Performance Highlights:
SHANGHAI, March 28, 2023 /PRNewswire/ -- On March 27, 2023, Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* ("Fosun Pharma" or "the Group", Stock Code: 600196.SH; 02196.HK), a global innovation-driven pharmaceutical and healthcare industry group deep-rooted in China, announced its 2022 annual results today (the "Reporting Period").
During the Reporting Period, Fosun Pharma achieved steady business growth, mainly driven by the revenue growth from new and sub-new products and the effective control of sales expenses. In 2022, Fosun Pharma achieved a revenue of RMB 43.952 billion, with a year-on-year growth of 12.66%; the net profit after deducting extraordinary gain or loss attributable to shareholders of the listed company was RMB 3.873 billion, with a year-on-year growth of 18.17%; the net cash flow from operating activities was RMB 4.218 billion, with a year-on-year growth of 7.1%. The Company has achieved remarkable results in R&D innovation and transformation, and the international operation capability was further improved to achieve long-term sustainable development.
The revenue from new products and sub-new products including Han Li Kang, Han Qu You, Comirnaty, Jie Bei An, Su Ke Xin, Han Si Zhuang accounted for more than 30% of the revenue from the pharmaceutical manufacturing segment, and the revenue structure continued to be optimized;
Continuously Increased R&D Investment with Remarkable Results in Innovation and Transformation
Fosun Pharma is a patient-centered, clinical demand-oriented, and innovative R&D driven company. Through independent R&D, cooperative development, licensing introduction, and in-depth incubation, Fosun Pharma continued to enrich innovative product pipelines, improved the research and clinical development ability of FIC (First-in-class) and BIC (Best-in-class) drugs, and accelerated the research, development, and transformation of innovative technologies and products.
Focusing on core therapeutic areas such as tumors (solid tumors and hematologic tumors), immunology, central nervous system, and chronic diseases (liver disease/metabolism/kidney disease), Fosun Pharma continued to increase its investment in innovative R&D, with a total R&D expenditure of RMB 5.885 billion for the year, with a year-on-year growth of 18.22%, among which, the R&D expenses amounted to RMB 4.302 billion, with a year-on-year growth of RMB 0.465 billion or 12.12%. The R&D expenditures in the pharmaceutical manufacturing business amounted to RMB 5.097 billion, with a year-on-year growth of 13.62%, and the R&D expenditures in the pharmaceutical manufacturing business accounted for 16.54% of the revenue from the pharmaceutical manufacturing business, among which, the R&D expenses amounted to RMB 3.552 billion, accounting for 11.53% of the revenue from the pharmaceutical manufacturing business.
During the reporting period, 6 self-developed innovative drugs (indications), 4 license-in innovative drugs (indications), and 27 generic drugs (indications) of Fosun Pharma were approved for launch in Chinese Mainland/Hong Kong, China/United States; 7 innovative drugs (indications) and 30 generic drugs (indications) had applied for launch (NDA) in Chinese Mainland; and 22 innovative drugs (indications) were approved for clinical trials (IND) in Chinese Mainland.
In 2022, multiple innovative products and indications of Fosun Pharma were approved for launch, benefiting more patients worldwide. Among them, Fosun Pharma's first self-developed biopharmaceutical innovative drug, Han Si Zhuang (Serplulimab Injection), has been successively approved for three indications, Microsatellite Instability-high (MSI-H) solid tumors, Squamous Non-small Cell Lung Cancer (sqNSCLC) and Extensive-Stage Small Cell Lung Cancer (ES-SCLC) in Chinese Mainland; the indication of Small Cell Lung Cancer (SCLC) was granted with Orphan Drug Designation by the U.S. FDA and the European Commission (EC). The innovative indication Rheumatoid Arthritis (RA) of Han Li Kang (Rituximab injection) has been approved for launch and included in the 2022 National Reimbursement Drug List.
Both the monovalent COVID-19 vaccine COMIRNATY (30 mg per dose) (also known as BNT162b2 or COMIRNATY Original) and COMIRNATY Original/Omicron BA.4/BA.5 bivalent COVID-19 vaccine (also known as COMIRNATY Bivalent COVID-19 Vaccine) were officially registered in Hong Kong SAR and approved as a regular imported vaccine by the Macao SAR. The related dosage forms for children and infants have also been granted the Emergency Use Authorization (EUA) in Hong Kong SAR and Macao SAR, respectively, and included in the local immunization programs; Azvudine Tablets jointly developed by Fosun Pharma and Genuine Biotech obtained the emergency use authorization from the National Medical Products Administration in July 2022 for use in the treatment of adult COVID-19 patients with moderate symptoms.
Keverprazan Hydrochloride Tablets (trade name: Bei Wen), the first potassium ion competitive acid blocker (P-CAB) independently developed in China, jointly developed by the Group and Carephar and exclusively commercialized by the Group, was approved for launch in Chinese Mainland in February 2023 for the treatment of duodenal ulcer (DU) and reflux esophagitis (RE); Han Qu You (Trastuzumab for Injection), independently developed by Fosun Pharma and licensed to Cipla, has been approved for launch in Australia, and its approved indications cover all approved indications of the branded drug in the local market.
As the first CAR-T cell therapy product approved for domestic launch, Yi Kai Da (ejilunsai injection) from Fosun Kite, the cell therapy platform of Fosun Pharma, was further improved in drug accessibility. As of the end of 2022, Yi Kai Da has been included in the urban customized commercial health insurance of 70 provinces and municipalities and over 60 commercial insurances, while the number of treatment centers on record ~exceeded 130. As of the end of January 2023, nearly 300 patients with relapsed or refractory large B-cell lymphoma lymphoma had been treated with Yi Kai Da.
As of the end of the Reporting Period, the revenue from new and sub-new products accounted for more than 30% of the revenue from the pharmaceutical manufacturing business, which is mainly due to the revenue contribution of newly launched products, namely Han Si Zhuang and Jie Bei An, as well as the growth contribution of sub-new products, namely Han Qu You and Su Ke Xin, promoting the sustained and steady growth of business.
Adhered to Globalization with Continuously Improvement in Global Operation Capability
Relying on years of industrial experience, investment in innovative R&D and expanding of global channel network, Fosun Pharma has the industry-leading global two-way licensing capability to maximize the value of self-developed products and cooperative innovative products. During the Reporting Period, Fosun Pharma's revenue outside the Chinese Mainland and other countries amounted to RMB 13.938 billion, accounting for 31.71%.
In 2022, Fosun Pharma and Amgen's subsidiary formed collaboration on the exclusive licensing to commercialize two innovative drugs, namely Otezla® (Apremilast Tablets) and Parsabiv (Etelcalcetide) in Chinese Mainland (excluding Hong Kong SAR, Macao SAR, and Taiwan region), further enriching Fosun Pharma's innovative product layout in the non-tumor field; Shanghai Henlius, a subsidiary, successively granted a number of product licenses to Getz Pharma, Eurofarma, Abbott, Organon, and other companies in order to cover the incremental markets with the help of international leading partners. In addition, Gland Pharma, a subsidiary, proposed to acquire Cenexi, a European CDMO company, with a maximum total amount payable of up to EUR210 million, so as to strategically lay out its CDMO business in the European market and construct localized manufacturing capacity in Europe.
Fosun Pharma has taken the United States as a breakthrough in overseas markets, actively promoted the launch of generic drugs and Han Si Zhuang (Serplulimab Injection), and continuously improved the commercialization capacity in the U.S. market. At the same time, Tridem Pharma and Gland Pharma have established their own sales teams in Africa and India respectively, and will further improve the promotion and sales of products in other emerging markets in the future.
Continuous R&D Innovation for the Benefit of the Public and Active Practice of Social Responsibility
R&D innovation is the most important responsibility for Fosun Pharma's sustainable development. Over the years, Fosun Pharma has adhered to R&D innovation, with a number of innovative achievements continuously implemented and a number of innovative drugs and new indications included in the latest version of the National Medical Insurance Drug Catalogue, further improving the accessibility and affordability of innovative drugs and benefiting more patients in China.
At the same time, Fosun Pharma has also given full play to its own advantages and vigorously promoted the construction of basic medical and health systems in developing countries and underdeveloped areas to help solve the problem of drug accessibility. In 2022, a subsidiary of Fosun Pharma was licensed under MPP to produce and supply two high-quality and affordable oral COVID-19 drugs to low- and middle-income countries in the globally agreed regions; as of the end of 2022, Fosun Pharma's Artesun® (Artesunate for Injection), a self-developed antimalarial innovative drug, was adopted to treat more than 56 million severe cases of malaria worldwide.
Fosun Pharma received many awards for its outstanding performance in ESG management, social responsibility, and other sustainable development fields. In 2022, Fosun Pharma was upgraded to A level in the ESG rating published by MSCI, an international index authority. Fosun Pharma has released CSR reports for 15 consecutive years to show stakeholders its practices and achievements in the field of social responsibility. Experts of the rating team of the China CSR Report Rating Expert Committee are of the view that Fosun Pharma's CSR report is excellent and has awarded the Company with a five-star rating.
"Looking forward to the future, Fosun Pharma will adhere to the mission of promoting human health, and the business philosophy of 'Innovation for Good Health', guided by the '4IN' (Innovation, Internationalization, Intelligentization, Integration) strategy." Mr. Wu Yifang, Chairman of Fosun Pharma said, "Driven by the rapid growth of the vast pharmaceutical market in China, the mainstream markets in Europe and the United States, and some emerging markets, the Company will adhere to the development strategy of 'Innovation Transformation, Integrated Operation and Steady Growth' in the belief of creating value for shareholders, continuously strengthen independent R&D and external collaboration, enrich product pipelines, strengthen global layout, and improve operational efficiency. In the process of pursuing sustainable development, Fosun Pharma will make greater contributions to the construction of a healthy China and the improvd health and well-being of people worldwide."
About Fosun Pharma
Founded in 1994, Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* ("Fosun Pharma"; stock code: 600196. SH, 02196. HK) is a global innovation-driven pharmaceutical and healthcare industry group deep-rooted in China. Fosun Pharma directly operates businesses including pharmaceutical manufacturing, medical devices, medical diagnosis, and healthcare services. As a shareholder of Sinopharm Co., Ltd., Fosun Pharma expands its areas in the pharmaceutical distribution and retail business.
Fosun Pharma is patient-centered and clinical needs-oriented. The company continuously enriches its innovative product pipeline through independent research and development, cooperative development, license-in, and in-depth incubation. Fosun Pharma improves the research and clinical development capabilities of FIC (First-in-class) and BIC (Best-in-class) new drugs as well as accelerates the R&D and launch of innovative technologies and products.
Guided by the 4IN strategy (Innovation, Internationalization, Intelligentization, and Integration), Fosun Pharma will uphold the development model of "Innovation Transformation, Integrated Operation and Steady Growth", with the mission of creating shareholder values through strengthening its independent R&D and external cooperation and enriching its product pipelines, as well as promoting the global networks and enhancing operational efficiency. Fosun Pharma will actively promote the digital and physical business layout in the pharmaceutical and healthcare industry and is committed to becoming a first-class enterprise in the global medical and health market.
For more information, please visit our official website: www.fosunpharma.com
Forward Looking Statement:
This press release contains a Forward Looking Statement. In addition to the historical factual statements contained in this press release, all the discussions, including but not limited to, discussions of our company's business strategy, discussions of future operations, profit margins, profitability, liquidity and capital resources, prospects for future development of our company's industry and future development of the economy in general in major markets, and any similar words or representations relating to our company or its management, whether before, after or including such words or representations as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "expect", "may" and "will", are intended to identify forward-looking statements. These statements are subject to certain known and unknown risks, uncertainties and assumptions that may cause the actual results, performance or achievements of our company to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Therefore, you should not rely excessively on any forward-looking materials. Subject to the requirements of applicable laws, rules and regulations, our company has no obligation to update or otherwise modify the forward-looking statement in this press release, whether as a result of new information, future events or developments or otherwise. In this press release, the statements or references to our company's intentions are effective as of the date of this press release. Any such intention may change with future developments. All the forward-looking statements contained in this press release are subject to the above cautionary statement.
