Fosun Pharma Announces 2022 Interim Results

News provided by

Aug 30, 2022, 08:28 ET

Stable Revenue Growth and Recurring Income, Elevating the Revenue Contribution of New Products, and Accelerating International Layout

Highlights:

Revenue for the first half of 2022 amounted to RMB21,340 million, an increase of 25.88% YOY;
Net profit (after extraordinary gain or loss) attributable to shareholders of the listed company amounted to RMB1,862 million, an increase of 18.57% YOY; net cash flow from operating activities amounted to RMB1,820 million, an increase of 6.66% YOY;
Revenue from countries and regions outside Chinese mainland amounted to RMB7,592 million, accounting for 35.58% of the total revenue, an increase of 4.92 percentage points, and the global operation capability was further enhanced;
Revenue from new products and sub-new products including Comirnaty, Han Li Kang, Han Qu You, Su Ke Xin, and Han Si Zhuang, etc. accounted for more than 25% of revenue from the pharmaceutical manufacturing segment, and the product structure continued to be optimized.

SHANGHAI, Aug. 30, 2022 /PRNewswire/ -- Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma" or "the Group"; Stock Code: 600196.SH, 02196.HK), a global innovation-driven pharmaceutical and healthcare industry group deep-rooted in China, announced its interim results for the first half of 2022.

In the first half of 2022, Fosun Pharma achieved stable growth in revenue and recurring income. The proportion of revenue from new and sub-new products and the revenue from countries and regions outside Chinese mainland continued to increase, and the revenue structure constantly improved. During the reporting period, the revenue of the Group amounted to RMB2,1340 million, an increase of 25.88% YOY; net profit (after extraordinary gain or loss) attributable to shareholders of the listed company amounted to RMB1,862 million, an increase of 18.57% YOY; net cash flow from operating activities amounted to RMB 1,820 million, an increase of 6.66% YOY. The Group's global operation capability was further enhanced, and revenue from regions and countries outside Chinese mainland reached RMB7,592 million, accounting for 35.58% of the total revenue and a YOY increase of 4.92 percentage points.

"In the first half of 2022, despite the pressure arising from Covid-19 resurgence in various regions of China, Fosun Pharma continued to promote innovation and transformation, comprehensively accelerated its international layout, strengthened the product pipelines, promoted the integration of operation, improved the efficiency in business divisions, and achieved solid growth." said Wu Yifang, Chairman of Fosun Pharma. "Fosun Pharma's core competitiveness is embodied in its open R&D ecology, forward-looking international layout, and systematic commercialization team. In the second half of 2022, Fosun Pharma will continue implementing the 4IN strategy, increasing R&D investment, continuously optimizing operational control, improving asset operational efficiency, and actively expanding cooperation opportunities with leading global pharmaceutical companies. With patient-centered and clinical needs-oriented, the Group will continue to innovate and promote more good products into the global market, and bring health to all families."

Continuously Promoting Innovation & Transformation, Revenue Contribution of New Products and Sub-New Products Reached over 25%

Fosun Pharma's innovative R&D is always based on satisfying unmet clinical needs, adhering to technology-driven and product-driven, and accessing global outstanding scientific talents, leading technologies and high-value products through diversified and multi-level cooperation modes such as independent R&D, co-development, license-in projects and deep incubation. By the end of June 2022, Fosun Pharma has over 2,800 R&D personnel, of which over 1,500 have master's degrees or above. More than 260 pipeline projects, including innovative drugs, biosimilars, generic drugs and consistency evaluation items are under research.

Fosun Pharma continues to increase its investment in R&D. In the first half of 2022, R&D expenditures reached RMB 2,399 million, an increase of 22.77 % YOY. Among them, R&D expenses reached RMB 1,818 million, representing a period-on-period increase of RMB256 million or 16.39%. The R&D expenditures in the pharmaceutical manufacturing segment reached RMB 2,062 million, representing a period-on-period increase of 16.04%. Total R&D expenditures in the pharmaceutical manufacturing segment accounted for 14.39% of the revenue from the pharmaceutical manufacturing segment. In particular, R&D expenses amounted to RMB 1,491 million, accounting for 10.41% of the revenue from the pharmaceutical manufacturing segment.

Product structure optimization and sales growth from new product launches were the key drivers of Fosun Pharma's results. In the first half of 2022, the revenue of new products and sub-new products, including COMIRNATY® (in Hong Kong, Macau, and Taiwan region), Han Li Kang, Han Qu You, Su Ke Xin and Han Si Zhuang accounted for more than 25% of the revenue from the pharmaceutical manufacturing segment.

Yi Kai Da (Axicabtagene Ciloleucel Injection) of Fosun Kite, a joint venture, as the first CAR-T cell therapy product approved for launch in China, has been launched for more than one year. As of the end of July 2022, Yi Kai Da has been included in the urban customized commercial health insurance of 44 provinces and municipalities and over 50 commercial insurances, while the number of treatment centers on file had reached nearly 100.

Deepening Global Operation and Becoming a Preferred Domestic World-renowned Partner of Multinational Pharmaceutical Companies

Fosun Pharma continuously strengthened its global operation capability, and implemented a multi-dimensional internationalization strategy in innovation and research, license-in, production and operation, as well as commercialization. Significant progress has been made in its market access capability by establishing commercialization team building in the United States, Africa, Hong Kong and Macau markets. By the end of June 2022, the overseas commercial team of Fosun Pharma comprised more than 1,400 employees. Fosun Pharma has established marketing platforms in the United States, Africa and Europe, and achieved the direct sales of preparations to the United States market. Sisram Medical, Breas and other medical device business have covered major regions such as China, the United States and Europe, and Fosun Diagnosis' COVID-19 nucleic acid test kits and COVID-19 antigen test kits have been sold in more than ten countries.

Relying on years of domestic industry experience and global channel network, Fosun Pharma has become the preferred domestic partner of world-renowned multinational pharmaceutical companies.

In the first half of 2022, Fosun Pharma and Amgen's subsidiary entered into a licensing agreement regarding the exclusive commercialization of its 2 innovative drugs, namely Otezla (apemilast tablets) and Parsabiv (etelcalcetide), in Chinese Mainland (excluding Hong Kong, Macau and Taiwan region) to further enrich the Group's innovative product layout in the non-oncology field.

Fosun Pharma's industry-leading License-In & Out capabilities maximize the value of independently developed products and innovative products of partners. In the first half of 2022, Shanghai Henlius, a subsidiary, has successively granted various product licenses to Organon, Eurofarma, Getz Pharma and other companies, in order to cover incremental markets with the help of leading international partners.

Relying on the Fosun Pharma's international production standards and quality system certifications, together with overseas product access and marketing capabilities, in January and March 2022, Fosun Pharma's subsidiary Fosun Pharmaceutical Industrial was licensed to manufacture and supply the generic versions of Molnupiravir, a COVID-19 oral drug of Merck, and Nirmatrelvir, a COVID-19 oral drug of Pfizer, and a combination of Nirmatrelvir/Ritonavir by MPP for certain mid- and low-income countries in the world. The license allows the production of the active pharmaceutical ingredient and the finished drug, continuing to contribute to the global efforts to fight COVID-19.

In order to further improve the cost competitiveness of products and to enhance the rational allocation of production resources, Fosun Pharma is actively integrating manufacturing capacities to build a large-scale, cost-competitive manufacturing system. In China, Fosun Pharma is building two comprehensive pharmaceutical preparation manufacturing centers and three raw pharmaceutical production bases to consolidate the strength in the integrated production of APIs gradually. Overseas, several injectables manufacturing lines of Gland Pharma have passed GMP certification in the US, EU, Japan, Australia and other major regulatory markets, supplying the global market.

Fighting Against Epidemic Together to Secure Production and Actively Fulfilling Corporate Social Responsibility

In the first half of 2022, the domestic epidemic spread in various provinces and cities, and the production, supply chain, logistics as well as the number of hospital offline diagnosis and treatment faced staged pressure. Fosun Pharma responded to the local pandemic prevention and control policies and actively took countermeasures to ensure production and operation activities were conducted orderly. Fosun Pharma secured the production and supply of key drugs such as Han Qu You, Han Li Kang and Yi Kai Da as well as anti-epidemic materials such as nucleic acid test kits and antigen test kits for COVID-19 during the pandemic through centralized closed-loop management of front-line production personnel, increased supply chain and logistics options and other means, comprehensively assisting the prevention and control of the pandemic by focusing on prevention, detection and treatment of COVID-19.

The Group continued to ensure the supply of Comirnaty (mRNA COVID-19 vaccine) to Hong Kong, Macau and Taiwan region, to meet the local needs for epidemic prevention and control. In July 2022, Fosun Pharmaceutical Industrial, a subsidiary of Fosun Pharma, and Genuine Biotech entered into an agreement in relation to the strategic cooperation on, among other things, the joint development and Fosun Pharmaceutical Industrial's exclusive commercialization of Azvudine. The cooperation scope includes the treatment and prevention of Novel Coronavirus (2019- nCoV) and AIDS. The Azvudine tablets, independently developed by China, is the first small molecular oral medication for COVID-19 approved for launch. On 25 July 2022, the drug obtained the emergency conditional approval from the NMPA for use in treatment of adult patients suffering moderate COVID-19.

Since August 2022, there have been epidemic resurgences in Hainan and Henan provinces, Xinjiang and Tibet autonomous regions, and other regions in China. Prevention and control situation of COVID-19 remain severe and complex. Fosun Pharma and Genuine Biotech actively responded to the needs of local governments and deployed Azvudine tablets to many places across the country urgently and helped build a solid barrier for epidemic prevention and control, to protect people's health.

With remarkable achievements in environmental, social, and corporate governance (ESG) and positive contributions in the fight against the COVID-19 pandemic, Fosun Pharma topped the 2022 Fortune China ESG Impact List.

About Fosun Pharma

Founded in 1994, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma"; stock code: 600196. SH, 02196. HK) is a global innovation-driven pharmaceutical and healthcare industry group deep-rooted in China. Fosun Pharma directly operates businesses including pharmaceutical manufacturing, medical devices, medical diagnosis, and healthcare services. As a shareholder of Sinopharm Co., Ltd., Fosun Pharma expands its areas in the pharmaceutical distribution and retail business.

Fosun Pharma is patient-centered and clinical needs-oriented. The company enriches its innovative product pipeline through diversified and multi-level cooperation models such as independent research and development, cooperative development, license-in, and in-depth incubation. Fosun Pharma has formed technological platforms for innovative small molecule drugs, antibody drugs, and cell therapy with a focus on key disease areas including oncology and immunomodulation, metabolism and digestive system, as well as central nervous system. Fosun Pharma also vigorously explores cutting-edge technologies, such as RNA, gene therapy, ADC and PROTAC, to enhance its innovation capabilities.

Guided by the 4IN strategy (Innovation, Internationalization, Intelligentization, and Integration), Fosun Pharma will uphold the development model of "innovation transformation, integrated operation, and steady growth", with the mission of creating shareholder values through strengthening its independent R&D and external cooperation and enriching its product pipelines, as well as promoting the global networks and enhancing operational efficiency. Fosun Pharma will actively promote the digital and physical business layout in the pharmaceutical and healthcare industry and is committed to becoming a first-class enterprise in the global medical and health market.

For more information, please visit our official website: www.fosunpharma.com.

Fosun Pharma Forward-looking statements

This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including, without limitation, the discussions of Fosun Pharma's business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources, the future development of Fosun Pharma's industry and the future development of the general economy of Fosun Pharma's key markets and any statements preceded by, followed by or that include words and expressions such as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "anticipate", "may", "will", "would" and "could" or similar words or statements, as they relate to Fosun Pharma's or its management, are intended to identify forward-looking statements. These statements are subject to certain known and unknown risks, uncertainties and assumptions, which may cause Fosun Pharma's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking information. Subject to the requirements of applicable laws, rules and regulations, Fosun Pharma does not have any and undertakes no obligation to update or otherwise revise the forward- looking statements in this press release, whether as a result of new information, future events or developments or otherwise. In this press release, statements of or references to Fosun Pharma's intentions are made as of the date of this press release. Any such intentions may change in light of future developments. All forward-looking statements contained in this press release are qualified by reference to the cautionary statements set out above.

SOURCE Fosun Pharma