Realizing Growth Strategies With Both Revenue and Net Profit
Up;
Declares Interim Dividend of HK0.9 cent per share
HONG KONG, Nov 22, 2017 - (ACN Newswire) - Jacobson Pharma
Corporation Limited ("Jacobson Pharma" or the "Company"; Stock
Code: 2633), a leading company engaged in the research,
development, production, marketing and sale of generic drugs and
proprietary medicines, today announced its unaudited interim
results of the Company and its subsidiaries (collectively the
"Group") for the six months ended 30 September 2017 (the "Reporting
Period").
During the Reporting Period, the Group's revenue increased by 29.1%
to HK$743.0 million (1H2016: HK$575.4 million). Gross profit and
profit from operations rose by 14.0% to HK$278.9 million (1H2016:
HK$244.6 million) and 43.9% to HK$112.7 million (1H2016: HK$78.3
million) respectively. Profit attributable to the shareholders of
the Company surged by 40.6% to HK$80.3 million (1H2016: HK$57.1
million). Basic and diluted earnings per share were HK4.42
cents.
The Group maintains a healthy financial position with cash and cash
equivalents of HK$326.3 million at the end of the Reporting Period.
The Board has declared payment of an interim dividend for the six
months ended 30 September of HK0.9 cent per share (1H2016: HK0.8
cent).
Business Review
Generic Drugs
During the Reporting Period, the Group's generic drugs business
achieved revenue of HK$542.2 million, up by 7.0% compared with the
same period last year. Revenue from the public sector segment grew
7.9% to HK$184.2 million, primarily attributed to the rise in
demand for oral anti-diabetic and cardiovascular products along
with contributions from newly awarded tenders. Private sector
business posted a revenue growth of 6.6% to HK$358.0 million,
attributing to organic growth as well as revenue contribution from
the business of Medipharma that the Group acquired in November
2016.
The Group is a market leader in a number of therapeutic categories
and its research and development ("R&D") team has been
progressively enriching the product pipeline to help fuel the
Group's growth momentum in those categories. A noteworthy example
is the recent launch of losartan which witnessed a robust sales
growth of 87.5% during the Reporting Period.
In terms of productivity, the Group's manufacturing operations
continued to perform well affording a steady rise in production
output. The total output of the three major product dosage forms -
solid, semi-solid and liquid - grew respectively by 17.3% to 1,341
million tablets and capsules, 37.0% to 135 tons and 4.9% to 1,373
kilo-liters as compared to corresponding period of 2016.
Proprietary Medicines
Revenue from the Proprietary Medicine segment witnessed a
significant 76.2% growth to HK$121.2 million, attributable to the
robust sales performance of Ho Chai Kung, a long-standing household
brand that the Group acquired in January 2017, which contributed
HK$45.2 million to the segmental revenue, plus the strengthening
sales of Po Chai Pills and Tong Tai Chung Woodlok Oil.
The Group continues to contemplate geographical expansion into
strategic markets in the Asia Pacific, such as Taiwan and certain
ASEAN countries. It has put in place a dedicated business
development team to pursue market evaluations and to expedite
market entry and regulatory clearance.
Wholesale and Retail
In April 2017, the Group completed the acquisition of 70% interest
in the retail and wholesale operator Hong Ning Hong Group which has
a well-established commercial infra-structure and customer network.
The acquisition was a strategic move by the Group to expand sales
channels and boost distribution of products of its proprietary
medicine brands. The Wholesale and Retail segment contributed
revenue of HK$79.6 million, accounting for 11.0% of the Group's
total revenue.
Product Development
During the Reporting Period, the Group has an addition of 18 newly
selected products to supplement the Group's R&D pipeline and
successfully registered 8 products during the Reporting Period
which are ready for launch and supply in Hong Kong. Furthermore,
the Group finished the formulation development process of another
22 products, which are currently undergoing stability program.
The Group also made good progress on collaboration projects with
various R&D institutions. Derived from the collaboration with
Nano & Advanced Materials Institute Limited (NAMI), a
commercialized product being trademarked as "NanoAZDTM" was
launched in April 2017. The product was first introduced at the
Alzheimer's Association International Conference in London in July
2017 and received encouraging feedback as well as recognition for
its potential in subsequent clinical application.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson
Pharma, said, "We are delighted that Jacobson Pharma maintained
healthy business momentum and executed the necessary growth
strategies in line with our original plans and schedule for the
first half of FY2018. Underpinning the financial results in the
period under review is a continued focus on the key growth drivers,
encompassing first-to-opportunity generics, such as losartan and
mesalazine and proprietary brands, including Po Chai Pills, Ho Chai
Kung and Shiling Oil.
Looking ahead, we will continue to take measured and disciplined
approach to R&D investment and capital allocation whilst
expecting further progress with its development pipeline, offering
potential value through multiple licensing opportunities on both
generic drugs as well as biopharmaceuticals. We will continue to
pursue expanding our footprint in certain strategic markets in Asia
with a view to creating sustainable values for our
shareholders."
About Jacobson Pharma Corporation Limited (Stock Code: 2633)
Jacobson Pharma is the largest generic drug company in Hong Kong
with over 30% share of the total generic drug market for each year
since 2012. The Group's proprietary medicines, notably being Po
Chai Pills, Tong Tai Chung Woodlok Oil, Ho Chai Kung Tji Thung San,
Contractubex Scar Gel Doan's Ointment, Flying Eagle Wood Lok
Medicated Oil, Saplingtan, Shiling Oil and Col-gan Tablet have been
widely recognized by the market. Jacobson Pharma has been a
constituent stock of MSCI Hong Kong Micro Cap Index since 1 June
2017. For more details about Jacobson Pharma, please visit the
Group's website: http://www.jacobsonpharma.com
For media enquiries, please contact:
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Angela Ng Tel: (852) 2864 4855 Email: angela.ng@sprg.com.hk
Angel Li Tel: (852) 2864 4859 Email: angelok.li@sprg.com.hk
Source: Jacobson Pharma Corporation
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