Tigermed Reports Full Year 2023 Results

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Mar 28, 2024, 07:10 ET

HANGZHOU, China, March 28, 2024 /PRNewswire/ -- Hangzhou Tigermed Consulting Co., Ltd. ("Tigermed" or the "company") (Stock code: 300347.SZ / 3347.HK), a leading global provider of integrated research and development solutions for biopharmaceutical and medical device industry, announced its annual results for the year ended December 31, 2023 (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 2023 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 2023 Annual Results of the Company has been audited.

Financial Highlights:

Total revenue achieved 4.2% year-over-year ("YoY") growth to RMB 7,384 million during the Reporting Period.
Adjusted Non-IFRS net profit attributable to the owners of the Company increased by 7.2% YoY to RMB 1,786 million during the Reporting Period.
Segment revenue generated from Clinical Trial Solutions reached RMB 4,168.1 million and that from Clinical-related and Lab Services reached RMB 3,215.9 million, representing a YoY growth of 1.0% and 8.6%, respectively.
Geographically, China's revenue increased by 17.6% YoY to RMB 4,234.5 million. The company's overseas revenue decreased by 9.6% YoY to RMB 3,149.5 million in 2023.

Business Highlights

Tigermed continued to empower pharmaceutical and medical device innovation in 2023 and navigated the complexities of the life science sector, solidifying its leading position in the clinical CRO industry. From 2004 to 2023, Tigermed provided services to 61% of all Class I new drug approvals in China. During the reporting period, Tigermed assisted in the approval of 22 Class I new drugs and 6 innovative medical devices in China. Additionally, Tigermed opened its International Headquarters in Hong Kong in 2023, serving as the main hub for overseas functional support and business development. As of December 31, 2023, Tigermed had 9,701 total employees in 28 countries worldwide, including 1,632 overseas employees.

In the clinical trial solutions field, as of December 31, 2023, Tigermed has 752 ongoing drug clinical trials and 465 ongoing medical device & IVD projects. In 2023, Regulatory Affairs had a total of 1,009 accumulated project experience, added 29 new US FDA IND projects, and assisted 9 products to receive approvals in China. Medical Translation added 86 new customers in 2023. Besides, Medical Device & IVD assisted 6 innovative medical device products to receive China launch approvals. Moreover, Real World Studies projects have been further expanded to multiple therapeutic areas, including oncology, rare diseases, orthopaedics, etc.

In the clinical-related and lab services field, as of December 31, 2023, Tigermed Data Management & Statistical Analysis ("DMSA") team had over 850 professionals globally, serving a total of 340 customers, with ongoing projects increasing to 826.

In addition, Tigermed Site Management ("SMO") had 1,952 ongoing SMO projects as of December 31, 2023 and provided services to support 50 Class I innovative drug approvals in China accumulatively. Tigermed's Clinical Trial Sites of Excellence ("E-Site") had 224 core collaborative sites and 74 green channel sites. Furthermore, Independent Central Imaging has provided services for over 280 clinical trials, with 25 products approved.

In 2023, Tigermed laboratory services--Frontage, completed the acquisition of Nucro-Technics Holdings, Inc. and its subsidiary, Nucro-Technics, Inc. ("Nucro Technics"), expanding its lab capacity by over 60,000 square feet. Moreover, on June 6, 2023, Frontage Suzhou Safety Assessment Center obtained the GLP (Good Laboratory Practice) certification issued by the NMPA.

In 2023, Tigermed accelerated the integration of innovative and digital technologies into clinical development, introducing a wide range of virtual and hybrid approaches to Decentralized Clinical Trials (DCT). The company's in-house DCT technology has been widely used in various projects, including pivotal clinical trials, post-marketing studies, real-world studies, etc., covering therapeutic areas including oncology, hematology, central nervous system, respiratory and endocrine, etc.

As of December 31, 2023, 13% of Tigermed's ongoing clinical trials had adopted the DCT hybrid model. Further, Tigermed played a significant role in the development of China's DCT ecosystem and published the landmark report on the DCT Industry Best Practice and authored Tigermed DCT Global Regulatory Handbook.

In 2023, Tigermed continued to deepen its global presence and service capabilities. Tigermed US clinical operation business saw rapid growth in revenue and backlog with a well-supported integrated platform and a growing team. Tigermed US team had accumulated know-how from over 100 clinical trials. As of December 31, 2023, Tigermed had 59 ongoing multi-regional clinical trials (MRCTs) conducted in countries across North America, Asia Pacific, Europe, and Africa, as well as 194 ongoing single region overseas clinical trials, primarily in South Korea, Australia, and the United States.

Tigermed's exceptional performance earned recognition from industry, media outlets, and other stakeholders, including an upgrade to an AA rating by MSCI. Tigermed has also received notable awards, such as being named the Best Medical Device Overseas Enabling Service Provider and LinkedIn Best Employer Brand Award, etc.

Management Comments

"Despite industry fluctuations in 2023, Tigermed maintained a steady growth, reflecting our team's dedication and the company's robust capabilities and resilience," stated Dr. Xiaoping Ye, Co-Founder and Chairman of Tigermed. "Looking ahead, the life science industry remains ripe with vast opportunities and potential. The company will continue to embrace regulatory changes, technological innovation, and global expansion to deliver value to society."

Dr. Xiaochun Cao, Co-Founder, Executive Director, and President of Tigermed, said: "Since our founding in 2004, Tigermed has been integral to China's pharmaceutical evolution from imitation to innovation. With global expansion and exceptional quality, we're driving impactful advancements in clinical research and addressing patient needs for better health outcomes."

Mr. Hao Wu, Executive Director and Co-President of Tigermed, said: "Tigermed is dedicated to delivering professional, high-quality, and efficient services, actively responding to market changes, and advancing innovative product launches to meet diverse customer needs. Looking forward, Tigermed remains steadfast in its mission, collaborating globally to drive medical industry development and contribute to human health."

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 collaborating with over 2,800 customers and committed to moving their development journey efficiently and cost-effectively. Tigermed currently represents a worldwide network of more than 180 locations with over 9,700 employees across Asia Pacific, Europe, North America, Latin 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.