Sihuan Pharmaceutical Holdings Group Ltd. · HKEX:460
Sihuan Pharmaceutical — H1 2013 Earnings Presentation
38 slides from Sihuan Pharmaceutical's earnings presentation, 2013
Slide 1: 2013 Interim Results Presentation
Sihuan Pharmaceutical Holdings Group Ltd. 四環醫藥控股集團有限公司 2013 Interim Results Presentation Stock Code : 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 Results Highlights I Business Review II Financial Review III Growth Strategy IV Q&A V 2
Slide 4: Results Highlights
Section 1 Results Highlights 3
Slide 5: Major Achievements in 2013H1
Major Achievements in 2013H1 1 Remarkable results with revenue and net profit up by 67.3% and 33.8% to RMB2,325 million and RMB618 million respectively 2 Robust sales growth, mainly attributable to rebounds of key products: Kelinao and Oudimei Continued strong growth of promising products: Yua
Slide 6: Business Review
Section 2 Business Review 5
Slide 7: Continuous Growth of Pharmaceutical Market
Continuous Growth of Pharmaceutical Market China’s Total Hospital Purchases China’s Total Hospital Purchases of (RMB Bn) CCV Drugs (RMB Bn) Growth of CCV drugs outpaced industry growth rate 73.2 442 366 313 46.3 257 243 39.9 37.9 203 30.4 23.4 2008 2009 2010 2011 2012 2013H1 2008 2009 2010 2011 20
Slide 8: Leading Market Position
Leading Market Position Top 10 Corporations in China’s CCV market in 2013H1 Shares in hospital market Rank Top 10 Corporations in 2013H1 (%) 1 PFIZER GROUP（辉瑞） 2.43% 2 ASTRAZENECA GROUP（阿斯利康） 1.86% 3 SIHUAN GROUP（四环医药） 1.67% 4 SANOFI GROUP（赛诺菲） 1.65% 5 SHANDONG QILU FTY（山东齐鲁） 1.61% 6 BHC GROUP（拜耳医药保
Slide 9: Market Leading Position for Key Non-exclusive Products
Market Leading Position for Key Non-exclusive Products Sihuan’s Generic Name Sihuan Market Share by Ranking Top 5 Pharmaceutical Companies and Their Market Brand Name （Total revenue） and Percentage in 2013H1 Share in 2013H1 Ranked No.2 Sihuan 1. Qilu (山东齐鲁), 57.35% (2012: No.3) 14.07% 2. Sihuan (四环医
Slide 10: Diversified Product Portfolio
Diversified Product Portfolio: Product Sales Contribution Breakdown in terms of Hospital Purchase Price (IMS Figure) For the six months ended 30 June 2013 *Promising Product Bi'ao, 1.67% Others, 1.60% (Products launched after Pojia, 1.81% HKEx listing in 2010) Luoanming, 3.53% Chuanqing,3.72% *Oudim
Slide 11: More Balanced Revenue Stream
More Balanced Revenue Stream Revenue of CCV Products For the six months For the six months 2013H1 Contribution Change Product Name ended 30 June 2012 ended 30 June 2013 (%) to Sales of Year of Launch Other info (RMB ‘000) (RMB ‘000) CCV Products Oudimei 286,118 687,027 140.1% 31.0% 2010 P Kelinao 44
Slide 12: More Balanced Revenue Stream (Non-CCV Products)
More Balanced Revenue Stream Non-CCV Products 2013H1 For the six months For the six months Contribution Product ended 30 June 2012 ended 30 June 2013 Change to Sales of Year of Launch Name (RMB ‘000) (RMB ‘000) (%) Non-CCV Products Central nervous Ren’Ao 6,597 6,325 -4.1% 6.1% 2005 system drug Bi’Ao
Slide 13: Extensive Nationwide Sales and Distribution network
Extensive Nationwide Sales and Distribution network We have a massive sales network comprising 600 internal sales staff supported by over 3,000 distributors who promote our products to hospitals and medical institutions, covering all 32 provinces and regions of China. Our nationwide network covers o
Slide 14: Strengthened Sales and Marketing Force
Strengthened Sales and Marketing Force Completed integrating distribution network of newly acquired companies and expanded sales and marketing force Our Group – Fully integrated distribution network of Jilin Sihuan Stepped up academic promotion and incentives Product managers Sales managers to d
Slide 15: R&D Breakthroughs
R&D Breakthroughs Optim ized Template for Microsoft PowerPoint 2003 3 Category 1.1 innovative drugs recently gained clinical trial approval (5 in total to date) 3 drugs have applied for major national awards, namely The National Key New Technological Projects of the Twelfth Five-year Plan (国家十二五
Slide 16: R&D Breakthroughs
R&D Breakthroughs Project Progress Pre-clinical Registration Clinical Trials Registration Trails Application Phase I Phase II Phase III Pending CicloMulsion* L-Phencynonate Hydroloride NeuroSTAT* Cinepazide Mesilate Imigliptin Dihydrochloride Benapenem *Multicenter clinical trial in collaboration wi
Slide 17: Sound Progress in International Collaborations
Sound Progress in International Collaborations • Collaborative projects for innovative CCV products, CicloMulsion® and NeuroSTAT® , are progressing as planned towards clinical trial • CicloMulsion is filing application for • Cooperation with our APIs Approval for Clinical Trials in China Apotex prod
Slide 18: Improved Product Quality and Productivity
Improved Product Quality and Productivity Maintained cost efficiency in production system through improved manufacturing process management in spite of rising raw material and labour costs APIs production facility passed on-site inspection by US FDA in July 2013. EIR from FDA is expected to be i
Slide 19: Strong and Diversified Product Resources
Strong and Diversified Product Resources Therapeutic areas CCV CNS Oncology Metabolism Anti-infective Total Products 39 9 7 5 15 Main products Kelinao, Oudimei, Ren’ao Kaqiping Roxatidine Pojia Yuanzhijiu, Yeduojia 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Kelinao Kanglixin Ren’Ao Anjieli An
Slide 20: Our Six Exclusive Products
Our Six Exclusive Products Kelinao Anjieli Oudimei Established exclusive product Established exclusive product Established exclusive product Sales in 2013H1: RMB582.2 mil(+32.1%) Sales in 2013H1: RMB68.0 mil(+2.6%) Sales in 2013H1: RMB687.0 mil(+140.1%) Recently added to the Guangdong
Slide 21: Kelinao
Kelinao Kelinao Calcium ion Active Ingredient： antagonist Cinepazide Maleate Endogenous ——Dilating blood Pharmacology： adenosine synergy vessels Kelinao Cinepazide Maleate recovers cerebral blood circulation in the ——Multipath lesion area by dilating vessels, Neuroprotection with multipath and multi
Slide 22: Kelinao
Kelinao Fig.1 《 in the Journal of Evidence-based Medicine in China 》 2010, 10（9）:1079-1084 Fig.2 Meta analysis of Cinepazide meleate on treatment of acute cerebral infarction compared with control group. System evaluation of Cinepazide Maleate on treatment of acute cerebral infarction 15 RCTC co
Slide 23: Oudimei
Oudimei Oudimei Neural repair Active Ingredient: several kinds of gangliosides, peptides, amino ——reconstrution after injury acids Neuroprotection Pharmacology： ——anti-injury Oudimei Cattle Encephalon Glycoside and Ignotin Injection has nutritional and energy functions. The peptide and free amino ac
Slide 24: Oudimei
Oudimei This is the result of day 90 follow-up, with a score of 0-1 showing no sign of disability, allowing subjects to go back to their lives, which is 48% for the Cattle Encephalon Glycoside and Ignotin Injection group, higher than the control group, which scored 21%. Multi-centre clinical tri
Slide 25: Financial Review
Section 3 Financial Review 24
Slide 26: Financial Highlights
Financial Highlights For the six months ended 30 June Key Income Statement Items 2013 2012 Change (RMB’000) (RMB’000) Revenue 2,324,747 1,389,297 +67.3% Gross Profit 1,847,116 1,071,419 +72.4% Operating Profit 644,817 533,425 +20.9% Profit Attributable to Owners of the Company 617,535 461,445 +33.8%
Slide 27: Remarkable Revenue Growth
Remarkable Revenue Growth Revenue 4.7% (RMB million) 2,325 CCV 2,500 2,000 Non-CCV 1,389 1,500 95.3% 1,000 500 0 2012H1 2013H1 Revenue increased by 67.3% to RMB2,324.7 million Sales of CCV products grew 73.4% to RMB2,214.7million, mainly attributable to young and diversified product portfolio 26
Slide 28: Stable Profit Margin
Stable Profit Margin Gross profit Net profit (RMB million) (RMB million) Gross profit margin Net profit margin 1,000 100% 2,500 100% 78.2% 77.1% 79.5% 80% 2,000 80% 1,847.1 617.5 60% 1,500 60% 500 461.4 443.0 1,000 40% 33.2% 40% 1,071.4 26.8% 26.6% 774.7 500 20% 20% 0 0% 0 0% 2011H1 2012H1 2013H1 20
Slide 29: Cost of Distribution Costs
Cost of Distribution Costs Distribution Costs (RMB million) 1,300 1,229 60% 1,100 52.9% 50% 42.3% 900 40% 700 30% 588 500 20% 300 10% 100 0% 2012H1 2013H1 Distribution Costs % of Revenue Distribution cost to total revenue increased; mainly due to: • Increased expenses due to expanded sales • Incre
Slide 30: Capital Expenditure
Capital Expenditure (RMB million) 665.5 700 14.2 600 215.4 500 Land use rights 400 Intangible Assets 300 205.7 435.9 Property, Plant & 200 Equipment 101.9 100 6.2 97.6 0 2012H1 2013H1 29
Slide 31: Future Strategy
Section 4 Future Strategy 30
Slide 32: Future Strategy
Future Strategy Vision Become the most competitive Chinese pharmaceutical corporation Focus on developing Maintain outstanding Expand product pipeline existing product portfolio Capabilities in sales and marketing through R&D and external to drive short-term growth and academic promotion product col
Slide 33: Appendix
Section 5 Appendix 32
Slide 34: Our History
Our History 2013 3 Category 1.1 innovative drugs received Clinical Trial Approval First-to-market exclusive drug Roxatidine was launched 2012 Collaborated with Swedish company NeuroVive AB to develop two innovative CCV drugs Acquired remaining 40% equity interest in Xuanzhu Pharma to consoli
Slide 35: Management team
Management team Our senior management has an average of 15-years experience in the Chinese pharmaceutical industry Proven entrepreneurial success Deep understanding of China's pharmaceutical industry Expertise in operating high growth companies Proven R&D and drug acquisition track record
Slide 36: Members of Sihuan Group
Members of Sihuan Group Our Group R&D Centres Production Bases Sales Company Xuanzhu Pharma Drug Research Beijing Sihuan Jilin Sichang Hainan Sihuan Tonghua Sihuan Co., Ltd Institute Pharmaceutical Pharmaceutical Pharmaceutical Pharmaceutical (Innovative drugs) (Generic drugs) Co., Ltd. Co., Ltd. Co
Slide 37: Key Products
Key Products Product Product Characteristics Kelinao (Cinepazide Maleate Injection) (80 mg) For improving ischemic tissue blood supply and protecting ischemic tissue. Widely used in the treatments of cardiovascular and cerebrovascular and Anjieli peripheral vascular diseases. (Cinepazide Maleate Inj
Slide 38: Iconic Products
Iconic Products Product Product Characteristics For promoting metabolism of the heart, brain tissues, and neurons of the brain tissue Oudimei regeneration process, improving cerebral metabolic functions; clinically used for the (Cerebroside-Kinin Injection) treatment of dysfunctions caused by cardia
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