Viva Biotech Announces Its 2026 Interim Results: AI Sparks New Paradigm in Drug R&D, CDMO Commercial Manufacturing Accelerates Revenue Growth
Viva Biotech Holdings Group reported RMB1,006.5 million in revenue for the first half of 2026, marking a 21.0% year-on-year increase. Gross profit reached RMB341.7 million, up 0.7% year-on-year, with a gross margin of 34.0%. The growth was primarily fueled by its CDMO business, particularly Langhua Pharmaceutical's contributions, including one peptide project entering commercial production. Despite revenue growth, net profit declined to RMB100.9 million, attributed to lower investment income, unfavorable foreign exchange, and increased R&D expenses for new business development. The company's CRO segment saw RMB405.1 million in revenue, with AI-driven drug discovery projects accounting for 14.0% of this figure, reflecting an expanding role for AI in its R&D efforts.
Viva Biotech's interim results for 2026 show a clear shift in revenue drivers. While overall revenue grew 21.0% to RMB1,006.5 million, the CDMO segment, particularly Langhua Pharmaceutical, was the primary engine. This indicates a successful pivot or expansion into commercial manufacturing, with a peptide project already in commercial production and a small-molecule project in the PPQ phase. The company's CMC business also achieved profitability, a notable turnaround. The CRO segment, with RMB405.1 million in revenue, is increasingly relying on AI. AI-empowered projects contributed 14.0% of CRO revenue, and the company launched the MARS multimodal integrated algorithm platform to enhance drug design efficiency. This integration of AI, especially in protein structure determination and new modality offerings like peptides and antibodies, positions Viva Biotech to potentially capture more high-value R&D contracts in Asia, where demand for advanced drug discovery services is rising. However, the decline in net profit due to investment income, foreign exchange, and R&D costs suggests that while the core business is growing, other financial levers faced headwinds.
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