SHANGHAI, March 31, 2020 /PRNewswire/ -- On March 30
2020, Shanghai Fosun Pharmaceutical (Group) Co., Ltd ("Fosun
Pharma"; Stock Code: 600196.SH, 02196.HK), a leading healthcare
group in China, announced its
annual results for the year 2019 ("the reporting period").
During the reporting period:
- The revenue increased by 14.72% as compared to 2018 to
RMB 28,585 million;
- The net profit amounted to RMB 3,744
million, representing a respective increase of 23.96%;
- The net profit attributable to shareholders of the listed
company amounted to RMB 3,322
million, representing a respective increase of 22.66%.
- The cash flow from operating activities continued to rise. Net
cash flow from operating activities amounted to RMB 3,222 million, representing an increase of
9.23% as compared to 2018.
Wu Yifang, President and CEO of Fosun Pharma, expressed
that "2019 marks a crucial period for
the pharmaceutical industry to experience comprehensive
transformation. On the basis of properly carrying out the existing
business and industrial upgrade, Fosun Pharma is firmly committed
to the path of innovation and international development. Focusing
on unmet medical needs, it continuously improved its product
competitiveness and brand strength, persistently enhanced its
capability of innovation, integration and international
development, and conducted efficient operations, thereby
maintaining the balanced growth of its principal businesses. We
believe that our efforts in innovation will help Fosun Pharma
realize its innovation transformation. The steady
international-oriented development will make us more competitive
internationally in terms of operation standards and market
expansion."
Revenue for core products grew steadily and deeply cultivated
the whole-industry chain of healthcare industry
The business areas of Fosun Pharma cover the whole-industry
chain of pharmaceutical and healthcare. Its business development is
based on China while Fosun Pharma
actively conducts global layouts. In 2019, the core business of
Fosun Pharma, pharmaceutical manufacturing and R&D
segment, maintained stable growth and recorded segment
operating revenue of RMB 21,766
million, an increase by 16.51% as compared to 2018.
After years of professional operations, Fosun Pharma owns
several advantageous products in the metabolism and alimentary
system, anti-tumor therapeutic area, anti-infection therapeutic
area, the central nervous system, cardiovascular system, blood
system and other areas. In 2019, Rituximab injection
(Han Li Kang) was launched as the
first biosimilar that was independently developed in PRC. The
number of preparation products of Fosun Pharma with annual sales
revenue of over RMB100 million rose
to 35, among which ten products reported annual sales revenue of
over RMB500 million. The sales growth
volume of core products, febuxostat tablets (You Li Tong),
pitavastatin calcium tablets (Bang Zhi) and enoxaparin sodium
injection recorded growth of 105%, 113% and 57%, respectively.
By virtue of endogenous operations and epitaxial M&A, the
medical devices and medical diagnosis segment achieved
favorable growth and recorded operating income of RMB 3,736 million in 2019, an increase of 2.66%
over 2018, 28.5% YoY increase on the same basis. The existing
medical devices and products of Fosun Pharma, including medical
laser equipment for aesthetic treatments, high-end medical
emergency ambulance and surgical robots, ranked top in the
segmented industry and market. In particular. Da Vinci surgical
robotic system, created by the joint venture Intuitive Fosun, is
the world's only minimally invasive endoscopic surgery robot
product licensed by both FDA and China National Medical Products
Administration. It recorded a rapid increase in its installation
and number of surgeries performed, with 60 Da Vinci surgical
robotic system installed and over 40,000 surgeries performed in
Chinese Mainland and Hong Kong SAR in 2019. A rapid increase in
sales recorded in HPV diagnostic reagent and genetic testing
reagent for Thalassemias.
The revenue from the Healthcare services segment amounted
to recorded operating income of RMB 3,040
million, representing an increase of an increase of 18.61%
as compared to 2018. Fosun Pharma always adheres to the guideline
of "Valuing Discipline Development and Offering Quality Medical
Services" for medical services. Fosun Pharma had completed a
strategic deployment of healthcare services in specialty and
general hospitals with the Pearl River Delta Greater Bay Area,
Yangtze River Delta and Huaihai Economic Zone being the regional
focus for healthcare services. As of the end of 2019, over 10
medical institutions controlled by the Group, with a total of 4,328
authorized beds available for the public. In addition, Fosun Pharma
proactively developed new medical services and products based on
the Internet and constructed a service network from communities to
hospitals. During the reporting period, Foshan Chancheng Hospital
obtained the first internet hospital license within the
Guangdong Province private
hospital system.
Boost investment in innovation and R&D to build an
international R&D platform
Fosun Pharma regarded innovation and R&D as the core-driving
factor of development and continued to enhance its R&D
expenditures. In 2019, the R&D expenses amounted to
RMB 3,463 million, representing an
increase of 38.15% as compared to 2018; the R&D expenses
reached RMB 2,041 million, up by
37.97%. Specifically, R&D investment in the pharmaceutical
manufacturing business was RMB 3,131
million, up by 39.12% and accounting for 14.38% among the
revenue of the pharmaceutical manufacturing segment.
Fosun Pharma continuously optimized its pharmaceutical R&D
system of "Combination of integrates biosimilars and innovative
drugs", conducted layouts in China, the US, India and other places, developed efficient
small-molecule innovative drugs platform, high-value generic
drugs platform, biologics platform and cell-therapy platform,
and has formed a globally interactive R&D system as well as
strong R&D capability.
As of the end of the reporting period, Fosun Pharma had 264
pipeline innovative drugs, generic drugs, biosimilars and
consistency evaluation projects of generic drugs (including 19
small molecular innovative drugs, 12 biopharmaceutical innovative
drugs, 21 biosimilars, 133 generic drugs of international
standards, 49 consistency evaluation projects, 2 traditional
Chinese medicine drugs, 28 external projects (including 8 imported
innovative drugs and 20 generic drugs were introduced)).
In 2019, Fosun Pharma focused on increasing its R&D
investment in small molecular innovative drugs and monoclonal
antibody biopharmaceutical innovative drugs and biosimilars, and
CAR-T cell drugs, and systematically carried forward the
introduction and registration of drug approvals and the consistency
evaluation of generic drugs.
As of the end of 2019, Fosun Pharma has obtained approval for
clinical trial in Mainland China on 9 small molecule innovative
products (including 1 improved new drug) and 9 indications; as well
as approval for overseas clinical trials for 3 small molecule
innovative drugs and 3 indications. In particular, ORIN1001 had
launched phase I clinical trials in the U.S. and recognized by the
U.S. Food and Drug Admistration (''U.S. FDA'') under the Fast Track
Development Program. In 2019, rituximab injection (Han Li Kang), the first domestic biosimilar, was
approved for sales in Chinese Mainland; 2 monoclonal antibody
biosimilars (Trastuzumab for injection and Adalimumab solution
injection) were accepted for new drug application and included in
the priority review procedure in Chinese Mainland; and 12
monoclonal antibody products and 8 combination therapies had
launched more than 20 clinical trials worldwide;Axicabtagene
Ciloleucel (code FKC876, i.e. anti-human CD19 CAR-T cell injection)
of Fosun Kite, a joint venture, completed the bridging clinical
trial of the Product for the treatment of adult patients with
relapsed and refractory large B-cell lymphoma in Chinese Mainland
and commenced clinical trials in Chinese Mainland and was granted
priority review status for the launch and registration of drugs in
March 2020.
Persist with international development for greater global
competitiveness
In addition to constant innovation, Fosun Pharma furthered its
international development strategy, with the proportion of overseas
revenue rising to 23.17%. Revenue of an equivalent of RMB 6,622 million was recorded in other countries
or regions, representing an increase of 12.12% as compared to 2018.
Particularly, the core enterprise Gland Pharma's net profit
increased by 52.2% year-on year during the Reporting Period. During
the reporting period, totally 15 generic drug products were
approved by the US FDA for sales in the market. As of the
announcement date, Gland Pharma for a total of 2 imported products
for registration and marketing authorization, and applications for
import registration and clinical trials for 4 products.
By centering on the unsatisfied healthcare needs, Fosun Pharma
connected excellent scientist teams, leading technology and
high-value products across the globe through permitted
introduction, deep incubation, risk investment and other
diversified and multi-tiered cooperation modes, so as to promote
the global development, transformation and implementation of
innovative technology and products.
In 2019, in order to further enrich the product lines, Fosun
Pharma engaged in cooperation with ReNeuron Limited, a global
leader in cell therapy, and imported cell therapy products
targeting post-stroke disability and retinitis pigmentosa to
advance the development of the stem cell platform. Fosun Pharma was
authorized by MimiVax LLC to exclusively develop and commercialize
SurVaxM, an immunotherapy product targeting recurrent glioblastoma.
In addition, Fosun Pharma has accelerated the clinical trials and
launch of permitted imported drugs Avatrombopag tablets and
Tenapanor tablets. In terms of international expansion, Fosun
Pharma not only established subsidiaries and developed its
operating capability in mature markets such as the US and
Europe, but developed markets and
production capacity through self-development and M&A in
emerging markets such as Africa
and India. As at the end of 2019,
Fosun Pharma has built a marketing team consisting of nearly 5,300
people, including nearly 1,000 overseas pharmaceutical, medical
equipment marketing team. In oversea market, artemisinin-based
antimalarial products are highly recognized in the African
market.
Looking forward to 2020, Chen Qiyu, Co-CEO of Fosun
International and Chairman of Fosun Pharma, said, "The outbreak
of novel coronavirus pneumonia caused by COVID-19 affected the
overall economic operations. The healthcare industry faces both
opportunity for development and challenges. Fosun Pharma will
firmly adhere to the innovative and international development path,
continuously strengthen industrial operation, and invest more
resources to support product innovation and market expansion. With
patients as the center, clinical requirements as the orientation
and high technology as the driving force, Fosun Pharma will focus
on the therapeutic areas such as the cancer, central nervous system
and are diseases, and actively arrange the PCG (protein drug
therapy, cell therapy and gene therapy) direction. Meanwhile, we
will grasp the opportunity as the state encourages the engagement
in medical industry with social capital, promote lean operation and
build a leading private medical management group in China. Adhering to the belief of creating
value to its shareholders, Fosun Pharma will further strengthen its
core competence and keep improving its operating results."
-End-
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SOURCE Fosun Pharma