3sbio, Inc. · HKEX:1530
3sbio — H1 2019 Earnings Presentation
36 slides from 3sbio's earnings presentation, Aug 22, 2019
Slide 1: 3SBio 2019 Interim Results Investor Presentation
3SBio 2019 Interim Results Investor Presentation August 22, 2019
Slide 2: Disclaimer
Disclaimer This document has been prepared by 3SBio Inc. (the "Company") solely for selected recipients for information purposes only. You must read the terms, conditions, limitations, notifications, restrictions, acknowledgments and representations in the following (collectively, the "Terms") befor
Slide 3: Agenda
Agenda 1 Welcome and Introduction Dr. Lou Jing, Chairman and CEO 2 R & D Update Dr. Zhu Zhenping, President of R&D and CSO 3 Operational and Financial Review Mr. Tan Bo, CFO 4 Q&A 3
Slide 4: Welcome and Introduction
Welcome and Introduction Dr. Lou Jing, Chairman and CEO
Slide 5: 2019 Interim Results Highlights
2019 Interim Results Highlights Investment in Innovative R&D Supported by Strong Operating Performance Revenue Growth Rate Gross Profit Growth Rate 2,643 RMB mn 21.6 % 2,185 RMB mn 25.1 % Normalized EBITDA Gross Profit Margin Growth Rate H1 2018 1,018 RMB mn 21.4 % 82.7 % 80.3 % The Normalized Net P
Slide 6: 2019 Interim Results Highlights (cont'd)
2019 Interim Results Highlights (cont’d) Investment in Innovative R&D Supported by Strong Operating Performance R&D Strategic Partnering and Licensing Well-positioned biologics oncology pipeline (antibodies to HER2, CD20, Samsung Bioepis: biosimilar collaboration agreement, including bevacizumab
Slide 7: Company Strategy
Company Strategy ONCOLOGY AUTOIMMUNE NEPHROLOGY METABOLIC DERMATOLOGY DISEASES DISEASES Innovative Biologics & Core Product Portfolio China-based Global Leader in Biologics In the next 10 years, 3SBio will launch 20+ new products, at least 15 of which will be innovative biologics products R&D Manufa
Slide 8: R&D Update
R&D Update Dr. Zhu Zhenping, President of R&D and CSO
Slide 9: 3SBio is a Leader in Improving Patient Access to Cutting-Edge Biologics Medicines
3SBio is a Leader in Improving Patient Access to Cutting-Edge Biologics Medicines China healthcare reforms over the past 25 years have aimed to bridge the gap in international treatment standard through improving access and affordability 3SBio was a pioneer in this first wave of biologics in Chi
Slide 10: 3SBio Integrated R&D Centers and Platforms
3SBio Integrated R&D Centers and Platforms 4 R&D Centers with Biologics & • 90+ national patents，30 + launched products，32 product Chemical Drugs Platforms candidates，among which we have 22 National Class I New Drugs National Engineering Research Center • Over 380 experienced scientists under the le
Slide 11: Major Progress in Pipeline Development in 2018
Major Progress in Pipeline Development in 2018 Well-positioned biologics oncology pipeline (antibodies to HER2, CD20, PD1, VEGF and EGFR) Well-positioned biologics auto-immune and inflammation pipeline (antibodies to TNFa, IL17A, IL5, IL4R and IL1b) In June 2019, the Group obtained the Certifi
Slide 12: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform Therapeutic Area Product Candidate Pre-Clinical Clinical Trial Application Phase I Phase II Phase III New Drug Registration SSS06 Long-acting EPO RD001 Long-acting EPO SSS17 HIF inhibitor Nephrology SSS12 SSS13 SSS33 TRK-820
Slide 13: Well Positioned to Meet the Needs of Patients in Oncology
Well Positioned to Meet the Needs of Patients in Oncology Key Challenge for Health Care Systems Globally China Oncology Market Forecast (2013-2022E) US$Bn Size of bubble represents WW Sales (US$Bn) in 2017 40.3 % Sales Growth: CAGR 2017-2024 23 35.7 31.4 18 Immunosuppressants Oncology 27.3 24.0 13 D
Slide 14: Growing Cancer Patient Population Globally and in China
Growing Cancer Patient Population Globally and in China Rising Mortality and Diagnosis Rates Estimated Number of New Cases in 2018 Annual Worldwide Cancer Projections China 4,285,033 25 US 2,129,118 19.3MM 20 India 1,157,294 Japan 883,395 15 Germany 608,742 10 Brazil 559,371 11.2MM Russia 543,045 5
Slide 15: Oncology Market in China
Oncology Market in China Top 10 Oncology Drugs by Generic Name Globally and in China Globally (2018 Forecast) China (2018 Q1-Q3 Sales from Sample Hospitals) Market Size Brand Name of Patented 2018 Q1-Q3 Sales (Billion Generic Name Brand Name of Patented Drug Generic Name (Billion USD) Drug* RMB) Len
Slide 16: Growth Potential
3SBio Position in Addressing Cancer Challenge Growth Potential Bispecific PD1 HER2 CD20 TPO TLC EGFR VEGF Products EPO Pre-clinical CTA Phase I/II Phase III BLA Commercialization 16
Slide 17: Inetetamab (302H)
Inetetamab (302H) • From 2009 to 2013, the Company successfully conducted an open label, multi-center, perspective Phase III trial in China for Inetetamab (302H), a humanized anti-HER2 antibody for injection, in patients with HER2 over-expressing metastatic breast cancer • In September 2018, the Com
Slide 18: Positioned to be the Leader in Next Generation Immuno-Oncology Programs
Positioned to be the Leader in Next Generation Immuno-Oncology Programs Macrophage Targeting Immunotherapies CAR-T Cell Therapy • First-in-class macrophage checkpoint modulators (MCMs) to benefit patients with cancer, immune and inflammatory diseases. • Partnership leverages gene engineering technol
Slide 19: Integrated Strategic Collaborations
Integrated Strategic Collaborations • Collaboration for clinical development, regulatory registration and commercialization of multiple biosimilar • Exclusive License Agreement for the commercialization in China of short-acting and long-acting GLP-1 products in China • Samsung Bioepis will be respon
Slide 20: Comprehensive Manufacturing Capabilities Adhere To International Quality Standards
Comprehensive Manufacturing Capabilities Adhere To International Quality Standards All 10 production lines for different dosage forms Plant certified by 11 countries, including Ukraine, are certified by GMP in 2010 Brazil and Mexico QA personnel represent 20%+ of all manufacturing QA personn
Slide 21: 2019-2020 Outlook
2019-2020 Outlook Accelerate Product Development through Strong Pipeline and Strategic Partnership and Business Development R&D New Products New IND applications: Obtained the Certificate of GMP issued by the NMPA for For autoimmune and inflammation: IL5, IL4R and IL1b recombinant anti-CD25 hu
Slide 22: Operational Review
Operational Review Mr. Tan Bo, CFO
Slide 23: Broader Core Products Achieved High Revenue
Broader Core Products Achieved High Revenue 8 Products with Revenue1 > RMB 100mm in 2018 Revenue > RMB 1 Bn 8 6 • IV Sucrose (Iron Sucrose) • Sparin (LMWH-Ca) • 3 • • Byetta (Exenatide) Humulin (rh Insulin) Mandi (Minoxidil) 2 • SEPO (rhEPO) • Yisaipu (rhTNFR-Fc) • TPIAO (rhTPO) • EPIAO (rhEPO) 2015
Slide 24: Two Indications and One Product Are Newly Included in 2019 NRDL
Two Indications and One Product Are Newly Included in 2019 NRDL In the General List section of the 2019 NRDL, among the Group’s products, two indications and one product are newly included, and one product (in one specification) is re-classified from Class B to Class A The newly added product with b
Slide 25: Market-Leading Products with Significant Growth Potential
Market-Leading Products with Significant Growth Potential Attractive Products with Unique Value Positions and Significant Growth Potential TPIAO Self-developed and the only commercialized rhTPO product in the world rhTPO Achieved a market share of 72.5% in H1 20191. Inclusion in 2017 NRDL as a
Slide 26: Market-Leading Products with Significant Growth Potential (cont'd)
Market-Leading Products with Significant Growth Potential (cont’d) TPIAO First-to-market rhTPO drug The first choice in second tier treatments list per PRC ITP Experts Consensus Achieved a market share by revenue of 72.5% in H1 2019 Inclusion in 2017 NRDL as a class B drug The Group estima
Slide 27: Market-Leading Products with Significant Growth Potential (cont'd)
Market-Leading Products with Significant Growth Potential (cont’d) Yisaipu Dominant Anti-TNFa Leadership in China First-to-market TNFa inhibitor product Indicated for the treatment of rheumatoid arthritis (RA), ankylosing 66.5% spondylitis (AS) and plaque psoriasis 64.2% 63.8% 62.8% 60.4% 61.2%
Slide 28: Market-Leading Products with Significant Growth Potential (cont'd)
Market-Leading Products with Significant Growth Potential (cont’d) EPIAO and SEPO Consistent Market Leadership EPIAO has been market leader in China’s rhEPO market for over a decade, continuously ranked as #1 in terms of revenue and volume since 2002 Market share reached 41.3% in H1 2019 (togeth
Slide 29: Obtained The Certificate Of GMP For Xenopax
Obtained The Certificate Of GMP For Xenopax® The Group has recently obtained the Certificate of GMP issued by the NMPA for its recombinant anti-CD25 humanized monoclonal antibody injection (“Xenopax®”) About Xenopax® Event Impacts Registration S20110001 Certificate Number • Approved in 2011 as the f
Slide 30: Financial Review
Financial Review Mr. Tan Bo, CFO
Slide 31: Consistent Strong Growth Since IPO
Consistent Strong Growth Since IPO Revenue Gross Profit 5,000 4,583.9 Gross Margin 4,000 3,706.6 4,000 3,734.3 3,058.1 RMB mm 2,797.3 2,642.9 3,000 2,395.0 3,000 RMB mm 2,174.0 2,184.5 1,673.1 2,000 1,746.6 2,000 1,431.2 1,000 1,000 85.5% 85.6% 81.9% 80.9% 80.3% 82.7% 0 0 2015 2016 2017 2018 H1 2018
Slide 32: Market-Leading Products with Strong Growth Momentum
Market-Leading Products with Strong Growth Momentum TPIAO Yisaipu1 EPIAO + SEPO EPIAO SEPO 1,669.5 1,111.4 896.6 855.3 1,012.9 925.2 772.8 192.5 727.2 150.7 1,193.6 842.3 95.6 43.5 974.8 840.7 765.0 451.7 426.8 501.0 605.1 442.4 87.4 115.7 683.7 677.2 704.6 704.1 339.3 336.0 2015 2016 2017 2018 H1 2
Slide 33: Items Not Included in the Normalized EBITDA and Planning for a Public Listing of Sunshine Guojian's Shares
Items Not Included in the Normalized EBITDA and Planning for a Public Listing of Sunshine Guojian’s Shares in the Domestic Capital Markets 1 Convertible Bonds At the preliminary stage of planning for a public listing of Sunshine The expenses incurred in relation to the issuance of the Euro- Guojian’
Slide 34: Investment Highlights
Investment Highlights 1 Leader in the Highly Attractive PRC Biotechnology Industry 2 Market-Leading Products with Significant Growth Potential 3 Focused and Innovative Product Pipeline with Steady Growth Expected 4 Leading Commercial Platform Supported by Extensive Sales Network 5 Comprehensive Manu
Slide 35: Experienced and Visionary Management Team Leading the Growth
Experienced and Visionary Management Team Leading the Growth Co-founder, Chairman, Executive Director and Chief Executive Officer Dr. Lou Jing Co-founder, Chairman, Executive Director and Chief Executive Officer Joined Shenyang Sunshine as director of R&D in 1995 Led the manufacturing process de
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