Annual Report for Fosun Pharmaceutical: Steady Growth of Main Businesses and Better Stage for Research and Innovation
On March 25, Fosun Pharmaceutical has released its 2009 Annual Report, which has shown that Fosun Pharmaceutical has realized operating revenue of RMB 3,872 million, 10.91% higher than that of the corresponding period of last year in the same caliber, net profits of RMB 2,498 million 261.61% higher than that of the corresponding period of previous year and net profit per share of RMB 2.02 within the reporting period. It is understood that substantial increase for company performance is due in to the aspects as follows: rapid growth for the performance of core pharmaceutical enterprises; sustained high-speed growth of Sinopharm Holdings; and confirmed return on investment due to Sinopharm Holdings listed on Hong Kong Stock Exchange.
R&D of Drugs:
The Annual Report has shown that the investment on R&D has been sharply rising every year while the company is developing rapidly in recent years. “Current expensing for investment on R&D can reduce current profits of the company, but as for a pharmaceutical manufacturer, innovation is the driving force of enterprise development, and there is no future without R&D.” President Mr. Chen Qiyu has emphasized the resolution of the company to the investment on R&D on many occasions. In 2009, the company has made further investment on R&D with total amount of RMB 189million; in addition, it has obtained 4 items for the approval of clinical test on new drugs and 6 production approvals, and 14 projects are on the stage of clinical test; 89 patents have been applied for and 26 have got patent authorization.
After many years of hard efforts, the layout for R&D system of Fosun Pharmaceutical has been formed basically. In 2009, the company has developed cooperation with domestic and oversea outstanding team of the scientists through equity cooperation, cooperative development, patent licensing and other ways so as to strengthen its innovation capability and product competitiveness as well as positively follow the latest technology frontier of global pharmaceutical industry.
Original main R&D bases of the company, that is, Chongqing Pharmaceutical Research Institute and Fosun Omni, continue to accelerate the establishment of innovation system and R& D progress of the products. In 2009, Chongqing Pharmaceutical Research Institute has set up 9 projects featuring innovative point and market potential, applied for 20 invention patents all the year around, and additional 4 invention patents have got patent authorization; Fosun Omni has achieved breakthroughs in R& D for the technologies of precision inhalants and sustained slow (controlled) release drugs, process development for 8-9 products have been finished, at present, the step of applying for domestic and oversea approval is accelerated.
At the beginning of 2009, the company has established Chongqing Fosun Pharmaceutical Research Co., Ltd, which has a foreign team composed of several persons with many years of experiences on chemical compound candidates of synthesizing small molecules, and it has planed to develop small-molecule drugs with 7 targets in the fields of incretion and anti-tumor within 5 years. Meanwhile, the first development project on new drug is officially launched (Hypoglycemic Drug DPP-IV Inhibitor) , after the efforts over one year, 18 leading compounds are successfully synthesized, which have similar structure with Merck and Takeda as well as are able to inhibit the activity to DPP-IV enzyme. Chongqing Fosun Pharmaceutical Research Co., Ltd has submitted a PCT patent concerning new-type DPP-IV inhibitor in U.S at the end of 2009, and pre-clinical preparation work is expected to be finished this year and it is to perform the first clinical test. As for this matter, the person in charge of Technology Center of Fosun Pharmaceutical has said: “this is the first global patent of new-type compound we have obtained, it is a landmark to R& D on innovative drugs for the company. “
At the end of 2009, the company and American team of scientists has established a joint venture of Henlius Bio-tech, it is dedicated to R& D and industrialization on macromolecular therapeutic antibody and plans to develop 5 projects with 5 years, at present, the construction of cell lines for the first product has been finished. The team of Henlius Bio-tech is mainly composed of the persons with working experiences over 15 years in large pharmaceutical factories in U.S, meanwhile, the team members have complementary technologies, and their technical competence covers over 95% demands for manufacturing antibody-based drugs. Henlius Bio-tech improves the volume of production by high-expression cell lines and takes GMP quality management in conformity with Euramerican level as the basis of expanding international market.
In July, 2009, the company has successfully invested Handa Pharmaceuticals LLC founded by overseas Chinese scientists, this company is expert in sustained release drug technology and developing generic drugs challenging to the patent, now, it has declared 4 high-level generic drugs to U.S. FDA, all are the important products in international market, two of which are the first generic drugs. In addition to ROI, Fosun Pharmaceutical will cooperate with Handa Pharmaceuticals LLC to jointly develop generic drugs to challenge the patents in Euramerican market.
Additionally, the company has reached cooperation agreement with Israel D-Pharm to introduce Acute Ischemic Stroke Therapeutic Drug DP-b99 upon the license, and this drug has got approval of clinical trial for Phase III by FDA, meanwhile, the capability of the company has been further improved in R& D on innovative drugs and international cooperation.
Manufacture of Drugs
On the aspect of manufacture of drugs, the company is embarked on product management and marketing team building to speed up creating integration platform and realize rapid development of pharmaceutical business. It is understood that Fosun Pharmaceutical has further strengthen the construction of two integration platform, that is, Jiangsu Wanbang Biopharmaceutical Co., Ltd and Chongqing Yaoyou Pharmaceutical Co., Ltd in 2009. Jiangsu Wanbang has integrated with Chemo and set up dedicated marketing team to make the selling market of the products as Yi Bao and Compound Aloe Capsule promote quickly and integration effect show rapidly. Chongqing Yaoyou has finished integration with Chongqing Carelife and formed favorable layout in marketing system, integration of material and preparation and internalization so as to strengthen sustainable development. Jiangsu Wanbang Biopharmaceutical Co., Ltd and Chongqing Yaoyou Pharmaceutical Co. have realized over 40% increase in net profit in 2009.
Through strengthening the marketing, main products of the pharmaceutical business of the company, such as AMTL (hepatinica), Glimepiride Tablets (Hypoglycemic Drug in the category of insulin), McAMP (drug in the category of cardiovascular), etc, have achieved great increase. The construction for professional management team in the fields of diabetes mellitus, hepatopathy and malaria therapy has been further strengthened and main products continue to maintain leading position in segmented markets.
While maintaining optimized operation of the existing enterprises, the company has invested more to excellent pharmaceutical enterprises. The Annual Report has shown that the company has realized successful holding of Handan Moluodan Pharmaceutical Co., Ltd. and equity participation to Anhui Shanhe Pharmaceutical Excipients Co., Ltd. in December 2009, and it has further enrich pharmaceutical manufacturing businesses by acquiring Sichuan Hexin Pharmaceutical Industry Obligate Co., Ltd through Chongqing Yaoyou in January 2010.
Distribution & Retail of Drugs:
On the aspect of the drugs retail, For Me Pharmacy and Jinxiang Pharmacy, subsidiary companies of Fosun Pharma, continue to lead in pharmaceutical retail business of their own regions, the number of the stores and profitability take the leading position in regional markets. By taking For Me Pharmacy as an example, its sales revenue has increased 18% in 2009, and growth rate is higher than the industry average of pharmaceutical retail chain in Shanghai.
On the aspect of pharmaceutical distribution, Sinopharm Holdings shared by the company has successfully listed on main board of Hong Kong Stock Exchange in September 2009 and raised the funds up to HK$ 10.04 billion after excising over-allotment option, these aspects establish firm base for Sinopharm Holdings to further promote industrial integration and sustained rapid growth of the businesses. After Sinopharm Holdings is listed on Hong Kong Stock Exchange, it not only a pharmaceutical listed company with the largest market value, but ranks the first three for the market value in global pharmaceutical listed companies. At present, the valuation of the target price to Sinopharm Holdings made by international investment banks as Morgan Stanley and Credit Suisse is HK$ 35-36 per share, corresponding to market value of RMB 69.8 billion ~ 71.8 billion. In 2009, Sinopharm Holdings has realized sales revenue of RMB 47.1 billion, 23.62%higher than that of the same period of previous year, and the industry's leading edge has been further strengthened.
In 2009, Fosun Pharma has realized sustainable growth of the three core businesses in R&D and manufacturing of the drugs, drug retail and drug distribution, further improved R &D innovation system and gradually entered into harvesting period. In the future, with an aim to promote human health, Fosun Pharmaceutical will unswervingly abide by the “Innovation for Good Health” philosophy, and positively grasp development opportunities of both international and domestic pharmaceutical market and adhere to the strategy of “Endogenous Growth, Extensive Expansion and Integrated Development” to make the company continue to keep healthy development.
R&D of Drugs:
The Annual Report has shown that the investment on R&D has been sharply rising every year while the company is developing rapidly in recent years. “Current expensing for investment on R&D can reduce current profits of the company, but as for a pharmaceutical manufacturer, innovation is the driving force of enterprise development, and there is no future without R&D.” President Mr. Chen Qiyu has emphasized the resolution of the company to the investment on R&D on many occasions. In 2009, the company has made further investment on R&D with total amount of RMB 189million; in addition, it has obtained 4 items for the approval of clinical test on new drugs and 6 production approvals, and 14 projects are on the stage of clinical test; 89 patents have been applied for and 26 have got patent authorization.
After many years of hard efforts, the layout for R&D system of Fosun Pharmaceutical has been formed basically. In 2009, the company has developed cooperation with domestic and oversea outstanding team of the scientists through equity cooperation, cooperative development, patent licensing and other ways so as to strengthen its innovation capability and product competitiveness as well as positively follow the latest technology frontier of global pharmaceutical industry.
Original main R&D bases of the company, that is, Chongqing Pharmaceutical Research Institute and Fosun Omni, continue to accelerate the establishment of innovation system and R& D progress of the products. In 2009, Chongqing Pharmaceutical Research Institute has set up 9 projects featuring innovative point and market potential, applied for 20 invention patents all the year around, and additional 4 invention patents have got patent authorization; Fosun Omni has achieved breakthroughs in R& D for the technologies of precision inhalants and sustained slow (controlled) release drugs, process development for 8-9 products have been finished, at present, the step of applying for domestic and oversea approval is accelerated.
At the beginning of 2009, the company has established Chongqing Fosun Pharmaceutical Research Co., Ltd, which has a foreign team composed of several persons with many years of experiences on chemical compound candidates of synthesizing small molecules, and it has planed to develop small-molecule drugs with 7 targets in the fields of incretion and anti-tumor within 5 years. Meanwhile, the first development project on new drug is officially launched (Hypoglycemic Drug DPP-IV Inhibitor) , after the efforts over one year, 18 leading compounds are successfully synthesized, which have similar structure with Merck and Takeda as well as are able to inhibit the activity to DPP-IV enzyme. Chongqing Fosun Pharmaceutical Research Co., Ltd has submitted a PCT patent concerning new-type DPP-IV inhibitor in U.S at the end of 2009, and pre-clinical preparation work is expected to be finished this year and it is to perform the first clinical test. As for this matter, the person in charge of Technology Center of Fosun Pharmaceutical has said: “this is the first global patent of new-type compound we have obtained, it is a landmark to R& D on innovative drugs for the company. “
At the end of 2009, the company and American team of scientists has established a joint venture of Henlius Bio-tech, it is dedicated to R& D and industrialization on macromolecular therapeutic antibody and plans to develop 5 projects with 5 years, at present, the construction of cell lines for the first product has been finished. The team of Henlius Bio-tech is mainly composed of the persons with working experiences over 15 years in large pharmaceutical factories in U.S, meanwhile, the team members have complementary technologies, and their technical competence covers over 95% demands for manufacturing antibody-based drugs. Henlius Bio-tech improves the volume of production by high-expression cell lines and takes GMP quality management in conformity with Euramerican level as the basis of expanding international market.
In July, 2009, the company has successfully invested Handa Pharmaceuticals LLC founded by overseas Chinese scientists, this company is expert in sustained release drug technology and developing generic drugs challenging to the patent, now, it has declared 4 high-level generic drugs to U.S. FDA, all are the important products in international market, two of which are the first generic drugs. In addition to ROI, Fosun Pharmaceutical will cooperate with Handa Pharmaceuticals LLC to jointly develop generic drugs to challenge the patents in Euramerican market.
Additionally, the company has reached cooperation agreement with Israel D-Pharm to introduce Acute Ischemic Stroke Therapeutic Drug DP-b99 upon the license, and this drug has got approval of clinical trial for Phase III by FDA, meanwhile, the capability of the company has been further improved in R& D on innovative drugs and international cooperation.
Manufacture of Drugs
On the aspect of manufacture of drugs, the company is embarked on product management and marketing team building to speed up creating integration platform and realize rapid development of pharmaceutical business. It is understood that Fosun Pharmaceutical has further strengthen the construction of two integration platform, that is, Jiangsu Wanbang Biopharmaceutical Co., Ltd and Chongqing Yaoyou Pharmaceutical Co., Ltd in 2009. Jiangsu Wanbang has integrated with Chemo and set up dedicated marketing team to make the selling market of the products as Yi Bao and Compound Aloe Capsule promote quickly and integration effect show rapidly. Chongqing Yaoyou has finished integration with Chongqing Carelife and formed favorable layout in marketing system, integration of material and preparation and internalization so as to strengthen sustainable development. Jiangsu Wanbang Biopharmaceutical Co., Ltd and Chongqing Yaoyou Pharmaceutical Co. have realized over 40% increase in net profit in 2009.
Through strengthening the marketing, main products of the pharmaceutical business of the company, such as AMTL (hepatinica), Glimepiride Tablets (Hypoglycemic Drug in the category of insulin), McAMP (drug in the category of cardiovascular), etc, have achieved great increase. The construction for professional management team in the fields of diabetes mellitus, hepatopathy and malaria therapy has been further strengthened and main products continue to maintain leading position in segmented markets.
While maintaining optimized operation of the existing enterprises, the company has invested more to excellent pharmaceutical enterprises. The Annual Report has shown that the company has realized successful holding of Handan Moluodan Pharmaceutical Co., Ltd. and equity participation to Anhui Shanhe Pharmaceutical Excipients Co., Ltd. in December 2009, and it has further enrich pharmaceutical manufacturing businesses by acquiring Sichuan Hexin Pharmaceutical Industry Obligate Co., Ltd through Chongqing Yaoyou in January 2010.
Distribution & Retail of Drugs:
On the aspect of the drugs retail, For Me Pharmacy and Jinxiang Pharmacy, subsidiary companies of Fosun Pharma, continue to lead in pharmaceutical retail business of their own regions, the number of the stores and profitability take the leading position in regional markets. By taking For Me Pharmacy as an example, its sales revenue has increased 18% in 2009, and growth rate is higher than the industry average of pharmaceutical retail chain in Shanghai.
On the aspect of pharmaceutical distribution, Sinopharm Holdings shared by the company has successfully listed on main board of Hong Kong Stock Exchange in September 2009 and raised the funds up to HK$ 10.04 billion after excising over-allotment option, these aspects establish firm base for Sinopharm Holdings to further promote industrial integration and sustained rapid growth of the businesses. After Sinopharm Holdings is listed on Hong Kong Stock Exchange, it not only a pharmaceutical listed company with the largest market value, but ranks the first three for the market value in global pharmaceutical listed companies. At present, the valuation of the target price to Sinopharm Holdings made by international investment banks as Morgan Stanley and Credit Suisse is HK$ 35-36 per share, corresponding to market value of RMB 69.8 billion ~ 71.8 billion. In 2009, Sinopharm Holdings has realized sales revenue of RMB 47.1 billion, 23.62%higher than that of the same period of previous year, and the industry's leading edge has been further strengthened.
In 2009, Fosun Pharma has realized sustainable growth of the three core businesses in R&D and manufacturing of the drugs, drug retail and drug distribution, further improved R &D innovation system and gradually entered into harvesting period. In the future, with an aim to promote human health, Fosun Pharmaceutical will unswervingly abide by the “Innovation for Good Health” philosophy, and positively grasp development opportunities of both international and domestic pharmaceutical market and adhere to the strategy of “Endogenous Growth, Extensive Expansion and Integrated Development” to make the company continue to keep healthy development.