fosun pharma announces interim results: net profit increased by 28.10% year on year
note: “net profit” in the headline refers to net profit
attributable to shareholders of the listed company
(august 26, 2015 - shanghai) on august 26, 2015, fosun pharmaceutical (group) co. ltd. (“fosun pharma” or the “company”; stock code: 600196-sh, 02196-hk), a leading group in china’s pharmaceutical and healthcare industry, announced its 2015 interim results.
in the first half of 2015, the group realized revenue of rmb5,871 million, representing an increase of 6.71% as compared to the corresponding period of 2014. excluding the impact of the disposal of three companies, namely fosun pharmaceutical (復星藥業), for me yixing pharmacy (上海復美益星大藥房) and
beijing golden elephant pharmacy (金象大藥房), under pharmaceutical distribution and retail segment and the new acquisition of erye pharmaceutical (二葉製藥), the revenue would have increased by 17.51% on the same basis as compared with the corresponding period of 2014. of which, the group realized revenue of
rmb4,077 million in pharmaceutical manufacturing and research and development (r&d) segment, representing an increase of 21.34% as compared to the corresponding period of 2014. revenue from healthcare service business amounted to rmb674 million, representing an increase of 22.55% as compared to the corresponding period of 2014. net profit attributable to shareholders of the listed company amounted to rmb1,303 million for the first half of 2015, representing a significant increase of 28.10% as compared to the corresponding period of 2014.
mr. chen qiyu, chairman of fosun pharma, stated that, the company has adhered to its corporate philosophy of ‘‘innovation for good health’’, focused on its core pharmaceutical and healthcare businesses, continued to develop product innovation and improve management, actively promoted the strategies of organic growth, external expansion and integrated development, thereby maintained stable growth of its principal businesses.
internationalized r&d capability were enhanced, principal businesses maintained stable growth
the group has focused on innovation and r&d in long run and continued to increase investment in r&d in the first half of 2015. in the first half of this year, the r&d expenses were rmb299 million, increased by 17.75% as compared to the corresponding period of 2014, of which the r&d expenses in the pharmaceutical manufacturing and r&d segment were rmb233 million, representing 5.7% of the revenue of the pharmaceutical manufacturing and r&d segment.
currently, the group has established highly-efficient international r&d teams in shanghai, chongqing, san francisco and taiwan, and jointly acquired ambrx inc., a clinical trial r&d company which focuses on discovery and r&d of innovative and cutting-edge protein medicines. fosun pharma focused its r&d on therapeutic areas including metabolism and alimentary system, cardiovascular system, central nervous system, anti-tumor and immune modulating and anti-infection, and its major products have gained leading position in their respective market segments. according to the latest data from ims, fosun pharma ranked fourth in china’s pharmaceutical industry.
as at the end of the reporting period, the group had 130 pipeline drugs, generic drugs, generic biopharmaceutical drugs and vaccine projects. in the first half of this year, the company applied for a total of 32 patents, including 3 u.s. patent applications. additionally, fosun pharma established “fosun pharmaceutical innovation fund on chinese medicine technology” (復星醫藥中藥科技創
新基金) in shanghai university of traditional chinese medicine, and also entered into a strategic cooperation framework agreement with shanghai institute of materia
medica (上海藥物所) to formulate cooperation among production, academic and research parties in a bid to accelerate the pace of putting technological results into practice.
in the first half of this year, the company increased its investment in therapeutic areas including cardiovascular system, central nervous system, blood system, metabolism and alimentary system and anti-tumor, and thereby the sales of the group’s major products maintained rapid growth. the revenue of major products of anti-tumor therapeutic area increased by 43.69% as compared to the corresponding period of last year. in addition, artesunate for injection, the medicinal product for severe malaria treatment from the company, has achieved rapid growth in international market, and was included in the honors list of prescrire, an independent french medical journal, becoming the first chinese innovative drug on the list. the sales of you di er (alprostadil dried emulsion), a product in the cardiovascular system therapeutic area, and you li tong (febuxostat tablets), a product in the metabolism therapeutic area, had experienced prominent growth.
as at the end of the reporting period, 13 apis of the company received certifications from the u.s. fda, european union, ministry of health, labour and welfare of
japan, federal ministry of health of germany. 1 production line for oral solid dosage formulation, 4 production lines for injection and 2 production lines for apis of guilin south pharma (桂林南藥) also obtained prequalification from the world health organization (who-pq), and 1 production line of oral solid dosage formulation of yao pharma (重慶藥友) was recognized by the canada fda and the u.s. fda.
sustained improvement in profitability of healthcare services
in the first half of 2015, fosun pharma, based on its substantially completed deployment of its healthcare services business integrating high-end healthcare institutions in the developed coastal cities and specialty and general hospitals in second-tier and third-tier cities in the prc, further strengthened the operating capabilities and profitability of the group. up to now, the total number of beds available for the public in chancheng hospital (禪城醫院), anhui jimin cancer hospital (安徽濟民腫瘤醫院), yueyang guangji hospital company limited (岳陽廣濟醫院有限公司) and zhongwu hospital (鐘吾醫院), controlled by the group, was 2,770.
the company actively supported and facilitated the development and deployment of hospital and clinic network under ‘‘united family hospital’’, a leading premium healthcare services brand under chindex international, inc. in the first half of 2015, qingdao united family hospital commenced its operation, and the construction of guangzhou united family hospital was at full steam. in the first half of 2015, the group invested in sovereign medical services, inc., a day surgery centre in the united states, for further studies for exemplars and implementation of new healthcare services model in the prc market in future.
integration and innovation were strengthened, cooperation and synergy among industries were pushed forward
on the basis of speeding up the development of pharmaceutical business and healthcare services, fosun pharma and sinopharm have completed the integration of drug distribution and retail business as well as the optimization of resource allocation among fosun pharmaceutical, for me pharmacy and golden elephant pharmacy. in addition, the group attempted to explore a new business model via the cooperation with guahao.com limited (掛號網).
in addition, sinopharm, an associate of the group, put continuous efforts in accelerating industry consolidation, expanding distribution network of pharmaceutical products and maintaining rapid growth in business. in the first half of 2015, sinopharm realized operating income of rmb111,057 million and net profits attributable to shareholders of the parent of rmb1,914 million, which represented an increase of 17.11% and 30.60% as compared to the corresponding period of 2014 respectively.
in respect of the medical devices segment, the company actively fostered the business development of alma lasers ltd. and enhanced the expansion of the distribution business of chindex medical limited (美中互利醫療有限公司), in particular, the volume of surgery by da vinci surgical robotic system experienced a significant increase in the first half of 2015. in 2015, alma lasers accelerated in developing the international market and especially key emerging markets such as china and india, and also strengthened its new product portfolio, in particular, by increasing r&d of medical devices and extending its production line into the clinical treatment area.
in the first half of 2015, fosun pharma has further solidified its position in the industry, ranking among the best companies in top 100 lists published by a number of institutions including ministry of industry and information technology of the prc and southern medical economic institute. the company will continue to adhere to its strategies of ‘‘organic growth, external expansion and integrated development’’, focus on its core pharmaceutical and healthcare businesses, continuously improve its innovation and management capability, and steadily expand the healthcare service segment.