Sino Biopharm Announces 2019 Annual Results
![Sino Biopharm Announces 2019 Annual Results](https://media.asiaone.com/sites/default/files/styles/article_top_image/public/original_images/Mar2020/Picture-1_3.jpg?itok=ft-zFIwJ)
Revenue Climbs 16 .0 % to RMB24.23 billion Underlying Profit Up 10.2% to RMB3.13 billion
Achieves an outstanding R&D performance and obtains 28 production approvals
Financial Highlights
| For the Year Ended 31 December |
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RMB | 2019 | 2018 | Change |
Revenue (million) | 24,234 | 20,889 | +16.0% |
Underlying Profit* (million) | 3,132 | 2,841 | +10.2% |
Profit Attributable to Owners of the Parent (million) | 2,707 | 9,046 | -70.1% |
Basic Earnings** per Share (cents) | 24.97 | 22.98 | +8.7% |
Total Dividend per Share (HK cents) | 8.00 | 8.0 |
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- First Quarter | 2.0 | 2.0 |
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- Second Quarter | 2.0 | 2.0 |
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- Third Quarter | 2.0 | 2.0 |
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- Fourth Quarter | 2.0 | 2.0 |
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* Refers to profit attributable to the owners of the parent excluding the impact of (i) one-off gain on step acquisition and annual amortization expenses of new identifiable intangible assets arising from the acquisition of 24% interests in Beijing Tide; and (ii) unrealized fair value losses(net) on equity investments and financial assets
** Based on underlying profit
Results Highlights
HONG KONG, CHINA - Media OutReach - March 30, 2020 - Sino Biopharmaceutical Limited ("Sino Biopharm" or the "Company", together with its subsidiaries, the "Group") (HKEX: 1177), a leading, innovative research and development driven pharmaceutical conglomerate in the PRC, has announced its financial results for the year ended 31 December 2019 ("the year"). The Group's overall results for the year continued to show considerable growth. The share of revenue contributed by new products in the Group's total revenue also increased notably, demonstrating its mature integrated capability in launching and promoting innovative products.
Results
During the year, the Group recorded revenue of approximately RMB24.23 billion, representing an increase of approximately 16.0% over the last year. Profit attributable to the owners of the parent was approximately RMB2.71 billion, approximately 70.1% lower than that of the last year. Such year-on year decrease was only due to the absence of a substantial one-off gain on step acquisition recorded last year. Excluding the impact of the one-off gain on step acquisition and the annual amortization expenses of new identifiable intangible assets arising from the acquisition of 24% interests in Beijing Tide, as well as the unrealized net fair value losses on equity investments and financials assets, underlying profit attributable to owners of the parent amounted to approximately RMB3.13 billion, increased by approximately 10.2% as compared with the last year. Based on underlying profit attributable to the owners of the parent, the earnings per share were approximately RMB24.97 cents, 8.7% higher than the last year. The Group has maintained a strong financial position with cash and bank balances reaching approximately RMB11.91 billion at the year end.
The Board of Directors recommended a final dividend payment of HK2.0 cents per share. Together with the dividend of HK2.0 cents already paid in each of the first three quarters, the total dividends for the year amounted to HK8.0 cents (2018: HK8.0 cents).
Business Highlights
During the year, the Group has re-located more resources in strengthening R&D and focused its academic promotion on oncology drugs and other new products with less competition. Two new indications of Anlotinib capsules have been approved and subsequently achieved great sales success. Other oncology drugs including Yinishu, Yigu, Shoufu, Qianping, Saiweijian and a recently approved product, Yijiu, analgesic medicines including Flurbiprofen cataplasm, cardio-cerebral medicines including Kaina and Xijia, digestive system medicines including Aisuping, Getai and Deyou and anti-infectious medicines including Tianjie and Tianli all enjoyed rapid growth. Markets for infusion solution products including Fenghaina, Qingkeping and the newly-launched contrast agent product Qingliming also expanded, leading to fast growth in sales.
During the year, the Group achieved an outstanding research and development ("R&D") performance and the Group obtained 28 production approvals and had 19 products passed Consistency Evaluation. Also, 23 products obtained clinical approval. The Group has made 25 new production applications and filed 19 new clinical trial applications. In addition, some 26 new applications for Consistency Evaluation have been accepted. The Group has obtained 83 invention patent approvals and filed 341 applications for invention patents. In addition, Tenofovir Disoproxil Fumarate tablet (Qingzhong) has obtained Marketing Authorization (MA) from the EU, marking a milestone for the Group to officially enter into the international mainstream market.
During the year, the sales performance of the Group's major medicine categories are outlined below:
Hepatitis medicines
- The sales of hepatitis medicines amounted to approximately RMB5,739.72 million, representing approximately 23.7% of the Group's revenue.
Oncology medicines
- The sales of oncology medicines amounted to approximately RMB5,427.88 million, representing approximately 22.4% of the Group's revenue.
Cardio-cerebral medicines
- The sales of cardio-cerebral medicines amounted to approximately RMB3,116.29 million, representing approximately 12.9% of the Group's revenue.
Orthopedic medicines
- The sales of orthopedic medicines amounted to approximately RMB1,809.36 million, representing approximately 7.5% of the Group's revenue.
Digestive system medicines
- The sales of digestive system medicines amounted to approximately RMB1,529.55 million, representing approximately 6.3% of the Group's revenue.
Respiratory system medicines
- The sales of respiratory medicines amounted to approximately RMB1,084.61 million, representing approximately 4.5% of the Group's revenue.
Anti-infectious medicines
- The sales of anti-infectious medicines amounted to approximately RMB1,032.19 million, representing approximately 4.3% of the Group's revenue.
Other s
- The sales of others amounted to approximately RMB4,494.43 million, representing approximately 18.4% of the Group's revenue.
R&D
During the year, the total R&D expenditure (including expensed off in the statement of profit or loss and recorded as development costs in the statement of financial position) amounted to approximately RMB2,651.53 million, which accounted for approximately 10.9% of the Group's revenue.
The Group has continued to focus its R&D efforts on new hepatitis, oncology, respiratory system and cardio-cerebral medicines. During the fourth quarter, the Group was granted 9 clinical trial approvals, 9 production approvals, and 6 approvals for Consistency Evaluation, and made 6 clinical trial applications, 4 applications for Consistency Evaluation and 11 production applications. Cumulatively, a total of 486 pharmaceutical products had obtained clinical trial approval, or were under clinical trial or applying for production approval. Out of these, 34 were for hepatitis medicines, 204 for oncology medicines, 27 for respiratory system medicines, 27 for endocrine, 50 for cardio-cerebral medicines and 144 for other medicines.
The Group also emphasizes on the protection of intellectual property rights. It encourages its subsidiaries to apply for patent applications as a means to enhance the Group's core competitiveness. During the fourth quarter, the Group has received 23 authorized patent notices (all were invention patents) and filed 83 new patent applications (77 invention patents, 1 utility model patents and 5 apparel design patents). Cumulatively, the Group has obtained 766 invention patent approvals, 23 utility model patents and 90 apparel design patents.
Prospects
Looking ahead to 2020, the implementation of measures including the launch of and adjustments to the New National Medical Reimbursement Drug List, realization of payment categorized under DRG, the Key Monitoring Drug List and performance evaluation of hospitals will speed up the adjustments to the products and overall industry landscapes, hence the turning point of the survival of the fittest gradually emerged in the industry. The implementation of new measures encouraging innovation will accelerate the approval and launch of innovative products. Leading local enterprises in the country will be confronted with more intense competition from multinational companies in terms of innovative products. Those companies like Sino Biopharm, which have strong innovative and R&D capabilities and continuously launch new products in the market, highlight their advantages. In addition to marketing more new products and consolidating its dominant position in the hepatitis and oncology small molecular drug sectors, the Group also places high value on the increasingly important treatment and market value of biopharmaceutical medicines and thus has adopted a comprehensive roadmap covering different facets from R&D to the production.
Also, in order to cope with the spread of the novel coronavirus around the world, the Group has maintained ample liquidity. As of 31 December 2019, its cash and bank balances amounted to approximately RMB11.91 billion, which is sufficient for withstanding any shocks that may result from abrupt changes in the economic and industry environments. Facing the fierce outbreak, the Group promptly made the decision in late January 2020 to issue zero coupon convertible bonds with a principal amount of EURO750 million. This move consequently generated more abundant funds for the Group. The Group will make good use of its capital and competitive advantages, to actively seek for high-quality acquisitions, investments and cooperation projects, to expand its core pharmaceutical business, as well as to comprehensively promote its greater healthcare development strategy, so as to lay the foundation for the Group's rapid development in the next decade.
Stepping into 2020, 5G network and devices have become more popular in Mainland China. As such, the Group will continue to step up its investment in big data, digitalization and artificial intelligence, as well as increase the use of related advanced technologies. These strategies will allow Group not only to further enhance its efficiency in management, R&D, production and sales, but also create greater value for the industry and patients and promote the development of "patient-oriented" pharmaceutical services, pharmaceutical care services and chronic disease management systems, providing full course disease management solutions from which patients can benefit.
Some newly approved products
New indication of Anlotinib Capsules( FOCUS V® ) | Anlotinib has obtained the approval for a new indication for soft tissue sarcoma, becoming the first such targeted drug approved in China. It has also been included in the guidelines for the diagnosis and treatment of soft tissue sarcoma by the Chinese Society of Clinical Oncology.
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Gadoxetic Acid Disodium Injection (Xian'ai) | This liver-specific magnetic resonance contrast agent is the first generic drug of its type in China. The product is able to increase the detection rate of small liver tumors, facilitating early diagnosis and treatment of liver lesions. It is also expected to replace invasive examinations and has piqued the widespread interest of the industry.
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Iodixanol Injection | Iodixanol is the only X-ray diagnostic contrast agent that is isotonic with blood. It is recognized and recommended by numerous domestic and international clinical guidelines and expert consensus for enhancing the lesion detection rate and functioning as diagnostic identification in the examinations of organ disease in the nervous and cardiovascular systems, chest, abdomen, pelvis, etc. As the third generic drug of its type in China, this product is expected to complement Xian'ai in the area of marketing.
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Rivaroxaban Tablet | Rivaroxaban is an important product for preventing vein thrombosis after orthopedic operations. The Group has succeeded in producing and launching the first generic drug for this medicine. |
Apixaban Tablet | Apixaban is applicable to adult patients who have undergone hip joint or knee joint elective replacement to prevent venous thromboembolism. Apixaban has a wider therapeutic window and broader market prospects. Apixaban tablets has been included in the New National Medical Reimbursement Drug List and is expected to become the major new product in the portfolio of the Group.
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Abiraterone Acetate Tablet (Qingkeshu) | Abiraterone Acetate Tablet is a drug for prostate cancer treatment of new mechanism of action. It has been designated as a first-line or second-line treatment option for prostate cancer by European and American clinical guidelines. Prostate cancer is the second most common type of tumor in men worldwide. In China, prostate cancer is the most common genitourinary cancer in men.
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Fosaprepitant Dimeglumine for Injection | This neurokinin-1 (NK-1) antiemetic drug is recommended in numerous domestic and overseas guidelines. The Group is one of the first batch of domestic enterprises successfully producing a generic drug of this kind. This product can perfectly complement the Group's oncology medicine product line, which has already enjoyed the advantage, and is expected to become a heavyweight product in its oncology product line.
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Caspofungin Acetate for Injection | This first new echinocandin antifungal drug has broad-spectrum antifungal activity. It has become the market's star product among the antifungal drugs for systemic use.
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Tofacitinib Citrate Tablet (Tai'yan) | This oral small molecule inhibitor of JAK1/JAK3. Tofacitinib has promising efficacy for treating rheumatoid arthritis, ulcerative colitis, active psoriatic arthritis, moderate-to-severe active ulcerative colitis. The Group is the first in the country to produce generic drugs of this kind. The Group has also obtained approval for Celecoxib Capsule, a classic osteoarthritis medicine with wide indications and a mature market. With the approval of Taiyan, the value of the osteoarthritis drug product lines has also surged substantially.
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Sino Biopharm Limited is a leading, innovative research and development 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, cardio-cerebral diseases and orthopedic diseases.
Sino Biopharm 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 Biopharm was ranked as one of "Asia's Fab 50 Companies" by Forbes Asia for three consecutive years in 2016, 2017 and 2018.