Kino Biotech Sees Fourth-Quarter and 2027 Growth Driven by Two Engines

Table of Contents

• You might want to know
• Main Topic
• Key Insights Table
• Afterwards...

You might want to know

• What is supporting Kino Biotech’s expectations for the fourth quarter and next year?
• What progress has Lystra made toward clinical development and a planned emerging-stock listing?

Main Topic

Kino Biotech (基米, 4195-TW) General Manager Jiang Junqi (江俊奇) said on the 9th that the company is entering its traditional peak season in the fourth quarter. Demand for clinical genetic testing services is strong, and order momentum remains smooth. Alongside the contribution expected from subsidiary Lystra (萊斯特) as it expands into new-drug development, the company sees potential for improved business performance in the fourth quarter and next year. Kino Biotech is also planning for Lystra to register on Taiwan’s emerging stock market next year.

The outlook is based on two connected areas of activity: Kino Biotech’s existing testing and related services, and Lystra’s development of drug candidates and contract development and manufacturing organization (CDMO) services. For Kino, seasonal demand for clinical genetic testing and active orders provide near-term support. For Lystra, the company expects CDMO activity and overseas expansion to gain traction. These are management expectations rather than guaranteed outcomes, and both depend on demand, execution and the progress of development programs.

Kino Biotech reported third-quarter revenue of NT$201 million, an increase of 19.64% quarter over quarter and 12.92% year over year. Gross margin was 29.35%, up 6.73 percentage points from the previous quarter and 1.26 percentage points from the same period last year. Operating margin was -19.4%. The operating loss narrowed compared with the second quarter, although it widened slightly from the year-earlier period. The company recorded an after-tax loss of NT$54 million, returning to a loss compared with both the previous quarter and the same period last year. Loss per share was NT$0.7.

The company attributed the quarter’s revenue growth to active demand for instruments and equipment, next-generation sequencing (NGS), and commissioned multi-omics projects. These areas helped revenue increase both quarter over quarter and year over year. The figures show that stronger sales and an improved gross margin did not yet translate into operating or net profitability. Revenue growth, margin performance and operating expenses therefore remain distinct parts of the company’s financial picture.

For the first three quarters of the year, Kino Biotech recorded revenue of NT$521 million, up 6.63% year over year. Gross margin was 27.26%, a decline of 5.94 percentage points from the comparable period. Operating margin stood at -23.61%, and the operating loss expanded year over year. The after-tax loss was NT$65 million, also larger than in the same period last year, while loss per share was NT$0.84.

Kino Biotech said it is in a growth-investment phase as it expands its scale. The company has continued to increase spending on new-product research and development, agency products, and channel promotion. These efforts have raised related expenses and affected profitability, resulting in losses. This explanation points to a deliberate investment strategy, but the financial results also make cost management and the ability to convert investment into sustained revenue important factors to watch.

Lystra was established in 2023 through a spin-off from Kino Biotech. Its paid-in capital is approximately NT$196 million, and Kino currently owns slightly more than 30% of the subsidiary. Lystra provides platform technology, bioinformatics and CDMO manufacturing capabilities. The subsidiary’s combination of technical services and drug-development programs gives it multiple potential routes to activity, although the source does not provide separate revenue or profit figures for Lystra.

Lystra is focused on research and development in three areas: novel antibiotic potentiators, drugs for metabolic diseases and short-chain nucleic acid drugs. Its antibiotic potentiator candidate, LB001, is the most advanced program identified by the company. Lystra has completed a U.S. clinical patent application and begun a global intellectual-property strategy. It expects to submit an application for a Phase I clinical trial, or investigational new drug (IND) application, in the first quarter of next year.

The planned IND submission is an upcoming development milestone, not confirmation that a clinical trial has begun or that the candidate has demonstrated clinical efficacy. Further progress would depend on the application process and subsequent development. Lystra plans to continue advancing LB001 toward clinical development while broadening its product pipeline. In parallel, the planned emerging-stock registration next year represents a corporate milestone that could make the subsidiary more visible to investors, though the plan remains subject to execution and applicable listing requirements.

For Kino Biotech, the near-term case rests on seasonal demand and continuing orders for clinical genetic testing, alongside activity in instruments, NGS and multi-omics projects. The longer-term growth narrative includes Lystra’s CDMO services, international development and drug pipeline. The third-quarter and first-three-quarter results, however, show that operating losses persist despite revenue growth. The company’s ability to manage investment expenses while building sales and advancing subsidiary programs will be central to assessing whether its two growth engines can support better results.

Key Insights Table

Afterwards...

Looking ahead, Kino Biotech’s performance will depend on whether strong seasonal demand and active orders can sustain revenue momentum, and whether investment in products and channels can eventually improve profitability. Lystra’s CDMO and overseas activities, progress with LB001 and other pipeline programs, and planned emerging-stock registration are additional milestones to monitor. Together, these developments form the company’s stated growth outlook, while the reported losses underline the importance of execution, cost discipline and measurable progress.