Shanghai Bioheart (2185.HK) Q3 2024 Earnings Report

Shanghai Bioheart Biological Technology (2185.HK) reported QQ3 2024 results that underscore a pre-revenue, R&D-intensive business model. The quarter ended 2024-09-30 shows no disclosed revenue, with R&D expenses of 9.75 million CNY and total operating expenses of 16.08 million CNY, resulting in a -14.38 million CNY EBITDA and a -16.08 million CNY operating loss. Net income declined to -31.06 million CNY, translating to an EPS of -0.13. While the burn rate remains material, the company maintains a robust balance sheet with 202.39 million CNY in cash and cash equivalents and a total asset base of 733.78 million CNY. Importantly, the balance sheet exhibits very strong liquidity metrics (current ratio 15.22, cash ratio 10.30) and a net cash position of approximately -194.10 million CNY, implying substantial runway to advance clinical programs and pipeline initiatives.

The pipeline focuses on interventional cardiovascular therapies, including Bioheart, a BioHeart BRS system intended for PCI procedures, Iberis 2nd (a multielectrode renal denervation candidate), and a sirolimus-coated balloon concept. The company also cites a collaboration with Terumo China Investment Co Ltd to conduct clinical trials for Iberis 2nd, a potential lever for future value realization contingent on clinical milestones and regulatory progress. Valuation reflects the pre-revenue status, with negative earnings and a price-to-book around 0.57 and an enterprise value multiple of approximately -12.77, signaling substantial momentum risk but potential upside if pipeline milestones translate into commercial opportunities.

Overall, the QQ3 2024 results reinforce a high-risk, high-puelled-growth profile typical of leading-edge biotech names in China: meaningful cash reserves and limited liabilities support R&D-driven value creation, but the absence of revenue and ongoing losses imply a long journey to profitability. Investors should closely monitor trial timelines, regulatory milestones, partnership developments, and potential monetization options for the pipeline assets.