Fosun Pharma Announces 2018 Interim Results Focus On Innovation & Internationalization, Substantial Increase in R&D Investment and Active Future Planning Revenue increased 41.97 % to RMB 11,859 million R&D investment increased 89.92 % to RMB 1,188 million
27 August 2018, Chinese leading healthcare group Shanghai Fosun Pharmaceutical (Group) Co., Ltd (“Fosun Pharma”, stock code: 600196.SH, 02196.HK) announced 2018 Interim Results.
During the first half of 2018, the revenue of Fosun Pharma increased by 41.97 % as compared to the corresponding period of 2017 to RMB 11,859.00 million. The total R&D investment amounted to RMB 1,188.33 million, representing an increase of 89.82% as compared to the same period in 2017.The revenue in pharmaceutical manufacturing and R&D segment and foreign countries or regions witnessed an increase. The revenue from pharmaceutical manufacturing and research and development (R&D) segment amounted to RMB 8,956.01 million, representing an increase of 55.06% as compared to the corresponding period of 2017. The revenue in foreign countries or regions amounted to RMB 3,030.10 million, representing an increase of 106.29% as compared to the corresponding period of 2017. During the first half of 2018, the Group recorded total profit of RMB 2,037.70 million, net profit attributable to shareholders of the Company of RMB 1,560.47 million and the net profit (after extraordinary gain or loss) attributable to Shareholders of the Company amounted to RMB 1,200.66 million.
Fosun Pharma continues its commitment to the mission of improving human health. Adhering to the development model of “organic growth, external expansion and integrated development” under the guidance of “4IN” strategy (Innovation, Internationalization, Integration, Intelligentization), Fosun Pharma constantly improves the ability of innovation internationalization, integration and service, and its interim results maintain steady growth.
The R&D investment substantially increased
Fosun Pharma continues to increase investment in R&D and perceives it as core driving force. The Group focuses on investing product developments that generate accurate efficacy, applying to modern medical advancement and insisting on boosting one-stop R&D and post-industrial evolvement capability. At present, the Group develops internationalized R&D structure and strong R&D capabilities through the establishment of interactive and integrated R&D systems in China, the U.S. and India. Meanwhile, Fosun Pharma has achieved the transformation and practice of global cutting-edge technology through a variety of cooperation.
During the first half of 2018, the total R&D investment amounted to RMB 1,188.33 million, representing an increase of 89.92% as compared to the same period in 2017. The R&D expenses incurred amounted to RMB 708.98 million, representing an increase of 53.69% as compared to the same period in 2017. In particular, R&D investment in core pharmaceutical manufacturing amounted to RMB 1,064.05 million, representing an increase of 100.90% as compared to the same period in 2017. The R&D expenses in pharmaceutical manufacturing amounted to 595.90 million, representing an increase of 63.29 % as compared to the same period in 2017.
The Group continues to increase its R&D investment in monoclonal antibody biologic innovative drugs, biosimilars and small-molecular innovative drugs, and pushes forward consistency evaluation projects. As of 30 June 2018, there were 240 pipeline drugs, generic drugs, biosimilars and consistency evaluation projects (including 13 small molecular innovative drugs, 10 biopharmaceutical innovative drugs, 17 biosimilars, 131 generic drugs with international standards, 55 consistency evaluation projects and 2 traditional Chinese medicine drugs and 12 external projects.
The research on monoclonal antibody products further accelerated. During the first half of 2018, the Group obtained approval for clinical trial for a total of 9 monoclonal antibody product types (including 4 innovative monoclonal antibody products), 13 indications obtained approval for clinical trial in mainland China. The applications for clinical trial for 2 monoclonal antibody product types and 1 has been accepted in mainland China. Another 3 monoclonal antibody items (biologic innovative drug) obtained approval for clinical trial both in the United States and Taiwan. 1 monoclonal antibody item (biologic innovative drug) obtained approval for clinical trial in Australia. Rituximab injection (for the treatment of non-Hodgkin's lymphoma) was applied for NDA in 2017, and is expected to achieve breakthrough as the first monoclonal antibody biosimilar drug produced in China.
In the field of small-molecule innovative drugs, the clinical trial of FN-1501, which is Fosun Pharma’s first small-molecule chemical drug that has achieved the Sino-US double report, has begun in USA and Australia. FN-1501 is mainly used for the treatment of acute myeloid leukemia (AML). It is a targeted drug and is a leading precision treatment technology in the world. In the future, Fosun Pharma will actively promote the clinical research of FN-1501 and its launch globally with the help of China's high-quality resources, and provide safe and effective treatment for leukemia patients worldwide as soon as possible.
Fosun Pharma actively develops consistent evaluation on generic drug and always regards innovation as the driving force for its business growth. By the first half of 2018, the 3 products, Amlodipine besylate tablets (Shi Li Da®)、Escitalopram Oxalate（Qi Cheng®）and Alfacalcidol Tablets（Li Qing®）, have already passed the consistency evaluation on generic drugs.
In addition to direct R&D investment, focusing on unmet medical needs, Fosun Pharma has introduced new technologies and models through establishing joint ventures. In the first half of 2018, FKC876, the first product of Fosun Kite, which is the cellular immunotherapy platform of Fosun Pharma, was accepted by CFDA for clinical trial registration. Meanwhile, Fosun Lead, the innovation incubation platform of Fosun Pharma, has actively explored in a number of areas with development potential, including biopharmaceuticals, mobile portable medical imaging, and precision medicine.
Devote in International marketing and manufacturing capability
While solidifying the product competiveness, Fosun Pharma continues to strengthen the construction of marketing capabilities. Meanwhile, Fosun Pharma has formed an international marketing system with nearly 1,000 staff overseas.
Fosun Pharma has established a well-developed sales network with profound upstream and downstream client resources in Africa. By leveraging on Tridem Pharma’s sales resources in Francophone countries and regions in Africa, Fosun Pharma’s competitiveness has been enhanced and the international pharmaceutical marketing platform has been furthered completed. Among them, artemisinin-based antimalarial products are highly recognized in the African market, and Artesunate for injection (Artesun®) is listed as the first choice for the treatment of severe malaria. In addition, Fosun Pharma has established US and European subsidiaries to promote in-depth cooperation with European and American pharmaceutical companies and to increase the scale of pharmaceutical sales in global market.
After completion of the acquisition of Gland Pharma in 2017, Fosun Pharma has further strengthened its capability of pharmaceutical products registration in regulatory markets and also its international productivity. In the future, Fosun Pharma will expedite the industrial upgrading of the pharmaceutical manufacturing business and accelerate the internationalization process to increase the international market share.
Strengthen discipline capabilities and construction of healthcare service to lead industry development
In the first half of 2018, Fosun Pharma continues to reinforce discipline capabilities and construction of healthcare service, remaining a healthy development of healthcare business. Fosun Pharma has completed the preliminary strategic deployment of its healthcare service business with high-end healthcare institutions in the more developed coastal cities and specialty and general hospitals in second tier and third-tier cities in the PRC. The Group has built up an operation management platform in the head quarter, which has become a leader in hospital investment and management operation.
As of 30 June, 2018, the combined number of authorized beds controlled by Fosun Pharma including Chancheng Hospital, Hengsheng Hospital, Zhongwu Hospital, Wenzhou Geriatrics Hospital, Guangji Hospital, Jimin Cancer Hospital and Zhuhai Chancheng, etc. was 3,818 in aggregate. Chancheng Hospital achieved the international hospital JCI certification with a high score and became the first Chinese 3As general hospital that fulfilled the standard of JCI (sixth edition) in early 2018. With the acquisition of Hengsheng Hospital and Zhuhai Chancheng Hospital completed, Fosun Pharma further expands the business distribution of developed coastal cities and regions, establishing regional medical center and health business supply chain.
Looking forward, Mr. Wu Yifang, president and CEO of Fosun Pharma said: "In 2018, China's pharmaceutical manufacturing industry is facing unprecedented opportunities and challenges. Fosun Pharma will firmly pursue innovation and internationalization. In the foreseeable future, pharmaceutical manufacturing and R&D will still remain the core of Fosun Pharma’s business. In order to become a world leading pharmaceutical company, we must further seize policies and market opportunities to develop healthcare service business, medical device and diagnosis with global expansion capabilities. Focusing on unmet medical needs, Fosun Pharma will firmly stick to R&D and provide affordable and innovative drugs for Chinese patients. At the same time, we will continue to expand and deepen cooperation with leading pharmaceutical companies around the world, build the global innovation capability and global supply chain system, and equip Fosun Pharma with new development momentum to provide better, more convenient and more affordable products and service to customers around the world."
In the rapid development of the company, we pursue the sustainable development of products and talents, and with commitment to fulfilling our corporate social responsibility (CSR) and striving to create a harmonious ecosystem in the industry. In the first half of 2018, Fosun Pharma combined its own industrial advantages, strongly supported Rural Doctor Poverty Alleviation Project and anti-tuberculosis public welfare program Double-Thousand Action, and comprehensively built Fosun Pharma's “Future Star” public welfare plan. Fosun Pharma has published its CSR report for the tenth consecutive year, and won multiple awards in CSR field.
During the first half of 2018, the revenue of Fosun Pharma increased by 41.97 % as compared to the corresponding period of 2017 to RMB 11,859.00 million. The total R&D investment amounted to RMB 1,188.33 million, representing an increase of 89.82% as compared to the same period in 2017.The revenue in pharmaceutical manufacturing and R&D segment and foreign countries or regions witnessed an increase. The revenue from pharmaceutical manufacturing and research and development (R&D) segment amounted to RMB 8,956.01 million, representing an increase of 55.06% as compared to the corresponding period of 2017. The revenue in foreign countries or regions amounted to RMB 3,030.10 million, representing an increase of 106.29% as compared to the corresponding period of 2017. During the first half of 2018, the Group recorded total profit of RMB 2,037.70 million, net profit attributable to shareholders of the Company of RMB 1,560.47 million and the net profit (after extraordinary gain or loss) attributable to Shareholders of the Company amounted to RMB 1,200.66 million.
Fosun Pharma continues its commitment to the mission of improving human health. Adhering to the development model of “organic growth, external expansion and integrated development” under the guidance of “4IN” strategy (Innovation, Internationalization, Integration, Intelligentization), Fosun Pharma constantly improves the ability of innovation internationalization, integration and service, and its interim results maintain steady growth.
The R&D investment substantially increased
Fosun Pharma continues to increase investment in R&D and perceives it as core driving force. The Group focuses on investing product developments that generate accurate efficacy, applying to modern medical advancement and insisting on boosting one-stop R&D and post-industrial evolvement capability. At present, the Group develops internationalized R&D structure and strong R&D capabilities through the establishment of interactive and integrated R&D systems in China, the U.S. and India. Meanwhile, Fosun Pharma has achieved the transformation and practice of global cutting-edge technology through a variety of cooperation.
During the first half of 2018, the total R&D investment amounted to RMB 1,188.33 million, representing an increase of 89.92% as compared to the same period in 2017. The R&D expenses incurred amounted to RMB 708.98 million, representing an increase of 53.69% as compared to the same period in 2017. In particular, R&D investment in core pharmaceutical manufacturing amounted to RMB 1,064.05 million, representing an increase of 100.90% as compared to the same period in 2017. The R&D expenses in pharmaceutical manufacturing amounted to 595.90 million, representing an increase of 63.29 % as compared to the same period in 2017.
The Group continues to increase its R&D investment in monoclonal antibody biologic innovative drugs, biosimilars and small-molecular innovative drugs, and pushes forward consistency evaluation projects. As of 30 June 2018, there were 240 pipeline drugs, generic drugs, biosimilars and consistency evaluation projects (including 13 small molecular innovative drugs, 10 biopharmaceutical innovative drugs, 17 biosimilars, 131 generic drugs with international standards, 55 consistency evaluation projects and 2 traditional Chinese medicine drugs and 12 external projects.
The research on monoclonal antibody products further accelerated. During the first half of 2018, the Group obtained approval for clinical trial for a total of 9 monoclonal antibody product types (including 4 innovative monoclonal antibody products), 13 indications obtained approval for clinical trial in mainland China. The applications for clinical trial for 2 monoclonal antibody product types and 1 has been accepted in mainland China. Another 3 monoclonal antibody items (biologic innovative drug) obtained approval for clinical trial both in the United States and Taiwan. 1 monoclonal antibody item (biologic innovative drug) obtained approval for clinical trial in Australia. Rituximab injection (for the treatment of non-Hodgkin's lymphoma) was applied for NDA in 2017, and is expected to achieve breakthrough as the first monoclonal antibody biosimilar drug produced in China.
In the field of small-molecule innovative drugs, the clinical trial of FN-1501, which is Fosun Pharma’s first small-molecule chemical drug that has achieved the Sino-US double report, has begun in USA and Australia. FN-1501 is mainly used for the treatment of acute myeloid leukemia (AML). It is a targeted drug and is a leading precision treatment technology in the world. In the future, Fosun Pharma will actively promote the clinical research of FN-1501 and its launch globally with the help of China's high-quality resources, and provide safe and effective treatment for leukemia patients worldwide as soon as possible.
Fosun Pharma actively develops consistent evaluation on generic drug and always regards innovation as the driving force for its business growth. By the first half of 2018, the 3 products, Amlodipine besylate tablets (Shi Li Da®)、Escitalopram Oxalate（Qi Cheng®）and Alfacalcidol Tablets（Li Qing®）, have already passed the consistency evaluation on generic drugs.
In addition to direct R&D investment, focusing on unmet medical needs, Fosun Pharma has introduced new technologies and models through establishing joint ventures. In the first half of 2018, FKC876, the first product of Fosun Kite, which is the cellular immunotherapy platform of Fosun Pharma, was accepted by CFDA for clinical trial registration. Meanwhile, Fosun Lead, the innovation incubation platform of Fosun Pharma, has actively explored in a number of areas with development potential, including biopharmaceuticals, mobile portable medical imaging, and precision medicine.
Devote in International marketing and manufacturing capability
While solidifying the product competiveness, Fosun Pharma continues to strengthen the construction of marketing capabilities. Meanwhile, Fosun Pharma has formed an international marketing system with nearly 1,000 staff overseas.
Fosun Pharma has established a well-developed sales network with profound upstream and downstream client resources in Africa. By leveraging on Tridem Pharma’s sales resources in Francophone countries and regions in Africa, Fosun Pharma’s competitiveness has been enhanced and the international pharmaceutical marketing platform has been furthered completed. Among them, artemisinin-based antimalarial products are highly recognized in the African market, and Artesunate for injection (Artesun®) is listed as the first choice for the treatment of severe malaria. In addition, Fosun Pharma has established US and European subsidiaries to promote in-depth cooperation with European and American pharmaceutical companies and to increase the scale of pharmaceutical sales in global market.
After completion of the acquisition of Gland Pharma in 2017, Fosun Pharma has further strengthened its capability of pharmaceutical products registration in regulatory markets and also its international productivity. In the future, Fosun Pharma will expedite the industrial upgrading of the pharmaceutical manufacturing business and accelerate the internationalization process to increase the international market share.
Strengthen discipline capabilities and construction of healthcare service to lead industry development
In the first half of 2018, Fosun Pharma continues to reinforce discipline capabilities and construction of healthcare service, remaining a healthy development of healthcare business. Fosun Pharma has completed the preliminary strategic deployment of its healthcare service business with high-end healthcare institutions in the more developed coastal cities and specialty and general hospitals in second tier and third-tier cities in the PRC. The Group has built up an operation management platform in the head quarter, which has become a leader in hospital investment and management operation.
As of 30 June, 2018, the combined number of authorized beds controlled by Fosun Pharma including Chancheng Hospital, Hengsheng Hospital, Zhongwu Hospital, Wenzhou Geriatrics Hospital, Guangji Hospital, Jimin Cancer Hospital and Zhuhai Chancheng, etc. was 3,818 in aggregate. Chancheng Hospital achieved the international hospital JCI certification with a high score and became the first Chinese 3As general hospital that fulfilled the standard of JCI (sixth edition) in early 2018. With the acquisition of Hengsheng Hospital and Zhuhai Chancheng Hospital completed, Fosun Pharma further expands the business distribution of developed coastal cities and regions, establishing regional medical center and health business supply chain.
Looking forward, Mr. Wu Yifang, president and CEO of Fosun Pharma said: "In 2018, China's pharmaceutical manufacturing industry is facing unprecedented opportunities and challenges. Fosun Pharma will firmly pursue innovation and internationalization. In the foreseeable future, pharmaceutical manufacturing and R&D will still remain the core of Fosun Pharma’s business. In order to become a world leading pharmaceutical company, we must further seize policies and market opportunities to develop healthcare service business, medical device and diagnosis with global expansion capabilities. Focusing on unmet medical needs, Fosun Pharma will firmly stick to R&D and provide affordable and innovative drugs for Chinese patients. At the same time, we will continue to expand and deepen cooperation with leading pharmaceutical companies around the world, build the global innovation capability and global supply chain system, and equip Fosun Pharma with new development momentum to provide better, more convenient and more affordable products and service to customers around the world."
In the rapid development of the company, we pursue the sustainable development of products and talents, and with commitment to fulfilling our corporate social responsibility (CSR) and striving to create a harmonious ecosystem in the industry. In the first half of 2018, Fosun Pharma combined its own industrial advantages, strongly supported Rural Doctor Poverty Alleviation Project and anti-tuberculosis public welfare program Double-Thousand Action, and comprehensively built Fosun Pharma's “Future Star” public welfare plan. Fosun Pharma has published its CSR report for the tenth consecutive year, and won multiple awards in CSR field.