Fosun Pharma Announces 2018 Q3 Results, Continually Increase in R&D Investment Revenue Increased 39.99% Year on Year Operating Cash Flow Increased 21.15% Year on Year R&D Investment Increased 59.13 % Year on Year
On 29 October 2018, Shanghai Fosun Pharmaceutical (Group) Co., Ltd (“Fosun Pharma” or “Company”, stock code: 600196.SH, 02196.HK) announced its 2018 Q3 results.
In the first three quarters of 2018, the revenue reached RMB 18.142 billion, increasing by 39.99 % as compared to the corresponding period of 2017. The net cash flow in terms of operating activities increased 21.15 % as compared to the corresponding period of 2017 to RMB 2.088 billion.
In terms of “organic growth”, Fosun Pharma continues to increase investment in R&D and perceives it as core driving force. At present, Fosun Pharma concentrates on R&D investment with significant progresses: a number of monoclonal antibody biologic innovative drugs, biosimilars and small-molecular innovative drugs were in the clinical research stage, while the pace for generic drugs and consistency evaluation further accelerated. From January to September 2018, R&D expenses totally increased 59.13 % as compared to the corresponding period of 2017 to RMB 1.114 billion. In the third quarter of 2018, R&D expenses increased 69.65 % as compared to the corresponding period of 2017 to RMB 405 million.
Fosun Pharma’s biological platform, Shanghai Henlius Biotech, Inc. (Henlius), has made remarkable achievements in R&D with a number of self-developed products in new progress. For instance, HLX07 (recombinant anti-EGFR humanized monoclonal antibody injection) has initiated the Phase 1b/2 clinical trial in China (excluding Hong Kong, Macao and Taiwan) for the treatment of solid tumors; the combination therapy with HLX10 (recombinant humanized anti-PD-1 monoclonal antibody injection) and HLX04 (recombinant anti-VEGF humanized monoclonal antibody injection) has been approved for clinical trials to treat advanced solid tumors. At the same time, with the approval of the board of directors of Fosun Pharma, Henlius intends to spin off and publicly issue overseas listed foreign shares (H shares) on the main board of the Stock Exchange.
Fosun Pharma actively develops consistent evaluation on generic drug and regards innovation as the driving force for its business growth. Suzhou Erye Pharmaceutical Co.,Ltd. has received an Approval Document on the Drug Supplementary Application of Azithromycin Capsules issued by CFDA, and the drug has already passed the consistency evaluation on generic drugs. It is Fosun Pharma’s fourth product passed the consistency evaluation after Amlodipine besylate tablets (Shi Li Da®)、Escitalopram Oxalate（Qi Cheng®）and Alfacalcidol Tablets（Li Qing®）.
Besides direct R&D investment, Fosun Pharma has also introduced new technologies and new models through investing in associated company and joint ventures to satisfy unmet medical needs in the country. In the third quarter, Fosun Kite, Fosun Pharma's cellular immunotherapy platform, receives clinical trials approval of its CAR-T product FKC876. This product will be developed for treating patients who have received two kinds or more systematic treatment and get relapsed, or patients who have refractory LBCL (large B cell lymphoma).
On the “extended expansion”, Fosun Pharma further accelerates the pace of internationalization. Fosun Pharma has spent US$106 million to subscribe to Butterfly Network, Inc. (referred to as “BNI”) D-round preferred stock, and has deployed a smartphone ultrasound imager. Founded in 2011, BNI is one of the world's leading R&D companies for handheld ultrasound imaging and is committed to leading the decentralization of medical imaging. This cooperation will facilitate the synergy with Fosun Pharma’s medical devices business and promote our healthcare service business by enhancing the accessibility and innovating the service model.
The management team of Fosun Pharma state, the company will adhere to the 4"IN" (Innovation, Internationalization, Integration and Intelligentization) strategy and focus on the unmet needs in medical field, and continuously expand and deepen cooperation with leading pharmaceutical companies as new momentum force, so as to provide more efficient, much better and more convenient products and services.
In the first three quarters of 2018, the revenue reached RMB 18.142 billion, increasing by 39.99 % as compared to the corresponding period of 2017. The net cash flow in terms of operating activities increased 21.15 % as compared to the corresponding period of 2017 to RMB 2.088 billion.
In terms of “organic growth”, Fosun Pharma continues to increase investment in R&D and perceives it as core driving force. At present, Fosun Pharma concentrates on R&D investment with significant progresses: a number of monoclonal antibody biologic innovative drugs, biosimilars and small-molecular innovative drugs were in the clinical research stage, while the pace for generic drugs and consistency evaluation further accelerated. From January to September 2018, R&D expenses totally increased 59.13 % as compared to the corresponding period of 2017 to RMB 1.114 billion. In the third quarter of 2018, R&D expenses increased 69.65 % as compared to the corresponding period of 2017 to RMB 405 million.
Fosun Pharma’s biological platform, Shanghai Henlius Biotech, Inc. (Henlius), has made remarkable achievements in R&D with a number of self-developed products in new progress. For instance, HLX07 (recombinant anti-EGFR humanized monoclonal antibody injection) has initiated the Phase 1b/2 clinical trial in China (excluding Hong Kong, Macao and Taiwan) for the treatment of solid tumors; the combination therapy with HLX10 (recombinant humanized anti-PD-1 monoclonal antibody injection) and HLX04 (recombinant anti-VEGF humanized monoclonal antibody injection) has been approved for clinical trials to treat advanced solid tumors. At the same time, with the approval of the board of directors of Fosun Pharma, Henlius intends to spin off and publicly issue overseas listed foreign shares (H shares) on the main board of the Stock Exchange.
Fosun Pharma actively develops consistent evaluation on generic drug and regards innovation as the driving force for its business growth. Suzhou Erye Pharmaceutical Co.,Ltd. has received an Approval Document on the Drug Supplementary Application of Azithromycin Capsules issued by CFDA, and the drug has already passed the consistency evaluation on generic drugs. It is Fosun Pharma’s fourth product passed the consistency evaluation after Amlodipine besylate tablets (Shi Li Da®)、Escitalopram Oxalate（Qi Cheng®）and Alfacalcidol Tablets（Li Qing®）.
Besides direct R&D investment, Fosun Pharma has also introduced new technologies and new models through investing in associated company and joint ventures to satisfy unmet medical needs in the country. In the third quarter, Fosun Kite, Fosun Pharma's cellular immunotherapy platform, receives clinical trials approval of its CAR-T product FKC876. This product will be developed for treating patients who have received two kinds or more systematic treatment and get relapsed, or patients who have refractory LBCL (large B cell lymphoma).
On the “extended expansion”, Fosun Pharma further accelerates the pace of internationalization. Fosun Pharma has spent US$106 million to subscribe to Butterfly Network, Inc. (referred to as “BNI”) D-round preferred stock, and has deployed a smartphone ultrasound imager. Founded in 2011, BNI is one of the world's leading R&D companies for handheld ultrasound imaging and is committed to leading the decentralization of medical imaging. This cooperation will facilitate the synergy with Fosun Pharma’s medical devices business and promote our healthcare service business by enhancing the accessibility and innovating the service model.
The management team of Fosun Pharma state, the company will adhere to the 4"IN" (Innovation, Internationalization, Integration and Intelligentization) strategy and focus on the unmet needs in medical field, and continuously expand and deepen cooperation with leading pharmaceutical companies as new momentum force, so as to provide more efficient, much better and more convenient products and services.