vigorous growth in pharmaceutical manufacturing & medical devices the revenue of fosun pharma increased by 17.15% year on year
【24 august hong kong】on august 23, 2016, fosun pharmaceutical (group) co. ltd. (“fosun pharma”，stock code: 600196.sh, 02196.hk), a leading group in china’s pharmaceutical and healthcare industry, announced its 2016 interim results in hong kong.
in the first half of 2016, the revenue of the group increased by 17.15% as compared to the corresponding period of 2015 to rmb6,878 million, and excluding the impact of the disposal of handan pharmaceutical co., ltd. (‘‘handan pharmaceutical’’), revenue would have increased by 18.77% as compared with the corresponding period of 2015. the revenue from pharmaceutical manufacturing and research and development (r&d) segment of the group amounted to rmb4,797 million, representing an increase of 17.66% as compared to the corresponding period of 2015, and excluding the impact of the disposal of handan pharmaceutical, revenue from pharmaceutical manufacturing and r&d would have increased by 20.03% as compared with the corresponding period of 2015. the revenue from healthcare service business amounted to rmb752 million, representing an increase of 11.57% as compared to the corresponding period of 2015.
chen qiyu, chairman of fosun pharma said, in the first half of 2016, amidst the severe situation that was full of challenges and uncertainties in the economies of the world and the people’s republic of china (the ‘‘prc’’or ‘‘china’’), continuous reform of the medical system in the prc and the limited growth of pharmaceutical manufacturing industry brought policy opportunities to the development of medical services. in the first half of 2016, fosun pharma has adhered to its business 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 maintaining the balanced growth of its principal businesses.
continued efforts in r&d fruitful r&d achievements in monoclonal antibody
fosun pharma has taken r&d as its long-term strategy. during the first half year of 2016, r&d expenditure (including capitalized expenditure) of fosun pharma amounted to rmb488 million, representing an increase of 37.06% as compared with the corresponding period of 2015. the r&d expense of pharmaceutical manufacturing and r&d segment amounted to rmb243 million, accounting for 5% of the total revenue of the pharmaceutical manufacturing and r&d segment.
as of the end of the june 2016, fosun pharma has a total of 172 pipeline drugs, generic drugs, biosimilars and vaccine projects. during the reporting period, 22 products have obtained the approval of clinical trial. applications for clinical trial had been tendered to the cfda for pa-824 type 1.1 innovative api and tablets. research on monoclonal antibody products further accelerated and recombinant murine/human chimeric anti-cd20 monoclonal antibody injection, recombinant humanized anti-her2 monoclonal antibody injection, recombinant anti-tnfα fully human monoclonal antibody injection, recombinant humanized anti-vegf monoclonal antibody injection and hlx07 (anti-egfr humanized monoclonal antibody) injection were in or approved to commence clinical trial. recombinant murine/human chimeric anti-cd20 monoclonal antibody injection was in phase iii of the trial; recombinant humanized anti-her2 monoclonal antibody injection was approved to commence the trial; hlx07 (anti-egfr humanized monoclonal antibody) injection intended to commence phase i of the trial in taiwan.
in the first half of 2016, a total of 37 patents had been applied for in the pharmaceutical manufacturing and r&d segment, including 13 u.s. patent applications and 2 pct applications, and 13 licensed patents had been obtained, all of which were invention parents.
establishment of marketing system showing positive effects
sales of new products increased by 100%
the pharmaceutical manufacturing and r&d segment of fosun pharma continued its sound growth and the development of its professional operational team was further strengthened. whilst increasingly optimizing its r&d mechanism, fosun pharma also focuses on integrating and developing its product marketing systems. in the first half of 2016, the sales of the major products in therapeutic areas such as cardiovascular system, anti-infection and central nervous system maintained rapid growth. among new and recent products, the cardiovascular therapeutic product you di er (alprostadil dried emulsion) and the metabolism system therapeutic product you li tong (febuxostat tablets) maintained prominent growth exceeding 100% as compared to the corresponding period last year. the 19 formulation items and series with sales over rmb100 million in 2015 increased by 26.45% as compared to the corresponding period of 2015.
sinopharm, an investee of fosun pharma for over a decade, has developed into the largest pharmaceutical and healthcare distributor and a leading supply chain service provider in china possessing and operating china’s largest drug distribution and delivery network. currently, the distribution network of sinopharm has covered 31 provinces, autonomous regions and municipalities in china. the number of its direct customers reached 13,841 (only referring to hospitals with ranking, including 1,880 of the tier-three hospitals, which are the largest and most highly-ranked hospitals). its pharmaceutical retail network further expanded with retail pharmacies owned by guoda drug store, its subsidiary, amounted to 3,268 as at the end of june 30, 2016. fosun pharma, leveraging its long-established strategic cooperation with sinopharm, has put the synergy into full play.
exploring innovative modes in healthcare services
achieving substantial growth in operating profits
in the first half of 2016, the healthcare services entities controlled by fosun pharma realized a total revenue of rmb752 million, representing an increase of 11.57% as compared to the corresponding period of 2015, segment results of rmb133 million, representing an increase of 14.06% as compared to the corresponding period of 2015, and segment profit of rmb112 million, representing an increase of 66.64% as compared to the corresponding period of 2015. as of june 2016, the total number of beds available for the public in foshan chancheng central hospital company limited (‘‘chancheng hospital’’), anhui jimin cancer hospital, yueyang guangji hospital company limited, suqian zhongwu hospital co., ltd. and wenzhou geriatrics hospital etc. controlled by the company was 3,018 in aggregate.
fosun pharma continued to reinforce its substantially completed strategic layout of healthcare services segment with high-end healthcare institutions in the more developed coastal cities and specialty and general hospitals in second-tier and third-tier cities in the prc. it established regional medical centers and a supply chain spanning major health industries and explored models of cooperation with local large state-owned companies, public hospitals and university-affiliated hospitals to accelerate its internet medical development strategy and enhance operating capabilities and profitability. in the first half year, the ‘‘phase ii district project of qingdao qilu hospital of shandong university’’ and the healthcare business reorganization of relevant medical institutions that were owned by the xuzhou coal mining group, in which fosun pharma took part, have already started; wenzhou geriatric hospital invested by the group commenced operation and fosun pharma commenced its blood dialysis specialty franchise medical operation through hunan jingren medical investment management co., ltd.* (‘‘hunan jingren’’).
in addition, in the first half of 2016, fosun pharma has actively supported and facilitated the development and layout of hospital and clinic network under “united family hospital”, a leading premium healthcare services brand under chindex international, inc. (‘‘chindex’’). in the first half of 2016, the united family hospital maintained its brand awareness and prominent positions in high-end healthcare segment in major cities such as beijing, shanghai and tianjin. the construction of guangzhou united family hospital was at full steam.
outstanding performance in medical diagnosis & devices segment
dental business being new growth point
fosun pharma continued to push the development of the medical diagnosis and medical devices segment forward. dental digitized product lines became the new source of growth. the first half of 2016 saw a growth of 175% as compared to the corresponding period of 2015; da vinci surgical robotic systems were sold in mainland china and hong kong with a volume of surgery amounting to approximately 8,000, representing growth of approximately 49% as compared to the corresponding period of 2015; alma lasers continued to accelerate the development of the global market and especially key emerging markets such as china and india. alma lasers 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 2016, the products of alma lasers obtained 5 new eu ce certifications in aggregate.
fosun pharma indicated that, in the second half of 2016, it will continue to adhere to its strategies of organic growth, external expansion and integrated development. it will step up its efforts to acquire and integrate with domestic and overseas quality pharmaceutical manufacturing companies. by strengthening product innovation, production and manufacturing systems and product marketing systems, fosun pharma will proactively implement internationalization. meanwhile, fosun pharma will seize the development opportunities of healthcare services to strengthen its investment and management in the healthcare services segment. it will further enhance its core competence to improve its operating results. at the same time, fosun pharma will continue to actively explore the financing channels domestically and internationally and create favorable conditions for the continuous development of the group.
about shanghai fosun pharmaceutical (group) co.,ltd.
established in 1994, shanghai fosun pharmaceutical (group) co., ltd. (“fosun pharma”; stock code: 600196.sh, 02196.hk) is a leading healthcare group in the prc. fosun pharma strategically covers important segments of the healthcare industry value-chain, including pharmaceutical manufacturing and r&d, healthcare services, medical diagnosis, medical devices manufacturing and agent, as well as pharmaceutical distribution and retail, making contribution to improving people’s health. fosun pharma maintains a national recognized enterprise technology centre and a highly capable international r&d team, focusing on innovation and research of therapeutic areas including cardiovascular system, central nervous system, blood system, metabolism and digestive tract system, anti-infection and anti-tumor. with its commitment to innovation for good health and creating a better future, fosun pharma will continue insisting on the strategic development approach of “organic growth with external expansion and integrated business operation”, striving to be one of the first-class enterprises in the global healthcare market.