Genscript Biotech Corporation (stock code: 01548) released a profit warning for the year ended 31 December 2025, outlining a mixed performance driven by surging license revenue but weighed down by sizable non-cash items linked to its associate, Legend Biotech Corporation. Key takeaways are as follows:

1. Adjusted Operating Performance • Adjusted net profit from continuing operations is projected at US$207.30 million–US$241.90 million, a jump of 246.5%–304.3% from the US$59.80 million recorded in 2024. • The improvement stems mainly from license revenue, which is expected at US$256.10 million–US$298.80 million versus just US$2.40 million a year earlier. The sharp rise reflects sublicense income from LaNova Medicines, as previously disclosed on 30 June 2025 and 14 October 2025.

2. Impact of Legend Biotech • Following the October 2024 deconsolidation of Legend, Genscript will book a non-cash share of loss of US$304.40 million–US$352.40 million for 2025. • An impairment loss on the investment in Legend is estimated at US$378.20 million–US$437.90 million, triggered by a marked decline in Legend’s ADS price by year-end. • Legend’s own adjusted net loss narrowed sharply to US$33.10 million from US$188.80 million in 2024.

3. Bottom-Line Effect • After factoring in the Legend-related charges and the absence of a one-off US$3.20 billion unrealised gain booked in 2024, Genscript expects a net loss of US$505.80 million–US$585.60 million for 2025, compared with a net profit of US$2.90 billion in the prior period.

4. Liquidity Considerations • Management emphasises that the projected impairment is non-cash and does not materially affect the Group’s cash position or liquidity.

The figures are based on unaudited management accounts and may be revised. The full audited results are scheduled for release before end-March 2026. Shareholders and investors are urged to exercise caution when dealing in the company’s securities.