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Adlai Nortye(ANL) - 2024 Q4 - Annual Report
ANLAdlai Nortye(ANL)2025-04-30 20:01

Financial Performance - The company reported net losses of US58.8million,US58.8 million, US109.2 million (revised), and US51.9millionfortheyearsendedDecember31,2022,2023,and2024,respectively[625].−ThetotaloperatinglossfortheyearsendedDecember31,2022,2023,and2024wasUS51.9 million for the years ended December 31, 2022, 2023, and 2024, respectively [625]. - The total operating loss for the years ended December 31, 2022, 2023, and 2024 was US67.3 million, US72.6million,andUS72.6 million, and US52.5 million, respectively [647]. - The company has not generated any revenue from product sales to date, with no revenue reported for the years 2023 and 2024 [629][649]. - Loss for the period decreased from US109.2millionin2023toUS109.2 million in 2023 to US51.9 million in 2024 [654]. Research and Development - Research and development expenses increased from US54.5millionin2022toUS54.5 million in 2022 to US58.2 million in 2023, and decreased to US44.9millionin2024[648].−AN2025,theleadproduct,isundergoingaPhaseIIIclinicaltrialacrossmorethan180sitesin18jurisdictions,withpatientenrollmentcompletedinNovember2023[623].−ThecompanyplanstosubmitINDfilingsforAN8025andAN9025inmid−2025andthesecondhalfof2025,respectively[623].−Researchanddevelopmentexpensesdecreasedby22.844.9 million in 2024 [648]. - AN2025, the lead product, is undergoing a Phase III clinical trial across more than 180 sites in 18 jurisdictions, with patient enrollment completed in November 2023 [623]. - The company plans to submit IND filings for AN8025 and AN9025 in mid-2025 and the second half of 2025, respectively [623]. - Research and development expenses decreased by 22.8%, from US58.2 million in 2023 to US44.9millionin2024,primarilyduetoadecreaseinCROservicefeesandpayrollexpenses[651].FinancialPositionandCashFlow−AsofDecember31,2024,thecompanyhadUS44.9 million in 2024, primarily due to a decrease in CRO service fees and payroll expenses [651]. Financial Position and Cash Flow - As of December 31, 2024, the company had US60.9 million in cash and cash equivalents [662]. - Net cash used in operating activities was US51.8millionin2024,comparedtoUS51.8 million in 2024, compared to US56.7 million in 2023 [665]. - Net cash from investing activities was US28.1millionin2024,primarilyduetorecoveryofinvestmentsatamortizedcost[668].−NetcashfromfinancingactivitieswasUS28.1 million in 2024, primarily due to recovery of investments at amortized cost [668]. - Net cash from financing activities was US116.2 million in 2023, primarily due to the completion of the initial public offering [670]. Administrative and Other Expenses - The company anticipates increased administrative expenses to support ongoing research and development activities and compliance with public company requirements [631]. - Administrative expenses decreased by 34.9%, from US15.3millionin2023toUS15.3 million in 2023 to US10.0 million in 2024 [650]. - Other income and gains decreased by 7.7%, from US3.3millionin2023toUS3.3 million in 2023 to US3.0 million in 2024 [652]. Financial Liabilities and Risks - Fair value loss on financial liabilities at FVTPL decreased from US39.2millionin2023toUS39.2 million in 2023 to US0 in 2024 [653]. - The fair value of financial liabilities, including convertible loans and warrants, is measured at FVTPL using valuation techniques such as discounted cash flow [688]. - The company is exposed to foreign currency risk due to income and expenditures in both U.S. dollars and Renminbi, with plans to fund expenditures in China using Renminbi [809]. - A 10% depreciation of the Renminbi against the U.S. dollar would result in a decrease of 4.3million,or7.14.3 million, or 7.1%, in cash and cash equivalents as of December 31, 2024 [810]. Accounting Policies - The company prepares its consolidated financial statements in accordance with IFRS, requiring estimates and assumptions that may differ from actual results [683]. - Research and development costs are expensed as incurred, while product development expenditures are capitalized only when technical feasibility is demonstrated [684]. - Impairment assessments for non-financial assets are conducted at the end of each relevant period, with calculations based on fair value less costs of disposal or value in use [691]. - Deferred tax assets are recognized for unused tax losses, requiring significant management judgment regarding future taxable profits [692]. - The incremental borrowing rate is estimated for lease liabilities when the interest rate implicit in a lease cannot be readily determined [693]. Capital Expenditures - Capital expenditures were US1.2 million, US0.2million,andUS0.2 million, and US0.2 million in 2022, 2023, and 2024, respectively [675]. Liquidity Management - The company monitors liquidity to maintain adequate cash and cash equivalents for operations and to mitigate cash flow fluctuations [811]. Share-Based Payments - Share-based payments are recognized in employee benefit expense, reflecting the fair value at the grant date determined by an external valuer [686].