CSPC Pharmaceutical Announces 2020 Interim Results

August 26 2020

CSPC Pharmaceutical Group Limited (HKEx: 01093) ("CSPC Pharmaceutical" or the "Group") is pleased to announce its interim results for the six months ended 30 June 2020. For the current period, the Group recorded a revenue of RMB12,590 million, an increase of 12.6% year-on-year, and profit attributable to shareholders of RMB2,314 million, an increase of 23.2% year-on-year. Basic earnings per share was RMB30.97 cents. The Board of Directors has declared an interim dividend of HK6 cents per share for 2020 and proposed a bonus issue.

During the period, the Group actively implemented online promotion and flexible sales strategies to reduce the impact of COVID-19 pandemic on sales. In addition, major finished drug products were able to sustain rapid growth with the efforts put in professional academic-based promotion, hospital development, lower-tier market penetration, clinical application extension and professional sales force expansion. During the period, the newly launched products have brought in new sales contribution and further facilitated a more balanced product mix of the finished drugs. The finished drug business recorded sales of RMB10,231 million in the first half of 2020, an increase of 16.7% year-on-year. Of which the cardiovascular disease, respiratory disease and oncology products achieved the highest overall growth rates of 54.0%, 50.4% and 44.4% relatively.

Good progress has also been made in respect of R&D: i) 9 products obtained drug registration approvals in China, namely rivaroxaban tablets, montelukast sodium tablets, montelukast sodium chewable tablets, ornithine aspartate injections, bortezomib for injection, celecoxib capsules, acarbose tablets, memantine hydrochloride tablets and duloxetine hydrochloride enteric capsules; ii) 1 product (omega-3-acid ethyl esters 90 soft capsules) obtained ANDA approval in the U.S.; iii) new drug application for mitoxantrone hydrochloride liposome injection (new preparation) was submitted and accepted in China; iv) patient enrolment of the bridging trial of duvelisib (innovative drug) was completed in China;  and v) 5 drug candidates obtained clinical trial approvals in China, namely irinotecan liposome injection, docetaxel for injection (albumin-bound), SYHA1805 tablets, SYHA1815 tablets, recombinant anti-IgE monoclonal antibody for injection, ALMB-0168 in Australia and Y150 (CD38/CD3 bispecific antibody) developed by Wuhan YZY in the U.S..

The Group firmly believes in the importance of investing in research and development. The R&D expenses for the period amounted to RMB1,452 million (charged to profit or loss statement), representing a year-on-year increase of 54.2% and accounting for approximately 14.2% of the finished drug business revenue. At present, there are more than 300 projects in the pipeline, of which over 40 are innovative small molecule drugs, over 50 are innovative macromolecule drugs and over 20 are drugs of new preparation, primarily focusing on the therapeutic areas of oncology, autoimmunity, psychiatry and neurology, digestion and metabolism, cardio-cerebrovascular system and anti-infectives.

Currently, there are 25 drug candidates pending drug registration approvals, 42 products under clinical trials (including 31 innovative drugs and 11 new preparations), 9 products under bioequivalence tests and 7 products pending clinical trial approvals (6 in China and 1 in the U.S.).

In the three years ahead, the Group is expected to launch more than 50 new products, over 15 of which will be key products with a market potential exceeding RMB1 billion each, providing strong support for the high quality growth of the Group in the future.