Tigermed Reports Full Year 2022 Results

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Mar 28, 2023, 07:09 ET

HANGZHOU, China, March 28, 2023 /PRNewswire/ -- Hangzhou Tigermed Consulting Co., Ltd. ("Tigermed" or the "company") (Stock code: 300347.SZ / 3347.HK), a leading provider of clinical research solutions across full lifecycle of global biopharmaceutical and medical device products, announced its annual results for the year ended December 31, 2022 (the "Reporting Period").

This press release is for information and summary only and is not intended to provide any representation, in whole or in part, of the relevant matters. For further information, please refer to the 2022 annual results and relevant announcements published on the websites of the Shenzhen Stock Exchange (www.szse.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk).

All financials disclosed in this press release are prepared based on International Financial Reporting Standards (IFRS) except for those specifically noted otherwise.

The 2022 Annual Results of the Company has been audited.

Financial Highlights:

Total revenue achieved 35.9% year-over-year ("YoY") growth to RMB 7,085.5 million during the Reporting Period.
Net profit attributable to the owners of the Company before non-recurring gains and losses increased by 25.0% to RMB 1,539.5 million during the Reporting Period.
Adjusted Non-IFRS net profit attributable to the owners of the Company increased by 5.1% YoY to RMB 1,665.8 million during the Reporting Period.
Segment revenue generated from Clinical Trial Solutions reached RMB 4,125.2 million and that from Clinical-related and Lab Services reached RMB 2,960.3 million, representing a YoY growth of 37.8% and 33.4%, respectively.
Geographically, China's revenue increased by 30.7% YoY to RMB 3,601.6 million. The company's overseas revenue increased by 41.8% YoY to RMB 3,483.9 million in 2022.
As of December 31, 2022, backlog as of year-end reached RMB 13,785.9 million, representing a 20.9% YoY growth.

Business Highlights

The resilience of our business is demonstrated by our reinforced position as the leader of the clinical service industry in China. We provided services to 65% of all Class 1 (innovative drugs that have not been marketed in China or overseas) innovative drug approvals in China from 2004 to 2022 and handled 13.6% of total HGRAC (Human Genetic Resource Administration of China) clinical research filling projects as Contract Research Organization (CRO) in 2022. Notably, our team enabled four Covid-19 vaccine Emergency Use Authorizations in China and overseas in 2022.

As of December 31, 2022, Tigermed has 680 ongoing drug clinical trials and 432 ongoing medical Device and IVD Projects. In 2022, The number of new China IND projects increased by 35% YoY and the number of new U.S. FDA-related regulatory affair projects increased by 98% YoY. During the reporting period, the company's pharmacovigilance business added 203 new ongoing projects with service teams in Europe and China. Besides, medical translation added 81 new customers, and its services covered over 80 languages across the world.

As of December 31, 2022, Data Management and Statistical Analysis had 259 global customers and 776 ongoing projects. In addition, Tigermed had 1,621 ongoing site management projects, covering 140+ cities in China. Further, Clinical Trail Sites of Excellence ("E-Site") program had 189 sites under collaborative alliance and 100 core strategic sites.

In 2022, Tigermed laboratory services had more than 1,400 global experts and further expanded lab facilities in Wuhan, Shanghai, and Suzhou. Moreover, preclinical animal research facility in Suzhou successfully obtained AAALAC certification.

In 2022, Tigermed made great strides in expanding its global reach. As of December 31, 2022, Tigermed total number of employees reached 9,233, including 1,426 overseas employees from 50 countries and regions. To enhance the company's local expertise in Europe, Tigermed acquired Croatia-based clinical CRO Marti Farm to expand safety monitoring, regulatory, and clinical operation capabilities at a global level. Furthermore, Tigermed established one-stop clinical operation service and expertise in Southeast Asia and Latin America. Further, Tigermed established new offices in the United Kingdom, Netherlands, and Argentina, and formed collaborations with over 100 clinical sites in the US as of December 31, 2022.

During the reporting period, Tigermed had 250 ongoing overseas clinical trials, including 62 Multi-Regional Clinical Trials (MRCTs). As of December 31, 2022, Tigermed has 110+ accumulative MRCT project experiences in 49 countries and regions in North America, Asia Pacific, Latin America, Europe, and Africa. The overseas vaccine MRCTs cover 10+ countries globally with a total of 140,000 enrollment.

In 2022, Tigermed has accelerated new innovative and digital technologies in clinical development and achieved remarkable success. Tigermed successfully launched the Risk Based Quality Management (RBQM) platform Phase II and put it into operation to advocate better quality and improve clinical trial efficiency. Besides, the company's in-house developed e-Clinical trial Patient Management (eCPM) system was launched and used in multiple real-world study projects, meaningfully improving patient coverage and the efficiency of patient recruitment. Moreover, Tigermed Decentralized Clinical Trial ("DCT") solution was rolled out and is already in use for multiple clinical trials in China and around the world. DCT solutions are expected to improve the overall efficiency and drive further growth of the business from 2023.

The commencement of construction on Tigermed global headquarters in 2022 marked a significant milestone for the company. In addition, Tigermed further enhance ESG governance in 2022 with recognition from respected institutions. Tigermed was rated AAA the highest ranking of the CNI ESG Ratings launched by the Shenzhen Stock Exchange in July 2022 and was rated A in 2022 ESG Rating by MSCI in November 2022.

Management Comments

Dr. Xiaoping Ye, Co-Founder and Chairman of Tigermed, said, "Despite the complex and ever-changing landscape in 2022, Tigermed remains steadfast in our commitment to healthy development and sustainable business growth. We extend our sincere gratitude to all investors, customers, and partners for their unwavering support and trust, as well as Tigermed colleagues for their commitment and dedication that has enabled us to be in a strong position to achieve long-term growth and stability. Going forward, we will continue striving towards clinical research opportunities to better serve our partners, shareholders, and our community with exceptional performance."

Ms. Xiaochun Cao, Co-Founder, Executive Director and President of Tigermed, said, "We take pride in our leadership role in advancing Chinese clinical CRO companies' globalization initiatives, and remarkably with an expanding presence in 50 countries across five continents now. In 2022, we have developed full-service capabilities in the U.S. and Europe through strategic expansion and M&A integrations, helping us move forward on our roadmap to the global market. Leveraging our extensive project experience and professional management team, combined with our global presence, equipped us to meet diversified customer needs, with an aim to go global with our customers and serve as the gateway to China as well."

Mr. Hao Wu, Executive Director and Co-President of Tigermed, said, "Tigermed has proudly demonstrated our industry-leading integrated R&D service platform over the past year. Our commitment to quality and efficiency in delivery, as well as our ability to develop accurate market insight, have earned us the trust of our global customers. As we move forward, Tigermed will strive to further deepen our global service offerings and build solid platform from preclinical to clinical research to post-market in partnership with our global customers."

Forward-Looking Statements

The information communicated herein may contain certain "forward-looking statements", which are not historical facts but instead include predictions about future events based on our beliefs and information currently made available to us. Although we believe that these predictions are reasonable on the date hereof, future events are inherently uncertain and these forward-looking statements may turn out to be incorrect. Forward-looking statements involve risk and uncertainty by nature because they relate to events and will depend on circumstances that will occur in the future relating to, inter alia, our ability to compete effectively, our ability to develop and market new service offerings, our ability to expand into new markets, the risks associated with listed subsidiaries of the Company, unforeseeable international tensions, regulatory or governmental scrutiny in certain countries, the impact of emergencies and other force majeure events. We undertake no obligations to update forward-looking statements or to adapt them to future events or developments except as required by applicable laws or listing rules. Any investment in any securities issued by the Company or its subsidiaries will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, you should not rely on these forward-looking statements.

Non-IFRS Measure

To supplement our financial information which are presented in accordance with IFRS, we use adjusted net profit attributable to owners of the Company as an additional financial measure, which is not required by, or presented in accordance with IFRS. We define adjusted net profit attributable to owners of the Company as profit for the year attributable to owners of the Company before certain expenses and amortization. We define adjusted net profit attributable to owners of the Company as profit attributable to owners of the Company adjusted for (1) share-based compensation expense, (2) net foreign exchange loss/(gain), (3) amortization of intangible assets arising from acquisitions, (4) listing expenses incurred by our Group, and (5) increase in fair value of financial assets at FVTPL. Adjusted net profit attributable to owners of the Company is not an alternative to (i) profit before tax, profit for the year or profit for the year attributable to owners of the Company (as determined in accordance with IFRS) as a measure of our operating performance, (ii) cash flows from operating, investing and financing activities as a measure of our ability to meet our cash needs, or (iii) any other measures of performance or liquidity. We believe that this non-IFRS measure is useful for understanding and assessing underlying business performance and operating trends and that the owners of the company and we may benefit from referring to this non-IFRS measure in assessing our financial performance by eliminating the impact of certain unusual, non-recurring, non-cash and/or non-operating items that we do not consider indicative of the performance of our business. However, the presentation of this non-IFRS measure is not intended to, and should not, be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with the IFRS. You should not view the non-IFRS measure on a stand-alone basis or as a substitute for results under the IFRS, or as being comparable to results or a similarly titled financial measure reported or forecasted by other companies.

About Tigermed

Tigermed (Stock code: 300347.SZ/3347.HK) is a leading global provider of integrated research and development solutions for biopharmaceutical and medical device industry. With a broad portfolio of services and a promise of quality, from preclinical development to clinical trial to commercialization, we are committed to moving our customers through their development journey efficiently and cost-effectively. Tigermed currently represents a worldwide network of more than 100 subsidiaries and 180 service locations, with over 9,200 employees across 50 countries in Asia Pacific, Europe, North & South America and Africa. We are devoted to building an integrated platform that enables the boundless possibilities for the healthcare industry, embracing challenges to fulfill our commitment to serving unmet patients' needs, and ultimately saving lives.

SOURCE Tigermed