Sihuan Pharmaceutical Holdings Group Ltd. · HKEX:460
Sihuan Pharmaceutical — H1 2017 Earnings Presentation
43 slides from Sihuan Pharmaceutical's earnings presentation, 2017
Slide 1: 2017 Interim Results Presentation
Sihuan Pharmaceutical Holdings Group Ltd. 四环医药控股集团有限公司 四環醫藥控股集團有限公司 2017 Interim Results Presentation 股票代码：0460
Slide 2: Disclaimer
Disclaimer The sole purpose of this Presentation (the “Presentation”) is to assist the recipient in deciding whether it wishes to proceed with a further investigation of Sihuan Pharmaceutical Holdings Group Ltd. (the “Company”) and it is not intended to form the basis of any decision to purchase sec
Slide 3: Agenda
Agenda Performance Overview I Business Review II Financial Review III Future Strategies IV Appendix V 2
Slide 4: Section I Performance Overview
Section I Performance Overview 3
Slide 5: Performance Overview of 2017 H1
Performance Overview of 2017 H1 1 ¨ Revenue increased by 3.8% y-o-y to approximately RMB 1,440.3 million ¨ Profit attributable to owners increased by 14.5% y-o-y to approximately RMB 842.5 million 2 ¨ Maintained market leadership* ¨ No. 1 in CCV (cardio-cerebral vascular) prescription drug market wi
Slide 6: Section II Business Review
Section Il Business Review BRE Sim 4
Slide 7: Growth of China's Hospital Pharmaceutical Market Slows Down
Growth of China’s Hospital Pharmaceutical Market Slows Down Sales in China’s Hospital Pharmaceutical Market/ Five-Year Trend (2013H1- 2017H1) RMB 100million nationwide sales overall growth rate Growth y-o-y 400 16.00% 368.55 354.93 350 324.25 298.55 300 12.00% 266.16 12.17% 250 9.46% 200 8.61% 8.00%
Slide 8: Leading Market Position
Leading Market Position Top 5 Corporations in China’s CCV Prescription Drug Market in 2017 H1 11.25% （Market Share） 5.77% 5.33% 4.35% 3.89% Sihuan Pfizer Sanofi Qilu AstraZeneca Top 10 Corporations in China’s Hospital Market in 2017 H1 Share in Hospital Market (%) Rank Top 10 in 2017 H1 1 PFIZER GRO
Slide 9: Leading Market Position of Main Non-exclusive Products
Leading Market Position of Main Non-exclusive Products Sihuan’s Generic Name Sihuan’s Market Share and Its Brand Top 5 Corporations and Their Market Share (total sales) Ranking in 2017 H1 (%) Name Ranked No.2 Sihuan 1. Qilu (山东齐鲁), 60.14% Ganglioside M1 12.24% 2. Sihuan (四环医药) , 12.24% GM1 （RMB3,175
Slide 10: Abundant Product Portfolio
Abundant Product Portfolio (Product Sales Contribution Breakdown in Terms of Hospital Purchase According to IMS Data) For the 6 months ended June 30 2017 Oudimei+Aofutai+Weitong 23.68% Kelinao+Anjieli 16.82% Yuanzhijiu+Xingwei 14.42% yimaining+Yikangning 7.65% GM1 5.56% Yeduojia 5.32% Danshen Chuanx
Slide 11: Revenue of Key Products
Revenue of Key Products Revenue of CCV Products For the 6 months For the 6 months Changes in Products ended June 30 2016 ended June 30 2017 revenue Year of launch Other info （RMB’000） （RMB’000） y-o-y Oudimei (Oudimei, Aofutai, Weitong) 323,834 392,507 21.2% 2010 Yuanzhijiu(Yuanzhijiu, Xingwei) 219,9
Slide 12: Revenue of Key Products
Revenue of Key Products Revenue of Non-CCV Products Changes For the 6 months For the 6 months in Products ended June 30 2016 ended June 30 2016 Year of launch Other info revenue （RMB’000） （RMB’000） y-o-y Gastrointestinal drug Roxatidine 7,414 17,286 133.1% 2013 P Bi’Ao 24,125 16,555 -31.4% 2005 Resp
Slide 13: Innovative Drug R&D
Innovative Drug R&D Major Events: • Established the U.S. Innovative Drug R&D Centre in the San Francisco Bay Area, strategically as a key component of the Group’s R&D system. It serves the Group from the following aspects: • Conduct R&D of drugs with higher level of innovation, competitive advantage
Slide 14: Innovative Drug Pipeline
Innovative Drug Pipeline Project Progress Pre-clinical IND Clinical Trials NDA Trials application Phase I Phase II Phase III NeuroSTAT Imigliptin Anaprazole Benapenem * Phase I clinical trials of Pirotinib Tylerdipine progressed smoothly in the U.S.; it Pirotinib * U.S also obtained approval for Pha
Slide 15: Generic Drug R&D
Generic Drug R&D As of June 30, 2017, generic drug R&D team obtained 11 clinical trial approvals, 10 of which were for Category 3 generic drugs; 32 projects have submitted production approval applications and are expected to be launched with the next 3 years Oxiracetam Ornithine Aspsrtste (奥拉西坦) Vin
Slide 16: Marketing & Sales
Marketing & Sales Intensified academic promotion and strengthened branding building • Increased national level academic promotion activities significantly, which were highly praised by industry experts； • Organized national academic conferences and invited key opinion leaders of relevant therapeutic
Slide 17: Lower-end Market Development
Lower-end Market Development -Outstanding performance in development of county-level market 100 million/RMB Ranking of county-level hospital development (MAT2017Q1) Growth y-o-y 50 50.0% 42.2 41.2 40 40.0% 35.9 32.0 31.0 30 28.4 28.3 27.5 30.0% 24.8 23.7 24.1% 21.5 21.2 19.4% 20 18.0 20.0% 15.6% 16.
Slide 18: Production Management and Quality Control
Production Management and Quality Control ¨ After the new GMP certification, the Group established production quality control center, which implemented systematic management over subsidiary manufacturing facilities. In 2016, the Center conducted 6 quality audits and 2 quality inspections. Under such
Slide 19: Section III Financial Review
Section III Financial Review 18
Slide 20: Financial Highlights
Financial Highlights Key Income Statement Items For the 6 months ended June 30 2017 2016 Change (RMB’000) (RMB’000) Revenue 1,440,310 1,387,672 3.8% Gross profit 1,018,367 927,421 9.8% Operating profit 968,220 877,909 10.3% Gain on derecognition of a subsidiary 125,771 -- -- Profit attributable to o
Slide 21: Overall Revenue Statistics
Overall Revenue Statistics Revenue 5.80% (RMB million) 2,500.0 2,000.0 1,387.7 3.8% 1,440.3 CCV non-CCV 1,500.0 1,000.0 94.20% 500.0 0.0 2016H1 2017H1 Revenue by business segment CCV: RMB1,357.4 million For the 6 months ended June 30 Non-CCV: RMB82.9 million ¨ Revenue increased by 3.8% y-o-y to RMB1
Slide 22: Profit Margin
Profit Margin Gross profit Gross profit margin Net profit Net profit margin (RMB million) (RMB million) 2,500.0 100% 2,500.00 100% 2,000.0 70.7% 80% 2,000.00 80% 66.8% 58.5% 1,500.0 60% 1,500.00 53.0% 60% 1,000.0 40% 1,000.00 40% 500.0 927.4 1,018.4 20% 500.00 842.46 20% 735.97 0.0 0% 0.00 0% 2016H1
Slide 23: Distribution Costs
Distribution Costs Distribution Costs % of Revenue （RMB million） 100.0 8% 7% 6% 4.9% 5% 10.0 4.0% 71.0 4% 55.9 3% 2% 1.0 1% 2016H1 2017H1 Distribution Costs % of Revenue For the 6 months ended June 30 ¨ Distribution costs of 2017 H1 increased by RMB15.2 million to RMB71.0 million, which was due to s
Slide 24: Capital Expenditure
Capital Expenditure (RMB million) 250 209.8 200 14.5 134.4 150 32.7 Intangible Assets 100 195.3 Property, Plant & Equipment 50 101.7 0 2016H1 2017H1 For the 6 months ended June 30 23
Slide 25: Section IV Future Strategies
Section IV Future Strategies 24
Slide 26: Future Strategies & Outlook
Future Strategies & Outlook u Marketing and Sales Strategies Ø Develop lower-end markets while consolidating its position in high-end markets Ø Continue to strengthen academic promotion and reinforce brand recognition Ø Continue to promote clinical research projects of major products to extend their
Slide 27: Section V Appendix
Section V Appendix SiusanPharm
Slide 28: Our History
Our History § Established the U.S. Innovative Drug R&D Centre in the San Francisco Bay Area, California, the U.S. 2017H1 § In July, innovative patent drug Birociclib obtained approval for Phase I-III clinical trials § Established a joint venture with Austria-based Croma-Pharma GmbH to enter into aes
Slide 29: Members of the Group
Members of the Group Composed of over ten professional pharmaceutical companies and research institutions, the Group has established a completed industry chain encompassing R&D, manufacturing, and marketing & sales. BeiJing Siuan Pharm JiLin Sihuan Pharm HaiNan Sihuan Pharm XuanZhu Pharma LangFang G
Slide 30: Core Management Team
Core Management Team Our core management are very professional and highly experienced in Chinese pharmaceutical industry with average of twenty-years experience ü Proven entrepreneurial success ü Deep understanding of China's pharmaceutical industry ü Expertise in operating high growth companies ü P
Slide 31: Drug R&D
Drug R&D Optimized Te mp l a t e for Microsoft PowerPoint 2003 ¨ We have two leading R&D teams that focus on innovative and generic drug R&D respectively. These two teams have over 400 personnel, and among them 25 are Ph.D. and over 160 have Master degree. ¨ Established the U.S. Innovative Drug R&D
Slide 32: Solid progress of Domestic and International Collaborations
Solid progress of Domestic and International Collaborations Cooperation for the development of five insulin products • Collaborative project for innovative Chongqing CCV product NeuroSTAT® Peg-Bio • Sihuan has exclusive license to develop market and sell the product in China Biotechnology Co., Ltd.
Slide 33: Unique and Proven Sales and Marketing Model
Unique and Proven Sales and Marketing Model The marketing & sales network operates at high efficiency as a result of specialization and a close cooperation between over 600 professional sales & production managers and 3000 distributors. Rapidly develop and penetrate into hospital markets through clo
Slide 34: Abundant and Diversified Product Resources
Abundant and Diversified Product Resources Gastrointestinal Therapeutic areas CCV CNS Anti-infective Others system Number of 39 9 6 15 30+ Products Main products Kelinao, Oudimei, Ren’ao Roxatidine Clindamyein Huineng Yuanzhijiu, Yeduojia Azithromycin 2003 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 35: New Products, New PRDLs, New Opportunities
New Products, New PRDLs, New Opportunities For the following new products launched within the last 3 years: • Expected to be included in more PRDLs along with the new round of PRDL adjustment • The Group will endeavor to enter these new products into more tenders in 2017 Floium Ginkgo Year of launch
Slide 36: New Products, New PRDLs, New Opportunities
New Products, New PRDLs, New Opportunities • The Group will endeavor to enter these new products into more tenders in 2017 Year of Therapeutic Products RDLs Tenders Other info launch area Dopamine Exclusive Hydrochloride 2016 CCV NRDL-A 9 provinces dose for Injection Verapamil Exclusive Hydrochlorid
Slide 37: New Field, New Opportunities Aesthetic Medicine
New Field, New Opportunities Aesthetic Medicine • Established a joint venture with Austria-based Croma-Pharma to extend its business into aesthetic medicine field, which has an immense market potential • The aesthetic medicine market in China has been growing over 20% annually over the past years wi
Slide 38: Main Products
Main Products Kelinao Oudimei Yuanzhijiu Yeduojia n Mature key product Relatively mature exclusive product n n Promising exclusive product n Promising exclusive product at n Therapeutic area: CCV earlier stage of development n Therapeutic area: CCV n Therapeutic area: CCV n Entered NRDL n Therapeuti
Slide 39: Main Products Introduction
Main Products Introduction Products Characteristics • Generic Name: Cinepazide Maleate Injection Kelinao • Active Ingredients: Cinepazide Maleate injection • Mechanisms of Action: • Ca2+ blocker：dilates vessels and restores blood flow to the ischemic regions 2 mL:80 mg • Stimulation of endogenous ad
Slide 40: Main Products Introduction
Main Products Introduction Products Characteristics • Generic Name: Compound Trivitamin B For Injection (II) • Active Ingredients: Vitamin B1, B6, and B12 • Mechanism of Action: protects peripheral nerves via a synergistic action of these three compounds • Promotes aerobic metabolisms of carbohydrat
Slide 41: Main Products Introduction
Main Products Introduction Products Characteristics • Generic Name: Salvia Miltiorrhiza and Ligustrazine Hydrochloride Injection • Active Ingredients: Salvia Miltriorrhiza 0.36-0.44 mg/mL、Ligustrazine Hydrochloride 18-22 mg/mL • Mechanisms of Action: inhibits platelet aggregation, dilates coronary a
Slide 42: Main Products Introduction
Main Products Introduction Products Characteristics • Generic Name: Floium Ginkgo Extract and Tertram Ethypyrazine Sodium Chloride Injection Floium Ginkgo • Active Ingredients: Floium Ginkgo Extract, Tertram Ethylpyrazine • Mechanisms: Active ingredients of floium ginkgo (ginkgo flavone glycoside an
Slide 43: Main Products Introduction
Main Products Introduction Products Characteristics • Generic Name: Roxatidine Acetate Hydrochloride For Injection • Active Ingredients: Roxatidine Acetate Hydrochloride • Mechanisms of Action: Jie’Ao • As a new generation of H2 receptor antagonist, it suppresses gastric acid secretion, prevents the
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