HONG KONG, Aug. 25, 2015 /PRNewswire/ -- CSPC Pharmaceutical Group Limited (HKEx: 1093) ("CSPC Pharmaceutical" or the "Group"), a leading pharmaceutical company in China, is pleased to announce its interim results for the six months ended 30 June 2015 (the "Period"). During the Period, the Group recorded sales revenue of approximately HK$5,730 million, representing an increase of 7.3% over the same period of last year. Profit attributable to shareholders was approximately HK$822 million, up 36.9% from the same period of last year.
During the Period, the Group's innovative drug business maintained strong growth momentum, with further expansion of its market share and a stronger presence and coverage in the high-end market. The Group also achieved some progress in expanding into the mid-tier market. The innovative drug business maintained a rapid growth in sales during the Period. Sales revenue from this segment reached approximately HK$1,768 million, representing a 36.0% growth over the same period of last year.
With the progress of academic-based promotion and further enhancement of market recognition, major oncology drug products of the Group including "Duomeisu", "Jinyouli", "Ailineng" and "Nuolining" have effectively expanded their market coverage and achieved satisfying growth. In addition, the Group has some other oncology drugs under research and development, among which "bortezomib injection" has been submitted for production approval, "mitoxantrone hydrochloride liposome injection" has commenced phase II clinical trial, and "paclitaxel injection (albumin-bound)" has been submitted for clinical trial. The Group expects these products will be approved for market launch in the coming years.
In respect of common generic drug business, the Group further enhanced its product portfolio and established its sales channels. In particular, the Group cooperated with pharmacy chains in China to further explore market potentials which resulted in satisfactory growth with improved profitability. In addition, the Group will study and keep abreast of the policies related to essential drugs and low-priced drugs in order to grasp the market opportunities in these areas.
As to bulk drug business, the antibiotics business was relatively stable. Market prices of certain products were higher than the same period of last year, but operating costs also increased due to upgrades in environmental standards and quality control management. For vitamin C business, the Group continued to maintain its absolute competitiveness in the industry by leveraging on its advantages in scale, quality and production costs. Overall, the vitamin C business has shown signs of an upturn in the second quarter of 2015 and is expected to further improve in the second half of the year. For caffeine business, both the market demand and product price of caffeine remained stable in the Period. Caffeine business continued to contribute stable profit to the Group.
Currently, the Group has over 180 products under research and development, with focus on the therapeutic areas of cardio-cerebrovascular, diabetes, oncology, neurology and anti-infective. Among these products, 14 are Class I new drugs and 51 are Class III new drugs. During the Period, the Group has submitted applications for 28 drugs to the China Food and Drug Administration during the Period (of which, 12 are production applications and 16 are clinical trial applications), and had obtained 4 production approvals and 4 clinical trial approvals in China. With regard to overseas registrations, the Group's product "benzonatate soft capsule" had received the ANDA approval in July this year. Currently, the Group has a total of 9 drugs applying for ANDA in the U.S. Meanwhile, the protocol for phase II clinical trial application of "butylphthalide soft capsule" has been approved by the U.S. FDA and the pharmacokinetic research in human subjects as requested by the U.S. FDA has also been completed. The Group is also preparing supplemental data of application for "mitoxantrone hydrochloride liposome injection" according to the Pre-IND meeting held by the U.S. FDA. It is expected that application for phase II clinical trial can be submitted to the U.S. FDA by the end of this year. The Group expects that 4 drug applications in China and 3 drug applications for ANDA in the U.S. will receive approval in the second half of 2015.
Looking forward, Mr. Cai Dong Chen, Chairman and CEO of CSPC Pharmaceutical, commented, "Looking ahead, with the further aging of China's population, a trend of urbanization nationwide, and rising income levels in China, the demand for pharmaceutical products in China is expected to further increase over the coming decade. We believe that our core products will enjoy highly promising prospects given their market potential. We will continue to actively develop the new drug business, promote product internationalisation and consolidate the competitiveness of our bulk drug business, with the objective of ensuring sustainable growth of the Group."
About CSPC Pharmaceutical Group Limited
CSPC Pharmaceutical Group Limited is a leading pharmaceutical group in China. The Company has been listed on the Main Board of the Hong Kong Stock Exchange since 1994. CSPC Pharmaceutical is a leading player of innovative and generic drugs in China. Blockbuster innovative products include "NBP" series, "Oulaining" series, "Xuanning" series, "Duomeisu" and "Jinyouli". CSPC Pharmaceutical is also a major manufacturer of bulk drugs, with principal products that include vitamin C, antibiotics and caffeine. The production facilities of CSPC Pharmaceutical are mainly located in Shijiazhuang City, Hebei Province, China.
