Sino Biopharmaceutical Announces 2019 Interim Results

Aug 29, 2019 17:40 JST

Source: Sino Biopharmaceutical Limited

Revenue Up 28.8% to RMB12.53 Billion
Underlying Profit Climbs 20.5% to RMB1.67 Billion

HONG KONG, Aug 29, 2019 - (ACN Newswire) - Sino Biopharmaceutical Limited ("Sino Biopharmaceutical" or the "Company", together with its subsidiaries, the "Group") (HKEX:1177), a leading and innovation-driven pharmaceutical conglomerate in the PRC, has announced today its unaudited interim results for the six months ended 30 June 2019 (the "review period").

Mr. Tse Ping, Chief Executive Officer and Executive Director (left) and Mr. Tse Hsin, Executive Director and Vice President (right) of Sino Biopharmaceutical attend the 2019 interim results press conference.

Results Highlights
- The Group entered a harvest period in R&D. It obtained 11 production approvals, 5 passing of Consistency Evaluation and 4 clinical trial approvals of new Category 1 medicines. It also filed clinical trial applications for 6 new Category 1 medicines and production applications for 8 products after completion of clinical trial while 14 applications have been made for Consistency Evaluation.
- Qingzhong (Tenofovir Disoproxil Fumarate) tablets have obtained Marketing Authorization (MA) from EU, becoming the PRC's first tier-one medicine for the treatment of hepatitis B approved for launch in EU.
- 8 new drug studies were recognized as National Major Innovative Drug Projects. The number of drug studies approved was not only among the highest in the country this year, but also the highest in a single year ever.

Results
During the review period, the Group recorded revenue of approximately RMB12,527 million, representing an increase of approximately 28.8% over the same period last year. Profit attributable to the owners of the parent was approximately RMB1,444 million, approximately 5.8% higher than that of the same period last year. Earnings per share attributable to the owners of the parent were approximately RMB11.47 cents, approximately 3.3% higher than that of the same period last year. Excluding the impact of the amortization expenses of new identifiable intangible assets arising from the acquisition of 24% interests in Beijing Tide, as well as the unrealized fair value gains and losses on equity investments and financials assets, underlying profit attributable to the owners of the parent was approximately RMB1,674 million, approximately 20.5% higher than that of the same period last year. Based on underlying profit attributable to the owners of the parent, the earnings per share were approximately RMB13.30 cents, approximately 17.8% higher than that of the same period last year. Cash and bank balances totaled approximately RMB7,182 million at the period end.

The Board of Directors has declared the payment of a second quarterly dividend of HK2 cents per share. Together with the dividend of HK2 cents already paid in the first quarter, the total dividends for the interim amounted to HK4 cents (first half of 2018: HK4 cents).

Business Highlights
During the review period, two key products of the Group namely Runzhong and Kaifen, which have been in the market for years, won the bid for centralized drug procurement in "4+7" cities. After winning the bid, the procurement volume of the two products has notably increased.

The Group created a number of growth points for sales and achieved a more balanced revenue structure. Leveraging on the opportunity arising from the launch of the blockbuster self-developed new Category 1 medicine Focus V, the Group commenced post-launch clinical studies in many hospitals across the PRC and strengthened professional promotion in the oncology sector. Hence, more doctors and patients have come to appreciate the clinical benefits of Focus V, driving the strong growth in sales of the product and the rapid growth of other oncology-related medicines such as Yigu, Yinishu, Shoufu and Saiweijian. Newly launched products, Anxian (Lenalidomide Capsules) for the treatment of adult patients with multiple myeloma, and Qianping (Bortezomib for Injection) for the treatment of relapsed or refractory mantle cell lymphoma, also delivered outstanding sales performances and achieved fast growth after release. The existing cardio-cerebral medicines Tuotuo and Yilunping, digestive system medicine Aisuping and respiratory system medicine Tianqingsule showed healthy growth, while analgesic product Debaian, and anti-infectious medicines Tianjie and Tianli also demonstrated massive growth.

During the review period, the sales performance of the Group's major medicine types is outlined below:

Hepatitis medicines
- The sales of hepatitis medicines amounted to approximately RMB3,292 million, representing approximately 26.3% of the Group's revenue.
The sales of Runzhong dispersible tablet amounted to approximately RMB1,600 million.
The sales of Tianqingganmei injections recorded approximately RMB935 million, an increase of approximately 6.5% against the same period last year.
The sales of Tianqingganping enteric capsules amounted to approximately RMB257 million, an increase of approximately 24.7% against the same period last year.
The sales of Ganze capsules amounted to approximately RMB71.83 million, an increase of approximately 5.9% against the same period last year.

Oncology medicines
- The sales of oncology medicines amounted to approximately RMB2,566 million, representing approximately 20.5% of the Group's revenue.
The sales of Saiweijian injections amounted to approximately RMB344 million, an increase of approximately 54.2% as compared with the same period last year.
The sales of Yinishu tablets amounted to approximately RMB115 million, a significant increase of approximately 59.3% as compared with the same period last year.
The sales of Genike capsules amounted to approximately RMB114 million, an increase of approximately 5.2% as compared with the same period last year.
The sales of Tianqingyitai injections amounted to approximately RMB109 million.
The sales of Shoufu tablets amounted to approximately RMB109 million, an increase of 34.4% as compared with the same period last year.
The sales of Qingweike injections amounted to approximately RMB108 million, an increase of 5.3% as compared with the same period last year.
The sales of Anxian capsules amounted to approximately RMB97.15 million.
The sales of Qianping injections amounted to approximately RMB77.60 million.

Cardio-cerebral medicines
- The sales of cardio-cerebral medicines amounted to approximately RMB1,697 million, representing approximately 13.5% of the Group's revenue.
The sales of Yilunping tablets amounted to approximately RMB495 million, a year-on-year increase of approximately 24.5%.
The sales of Tuotuo calcium tablets amounted to approximately RMB399 million, a year-on-year increase of approximately 24.6%.
The sales of Kaishi injections amounted to approximately RMB382 million.
The sales of Kaina tablets amounted to approximately RMB244 million, an increase of approximately 21.5% as compared with the same period last year.
The sales of Tianqingning injections recorded approximately RMB71.35 million.

Analgesic medicines
- The sales of analgesic medicines amounted to approximately RMB1,030 million, representing approximately 8.2% of the Group' revenue.
The sales of Kaifen injections amounted to approximately RMB597 million.
The sales of Debaian Cataplasm amounted to approximately RMB426 million, increased by approximately 37.7% over the same period last year.

Orthopedic medicines
- The sales of orthopedic medicines amounted to approximately RMB918 million, representing approximately 7.3% of the Group's revenue.
The sales of Gaisanchun capsules amounted to approximately RMB547 million.
The sales of Jiuli tablets amounted to approximately RMB186 million, an increase of approximately 30.1% against the same period last year.
The sales of Yigu injections amounted to approximately RMB155 million, a remarkable increase of approximately 76.4% against the same period last year.

Digestive system medicines
- The sales of digestive system medicines amounted to approximately RMB763 million, representing approximately 6.1% of the Group's revenue.
The sales of Aisuping injection amounted to approximately RMB485 million, an increase by approximately 32.1% as compared with the same period last year.
The sales of Getai tablets amounted to approximately RMB148 million, an increase by approximately 25.8% as compared with the same period last year.
The sales of Deyou granule amounted to approximately RMB90.06 million, a remarkable increase of approximately 122.1% against the same period last year.

Respiratory system medicines
- The sales of respiratory medicines amounted to approximately RMB573 million, representing approximately 4.6% of the Group's revenue.
The sales of Tianqingsule inhalation powder amounted to approximately RMB334 million, up approximately 30.1% as compared with the same period last year.
The sales of Chia Tai Suke tablets amounted to approximately RMB130 million, an increase by approximately 21.7% as compared with the same period last year.
The sales of Zhongchang tablets amounted to approximately RMB85.83 million, a sharp increase by approximately 123.6% as compared with the same period last year.

Anti-infectious medicines
- The sales of anti-infectious medicines amounted to approximately RMB567 million, representing approximately 4.5% of the Group's revenue.
The sales of Tiance injections amounted to approximately RMB328 million.
The sales of Tianjie injections amounted to approximately RMB173 million, an increase of approximately 43.6% against the same period last year.
The sales of Tianli (Linezolid and Glucose) injections amounted to approximately RMB47.36 million, up approximately 83.3% against the same period last year.

Parenteral nutritious medicines
- The sales of parenteral medicines amounted to approximately RMB374 million, representing approximately 3.0% of the Group's revenue.
The sales of Xinhaineng injections amounted to approximately RMB265 million, an increase of approximately 15.1% against the same period last year.
The sales of Fenghaineng fructose injections amounted to around RMB84.63 million.

Diabetic medicines
- The sales of diabetic medicines amounted to approximately RMB79.10 million, representing approximately 0.6% of the Group's revenue.
The sales of Taibai sustained release tablets amounted to approximately RMB70.99 million, up approximately 30.3% as compared with the same period last year.

R&D
The Group has continued to focus its R&D efforts on new hepatitis, oncology, respiratory system, analgesic and cardio-cerebral medicines. During the second quarter, it was granted seven clinical trial approvals, 8 production approvals, and 3 approvals for Consistency Evaluation, and made 2 clinical trial applications, 8 applications for Consistency Evaluation and 2 production applications. Cumulatively, there are 459 products under research in various stages as having obtained clinical trial approvals, undergoing clinical trials and filing production applications. Out of these, 37 for anti-virus and hepatitis medicines, 195 for oncology and oncology auxiliary medicines, 28 for respiratory system medicines, 32 for antibiotics, 48 were for cardio-cerebral medicines, 23 for orthopedic and analgesic medicines, and 96 for other medicines.

The Group also emphasizes on the protection of intellectual property rights. During the second quarter, the Group has received 24 authorized patent notices and filed 79 new patent applications. Cumulatively, the Group has obtained 716 invention patent approvals, 23 utility model patents and 82 apparel design patents.

Prospects
In the second half of the year, the healthcare reform carried out by the government will still focus on improving the hierarchical diagnosis and treatment system, and greater accessibility and affordability of healthcare services and medicine. The drop in the price of drugs under the centralized drug procurement program, the payment categorized under "Diagnosis-Related Groups" and the increased control over the proportion of medicines expenses in hospitals will continue as the themes of the reform. Meanwhile, China has encouraged innovation and accelerated approval of urgent clinical drugs such as oncology medicines and medicines for rare diseases. The New National Drug Reimbursement List has also prioritized the inclusion of these drugs. This list along with the reforms will present tremendous development opportunities to the leading companies with strong R&D and innovation capabilities and R&D resources which also possess oncology medicines in their pipeline, like Sino Biopharmaceutical.

The Group also recognizes that the outstanding therapeutic efficacy of targeted biological drugs have brought huge benefits to patients and society. The Group has established a comprehensive technology platform and reserve for drugs under research through its own efforts as well as cooperation with other organizations, building competitive advantages in various aspects in this field.

About Sino Biopharmaceutical Limited (HKEX:1177)
Sino Biopharmaceutical Limited is a leading innovation-driven pharmaceutical conglomerate in the PRC. Its business encompasses a fully-integrated chain which spans from R&D to the manufacture and sales of pharmaceutical products. The Group's products have gained a competitive foothold across various therapeutic categories with promising potential, covering a vast array of biopharmaceutical and chemical medicines for treating tumors, liver diseases, respiratory system diseases, analgesia, cardio-cerebral diseases and orthopedic diseases.

Sino Biopharmaceutical is a constituent stock of the following indices: MSCI Global Standard Indices - MSCI China Index, Hang Seng Index, Hang Seng Index - Commerce & Industry, Hang Seng Composite Index, Hang Seng Composite Industry Index - Consumer Goods, Hang Seng Composite LargeCap Index, Hang Seng Composite LargeCap & MidCap Index, Hang Seng China (Hong Kong-listed) 100 Index and Hang Seng Stock Connect Hong Kong Index. Sino Biopharmaceutical was ranked as one of "Asia's Fab 50 Companies" by Forbes Asia for three consecutive years in 2016, 2017 and 2018.

Source: Sino Biopharmaceutical Limited
Sectors: Daily Finance, Daily News, BioTech