 770 million down payment received in July under its $1.14 billion out-license deal with Travere Therapeutics for EVER001.
Operating expenses reflected disciplined cost management. Sales expenses fell to 39.86% of revenue at RMB 458 million, R&D expenses declined to 22.31% at RMB 256 million, and SG&A expenses dropped to 12.95% at RMB 149 million. Revenue from the ulcerative colitis treatment VELSIPITY, launched in March 2026, reached RMB 145 million, while NEFECON, the flagship IgA nephropathy therapy, generated nearly RMB 900 million in sales, up 94% year-on-year.
Supply chain disruptions for XERAVA, used in drug-resistant bacterial infections, are estimated to have cost RMB 150-200 million in lost revenue due to overseas CDMO constraints and zero-inventory periods. Local manufacturing for XERAVA and VELSIPITY is slated for 2028, with CARDAMYST approval expected in Q3 2026.
Shares of Everest Medicines fell 12.77% to $25.54, extending declines from a 52-week high of $75.15. The company’s market capitalization stands at $857 million, with a price-to-earnings ratio of 10.26.
Management highlighted NEFECON’s position as a first-line IgA nephropathy treatment and VELSIPITY’s oral administration advantage over injectable alternatives for ulcerative colitis. The company also outlined mid-term milestones, including NRDL negotiations for XERAVA and VELSIPITY in 2026, local manufacturing rollouts by 2028, and a long-term target of RMB 15 billion in revenue by 2030 under its “Everest 3.0” strategy.
