Lee's Pharm 2015 Interim Profit Attributable to Equity Shareholders Up 18.3%

HONG KONG, Aug. 27, 2015 /PRNewswire/ -- 

Lee's Pharmaceutical Holdings Limited ("Lee's Pharm" or the "Group", Stock Code: 950), an integrated research-driven and market-oriented pharmaceutical group in China, today announced its unaudited interim results for the six months ended 30 June 2015 (the "period under review").

During the period under review, turnover of Lee's Pharm was HK$477,903,000, representing an increase of 7.9%. Zanidip^®, Yallaferon^® and Livaracine^® recorded revenue growths of 25.7%, 45.8% and 20.8% respectively. The sales of Ferplex^® has returned to normal with a 51.2% growth in the second quarter, while Slounase^® has maintained a moderate sales growth of 7.9%.

Profit attributable to the equity shareholders for the period under review increased by 18.3% to HK$103,026,000. More notably, profit attributable to the equity shareholders for the second quarter was up 39.2% year-on-year to HK$62,580,000, representing a remarkable turnaround from first quarter's negative growth. The Group recommended an interim dividend of HK$0.03 per share.

Dr. Benjamin Li, Chief Executive Officer of the Group, said, "China's State Council issued a blueprint for overhaul China's Drug and Medical Device registration laws and regulations, to accelerate patients' access to innovation drug and device and to encourage innovation in the sector by significantly shorten the time-to-market. The Group has been building a robust pipeline through in-house R&D and out-reaching collaboration as well as established its in-house e-commerce department. We are starting the cross-border sales and marketing of health related products through internet platform. We are well positioned to reap the benefit of such changes and regain the momentum of growth in near future."

The Group has continued to make progress in ramping up its new Guangzhou Nansha manufacturing site. The mechanical construction work of the solid dose production facility has been commenced and is expected to be completed in early October. Equipped with imported machines, the facility will use the latest state-of-the-art processes to produce solid dosage forms. Meanwhile, the Group has started the design of its ophthalmology facility and erection work is expected to begin before the end of 2015. The facility will help accelerate the Group's R&D effort in ophthalmic drug development and position the Group as a serious player in the ophthalmology field.

The Group also achieved fruitful outcomes in drug development. In first half of 2015, the Group's phase IIa clinical study of Adapalene and Clindamycin combination hydrochloride gel for acne vulgaris has progressed on schedule. Phase I study of Tafoxiparin was initiated and the tolerability study of Istaroxime has also completed all three cohorts enrollment. The preparation for the study of Natulan^® registration study is underway. Four other clinical studies, namely anti-platelet drug Anfibatide phase IIb study, hypertension drug Azilsartan registration enabling study, a glaucoma drug registration study and an ear infection drug phase I study, have all obtained the approval from the ethic committee from the principle investigator site. In August 2015, CVie Therapeutics Limited, the Group's subsidiary obtained the approval for a global Phase IIb clinical study in Taiwan for one of its portfolio products.

In addition, partnership remains as the core of the Group's growth strategy. China Oncology Focus Limited, a subsidiary of the Group, was granted exclusive license to manufacture, develop and commercialise TG02 for the treatment of both hematologic and solid tumor in mainland China, Hong Kong, Macau and Taiwan. Meanwhile, the Group has also entered into a Development, Supply and Commercialisation Agreement to market a pharmaceutical product dispenser for use in Ropivacaine Product Field and/or Propofol Product Field in mainland China, Hong Kong, Macau, Taiwan and Thailand.

Breaking new ground was the main theme in the second quarter for corporate development. The Group has established the e-commerce department to manage not only its WeChat marketing platform, but also cross-border sales and marketing of health related products. This will not only create a new stream of revenue in a cost-effective way, but also provide the necessary experience for the Group's possible future entering into the e-commerce pharmaceutical retail business.

In May 2015, the Group entered into a Shareholders Agreement to establish and operate a project for the building up and operating a central pharmacy for compounding radio-pharmaceuticals for domestic supply. The transaction was completed in August 2015, an illustration of the Group's effort to venture into new business opportunity and further expand its revenue source without distracting itself from its core business.

In August 2015, the Company committed to invest up to US$8.5 million into the Lee's Healthcare Industry Fund L.P.. The investment fund is mainly to generate attractive financial returns through investing in privately held companies with listing potentials in the biomedical sectors in the USA, Europe and Asia, including the areas of pharmaceuticals, biologics, diagnostics and medical devices. The Group is also actively considering the expansion of its businesses into hospital operation, and relevant feasibility studies are in progress, with regards of the expansion opportunity in private health care services.

The Company and its associated company were very successful in the financing events, providing the needed capital to catalyse the future growth of the business.

Dr. Li added, "In light of the recent revamping of China's drug and medical device registration regulations, plus the new ways and areas that the Group has been exploring, we are confident in continuing to be competitive in the tender process and maintain the growth momentum of our existing products. The expected launch of a new product in the fourth quarter will provide the needed catalyst and boost. With steadfast focus on the growth strategy, we are confident that the Group will remain on track for growth and continue to deliver satisfactory return to its shareholders."

About Lee's Pharmaceutical Holdings Limited

Lee's Pharm is a research-based biopharmaceutical company listed in Hong Kong with over 20 years operation in China's pharmaceutical industry. It is fully integrated with strong infrastructures in drug development, manufacturing, sales and marketing. It has established extensive partnership with over 20 international companies and currently has 15 products in the market place. Lee's Pharm focuses on several key disease areas such as cardiovascular diseases, oncology, gynecology, dermatology and ophthalmology. Lee's Pharm's development program is lauded with more than 30 products stemming from both internal R&D efforts and collaborations with US, European and Japanese companies and aspires to combat diseases such as liver cancer and pulmonary hypertension. The mission of Lee's Pharm is to become a successful biopharmaceutical group in Asia providing innovative products to fight diseases and improve health and quality of life.

Additional information about Lee's Pharm is available at www.leespharm.com.