Fosun Pharma Release 2019 Interim Results：Continue to Increase R&D Investment with a Steady Growth in Pharmaceutical Manufacturing & R&D Segment
【26 August 2019，Shanghai】On 26 August 2019, Shanghai Fosun Pharmaceutical (Group) Co., Ltd (Fosun Pharma, stock code: 600196.SH，02196.HK), a leading healthcare group in China, announces its 2019 Interim Results.
Fosun Pharma’s business covers all key segments of healthcare industry chain, with pharmaceutical manufacturing and R&D as the core, and healthcare services as the development focus. During the reporting period (ended June 30, 2019):
· The revenue of the Group increased by 19.51% as compared to the corresponding period in 2018 to RMB14,173 million.
· The pharmaceutical manufacturing and R&D segment of the Group generated revenue of RMB10,895 million, representing an increase of 21.65% as compared to the corresponding period of 2018.
· The revenue from healthcare service segment amounted to RMB1,460 million, an increase of 21.56% compared with the corresponding period in 2018.
· The sales of the Group grew and the receivables’ collection was good. As a result, cash flow from operating activities continued to show a rising trend. Net cash flow from operating activities amounted to RMB1,450 million, representing an increase of 13.40% as compared to the corresponding period of 2018.
· The total profits and net profits of the Group amounted to RMB2,196 million and RMB1,820 million, respectively, representing an increase of 7.78% and 4.70% as compared to the corresponding period of 2018, respectively. The result for the second quarter and for the first half of 2019 has been improved compared with the first quarter 2019 and the second half of 2018 respectively.
“The pharmaceutical industry experienced a transformation and Fosun Pharma will be firmly committed to the path of innovation and internationalization. We believe that our efforts in innovation will help Fosun Pharma realize its innovation transformation. The steady international-oriented development will make us more competitive internationally in terms of operation standards and market expansion.” Mr. Wu Yifang, President and CEO of Fosun Pharma said.
Driven by Innovation and R&D, Continue to Optimize Products Layout
Fosun Pharma regards innovation and R&D as the core driving factor of development. The total R&D investment for the first half of 2019 amounted to RMB1,351 million, representing an increase of 13.69% as compared to the corresponding period of 2018. During the reporting period, the R&D investment in the pharmaceutical manufacturing and R&D segment of the Group amounted to RMB1,205 million, representing an increase of 13.23% as compared to the corresponding period of 2018, and accounting for 11.1% of the revenue of the pharmaceutical manufacturing and R&D segment.
As at the end of the Reporting Period, the Group had 233 projects on pipeline innovative drugs, generic drugs, biosesimilars and consistency evalsuation of generic drugs. In addition, 23 projects were introduced, including 8 imported innovative drugs and 15 imported generic drugs.
In the Reporting Period, Fosun Pharma focused on increasing the R&D investment in monoclonal antibody product, biosesimilar drugs, and small molecule innovative drugs, and systematically promoted the consistency evalsuation of generic drugs. As at the end of the Reporting Period, 9 small molecular innovative drug products (including 1 improved new drug) and 9 indications had obtained approval for clinical trial in Mainland China; 1 monoclonal antibody product had obtained approval for market launch in Mainland China; 2 monoclonal antibody products were accepted for new drug application and included in the priority review procedure in Mainland China; and 13 monoclonal antibody products and 3 combination therapy had launched more than 20 clinical trials worldwide. During the Reporting Period, 3 products of the Group passed the consistency evalsuation of generic drugs. As at the end of the Reporting Period, the Group had 12 products on accumulated count that passed the consistency evalsuation of generic drugs. It is expected that these pipeline products as well as the generic drugs approved in consistency evalsuation will provide a solid foundation to maintain sustainable development of the Group in the future.
HLX01 (rituximab injection), the first product of Shanghai Henlius Biotech Company Limited (Shanghai Henlius), has been granted approval by the National Medical Products Administration (NMPA) as the first approved biosesimilar in China. Moreover, HLX03 (adalimumab injection) and HLX02 (trastuzumab for injection) have their New Drug Applications under primary review by the NMPA. HLX02 is the first biosesimilar developed in China to enter a global multi-center phase 3 clinical trial. In June 2019, the Marketing Authorization Application for HLX02 was accepted to review by EMA.
The first-in-class small molecule innovative drug, ORIN1001, has received Fast Track designation (FTD) from U.S. Food and Drug Administration (FDA). The new drug is for the treatment of patients with relapsed, refractory and metastatic breast cancer（including triple-negative breast cancer[TNBC]）.The treatment of patients with triple-negative breast cancer is expected to make a breakthrough. Facing with unmet medical needs, Fosun Pharma also introduced a number of advanced and cutting-edge products and technologies through diversified cooperation. In the field of cell therapy, FKC876, the first product of Fosun Kite, has obtained the IND approval from NMPA in 2018, and now its registration clinical trials are underway. Fosun Kite also built new cell therapy R&D center in Zhangjiang area to further accelerate the industrialization of CAR-T technology. In April 2019, Fosun Pharma signed the agreement with ReNeuron, the global leader in cell therapy, to introduce two cell products for the treatment of Post-stroke disability and retinitis pigmentosa, and to promote the establishment of stem cell platforms.
Balanced growth of the main business, and the first domestic biosesimilar drug HLX01 obtained market recognition
While Fosun Pharma continuously improving its innovation ability and ramping up its product capacity, the development of its professional operational team was further strengthened and the pharmaceutical manufacturing and R&D segment of the Group continued to grow steadily.
During the Reporting Period, Fosun Pharma maintained its competitive edge in product sales in oncology, cardiovascular system, CNS, blood system, metabolism and alimentary system, anti-infection and other disease treatment fields. The revenue of febuxostat tablets (You Li Tong), pitavastatin calcium tablets (Bang Zhi), enoxaparin injection, quetiapine fumarate tablets (Qi Wei), sulbactam sodium for injection (Qiang Shu Xi Lin), daptomycin and other core products all sustained a rapid growth. HLX01 (rituximab injection) commenced sales in mid-May 2019 and quickly gained market recognition, benefiting more lymphoma patients. In oversea market, artemisinin-based antimalarial products are highly recognized in the African market, and Artesunate for injection (Artesun®) is listed as the first reference drug for the treatment of severe malaria.
During the Reporting Period, the healthcare services entities controlled by the Group realized total revenue of RMB1,460 million, representing an increase of 21.56% as compared to the corresponding period of 2018. The combined number of authorized beds controlled by Fosun Pharma including Chancheng Hospital was 4,328 in aggregate. In medical devices and medical diagnosis segment, Sisram's performance continued to grow in the first half of 2019, expanding its global distribution; the revenue of HPV diagnostic reagent and T-SPOT test kits increased rapidly as compared to the corresponding period of 2018.
Continuously cultivate and expand internationalization capabilities
Fosun Pharma is firmly committed to the international path, through the layout of international high level research as well as development and manufacturing system with cost advantages, to improve international competitiveness. At present, Fosun Pharma has established international standard manufacturing facilities in Chongqing, Guilin, Xuzhou and Hyderabad in India.
Continue to expand international capabilities, Fosun Pharma has established subsidiaries in United States and Europe, while developing and forming market and production capacity in emerging markets such as Africa and India. Till now, Fosun Pharma has a marketing team of nearly 5,600 people, including more than 1,000 overseas. Fosun Pharma has also established a mature sales network with profound upstream and downstream client resources in Africa. By leveraging Tridem Pharma’s sales resources in Francophones countries and regions in Africa, Fosun Pharma’s competitiveness has been enhanced and its international pharmaceutical marketing platform has been further completed. Gland Pharma, benefited from the growth of major products such as enoxaparin injection recorded an increase, with a total of four generic drug products approved by U.S FDA. With the in-depth integration of Gland Pharma, Fosun Pharma will continue to strengthen the capacity of drug registration and declaration in the international regulatory market, build up and promote the supply chain integration and collaboration of product lines.
Mr. Chen Qiyu, Chairman of Fosun Pharma said: “With the mission of better health for families worldwide, Fosun Pharma will leverage its business advantages and actively promote the strategy of organic growth, external expansion and integrated development , focus on unsatisfied healthcare needs, continuously enhance its research and development innovation capability, keep optimizing the product structure through multi-level innovation, and provide patients with therapeutic and curative drugs that are more affordable and better in quality.”
Fosun Pharma’s business covers all key segments of healthcare industry chain, with pharmaceutical manufacturing and R&D as the core, and healthcare services as the development focus. During the reporting period (ended June 30, 2019):
· The revenue of the Group increased by 19.51% as compared to the corresponding period in 2018 to RMB14,173 million.
· The pharmaceutical manufacturing and R&D segment of the Group generated revenue of RMB10,895 million, representing an increase of 21.65% as compared to the corresponding period of 2018.
· The revenue from healthcare service segment amounted to RMB1,460 million, an increase of 21.56% compared with the corresponding period in 2018.
· The sales of the Group grew and the receivables’ collection was good. As a result, cash flow from operating activities continued to show a rising trend. Net cash flow from operating activities amounted to RMB1,450 million, representing an increase of 13.40% as compared to the corresponding period of 2018.
· The total profits and net profits of the Group amounted to RMB2,196 million and RMB1,820 million, respectively, representing an increase of 7.78% and 4.70% as compared to the corresponding period of 2018, respectively. The result for the second quarter and for the first half of 2019 has been improved compared with the first quarter 2019 and the second half of 2018 respectively.
“The pharmaceutical industry experienced a transformation and Fosun Pharma will be firmly committed to the path of innovation and internationalization. We believe that our efforts in innovation will help Fosun Pharma realize its innovation transformation. The steady international-oriented development will make us more competitive internationally in terms of operation standards and market expansion.” Mr. Wu Yifang, President and CEO of Fosun Pharma said.
Driven by Innovation and R&D, Continue to Optimize Products Layout
Fosun Pharma regards innovation and R&D as the core driving factor of development. The total R&D investment for the first half of 2019 amounted to RMB1,351 million, representing an increase of 13.69% as compared to the corresponding period of 2018. During the reporting period, the R&D investment in the pharmaceutical manufacturing and R&D segment of the Group amounted to RMB1,205 million, representing an increase of 13.23% as compared to the corresponding period of 2018, and accounting for 11.1% of the revenue of the pharmaceutical manufacturing and R&D segment.
As at the end of the Reporting Period, the Group had 233 projects on pipeline innovative drugs, generic drugs, biosesimilars and consistency evalsuation of generic drugs. In addition, 23 projects were introduced, including 8 imported innovative drugs and 15 imported generic drugs.
In the Reporting Period, Fosun Pharma focused on increasing the R&D investment in monoclonal antibody product, biosesimilar drugs, and small molecule innovative drugs, and systematically promoted the consistency evalsuation of generic drugs. As at the end of the Reporting Period, 9 small molecular innovative drug products (including 1 improved new drug) and 9 indications had obtained approval for clinical trial in Mainland China; 1 monoclonal antibody product had obtained approval for market launch in Mainland China; 2 monoclonal antibody products were accepted for new drug application and included in the priority review procedure in Mainland China; and 13 monoclonal antibody products and 3 combination therapy had launched more than 20 clinical trials worldwide. During the Reporting Period, 3 products of the Group passed the consistency evalsuation of generic drugs. As at the end of the Reporting Period, the Group had 12 products on accumulated count that passed the consistency evalsuation of generic drugs. It is expected that these pipeline products as well as the generic drugs approved in consistency evalsuation will provide a solid foundation to maintain sustainable development of the Group in the future.
HLX01 (rituximab injection), the first product of Shanghai Henlius Biotech Company Limited (Shanghai Henlius), has been granted approval by the National Medical Products Administration (NMPA) as the first approved biosesimilar in China. Moreover, HLX03 (adalimumab injection) and HLX02 (trastuzumab for injection) have their New Drug Applications under primary review by the NMPA. HLX02 is the first biosesimilar developed in China to enter a global multi-center phase 3 clinical trial. In June 2019, the Marketing Authorization Application for HLX02 was accepted to review by EMA.
The first-in-class small molecule innovative drug, ORIN1001, has received Fast Track designation (FTD) from U.S. Food and Drug Administration (FDA). The new drug is for the treatment of patients with relapsed, refractory and metastatic breast cancer（including triple-negative breast cancer[TNBC]）.The treatment of patients with triple-negative breast cancer is expected to make a breakthrough. Facing with unmet medical needs, Fosun Pharma also introduced a number of advanced and cutting-edge products and technologies through diversified cooperation. In the field of cell therapy, FKC876, the first product of Fosun Kite, has obtained the IND approval from NMPA in 2018, and now its registration clinical trials are underway. Fosun Kite also built new cell therapy R&D center in Zhangjiang area to further accelerate the industrialization of CAR-T technology. In April 2019, Fosun Pharma signed the agreement with ReNeuron, the global leader in cell therapy, to introduce two cell products for the treatment of Post-stroke disability and retinitis pigmentosa, and to promote the establishment of stem cell platforms.
Balanced growth of the main business, and the first domestic biosesimilar drug HLX01 obtained market recognition
While Fosun Pharma continuously improving its innovation ability and ramping up its product capacity, the development of its professional operational team was further strengthened and the pharmaceutical manufacturing and R&D segment of the Group continued to grow steadily.
During the Reporting Period, Fosun Pharma maintained its competitive edge in product sales in oncology, cardiovascular system, CNS, blood system, metabolism and alimentary system, anti-infection and other disease treatment fields. The revenue of febuxostat tablets (You Li Tong), pitavastatin calcium tablets (Bang Zhi), enoxaparin injection, quetiapine fumarate tablets (Qi Wei), sulbactam sodium for injection (Qiang Shu Xi Lin), daptomycin and other core products all sustained a rapid growth. HLX01 (rituximab injection) commenced sales in mid-May 2019 and quickly gained market recognition, benefiting more lymphoma patients. In oversea market, artemisinin-based antimalarial products are highly recognized in the African market, and Artesunate for injection (Artesun®) is listed as the first reference drug for the treatment of severe malaria.
During the Reporting Period, the healthcare services entities controlled by the Group realized total revenue of RMB1,460 million, representing an increase of 21.56% as compared to the corresponding period of 2018. The combined number of authorized beds controlled by Fosun Pharma including Chancheng Hospital was 4,328 in aggregate. In medical devices and medical diagnosis segment, Sisram's performance continued to grow in the first half of 2019, expanding its global distribution; the revenue of HPV diagnostic reagent and T-SPOT test kits increased rapidly as compared to the corresponding period of 2018.
Continuously cultivate and expand internationalization capabilities
Fosun Pharma is firmly committed to the international path, through the layout of international high level research as well as development and manufacturing system with cost advantages, to improve international competitiveness. At present, Fosun Pharma has established international standard manufacturing facilities in Chongqing, Guilin, Xuzhou and Hyderabad in India.
Continue to expand international capabilities, Fosun Pharma has established subsidiaries in United States and Europe, while developing and forming market and production capacity in emerging markets such as Africa and India. Till now, Fosun Pharma has a marketing team of nearly 5,600 people, including more than 1,000 overseas. Fosun Pharma has also established a mature sales network with profound upstream and downstream client resources in Africa. By leveraging Tridem Pharma’s sales resources in Francophones countries and regions in Africa, Fosun Pharma’s competitiveness has been enhanced and its international pharmaceutical marketing platform has been further completed. Gland Pharma, benefited from the growth of major products such as enoxaparin injection recorded an increase, with a total of four generic drug products approved by U.S FDA. With the in-depth integration of Gland Pharma, Fosun Pharma will continue to strengthen the capacity of drug registration and declaration in the international regulatory market, build up and promote the supply chain integration and collaboration of product lines.
Mr. Chen Qiyu, Chairman of Fosun Pharma said: “With the mission of better health for families worldwide, Fosun Pharma will leverage its business advantages and actively promote the strategy of organic growth, external expansion and integrated development , focus on unsatisfied healthcare needs, continuously enhance its research and development innovation capability, keep optimizing the product structure through multi-level innovation, and provide patients with therapeutic and curative drugs that are more affordable and better in quality.”
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