HONG KONG, March 11, 2014 /PRNewswire/ -- Sihuan
Pharmaceutical Holdings Group Ltd. (HKEx: 0460) ("Sihuan
Pharmaceutical" or the "Company"), a leading pharmaceutical company
with the largest cardio-cerebral vascular ("CCV") drug franchise in
China's prescription drug market,
today announced its annual results for the year ended 31 December 2013 ("2013" or the "Year").
Financial Highlights
|
For the Year Ended
31 Dec 2013
|
Key Income
Statement Items
|
RMB
Million
|
Change
|
|
2013
|
2012
|
|
Revenue
|
4,732.7
|
3,042.5
|
+55.6%
|
Gross
Profit
|
3,699.7
|
2,289.4
|
+61.6%
|
Profit Attributable
to Owners of the Company
|
1,303.0
|
904.4
|
+44.1%
|
Proposed Final
Dividend per Share (RMB Cents)
|
2.1
|
5.8
|
N/A
|
|
|
|
|
|
In 2013, the Company not only achieved a sharp sales rebound for
its two key products, Kelinao and Oudimei, but also recorded rapid
growth of its fast-growing promising products such as Yuanzhijiu,
Yeduojia, and Danshen Chuangxionqin. With the increase of sales
growth of our CCV drugs, the Company's revenue surged 55.6% to
RMB4,732.7 million. Overall gross
profit increased by 61.6% from RMB2,289.4
million in 2012 to RMB3,699.7
million in 2013 due to an increase in the sales of products
with higher gross profit margins, while profit attributable to
owners of the Company jumped 44.1% to RMB1,303 million. A final dividend of
RMB2.1 cents per share (2012:
RMB5.8 cents) was recommended by the
Board together with a bonus issue of 1 bonus ordinary share at par
value of HK$0.01 each for every 1
existing ordinary share in return for shareholders' support and are
subject to the approval of the shareholders at the annual general
meeting of the Company to be held on 30 May 2014.
Dr. Che Fengsheng, Chairman and CEO of the Company, said,
"Backed by our industry-leading capabilities in integration and
sales and marketing, we not only completed integrating of the
acquired companies, but also grew bigger and stronger in the
increasingly fierce pharmaceutical market. In 2013, we reaped the
fruits of our labor and achieved rapid financial growth and
outstanding operational results. This reflected the success of our
previous expansion, which brought us a more diversified product
portfolio, further balanced revenue stream and strengthened market
leadership. On top of that, we achieved breakthroughs in our
research and development for new drugs, ensuring that our strong
growth momentum will be sustained by an enhanced product pipeline
in the long run. As a result, we become the fourth largest
pharmaceutical company in the Chinese hospital market and kept our
lead in China's cardio-cerebral
vascular ("CCV") prescription drug market."
Sharp Rebounds of Key CCV Products and Rapid Growth of
Fast-growing Promising Products Boosted Strong Growth in
Sales
CCV Products
Thanks to a young and diversified product portfolio, sales of
CCV products grew 60.7% to RMB4,505.0
million, which accounted for 95.2% of the Company's total
revenue, continuing to be the Company's largest revenue
contributor. The significant growth was mainly attributable to the
exciting rebound in sales for its two key products, Kelinao and
Oudimei, and the rapid growth of its promising products. The
Company stepped up its support to Kelinao's distributors for
academic promotion and deepened its penetration into low-end
markets, sales of Kelinao increased by 71.7% year-on-year to
RMB1,115.3 million. As for Oudimei,
the successful integration of its distribution network boosted its
sales and marketing efficiency. As a result, sales of Oudimei
jumped 93.1% to RMB 1,343.9 million
during the Year. Promising products such as Yeoduojia, Danshen
Chuanxiongqin, Guhong, Yimaining and Yuanzhijiu maintained strong
growth in sales, which were up significantly by 225.7%, 83.9%,
59.8%, 54.9% and 19.7% respectively.
Non-CCV Products
The Company's non-CCV products maintained stable growth in sales
volume. The Company launched its first non-CCV exclusive
first-to-market generic drug Roxatidine, which has expanded its
market by tender wins in two provinces and supplementary tender
submissions in another province. In addition, it entered drug
reimbursement list ("DRL") of one province. The product is expected
to generate significantly more revenue with more extensive
marketing and after winning tenders and entering provincial DRL in
more provinces.
Clear Sales and Tendering Strategies Achieved Promising
Results
During the Year, the Company stepped up its academic promotion
work and boosted incentives to distributors for Kelinao and
Oudimei, to motivate distributors to promote the Company's
products. In the meantime, the Company devised clear tendering
strategies for its products, i.e. horizontal expansion to increase
market coverage of its products by provincial tender wins and
supplementary tender submissions, as well as vertical expansion
into low-end markets with provincial Essential Drug List ("EDL")
tender wins and provincial New Rural Cooperative Medical Scheme
List ("NRCMSL").
Positive Results from New Products Development
The Company has intensified efforts on innovative drug projects
and achieved promising results by leveraging its effective
resources integration. To date, the Company has submitted
investigational new drug ("IND") applications for seven Category
1.1 innovative drugs and has obtained Approval for Clinical Trial
for five Category 1 innovative drugs from the China State Food and
Drug Administration ("CFDA"). Among them, Category 1.1 innovative
drug Benapenem and Imigliptin Dihydrochloride have been awarded as
The National Major Innovative Drug Projects.
As for generic drugs, after securing production licenses for the
exclusive first-to-market generic drug Roxatidine and Category 3.1
new drug Nalmefene Hydrochloride Injection at the end of 2012 and
start of 2013 respectively, the products have successfully passed
on-site inspections and were officially launched. In total, the
Company has 17 Category 3.1 first-to-market generic drug projects
under development. By the end of 2013, production license
applications of 22 generic drugs were filed in total and these
products are expected to be launched progressively in the coming
years.
Production and Quality Management
The Company completed the construction of its main production
and R&D base in Tongzhou, Beijing and the upgrade of all its other
production bases. In compliance with the new Good Manufacturing
Practice standard, these constructions projects cover a total of
over 300,000 square meters which mark the largest constructions in
the Company's history. The Company's Active Pharmaceutical
Ingredients production base, Langfang Gaobo Jingband, received
certification from the Food and Drug Administration of United States during the Year.
Future Prospects
Looking forward, the development of China's pharmaceutical industry will continue
to be driven by market potential released from expanded national
medical insurance coverage, accelerated urbanization and ageing
population, enabling it to maintain fast growth in 2014. The
management believes that companies such as Sihuan Pharmaceutical
will reap benefits from the government's policies for encouraging
innovation and industry consolidation, being an innovative company
with strong integrated capabilities, in R&D, production and
sales and marketing, with its focus on exclusive and patented
drugs.
Looking ahead, the Company plans to continue to tap potential of
its strong existing product resources, with all six key and
potential blockbusters being exclusive products, coupled with over
ten products with exclusive formulations or dosages. In addition,
many of its products have been included in the national or
provincial EDL or were recently added to NRCMSL of many provinces
to further market penetration. This is a prestigious product mix
which helps the Company to differentiate itself amidst fierce
market competition, and is expected to sustain business growth in
the coming years. Also, the Company will continue to reinforce its
nationwide distribution network and optimize its unique sales and
marketing system. Moreover, the Company will continue to enriching
its product resources through R&D, acquisitions and product
collaboration. The Company's long-term growth momentum will be
supported by a variety of patented drugs and first-to-market
generic drugs under development. These products are expected to
launch from 2015.
Dr. Che concluded, "I have full confidence in Sihuan
Pharmaceutical's future development, as we have established an
effective operating system and a solid business foundation. I
firmly believe that we are poised to seize opportunities arising
from the industry consolidation and will be able to achieve stable
and sustainable growth. We are making strides towards achieving our
goal of becoming the most competitive Chinese pharmaceutical
company and developing a global reputation for
excellence."
About Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a
leading Chinese pharmaceutical corporation and the largest
cardio-cerebral vascular drug franchise in China's prescription drug market by market
share. The Company also became the fourth largest pharmaceutical
company in terms of hospital purchase in China's hospital market by the end of 2013.
The success of the Company can be attributed to its differentiated
and proven sales and marketing model, extensive nationwide
distribution network, young and diversified product portfolio, and
strong R&D capabilities. The Company's current products
encompass the top five medical therapeutic areas in China: cardio-cerebral vascular system,
central nervous system, metabolism, oncology and anti-infectives.
Its major products such as Kelinao, Oudimei, Yuanzhijiu, Yeduojia
and Guhong are widely used in the treatment of various
cardio-cerebral vascular diseases.
SOURCE Sihuan Pharmaceutical Holdings Group Ltd.