GRAIL Announces Novel Risk Classification Test to Be Used in Lung Cancer Study

On March 18, 2024 GRAIL, LLC, a healthcare company whose mission is to detect cancer early when it can be cured, reported that participants from Japan, via a collaboration with AstraZeneca (LSE/STO/Nasdaq:AZN), will have their samples tested using GRAIL’s novel risk classification test on its Methylation Platform (Press release, Grail, MAR 18, 2024, View Source [SID1234641245]). This assay has been validated for recurrence risk classification in newly diagnosed Stage I lung adenocarcinoma.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

GRAIL’s Methylation Platform enables tissue-free, blood-based cancer detection that can be customized for a suite of precision applications across hematological and solid tumors, including risk stratification, molecular subtyping, and molecular response. This study with AstraZeneca aims to demonstrate the test’s capability to deliver results within 10 days without the need for tumor tissue, supporting use in future global pharmaceutical clinical trials.

"The development of this risk classification test as part of GRAIL’s clinical oncology portfolio is a significant milestone in our ongoing commitment to support patient care with novel, non-invasive tests for early detection and beyond," said Jeffrey Venstrom, MD, Chief Medical Officer at GRAIL. "GRAIL’s tissue-free, blood-only methodology is designed to aid in clinical trial selection with potential for customizable diagnostic approaches that can enable precision oncology."

In 2022, GRAIL announced a broad strategic collaboration with AstraZeneca to develop and commercialize companion diagnostic (CDx) assays for use with AstraZeneca’s therapies.

In December 2023, GRAIL announced the analytical and clinical validation of a novel prognostic test in Stage I lung adenocarcinoma.

Fennec Pharmaceuticals and Norgine Enter into Exclusive Licensing Agreement to Commercialize PEDMARQSI in Europe, Australia, and New Zealand

On March 18, 2024 Fennec Pharmaceuticals Inc. (NASDAQ: FENC; TSX: FRX), a commercial stage specialty pharmaceutical company, and Norgine, a leading European specialist pharmaceutical company, reported an exclusive licensing agreement under which Norgine will commercialize PEDMARQSI in Europe, Australia and New Zealand (Press release, Fennec Pharmaceuticals, MAR 18, 2024, View Source [SID1234641244]). PEDMARQSI is the first and only approved therapy in the EU and U.K. for the prevention of ototoxicity (hearing loss) induced by cisplatin chemotherapy in patients 1 month to < 18 years of age with localized, non-metastatic solid tumors.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Under the terms of the licensing agreement, Fennec will receive €40 million in upfront consideration and up to €210 million in additional commercial and regulatory milestone payments and double-digit tiered royalties on net sales of PEDMARQSI in the licensed territories up to the mid-twenties. Norgine will be responsible for all commercialization activities in the licensed territories and will hold all marketing authorizations in the licensed territories.

It is estimated that more than 5,000 pediatric patients annually are eligible for platinum-based chemotherapy in Europe. PEDMARQSI was granted EU marketing authorization by the European Commission in June 2023, and received UK approval from the MHRA in October 2023. Approvals were based on safety and efficacy data from two open-label, randomized Phase 3 trials, SIOPEL 6 (pivotal) and Clinical Oncology Group [COG] Protocol ACCL0431. The studies compared PEDMARQSI plus cisplatin-based regimens to cisplatin-based regimens alone for the reduction of cisplatin-induced hearing loss in pediatric patients. PEDMARQSI holds eight years plus two years of data and market protection in Europe based on its Pediatric Use Marketing Authorization. Approval in Switzerland, Australia and New Zealand will also be pursued.

The first study (SIOPEL-6) involved 114 children with hepatoblastoma (a cancer of the liver), with an average age of about 19 months. The results showed that 35% (20 out of 57) of children who received Pedmarqsi 6 hours after each dose of cisplatin developed hearing loss compared with 67% (35 out of 52) of children who only received cisplatin. The second study involved 125 children aged 1 month to 18 years with different types of cancer, including hepatoblastoma, neuroblastoma (a cancer of immature nerve cells) and tumours of the central nervous system. The study found that hearing loss was experienced by 29% (14 out of 49) of children who received Pedmarqsi after each cisplatin dose compared with 56% (31 out of 55) of those who received only cisplatin.

"We are delighted to partner with Norgine, who shares our belief in the potential of PEDMARQSI to mitigate the risk of permanent and irreversible hearing loss that can occur in pediatric patients treated with cisplatin. Further, this partnership is an important step in achieving our mission of expanding PEDMARQSI to patients across the globe who are at risk of suffering from cisplatin-induced ototoxicity," said Rosty Raykov, Chief Executive Officer of Fennec Pharmaceuticals. "From a deal perspective, the terms provided us many important benefits, including an upfront payment further solidifying our balance sheet, attractive economic terms providing meaningful participation in the ex-US success of PEDMARQSI and an experienced partner to successfully launch PEDMARQSI in the licensed territory."

Chris Bath, Chief Executive Officer of Norgine, said "We are thrilled to announce our partnership with Fennec, to bring this vital medicine to pediatric patients who are being treated with cisplatin, across Europe and ANZ. We look forward to working with the Fennec team and launching PEDMARQSI in our territories in the coming months, establishing it as the standard of care in this critical patient population with high unmet need. This important milestone for our company builds on our 30 year track record of creating partnerships of enduring value and further underscores Norgine’s position as the specialty pharma partner of choice across Europe and ANZ."

Moelis & Company LLC acted as financial advisor, and LaBarge Weinstein LLP acted as legal advisor to Fennec. Arnold & Porter acted as legal advisor to Norgine.

RYBREVANT® (amivantamab-vmjw) data at ELCC advance Johnson & Johnson’s ambition to transform the standard of care for patients with EGFR-mutated non-small cell lung cancer

On March 18, 2024 Johnson & Johnson announced today that new data will be featured at this year’s European Lung Cancer Congress (ELCC) taking place from March 20 to 23 in Prague, Czech Republic, highlighting the Company’s commitment to transform the treatment of lung cancer through the ongoing study of RYBREVANT (amivantamab)-based regimens in the treatment of epidermal growth factor receptor (EGFR)-mutated non-small cell lung cancer (NSCLC) (Press release, Johnson & Johnson, MAR 18, 2024, View Source;johnsons-ambition-to-transform-the-standard-of-care-for-patients-with-egfr-mutated-non-small-cell-lung-cancer-302091447.html [SID1234641243]). Key data to be featured in four mini-oral presentations include results from an exploratory analysis from the Phase 3 MARIPOSA study evaluating the effect of RYBREVANT dose interruptions on clinical outcomes, new results confirming the recommended dose for monthly subcutaneous administration of amivantamab from the Phase 1b PALOMA study, and post-progression analyses from the pivotal PAPILLON and MARIPOSA-2 studies, which aim to support the differentiated clinical profile of RYBREVANT in the treatment of patients with EGFR-mutated NSCLC.1,2,3,4

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"The breadth of data being presented at ELCC underscore our commitment to redefine treatment outcomes for patients living with EGFR-mutated NSCLC," said Kiran Patel, M.D., Vice President, Clinical Development, Solid Tumors, Johnson & Johnson Innovative Medicine. "Following recent regulatory submissions in the U.S. and Europe, we look forward to advancing our transformative portfolio and bringing novel targeted treatment regimens to patients around the world."

"The results presented at ELCC reinforce the role RYBREVANT-based treatment regimens may play in improving the standard of care in EGFR-mutated NSCLC," said Henar Hevia, EMEA Therapeutic Area Lead, Oncology, Solid Tumors, Johnson & Johnson Innovative Medicine. "We have made remarkable progress in advancing the science of NSCLC and will continue to evaluate the full potential of RYBREVANT as a treatment for patients through our comprehensive clinical development program."

Key presentations include:

Insights on the effect of RYBREVANT plus lazertinib dose interruptions on clinical outcomes from the Phase 3 MARIPOSA study in patients with previously untreated EGFR advanced NSCLC (Abstract #1001).
Results from the Phase 1 PALOMA study examining the severity and incidence of infusion-related reactions with subcutaneous amivantamab administration in patients with advanced solid tumor malignancies (Abstract #839).
Data from an exploratory analysis of the Phase 3 PAPILLON study evaluating the impact of treatment with RYBREVANT plus chemotherapy on post-progression secondary endpoints including time-to-treatment discontinuation (TTD) and time to subsequent therapy (TTST) in patients with NSCLC with EGFR exon 20 insertion mutations (Abstract #844).
Analysis of post-progression outcomes including TTD, TTST, and progression-free survival after first subsequent therapy (PFS2) from the Phase 3 MARIPOSA-2 study, which is investigating RYBREVANT plus chemotherapy in patients with EGFR-mutant advanced NSCLC after progression with osimertinib treatment (Abstract #833).
The complete list of Company-sponsored abstracts follows:

Lung Cancer

RYBREVANT (amivantamab-vmjw)

Mini-Oral Sessions

Abstract #1001

Effect of Amivantamab Dose Interruptions on
Efficacy and Safety of First-line Amivantamab
Plus Lazertinib in EGFR-mutant Advanced
NSCLC: Exploratory Analyses from the
MARIPOSA study

Abstract #839

Subcutaneous Amivantamab Administered Every
4 Weeks (Q4W) in Patients with Advanced Solid
Malignancies: The Phase 1b PALOMA Study

Abstract #844

Amivantamab Plus Chemotherapy vs
Chemotherapy as First-Line Treatment in EGFR
Exon 20 Insertion-mutated Advanced NSCLC:
Analysis of Post-Progression Endpoints From
PAPILLON

Abstract #833

Amivantamab Plus Chemotherapy vs
Chemotherapy in EGFR-mutant Advanced
NSCLC After Progression on Osimertinib:
A Post-progression Analysis of MARIPOSA-2

Poster Sessions

Abstract #834

Patient-relevant Endpoints From PAPILLON:
Amivantamab Plus Chemotherapy vs
Chemotherapy as First-line Treatment of EGFR
Exon 20 Insertion-mutated (Ex20ins) Advanced
NSCLC

Abstract #660

Myelosuppression Risk From Epidermal Growth
Factor Receptor-Tyrosine Kinase Inhibitors,
Carboplatin Chemotherapy, or Both in EGFR
Mutated Non-small Cell Lung Cancer (NSCLC)

Abstract #855

Amivantamab Plus Chemotherapy vs
Chemotherapy in EGFR-mutant Advanced
NSCLC After Progression on Osimertinib:
Secondary Analyses of Patient-relevant Endpoints
from MARIPOSA-2

Abstract #794

Prognostic Factors and Outcomes of Patients
(Pts) with Advanced NSCLC while on Osimertinib
(Osi) Treatment (Tx): A Retrospective Database Study

About RYBREVANT

RYBREVANT (amivantamab-vmjw), a fully-human bispecific antibody targeting EGFR and MET with immune cell-directing activity, is approved in the U.S., Europe, and in other markets around the world as monotherapy for the treatment of adult patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations, as detected by an FDA-approved test, whose disease has progressed on or after platinum-based chemotherapy.5

RYBREVANT is also approved in the U.S. in combination with chemotherapy (carboplatin and pemetrexed) for the first-line treatment of adult patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations, as detected by an FDA-approved test. In October 2023, a type II extension of indication application was submitted to the European Medicines Agency (EMA) seeking approval of RYBREVANT for this indication.

In December 2023, Johnson & Johnson submitted an sBLA together with a New Drug Application (NDA) to the U.S. FDA for RYBREVANT in combination with lazertinib for the first-line treatment of adult patients with locally advanced or metastatic NSCLC with EGFR exon 19 deletions or L858R substitution mutations, as detected by an FDA-approved test. This submission is based on the Phase 3 MARIPOSA study and was granted Priority Review in February 2024. A marketing authorization application (MAA) and type II extension of indication application were also submitted to the EMA seeking approval of lazertinib in combination with RYBREVANT based on the MARIPOSA study.

In November 2023, Johnson & Johnson submitted an sBLA to the U.S. FDA for RYBREVANT in combination with chemotherapy for the treatment of patients with EGFR-mutated NSCLC who progressed on or after osimertinib based on the MARIPOSA-2 study. A type II extension of indication application was also submitted to the EMA seeking approval of RYBREVANT for this indication.

The NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines) for NSCLC§ prefer next-generation sequencing–based strategies over polymerase chain reaction–based approaches for the detection of EGFR exon 20 insertion variants. The NCCN Guidelines include:

Amivantamab-vmjw (RYBREVANT) plus carboplatin and pemetrexed as a preferred (Category 1 recommendation) first-line therapy in treatment-naive patients with newly diagnosed advanced or metastatic EGFR exon 20 insertion mutation-positive advanced NSCLC, or as a subsequent therapy option (Category 2A recommendation) for patients that have progressed on or after platinum-based chemotherapy with or without immunotherapy and have EGFR exon 20 insertion mutation-positive advanced NSCLC.6 †‡
Amivantamab-vmjw (RYBREVANT) plus chemotherapy as a preferred (Category 1 recommendation) subsequent therapy for patients with locally advanced or metastatic NCSLC with EGFR exon 19 deletions or exon 21 L858R mutations who experienced disease progression after treatment with osimertinib.6 †‡
Amivantamab-vmjw (RYBREVANT) as a subsequent therapy option (Category 2A recommendation) for patients that have progressed on or after platinum-based chemotherapy with or without an immunotherapy and have EGFR exon 20 insertion mutation-positive NSCLC.6 †‡
RYBREVANT is being studied in multiple clinical trials in NSCLC, including:

The Phase 3 PAPILLON (NCT04538664) study assessing RYBREVANT in combination with carboplatin-pemetrexed versus chemotherapy alone in the first-line treatment of patients with advanced or metastatic NSCLC with EGFR exon 20 insertion mutations. Topline data for this randomized Phase 3 study demonstrated statistically significant and clinically meaningful improvement in progression-free survival (PFS) in patients receiving RYBREVANT.7
The Phase 3 MARIPOSA-2 (NCT04988295) study assessing the efficacy of RYBREVANT (with or without lazertinib) and carboplatin-pemetrexed versus carboplatin-pemetrexed alone in patients with locally advanced or metastatic EGFR ex19del or L858R substitution NSCLC after disease progression on or after osimertinib. Topline data for this randomized Phase 3 study demonstrated statistically significant and clinically meaningful improvement in PFS in these patients receiving RYBREVANT plus chemotherapy with and without lazertinib versus chemotherapy.8
The Phase 3 MARIPOSA (NCT04487080) study assessing RYBREVANT in combination with lazertinib versus osimertinib and versus lazertinib alone in the first-line treatment of patients with locally advanced or metastatic NSCLC with EGFR ex19del or L858R substitution mutations. Topline data for this randomized Phase 3 study demonstrated statistically significant and clinically meaningful improvement in PFS in patients receiving RYBREVANT plus lazertinib versus osimertinib.9
The Phase 1 CHRYSALIS (NCT02609776) study evaluating RYBREVANT in patients with advanced NSCLC.10
The Phase 1/1b CHRYSALIS-2 (NCT04077463) study evaluating RYBREVANT in combination with lazertinib and lazertinib as a monotherapy in patients with advanced NSCLC with EGFR mutations.11
The Phase 1 PALOMA (NCT04606381) study assessing the feasibility of subcutaneous administration of amivantamab based on safety and pharmacokinetics and to determine a dose, dose regimen and formulation for amivantamab subcutaneous delivery.12
The Phase 2 PALOMA-2 (NCT05498428) study assessing subcutaneous amivantamab in patients with advanced or metastatic solid tumors including EGFR-mutated NSCLC.13
The Phase 3 PALOMA-3 (NCT05388669) study assessing lazertinib with subcutaneous amivantamab compared to intravenous amivantamab in patients with EGFR-mutated advanced or metastatic NSCLC.14
The Phase 1/2 METalmark (NCT05488314) study assessing RYBREVANT and capmatinib combination therapy in locally advanced or metastatic NSCLC.15
The Phase 1/2 PolyDamas (NCT05908734) study assessing RYBREVANT and cetrelimab combination therapy in locally advanced or metastatic NSCLC.16
The Phase 2 SKIPPirr study (NCT05663866) exploring how to decrease the incidence and/or severity of first-dose infusion-related reactions with RYBREVANT in combination with lazertinib in relapsed or refractory EGFR-mutated advanced or metastatic NSCLC.17
For more information, visit: View Source

About Non-Small Cell Lung Cancer
Worldwide, lung cancer is one of the most common cancers, with NSCLC making up 80 to 85 percent of all lung cancer cases.18,19 The main subtypes of NSCLC are adenocarcinoma, squamous cell carcinoma, and large cell carcinoma.20 Among the most common driver mutations in NSCLC are alterations in EGFR, which is a receptor tyrosine kinase controlling cell growth and division.21 EGFR mutations are present in 10 to 15 percent of Western patients with NSCLC with adenocarcinoma histology and occur in 40 to 50 percent of Asian patients.20,21,22,23,24,25 EGFR ex19del or EGFR L858R mutations are the most common EGFR mutations.26 The five-year survival rate for all people with advanced NSCLC and EGFR mutations treated with EGFR tyrosine kinase inhibitors (TKIs) is less than 20 percent.27,28 EGFR exon 20 insertion mutations are the third most prevalent activating EGFR mutation.29 Patients with EGFR exon 20 insertion mutations have a real-world five-year overall survival (OS) of eight percent in the frontline setting, which is worse than patients with EGFR ex19del or L858R mutations, who have a real-world five-year OS of 19 percent.30

RYBREVANT IMPORTANT SAFETY INFORMATION5

WARNINGS AND PRECAUTIONS
The safety population of RYBREVANT with carboplatin and pemetrexed described in Warnings and Precautions was based on 151 patients in the PAPILLON study.

The safety population of RYBREVANT as a single agent described in Warnings and Precautions was based on 129 patients in the CHRYSALIS study.

Infusion-Related Reactions
RYBREVANT can cause infusion-related reactions (IRR); signs and symptoms of IRR include dyspnea, flushing, fever, chills, nausea, chest discomfort, hypotension, and vomiting.

RYBREVANT with Carboplatin and Pemetrexed

RYBREVANT in combination with carboplatin and pemetrexed can cause infusion-related reactions. Based on the safety population, infusion-related reactions occurred in 42% of patients treated with RYBREVANT in combination with carboplatin and pemetrexed, including Grade 3 (1.3%) adverse reactions. The incidence of infusion modifications due to IRR was 40%, and 0.7% of patients permanently discontinued RYBREVANT.

RYBREVANT as a Single Agent

Based on the safety population, IRR occurred in 66% of patients treated with RYBREVANT. Among patients receiving treatment on Week 1 Day 1, 65% experienced an IRR, while the incidence of IRR was 3.4%with the Day 2 infusion, 0.4% with the Week 2 infusion, and cumulatively 1.1% with subsequent infusions. Of the reported IRRs, 97% were Grade 1-2, 2.2% were Grade 3, and 0.4% were Grade 4. The median time to onset was 1 hour (range 0.1 to 18 hours) after start of infusion. The incidence of infusion modifications due to IRR was 62%, and 1.3% of patients permanently discontinued RYBREVANT due to IRR.

Premedicate with antihistamines, antipyretics, and glucocorticoids and infuse RYBREVANT as recommended. Administer RYBREVANT via a peripheral line on Week 1 and Week 2. Monitor patients for any signs and symptoms of infusion reactions during RYBREVANT infusion in a setting where cardiopulmonary resuscitation medication and equipment are available. Interrupt infusion if IRR is suspected. Reduce the infusion rate or permanently discontinue RYBREVANT based on severity.

Interstitial Lung Disease/Pneumonitis
RYBREVANT can cause interstitial lung disease (ILD)/pneumonitis.

RYBREVANT with Carboplatin and Pemetrexed

Based on the safety population, Grade 3 ILD/pneumonitis occurred in 2.6% of patients treated with RYBREVANT in combination with carboplatin and pemetrexed. All patients required permanent discontinuation.

RYBREVANT as a Single Agent

Based on the safety population, ILD/pneumonitis occurred in 3.3% of patients treated with RYBREVANT, with 0.7% of patients experiencing Grade 3 ILD/pneumonitis. Three patients (1%) discontinued RYBREVANT due to ILD/pneumonitis.

Monitor patients for new or worsening symptoms indicative of ILD/pneumonitis (e.g., dyspnea, cough, fever). Immediately withhold RYBREVANT in patients with suspected ILD/pneumonitis and permanently discontinue if ILD/pneumonitis is confirmed.

Dermatologic Adverse Reactions
RYBREVANT can cause rash (including dermatitis acneiform), pruritus and dry skin.

RYBREVANT with Carboplatin and Pemetrexed

RYBREVANT in combination with carboplatin and pemetrexed can cause dermatologic adverse reactions. Based on the safety population, rash occurred in 89% of patients treated with RYBREVANT in combination with carboplatin and pemetrexed, including Grade 3 (19%) adverse reactions. Rash leading to dose reductions occurred in 19% of patients; 2% permanently discontinued RYBREVANT, and 1.3% discontinued pemetrexed.

RYBREVANT as a Single Agent

Based on the safety population, rash occurred in 74% of patients treated with RYBREVANT, including Grade 3 rash in 3.3% of patients. The median time to onset of rash was 14 days (range: 1 to 276 days). Rash leading to dose reduction occurred in 5% of patients, and RYBREVANT was permanently discontinued due to rash in 0.7% of patients.

Toxic epidermal necrolysis occurred in one patient (0.3%) treated with RYBREVANT as a single agent.

Instruct patients to limit sun exposure during and for 2 months after treatment with RYBREVANT. Advise patients to wear protective clothing and use broad-spectrum UVA/UVB sunscreen. Alcohol-free emollient cream is recommended for dry skin.

If skin reactions develop, start topical corticosteroids and topical and/or oral antibiotics. For Grade 3 reactions, add oral steroids and consider dermatologic consultation. Promptly refer patients presenting with severe rash, atypical appearance or distribution, or lack of improvement within 2 weeks to a dermatologist. Withhold, dose reduce, or permanently discontinue RYBREVANT based on severity.

Ocular Toxicity
RYBREVANT can cause ocular toxicity including keratitis, dry eye symptoms, conjunctival redness, blurred vision, visual impairment, ocular itching, and uveitis.

RYBREVANT with Carboplatin and Pemetrexed

Based on the safety population, RYBREVANT in combination with carboplatin and pemetrexed can cause ocular toxicity including blepharitis, dry eye, conjunctival redness, blurred vision, and eye pruritus. All events were Grade 1-2.

RYBREVANT as a Single Agent

Based on the safety population, keratitis occurred in 0.7% and uveitis occurred in 0.3% of patients treated with RYBREVANT. All events were Grade 1-2. Promptly refer patients presenting with eye symptoms to an ophthalmologist. Withhold, dose reduce, or permanently discontinue RYBREVANT based on severity.

Embryo-Fetal Toxicity
Based on its mechanism of action and findings from animal models, RYBREVANT can cause fetal harm when administered to a pregnant woman. Advise females of reproductive potential of the potential risk to the fetus. Advise female patients of reproductive potential to use effective contraception during treatment and for 3 months after the last dose of RYBREVANT.

Adverse Reactions
RYBREVANT with Carboplatin and Pemetrexed

For the 151 patients in the PAPILLON clinical trial who received RYBREVANT in combination with carboplatin and pemetrexed, the most common adverse reactions (≥20%) were rash (90%), nail toxicity (62%), stomatitis (43%), infusion-related reaction (42%), fatigue (42%), edema (40%), constipation (40%), decreased appetite (36%), nausea (36%), COVID-19 (24%), diarrhea (21%), and vomiting (21%). The most common Grade 3 to 4 laboratory abnormalities (≥2%) were decreased albumin (7%), increased alanine aminotransferase (4%), increased gamma-glutamyl transferase (4%), decreased sodium (7%), decreased potassium (11%), decreased magnesium (2%), and decreases in white blood cells (17%), hemoglobin (11%), neutrophils (36%), platelets (10%), and lymphocytes (11%).

Serious adverse reactions occurred in 37% of patients who received RYBREVANT in combination with carboplatin and pemetrexed. Serious adverse reactions in ≥2% of patients included rash, pneumonia, ILD, pulmonary embolism, vomiting, and COVID-19. Fatal adverse reactions occurred in 7 patients (4.6%) due to pneumonia, cerebrovascular accident, cardio-respiratory arrest, COVID-19, sepsis, and death not otherwise specified.

RYBREVANT as a Single Agent

For the 129 patients in the CHRYSALIS clinical trial who received RYBREVANT as a single agent, the most common adverse reactions (≥20%) were rash (84%), IRR (64%), paronychia (50%), musculoskeletal pain (47%), dyspnea (37%), nausea (36%), fatigue (33%), edema (27%), stomatitis (26%), cough (25%), constipation (23%), and vomiting (22%). The most common Grade 3 to 4 laboratory abnormalities (≥2%) were decreased lymphocytes (8%), decreased albumin (8%), decreased phosphate (8%), decreased potassium (6%), increased alkaline phosphatase (4.8%), increased glucose (4%), increased gamma-glutamyl transferase (4%), and decreased sodium (4%).

Serious adverse reactions occurred in 30% of patients who received RYBREVANT. Serious adverse reactions in ≥2% of patients included pulmonary embolism, pneumonitis/ILD, dyspnea, musculoskeletal pain, pneumonia, and muscular weakness. Fatal adverse reactions occurred in 2 patients (1.5%) due to pneumonia and 1 patient (0.8%) due to sudden death.

Please read the full Prescribing Information for RYBREVANT.

Citius Pharmaceuticals Announces FDA Acceptance of the BLA Resubmission of LYMPHIR™ (Denileukin Diftitox) for the Treatment of Adults with Relapsed or Refractory Cutaneous T-Cell Lymphoma

On March 18, 2024 Citius Pharmaceuticals, Inc. ("Citius" or the "Company") (Nasdaq: CTXR), a late-stage biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products reported that the U.S. Food and Drug Administration (FDA) has accepted the resubmission of the Company’s Biologics License Application (BLA) for LYMPHIR (denileukin diftitox), an IL-2-based immunotherapy for the treatment of patients with relapsed or refractory cutaneous T-cell lymphoma (CTCL) after at least one prior systemic therapy (Press release, Citius Pharmaceuticals, MAR 18, 2024, View Source [SID1234641242]). The FDA has assigned a PDUFA goal date of August 13, 2024.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"The acceptance of the BLA resubmission reflects the completeness of our response to the enhanced product testing and additional controls highlighted by the FDA in their July 2023 CRL. No concerns relating to safety or efficacy were noted in the letter, and we remain confident in the robustness of the clinical data package included with the initial BLA submission," stated Leonard Mazur, Chairman and CEO of Citius.

"We believe there remains a critical unmet need for an additional viable treatment option for patients with relapsed or refractory CTCL as current therapies are non-curative. We are grateful for the FDA’s vital support for rare disease drug development as we work to expand treatment options for patients with cutaneous T-cell lymphoma. We look forward to the FDA’s decision and the potential benefit LYMPHIR may provide patients with relapsed or refractory CTCL," added Mazur.

The BLA is supported by a pivotal Phase 3 study (NCT01871727). The resubmission follows dialog with the FDA resulting from a Complete Response Letter (CRL) received on July 28, 2023. Citius believes it has addressed enhanced product testing and additional manufacturing controls noted in the letter. There were no safety or efficacy issues cited and no additional trials required.

About LYMPHIR (denileukin diftitox-cxdl)

LYMPHIR is a recombinant fusion protein that combines the interleukin-2 (IL-2) receptor binding domain with diphtheria toxin fragments. The agent specifically binds to IL-2 receptors on the cell surface, causing diphtheria toxin fragments that have entered cells to inhibit protein synthesis. In 2011 and 2013, the FDA granted orphan drug designation to LYMPHIR for the treatment of PTCL and CTCL, respectively. In 2021, denileukin diftitox received regulatory approval in Japan for the treatment of CTCL and peripheral T-cell lymphoma (PTCL). Subsequently, in 2021, Citius acquired an exclusive license with rights to develop and commercialize LYMPHIR in all markets except for Japan and certain parts of Asia.

About Cutaneous T-cell Lymphoma

Cutaneous T-cell lymphoma is a type of cutaneous non-Hodgkin lymphoma (NHL) that comes in a variety of forms and is the most common type of cutaneous lymphoma. In CTCL, T-cells, a type of lymphocyte that plays a role in the immune system, become cancerous and develop into skin lesions, leading to a decrease in the quality of life of patients with this disease due to severe pain and pruritus. Mycosis Fungoides (MF) and Sézary Syndrome (SS) comprise the majority of CTCL cases. Depending on the type of CTCL, the disease may progress slowly and can take anywhere from several years to upwards of ten to potentially reach tumor stage. However, once the disease reaches this stage, the cancer is highly malignant and can spread to the lymph nodes and internal organs, resulting in a poor prognosis. Given the duration of the disease, patients typically cycle through multiple agents to control disease progression. CTCL affects men twice as often as women and is typically first diagnosed in patients between the ages of 50 and 60 years of age. Other than allogeneic stem cell transplantation, for which only a small fraction of patients qualify, there is currently no curative therapy for advanced CTCL.

WuXi AppTec Revenue Surpassed RMB40 Billion in 2023, and Adjusted Non-IFRS Net Profit Exceeded RMB10 Billion for the First Time

On March 18, 2024 WuXi AppTec (stock code: 603259.SH / 2359.HK), a global company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical and life sciences industry, reported its financial results for the year ending December 31, 2023 ("Reporting Period") (Press release, WuXi AppTec, MAR 18, 2024, View Source [SID1234641241]):

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Revenue grew 2.5% year-over-year to RMB40,341 million; excluding COVID-19 commercial projects, revenue grew by 25.6%.
Adjusted non-IFRS gross profit increased 11.2% year-over-year to RMB16,938 million. Adjusted non-IFRS gross profit margin improved 3.3pts to 42.0%. The Company continued to improve operating efficiency; adjusted non-IFRS net profit margin reached 26.9% due to FX impact and efficiency enhancement.
Net profit attributable to the owners of the Company[1] increased 9.0% year-over-year to RMB9,607 million; diluted EPS increased 14.9% year-over-year to RMB3.24. Adjusted non-IFRS net profit attributable to the owners of the Company increased 15.5% year-over-year to RMB10,855 million; adjusted diluted non-IFRS EPS increased by 15.7% year-over-year to RMB3.68.
Free cash flow continued to increase to RMB7,125 million. Due to FX impact and efficiency improvement, the Company’s operating cash flow grew by 23.6% year-over-year.
The Company’s Board of Directors has decided to maintain a 30% payout ratio, and distribute RMB ~9.8 cash dividend for every 10 shares (RMB 2.88 billion in total).
In 2023, we added over 1,200 new customers, and in total we served more than 6,000 active customers over the past 12 months. Demand from customers across regions globally continued to grow.
As of December 31, 2023, backlog grew 18% year-over-year excluding COVID-19 commercial projects, among which TIDES backlog grew significantly by 226% year-over-year.
Revenue from the top 20 global pharmaceutical companies maintained rapid growth and reached RMB16.11 billion in 2023, which grew 44% year-over-year excluding COVID-19 commercial projects.
The sustained and steady revenue growth is attributed to our unique fully integrated Contract Research, Development and Manufacturing Organization (CRDMO) platform. WuXi Chemistry’s D&M pipeline has maintained rapid growth, with a total of 1,255 new molecules added in 2023. By end of 2023, our D&M pipeline reached 3,201 molecules, among which 20 commercial and phase III projects were added during the year. Revenue from D&M services maintained strong growth. Excluding COVID-19 commercial projects, D&M services revenue grew by 55.1%.
As an enabler of innovation, a trusted partner and a contributor to the global pharmaceutical and life sciences industry, the Company is committed to environmental protection and sustainability. We committed to the Science Based Targets initiative (SBTi) in December 2023. We received an "AA" rating from MSCI for the third consecutive year, an "A-" rating in CDP Climate Change for the second consecutive year, and an "A-" rating in CDP Water Security for the first time. In addition, we were upgraded to the "Silver" medal by EcoVadis. Our outstanding ESG performances have also been widely acknowledged by major global ESG rating agencies, including S&P Global, Sustainalytics, and FTSE Russell.
[1] Net profit attributable to the owners of the Company is prepared according to Accounting Standard for Business Enterprises of PRC. Due to the different accounting treatment of long-term equity investments under IFRS, Net profit attributable to the owners of the Company under IFRS was RMB10,690 million.

[2] In 2022 and 2023, WuXi AppTec had a fully-diluted weighted average share count of 2,954,165,418 and 2,949,887,619 ordinary shares, respectively.

2024 Outlook

Despite uncertainties in the external environment, revenue is expected to reach RMB 38.3-40.5 billion in 2024, and maintain positive growth of 2.7-8.6% excluding COVID-19 commercial projects. We will continue to improve operating efficiency. Adjusted non-IFRS net profit margin (NPM) in 2024 is expected to remain at a similar level as last year, taking into consideration of new capacity ramp-up and FX impact. With improved asset utilization and operating efficiency, free cash flow is expected to remain positive and reach RMB 4-5 billion in 2024, which will continuously cover the cash dividends and investments in talents, while global capacity is expected to be expanded as planned (with capex of RMB ~5 billion).

Management Comment

Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "We achieved an important milestone in 2023, with revenue surpassing RMB40 billion and adjusted non-IFRS net profit exceeding RMB10 billion for the first time. The Company’s unique CRDMO and CTDMO business models have enabled us to better meet the increasing quality demands from customers worldwide while continuing to drive business growth."

"As technology advancement and science innovations continue to emerge, global demand for life saving and innovative drugs continues to grow, along with customers’ demand for our enabling services. Nevertheless, the recent proposed legislation in the U.S. Congress would preemptively and unfairly designate our company without due process. As the proposed legislation remains subject to further review and changes, we continue to engage with relevant stakeholders to explore possible solutions and appeal for due process through a transparent consideration of the facts. WuXi AppTec has always been committed to ‘doing the right thing and doing it right.’ Our company has not been subject to any sanctions, and does not pose a national security risk to any country. Since its founding two decades ago, the value of WuXi AppTec has been to serve as an enabler to the pharmaceutical and life sciences industry. Today, we continue to do so as a trusted and valued service partner for our customers by constantly providing relevant capacity and capabilities required for new drug R&D and manufacturing."

"We are truly thankful for our customers’ long-term trust and support. We will further enhance our capacity and capabilities and continuously improve our operating efficiency, supporting our customers and partners in their endeavors to bring lifesaving medicines to patients around the world. Together, we can realize our vision that ‘every drug can be made and every disease can be treated’."

Business Performance by Segments

WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth, with Continued Expansion in New Modalities (WuXi TIDES)
Revenue from WuXi Chemistry grew 1.1% year-over-year to RMB 29.17 billion; excluding COVID-19 commercial projects, revenue grew strongly by 36.1%. Adjusted non-IFRS gross profit margin improved 4.0pts year-over-year to 45.1%, mainly due to FX impact, while efficiency continued to improve.
Drug discovery services ("R") continued to generate downstream opportunities. In the past 12 months, we successfully synthesized and delivered more than 420,000 new compounds to customers, which grew 6% year-over-year. Through our "follow-the-customer" and "follow-the-molecule" strategies, we established trusted partnerships with our global customers, supporting the sustainable growth of our CRDMO business.
Development and manufacturing (D&M) services delivered strong growth.
i. In 2023, D&M services revenue declined 0.1% year-over-year to RMB21.62 billion; excluding COVID-19 commercial projects, D&M services revenue grew strongly by 55.1%.
ii. In 2023, we added 1,255 new molecules to our D&M pipeline. By end of 2023, our D&M pipeline reached 3,201 molecules, including 61 commercial projects, 66 in phase III, 326 in phase II and 2,748 in phase I and pre-clinical stages, among which 20 commercial and phase III projects were added during the year.
iii. We commenced operations at the new Taixing API manufacturing site in January 2024, preparing for future business growth.

Specifically, TIDES business (mainly oligo and peptides) continued to expand.
i. In 2023, TIDES revenue grew strongly by 64.4% year-over-year to RMB3.41 billion. By end of 2023, backlog of TIDES grew significantly by 226% year-over-year.
ii. In 2023, the number of TIDES D&M customers increased 36% year-over-year to 140, and the number of TIDES molecules increased 41% year-over-year to 267.
iii. We completed capacity expansion in Changzhou and Taixing. The expanded workshops commenced operations in January 2024, with the total reactor volume of solid phase peptide synthesizers increasing to 32,000L.

WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership Position and Drive Steady Growth
Revenue from WuXi Testing grew 14.4% year-over-year to RMB6.54 billion. Adjusted non-IFRS gross profit margin improved 1.9pts year-over-year to 38.6%, mainly due to FX impact, while efficiency continued to improve.
Revenue from lab testing services grew 15.3% year-over-year to RMB4.78 billion. Among which, revenue from drug safety evaluation services grew 27.3% year-over-year. We maintained our industry-leading position in the Asia-Pacific region. The 55,000m2 new facilities in Qidong and Suzhou ramped up smoothly. In 2023, additional 20,000m2 facilities were GLP-qualified.
Revenue from clinical CRO & SMO (Site Management Organization) grew 11.8% year-over-year to RMB1.76 billion.
i. SMO revenue grew 26.1% year-over-year, maintaining an industry leading position in China. In 2023, SMO supported 54 new drug approvals for customers.
ii. Clinical CRO enabled our customers to obtain 21 IND approvals and submit 5 NDA filings.

WuXi Biology: New Modalities Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities
Revenue from WuXi Biology grew 3.1% year-over-year to RMB2.55 billion. Adjusted non-IFRS gross profit margin improved 1.5pts year-over-year to 42.4%, thanks to FX impact.
The Company focused on improving capabilities related to new modalities. In 2023, WuXi Biology revenue from new modalities grew 26% year-over-year, contributing 27.5% of WuXi Biology revenue.
The comprehensive early discovery screening platform integrates multi-technologies (HTS, DEL, ASMS, FBDD, CADD etc.) and analysis capabilities of multi-dimensional databases, which can provide extensive and in-depth services to customers. In 2023, it continued to generate downstream opportunities and contributed more than 20% of the Company’s new customers.
WuXi ATU: CTDMO Business Model Drives Growth
Revenue from WuXi ATU grew 0.1% year-over-year to RMB1.31 billion. Adjusted non-IFRS gross profit margin declined 3.7pts year-over-year to (9.6)%, mainly due to the revenue decline from high-margin projects and under-utilization of capacity.
The Company focused on improving our CTDMO integrated enabling platform and strengthening capabilities and capacities. By end of 2023, we provided development, testing and manufacturing services to 64 projects, including 1 commercial project, 5 Phase III projects (1 project in BLA review stage, and 2 projects in BLA preparation stage), 9 Phase II projects and 49 pre-clinical and Phase I projects. In February 2024, the 2nd commercial product obtained approval.
In 2023, we supported a customer to file BLA for plasmid and Lenti-viral Vector (LVV) used in a CAR-T product and passed China’s Center for Food and Drug Inspection (CFDI) LVV on-site inspection. Our customer’s product obtained approval in November 2023. In addition, we supported a customer to complete the BLA filing for the world’s first innovative Tumor Infiltrating Lymphocyte (TIL)-based therapy, and our facilities in Philadelphia (U.S.) successfully passed FDA pre-license inspection (PLI). Our customer’s product obtained approval in February 2024. In June 2023, we signed an LVV manufacturing contract used in a commercial CAR-T product. With the process performance qualification now in progress, it is expected to start manufacturing in the first half of 2024. Moreover, we are preparing for the BLA filing for the manufacture of a blockbuster commercial CAR-T product, which is expected to complete process performance qualification in the first half of 2024 and is expected to file pre-approval submission (PAS) to the FDA in the second half of 2024.
WuXi DDSU: the First Year to Receive New Drug Application (NDA) Approval of New Drugs Developed for Customers; Breakthrough to Receive the First Royalty Income
Revenue from WuXi DDSU declined 25.1% year-over-year to RMB0.73 billion due to business transitions. Adjusted non-IFRS gross profit margin improved 6.3pts year-over-year to 36.5%, mainly due to favorable project mix.
In 2023, 3 new drugs developed for our customers obtained National Medical Products Administration (NMPA) approvals, including 2 for COVID-19 infection treatments and 1 for tumor treatment. We continued to receive the royalty income of the approved new drugs from customers. Moreover, 2 new drug candidates are in the NDA review stage.
In November 2023, for the first time, we supported a customer to reach a licensing agreement with one of the top 10 global pharmaceutical companies in the field of oncology.
In 2023, we supported customers to file INDs for 18 drug candidates and obtain 25 Clinical Trial Approvals (CTAs). Cumulatively, we have submitted 190 new chemical entity IND filings and obtained 169 CTAs for customers, among which 3 projects have obtained NDA approvals, 2 projects are in the NDA review stage, 4 projects are in Phase III, 32 projects are in Phase II, and 73 projects are in Phase I, covering multiple therapeutic areas.
This release provides a summary of the results and is not intended to be a comprehensive report. For additional information, please refer to the WuXi AppTec 2023 Annual Results Presentation and 2023 Annual Report disclosed on the Company’s official website, as well as the 2023 Annual Report and other relevant announcements published on the websites of the Shanghai Stock Exchange (www.sse.com.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk), and the designated media for dissemination of the relevant information. Investors are advised to exercise caution and be aware of the investment risks in trading Company shares.

Net Profit Attributable to the Owners of the Company is prepared under Accounting Standard for Business Enterprises of PRC ("People’s Republic of China Financial Reporting Standards"), in currency of RMB. Besides, all other financial information disclosed in this press release is prepared based on International Financial Reporting Standards (IFRS), in currency of RMB.

The 2023 Annual Report of the Company has been audited.

2023 Results by Segments

Unit: RMB million

Segment

Revenue

Change

Adjusted non-IFRS
Gross Profit

Change

Adjusted non-IFRS
Gross Profit Margin

WuXi Chemistry

29,171.49

1.1 %

13,167.70

10.8 %

45.1 %

WuXi Testing

6,539.67

14.4 %

2,526.62

20.3 %

38.6 %

WuXi Biology

2,552.55

3.1 %

1,082.25

6.8 %

42.4 %

WuXi ATU

1,309.60

0.1 %

(125.11)

Note1

(9.6) %

WuXi DDSU

726.45

(25.1) %

265.33

(9.5) %

36.5 %

Others

41.05

22.1 %

20.99

33.6 %

51.1 %

Total

40,340.81

2.5 %

16,937.79

11.2 %

42.0 %

Notes: 1. Adjusted non-IFRS gross profit of WuXi ATU was RMB(125.11) million in 2023, compared to RMB(76.69) million in 2022, a decline of RMB48.42 million.
2. Any sum of the data above that is inconsistent with the total is due to rounding.

Consolidated Statement of Profit or Loss[3] – Prepared under IFRS

RMB Million

Year Ended
December 31,
2023

Year Ended
December 31,
2022

Year-over-Year

Change

Revenue

40,340.8

39,354.8

2.5 %

Cost of services

(23,968.3)

(24,848.3)

(3.5) %

Gross profit

16,372.5

14,506.5

12.9 %

Other income

962.5

644.3

49.4 %

Other gains and losses

1,350.3

1,211.7

11.4 %

Impairment losses under expected credit
losses ("ECL") model, net of reversal

(240.9)

(117.3)

105.4 %

Impairment losses of non-financial assets

(67.4)

N/A

Impairment losses of goodwill

(49.6)

(131.3)

(62.2) %

Selling and marketing expenses

(701.0)

(731.6)

(4.2) %

Administrative expenses

(2,994.9)

(2,943.8)

1.7 %

Research and development expenses

(1,440.6)

(1,614.0)

(10.7) %

Operating Profit

13,190.7

10,824.6

21.9 %

Share of results of associates

(35.1)

(52.5)

(33.2) %

Share of results of joint ventures

(32.5)

6.3

N/A

Finance costs

(193.6)

(159.8)

21.1 %

Profit before tax

12,929.6

10,618.5

21.8 %

Income tax expense

(2,131.7)

(1,715.9)

24.2 %

Profit for the year

10,797.9

8,902.6

21.3 %

Profit for the year attributable to:

Owners of the Company

10,690.2

8,813.7

21.3 %

Non-controlling interests

107.7

88.9

21.2 %

10,797.9

8,902.6

21.3 %

Weighted average number of ordinary shares
for calculating EPS(express in shares)

– Basic

2,934,188,474

2,931,932,166

0.1 %

– Diluted

2,949,887,619

2,954,165,418

(0.1) %

Earnings per share attributable to ordinary
shareholders of the Company (expressed in
RMB per share)

– Basic

3.64

3.01

20.9 %

– Diluted

3.61

2.82

28.0 %

[3] If the sum of the data below is inconsistent with the total, it is caused by rounding

Consolidated Statement of Financial Position[4] – Prepared under IFRS

RMB Million

December 31,

December 31,

2023

2022

Non-current Assets

Property, plant and equipment

25,844.4

23,444.9

Right-of-use assets

2,348.3

1,857.5

Goodwill

1,820.9

1,822.1

Other intangible assets

906.7

926.3

Interests in associates

2,180.4

1,135.7

Interests in joint ventures

35.2

67.3

Deferred tax assets

366.7

492.1

Financial assets at fair value through profit or
loss ("FVTPL")

8,626.0

8,954.3

Other non-current assets

105.8

1,054.9

Biological assets

1,012.5

938.0

43,246.9

40,693.1

Current Assets

Inventories

2,886.1

3,952.6

Contract costs

695.6

678.8

Biological assets

1,154.6

1,037.3

Amounts due from related parties

86.7

123.0

Trade and other receivables

9,372.7

7,590.4

Contract assets

1,234.4

1,048.2

Income tax recoverable

17.5

16.0

Financial assets at FVTPL

11.0

2.0

Derivative financial instruments

414.0

135.6

Other current assets

785.8

1,427.8

Pledged bank deposits

1.6

1.8

Term deposits with initial term of over three
months

3,761.4

Bank balances and cash

10,001.0

7,983.9

30,422.5

23,997.2

Total Assets

73,669.3

64,690.3

[4] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Consolidated Statement of Financial Position (continued)[5] – Prepared under IFRS

RMB Million

December 31,

December 31,

2023

2022

Current Liabilities

Trade and other payables

7,333.5

7,253.4

Amounts due to related parties

11.5

14.5

Derivative financial instruments

501.9

115.4

Contract liabilities

1,955.4

2,496.6

Bank borrowings

3,721.6

3,874.1

Lease liabilities

240.5

205.3

Income tax payables

991.9

517.8

Other current liabilities

22.1

14,756.3

14,499.4

Non-current Liabilities

Bank borrowings

687.0

279.1

Deferred tax liabilities

530.1

440.5

Deferred income

1,079.9

910.9

Lease liabilities

1,098.6

983.8

Convertible bonds-debt component

502.0

Convertible bonds-embedded derivative
component

147.9

Other long-term liabilities

0.1

3,395.6

3,264.3

Total Liabilities

18,151.9

17,763.7

Net Assets

55,517.4

46,926.7

Capital and Reserves

Share capital

2,968.8

2,960.5

Reserves

52,153.6

43,629.4

Equity attributable to the owners of the
Company

55,122.5

46,590.0

Non-controlling interests

395.0

336.7

Total Equity

55,517.4

46,926.7

[5] If the sum of the data below is inconsistent with the total, it is caused by rounding.

Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company[6]

RMB Million

Year Ended
December 31,
2023

Year Ended
December 31,
2022

Year-over-Year

Change

Net Profit Attributable to the Owners of the
Company under PRC

9,606.7

8,813.7

9.0 %

GAAP difference[7]

1,083.4

N/A

Net Profit Attributable to the Owners of the
Company under IFRS

10,690.2

8,813.7

21.3 %

Add:

Share-based compensation expenses

622.0

684.2

(9.1) %

Issuance expenses of convertible bonds

0.3

1.7

(81.4) %

Fair value gains from derivative
component of convertible bonds

(40.2)

(508.6)

(92.1) %

Foreign exchange related losses

294.4

136.1

116.3 %

Amortization of acquired intangible
assets from merge and acquisition

57.9

56.7

2.2 %

Non-financial assets impairment and
disposal losses

129.1

131.3

(1.7) %

Talent incentive and retention expenses
funded by cash donation from

shareholders

151.5

69.7

117.3 %

Non-IFRS Net Profit attributable to the
owners of the Company

11,905.2

9,384.7

26.9 %

Add:

Realized and unrealized (gains)/losses
from venture capital investments

(1,083.0)

20.8

N/A

Realized and unrealized share of
losses/(gains) from joint ventures

32.5

(6.3)

N/A

Adjusted non-IFRS net profit attributable to
the owners of the Company

10,854.6

9,399.3

15.5 %

[6] If the sum of the data below is inconsistent with the total, it is caused by rounding.

[7] Due to the different accounting treatment of long-term equity investments under IFRS, it occurs GAAP difference of RMB1,083.4 million.