Zhongsheng's weight-loss drug hits Phase III goal, but profit slumps
RAY1225 weight-loss trial succeeds The company's once-every-two-weeks weight-loss injection RAY1225 met the main goal of its late-stage trial, cutting body weight by 22.24% with good safety. This is the biggest value driver: it raises the odds of a future blockbuster obesity drug, though approval is still not guaranteed.
The Phase III success is the strongest new catalyst for the stock's long-term value.
MASH drug gets fast-track review ZSP1601 tablets for fatty liver disease (MASH) were accepted into China's breakthrough therapy program after positive mid-stage data showing less liver scarring and fat. Fast-track status can speed up approval and signals the drug is promising, supporting the company's pipeline value.
A new regulatory milestone for a second innovative drug adds to the pipeline story.
Interim profit falls 40.7% First-half 2026 net profit dropped 40.70% to 111 million yuan and revenue fell 23.03% to 1 billion yuan. The existing business is shrinking, which is a real counterweight: the exciting pipeline news does not yet pay the bills, and weak earnings can cap the stock.
The profit decline is the main negative force and the honest counterweight to the pipeline optimism.
New eye-drop approval and Japan patent Zhongsheng won Chinese approval to sell its allergy eye drop Emedastine Difumarate, a small but real new revenue source. It also secured the core Japanese patent for RAY1225, strengthening long-term protection of its key obesity drug in a major market.
These are smaller but concrete new positives on top of the pipeline news.