Laekna Shares Rise Over 6% on Index Inclusion and Strong Drug Sales

Shares of Laekna Inc.-B (2190.HK) climbed more than 6% in Hong Kong trading after the biotechnology company was officially added to the Hang Seng Composite Index and the Stock Connect program. The inclusion, which grants access to mainland Chinese investors, comes as the company reports strong commercial momentum, with sales of its key drug more than doubling.

Index Inclusion Opens Door to New Capital

Effective Monday, Laekna's H-shares were formally included as eligible securities for the Southbound Stock Connect, as confirmed by a company announcement and a notice from the Shenzhen Stock Exchange. This development followed the stock's addition to the Hang Seng Composite Index, a change that was announced on August 21 and implemented after the market close on September 4.

Laekna's board stated that the inclusion reflects the capital market's confidence in the company's value and long-term prospects. For investors, this move is significant as it opens the stock to "southbound capital" from mainland China, which could potentially enhance trading liquidity and provide a stronger valuation anchor for the shares.

Commercial Performance Drives Growth

Fueling investor optimism, Laekna recently reported robust first-half financial results. Key figures from its earnings report, released on August 26, include:

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• Total Revenue: RMB 104.2 million, an increase of 761.2% year-over-year, driven by drug sales and licensing income.
• Net Loss: Narrowed by 22.5% to RMB 162.6 million.
• Afuresertib (Meson ro®) Sales: The company's commercialized cancer treatment generated sales of RMB 24.8 million, a 105% increase from the same period last year.
• Gross Margin: Improved to 47.3% from 43.4% in the first half of the prior year.

The company noted that afuresertib is now available in over 300 hospitals.

Analyst Outlook and Pipeline Progress

A research report from Huatai Securities highlighted the commercialization partnership between Laekna and Roche for afuresertib, currently the company's only product on the market. The firm projects the drug could achieve peak annual sales of approximately RMB 1 billion in China by 2034.

Laekna also continues to advance its development pipeline. The company's New Drug Application for its core product, AP301, was accepted by China's National Medical Products Administration (NMPA) in August, and its global Phase III trial for another candidate has completed enrollment, signaling further potential for growth.