Key takeaway

The company's 2025 revenue performance met expectations, overall operations were stable, and its innovative pipeline continued to advance. In 2025, total operating revenue reached RMB1.224bn, down 4.59% YoY from 2024, which was broadly in line with market expectations. Meanwhile, the company's core pipeline product, BGM0504 injection, has entered Phase III clinical trials for weight loss and type 2 diabetes in China. The weight loss Phase III clinical data were outstanding, demonstrating that BGM0504 can achieve excellent weight loss efficacy and a favorable safety profile. We are optimistic about the commercialization of BGM0504 for the weight loss indication in the future. On this basis, the company has also deployed BGM0504 oral tablets, BGM1812 (Amylin), BGM1962 (SARA), MSTN cyclic peptide injection, and ALK7 siRNA molecule in the metabolic field. Overall, the company's main business operations are stable, its innovative pipeline layout is extensive, and the future looks promising.

Event

On March 20, BRIGHTGENE released its annual report for 2025.

On May 5, BRIGHTGENE released the Phase III weight loss clinical data for BGM0504.

Quick Take

Revenue performance in 2025 met expectations as innovative pipeline continues to progress

In 2025, total operating revenue reached RMB1.224bn, down 4.59% YoY from 2024, which was broadly in line with market expectations.

At the profit level, the company's 2025 net profit was RMB37mn, down 73.84% YoY from 2024. This decline was mainly due to lower demand and prices for oseltamivir APIs and formulations, influenced by changes in influenza trends and the competitive landscape, as well as reduced revenue from antifungal API varieties compared to the same period last year. It was also impacted by increased depreciation charges and higher R&D investment in innovative drugs. Overall, the company's 2025 revenue performance met expectations, and while prof it declined, the overall business continued to develop steadily.

The innovative metabolic pipeline continues to advance with promising prospects. Currently, the company's core pipeline product, BGM0504 injection, is undergoing Phase III clinical trials for weight loss and type 2 diabetes in China. The Phase III results for the weight loss indication are expected to be read out in the first half of 2026. Previously, BGM0504 injection demonstrated excellent efficacy and a favorable safety profile in weight loss and type 2 diabetes, indicating strong drug competitiveness and a promising future. Meanwhile, for the weight loss indication, BGM0504 injection plans to refine the Phase III clinical protocol based on FDA recommendations and submit it, with promising prospects ahead. In addition, the company has also deployed BGM0504 oral tablets, BGM1812 (Amylin), BGM1962 (SARA), MSTN cyclopeptide injection, and ALK7 siRNA molecules in the metabolic field. The development of multiple targets gives the company a rich product pipeline and strong competitiveness in the metabolic field.

BGM0504 announced Phase III weight loss data, in line with expectations, with commercialization prospects ahead

BGM0504 delivered excellent Phase III weight loss data. In the BGM0504-III-WL Phase III clinical trial, after 52 weeks of dosing, the BGM0504 injection 5 mg, 10 mg, and 15 mg groups achieved mean body weight reductions from baseline of 14.3%, 17.3%, and 19.2%, respectively, compared with 3.1% in the placebo group. Overall, BGM0504 demonstrated excellent weight loss efficacy in Chinese patients, delivering a strong performance. Meanwhile, on other benefit indicators, BGM0504 effectively reduced patients' blood pressure. Among all enrolled participants, systolic and diastolic blood pressure decreased by an average of 12.8 mmHg and 6.8 mmHg from baseline, respectively, showing outstanding results. The drug also reduced low-density lipoprotein cholesterol, triglycerides, and total cholesterol, providing good benefits for patients. In terms of safety, BGM0504's common gastrointestinal adverse reactions were mostly mild to moderate, with an overall discontinuation rate of less than 2%, demonstrating an excellent safety profile. Overall, BGM0504 has excellent weight loss efficacy and an outstanding safety profile, making its future commercialization highly anticipated.

Outstanding financial performance, with increased investment in R&D expenses to support the innovative pipeline

In 2025, the company's selling expense was RMB78mn, basically f lat compared with RMB72mn in 2024, in line with expectations. During the reporting period, the company's overall R&D investment was RMB593mn, up 90.32% YoY, mainly because the company focused on deploying innovative metabolic pipeline drugs and advancing the clinical progress of BGM0504 and other product pipelines, leading to a relatively high increase in overall R&D investment. For administrative expense, the company's administrative expense in 2025 was RMB155mn, basically flat compared with 2024, in line with expectations.

Clear key milestones for 2026 with strong growth potential

The company has a dense schedule of catalysts in 2026: ① BGM0504 for weight loss is expected to file for marketing approval, while a US Phase III clinical trial is expected to commence. ② BGM1962, MSTN cyclopeptide injection, and ALK7 siRNA continue to advance in preclinical studies and are expected to file for IND.

Earnings forecast and investment rating

The company's main business continues to advance, with a rich innovative metabolic pipeline. The core pipeline asset BGM0504 is expected to complete Phase III clinical trials and launch for sales, bringing incremental performance. Overall development remains steady. We estimate that from 2026 to 2028, the company's revenue will be RMB1.285bn, RMB2.261bn, and RMB2.846bn respectively, and we give a "Buy" rating.

Risks:

Uncertainty in new drug R&D. As tech innovation, the R&D of new medicine has features such as a long cycle, large investment, high risk, and low success rate. From lab research to approval, new medicines will go through preclinical research, clinical trials, registration and listing, after-sales supervision and many other complex procedures, and each is faced with the risk of failure. Existing products or treatments also have the risk of being replaced by new therapies and technologies.

Commercialization risks. Medical insurance cost control exceeding expectations may lead to innovative drug pricing falling short of expectations. The company has exclusive products in the volume expansion phase, but the metabolic drug market is highly competitive. Meanwhile, BGM0504 will be in the early ramp-up phase after launch, which involves certain uncertainties and could pose risks of sales share falling short of expectations or selling expense ratio being higher than anticipated.

Sensitivity analysis: The company's main business progress is stable, and the Phase III clinical trials for BGM0504 are advancing as expected. We estimate that domestic sales in 2026, 2027, and 2028 will be RMB0, RMB922mn, and RMB1.478bn respectively. The product is in the R&D stage, with risks of clinical development falling short of expectations, and there is uncertainty regarding volume ramp-up upon initial domestic launch. If the volume ramp-up of BGM0504 falls short of expectations, there may be a risk that the company's revenue from 2026 to 2028 falls short of expectations. In addition, the company has various R&D pipelines and sees significant R&D spending. Sharp changes in R&D expenses may also lead to fluctuations in the company's profit.