The Chinese firm is pocketing an upfront payment for a gene-focused drug under development and anticipates rising sales of an approved treatment for lung cancer

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Key Takeaways:

• Early clinical data for the company's pan-KRAS inhibitor indicate the targeted cancer drug is safe and effective
• Revenue tumbled in 2025 but Jacobio is projecting a profit for this year and a surging cash balance

Investors in Chinese drug developers have tended to focus on product pipelines and collaboration deals. But now they are paying more attention to the clinical data for emerging drugs and the prospects for global sales in the future.

Jacobio Pharmaceuticals Group Co. Ltd. (1167.HK) released its 2025 annual results on March 10 and disclosed early clinical data for a candidate drug targeting gene mutations associated with a range of cancers.

Jacobio's product in progress, the pan-KRAS inhibitor JAB-23E73, was the subject of a development deal with AstraZeneca late last year. With the $100 million upfront payment from that collaboration about to flow into earnings, the company has predicted it will land in the black in 2026.

Last year already marked a commercial milestone for Jacobio, when another of its drugs was approved for sale in China as a treatment for a type of lung cancer. The internally developed drug, Glecirasib, was cleared for patients carrying KRAS G12C mutations who had already received at least one round of cancer therapy.

Jacobio had already teamed up with Allist Pharmaceuticals (688578.SH) in 2024 to accelerate the drug's market launch, with the partner taking responsibility for China sales. The medication was added to China's National Reimbursement Drug List in December 2025, clearing the way for Jacobio to receive a milestone payment of 53.5 million yuan ($8 million) along with a share of product revenue.

Aside from the progress with Glecirasib, a clinical update on the pan-KRAS inhibitor JAB-23E73 was the most striking feature of the earnings report.

RAS mutations – primarily KRAS, NRAS and HRAS – are among the most common triggers in human cancers. About 20% to 30% of solid tumors carry RAS mutations, with KRAS accounting for the biggest share. Yet for decades, this target had been considered out of reach for drug treatment. Pan-KRAS inhibitors have become a major focus for pharmaceutical companies as a way to suppress multiple mutations and may be even more effective when combined with other targeted therapies, while also helping to overcome drug resistance.

Early results indicate the drug is effective and safe, the company said. Of the 41 people who received JAB-23E73 in a Phase One trial, only 11.9% experienced severe side effects, compared with 22% for the comparable drug RMC-6236 made by Revolution Medicines, a U.S. precision oncology company. Moreover, the Jacobio drug showed promise as a treatment for pancreatic cancer. Among 13 pancreatic cancer patients receiving doses of at least 160 mg per day, the objective response rate (ORR) reached 38.5% while the disease control rate (DCR) was 84.6%.

As for the annual earnings, Jacobio's revenue fell sharply to 53.5 million yuan in 2025 from 156 million yuan a year earlier, mainly on the back of reduced income from licensing collaborations and clinical trial services. However, administrative expenses fell 20.2% and full-year R&D spending sank 42.9% to 189 million yuan.

The tie-up with Allist eased the cost burden, as Jacobio conducted no major clinical tests on its own behalf during the reporting period. Key trials for Glecirasib and another investigational oncology drug, the SHP2 inhibitor sitneprotafib (JAB-3312), were managed and fully funded by Allist. As a result, Jacobio's net loss narrowed to 146 million yuan.

Strong cash position

Based on encouraging early data for JAB-23E73, Jacobio signed a licensing agreement with AstraZeneca in December 2025 with a potential value approaching $2.02 billion, setting an out-licensing record for a clinical-stage small-molecule cancer drug developed in China.

The two parties agreed to jointly develop and commercialize JAB-23E73 in China, while AstraZeneca will hold exclusive rights in other markets. Jacobio gets $100 million upfront and is eligible for up to $1.92 billion in payments linked to development and commercial milestones, as well as royalties from sales outside China.

By the end of last year, Jacobio held around 974 million yuan in cash and bank balances. The company predicted that its cash balance would rise above 2 billion yuan once AstraZeneca's $100 million payment is banked in the first quarter of 2026.

The ample cash reserves should help to fund at least five more years of work across its drug pipeline. Aside from the AstraZeneca money, revenue-sharing income from Glecirasib is also expected to jump in 2026 after the drug made it into the drug catalogue covered by Chinese medical insurance, Jacobio Chairman and CEO Wang Yinxiang said. Meanwhile, several other collaboration projects may also generate milestone payments if they progress as planned. The company expects these factors to help it achieve profitability in 2026.

In addition to its deep focus on KRAS-related therapies, Jacobio is also developing a platform for next-generation antibody-drug conjugates (ADCs). Its pipeline includes JAB-BX600, an ADC aimed at the EGFR cell protein and carrying a KRAS G12D inhibitor payload. Another drug in development, JAB-BX467, targets a protein associated with breast cancer, HER2, and carries a STING agonist payload designed to help the body destroy tumor cells. The company is expected to apply for investigational new drug (IND) status for both therapies in the second half of 2026.

Jacobio currently commands a market value of about HK$5.5 billion ($700 million), compared with HK$10.4 billion for fellow KRAS-focused drug developer GenFleet Therapeutics (2595.HK). The valuation gap suggests the market may not have fully factored in Jacobio's pan-KRAS assets or an approaching breakeven point, creating a potential opportunity for investors.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.