3sbio, Inc. · HKEX:1530
3sbio — FY2017 Earnings Presentation
36 slides from 3sbio's earnings presentation, March 2018
Slide 1: 3SBio Investor Presentation
3SBio Investor Presentation March 2018
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: Table of Contents
Table of Contents 1 Investment Highlights 2 2017 Annual Results Highlights 3 Financial Review
Slide 4: Industry Policy Review since 2017
Industry Policy Review since 2017 The Policy of “Healthy China” Accelerates the Development of the Industry February 21 The Ministry of Human Resources and Social Security issued the "National Basic Medical Insurance, Industrial Injury Insurance and Maternity Insurance Drug Catalog (2017 Edition)",
Slide 5: Industry Policy Change – Implication to the Industry
Industry Policy Change – Implication to the Industry Current Situation Implication to the Industry The number of new drug applications reached a record high with certain drugs included in the list of priority review ‒ The number of domestically-reported category 1.1 chemical drugs in 2017 was 112
Slide 6: History and Key Milestones
History and Key Milestones Interfen 1993 (interferon alpha-2a) Established Shenyang Sunshine, the major operating subsidiary of our Company Inleusin 1995 (interleukin 2) 1996 Listed on Nasdaq EPIAO 1998 (rhEPO) Privatized by a consortium led by management and CPE and delisted from Nasdaq TPIAO (rhTP
Slide 7: Outlook and Future Strategies
Outlook and Future Strategies 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 30+ new products with at least half being innovative biological products
Slide 8: Section 1: Investment Highlights
Section 1 Investment Highlights
Slide 9: 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 10: Leader in the Highly Attractive PRC Biotechnology Industry
Leader in the Highly Attractive PRC Biotechnology Industry Well-Positioned to Capture Vast Industry Opportunities Pioneer in the PRC Biopharmaceutical Industry Highly Attractive PRC Biotechnology Market Strong government policy support 7 A pre-eminent player with approved biological products in
Slide 11: Leader in the Highly Attractive PRC Biotechnology Industry (Cont’d)
Leader in the Highly Attractive PRC Biotechnology Industry (Cont’d) Strengthened Leadership by Expanding to Areas with Significant Growth Potential Key Therapeutic Areas & Capability Focus Q1 2018 Auto Nephrology Oncology Immune Metabolic Dermatology CDMO Toray’s TRK-820(3) Nephrology Eli Lilly’s Hu
Slide 12: 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 Higher efficacy, faster platelet recovery and fewer side effects compared t
Slide 13: Market-Leading Products with Significant Growth Potential (Cont’d) – TPIAO
Market-Leading Products with Significant Growth Potential (Cont’d) TPIAO China’s rhTPO Market is Still Under-Penetrated rhTPO: A Safer and More Effective Treatment Option for CIT and ITP Patients Indications Target Patients in China rhTPO rhIL-11 Eltrombopag Chemo patients with More effective in i
Slide 14: Market-Leading Products with Significant Growth Potential (Cont’d) – TPIAO
Market-Leading Products with Significant Growth Potential (Cont’d) TPIAO First to market Higher efficacy, faster platelet recovery and fewer side effects compared to alternative treatments for CIT and ITP Achieved a market share of 51.0% in 20171 The first choice in second tier treatments li
Slide 15: Market-Leading Products with Significant Growth Potential (Cont’d) – Yisaipu
Market-Leading Products with Significant Growth Potential (Cont’d) Yisaipu Rapid Growth of China Anti-TNF Market in the Past Decade… Anti-TNF Therapies’ Sales Reached approximately RMB1.9 bn in China in 2017 4,800 4,290 4,200 3,464 3,600 (RMB mm) 3,000 2,620 2,400 1,887 1,738 1,800 1,503 1,230 1,177
Slide 16: Market-Leading Products with Significant Growth Potential (Cont’d) – Yisaipu
Market-Leading Products with Significant Growth Potential (Cont’d) Yisaipu First to market Anti-TNF drug Indicated for the treatment of rheumatoid arthritis, plaque psoriasis and ankylosing spondylitis On 3 treatment guidances (the experts consensus on the Treatment of Childhood Idiopathic Art
Slide 17: Market-Leading Products with Significant Growth Potential (Cont’d) – EPIAO and SEPO
Market-Leading Products with Significant Growth Potential (Cont’d) EPIAO and SEPO EPIAO has been market leader in China’s rhEPO market for over a decade, consistently ranking #1 in terms of revenue and volume since 2002 — Market share reached 41.6% in 2017 (together with SEPO) SEPO is our second
Slide 18: Diabetes Franchise (Humulin and GLP-1)
Market-Leading Products with Significant Growth Potential (Cont’d) Diabetes Franchise (Humulin and GLP-1) China Diabetes Market Is Large and Underpenetrated with Tremendous Growth Potential • China has the largest diabetes population in the world • Tiered medical service system will push more patien
Slide 19: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform 4 R&D centers with both biologics & chemical drugs platforms • 73 national patents，30 + launched products，31 product National Engineering Research Center candidates，among which we have 16 National Class I New Drugs for Antib
Slide 20: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d)
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d) Therapeutic Area Product Candidate Pre-Clinical Clinical Trial Application Phase I Phase II Phase III New Drug Registration Production Permit SSS06 RD001 SSS17 Nephrology SSS18 SSS12 SSS13 302H 304R 602 Oncology SSS
Slide 21: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d)
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d) Several projects of the Group are supported by the National Important R&D Strategies New Drug R&D Program under the 13th 5-Year Plan • As of February 2017, the Group has applied for over 300 patents and undertaken s
Slide 22: Strong In-House Sales Capability Enabling Us to Effectively Promote and Sell Innovative Pharmaceuticals
Strong In-House Sales Capability Enabling Us to Effectively Promote and Sell Innovative Pharmaceuticals Emphasis on Academic Marketing Effective Marketing Strategies Established and maintained strong relationships with leading hospitals and medical Marketed and promoted TPIAO, Yisaipu, EPIAO, Hu
Slide 23: Comprehensive Manufacturing Platform with Strategic CDMO Capabilities
Comprehensive Manufacturing Platform with Strategic CDMO Capabilities Strong and Comprehensive Manufacturing Capability Manufacturing Platform CDMO Capabilities Shenyang Facility China CDMO Platform • In 2013, the mammalian cell-based production plant and the bacterial cell- based production plant w
Slide 24: Comprehensive Manufacturing Platform with Strategic CDMO Capabilities (Cont’d)
Comprehensive Manufacturing Platform with Strategic CDMO Capabilities (Cont’d) CDMO Strategic Rationale Operates the largest mAb commercial facility in China, with free capacity being able to offer contracted manufacturing services worldwide Enhancing Asset Equipped with a cutting edge in-house
Slide 25: Section 2: 2017 Annual Results Highlights
Section 2 2017 Annual Results Highlights
Slide 26: 2017 Annual Results Overview
2017 Annual Results Overview Key Highlights of 2017 Annual Results New Growth 3,734 ‒ TPIAO achieved 27.4% revenue growth 2,797 RMB mm ‒ Yisaipu achieved 28.8% revenue growth(9.5% compared to 2016 on a twelve month consolidation basis) ‒ EPIAO and SEPO achieved 10.7% revenue growth Revenue 33.5%
Slide 27: Section 3: Financial Review
Section 3 Financial Review
Slide 28: Robust Revenue and Profit Growth
Robust Revenue and Profit Growth Revenue Gross Profit 4,000 3,734.3 4,000 3,058.1 2,797.3 (RMB mm) 3,000 3,000 2,395.0 (RMB mm) 2,000 1,673.1 2,000 1,431.2 1,130.9 1,043.4 (1) 1,000 1,000 85.5% 85.6% 81.9% 92.3% 0 0 2014 2015 2016 2017 2014 2015 2016 2017 Gross Margin EBITDA Net Profit Attributable
Slide 29: Market-Leading Products with Strong Growth Momentum
Market-Leading Products with Strong Growth Momentum TPIAO Yisaipu1 EPIAO + SEPO 1,200 1,200 900 855.3 800 772.8 1,012.9 150.7 1,000 974.8 727.2 1,000 925.2 95.6 700 43.5 842.3 594.1 800 765.0 800 600 734.5 500 (RMB mm) (RMB mm) (RMB mm) 605.1 600 600 400 444.7 704.6 683.7 677.2 400 400 300 200 200 2
Slide 30: Product Mix and Contribution
Product Mix and Contribution Sales of Goods Contribution1,2,3,4 100% 17.0% 15.4% 90% 20.8% 0.3% 5.3% 80% 3.4% 2.6% 3.5% 4.0% 70% 28.0% 60% 36.0% 27.0% 50% 40% 27.2% 30% 26.0% 20% 40.6% 10% 24.1% 18.8% 0% 2015 2016 2017 EPIAO TPIAO Yisaipu SEPO Byetta Humulin Others Notes: 1 Sales of TPIAO, Yisaipu,
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Slide 32: Appendix
Appendix
Slide 33: Experienced and Visionary Management Team Leading the Growth
Experienced and Visionary Management Team Leading the Growth Dr. Lou Jing Extensive Experience Co-founder, Chairman, Executive Director and Chief Executive Officer • Joined Shenyang Sunshine as director of research and development in 1995 Senior management team on average has > 15 • Led the manufact
Slide 34: Yisaipu and TPIAO Were Among the Most Successful Launches in China
Yisaipu and TPIAO Were Among the Most Successful Launches in China Compared with the top 10 drugs launched since 2006, Yisaipu and TPIAO performed well with further growth potential 360 330 300 270 240 210 (US$ mm) 180 150 120 90 60 30 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Among 9
Slide 35: Global Oncology Market Growth and Pipeline
Global Oncology Market Growth and Pipeline Global Oncology Costs and Growth Late Phase Oncology Pipeline Molecules (2006–2016) 180 700 147bn-177bn 600 150 500 120 113bn 2006 2016 (392) (631) 400 90bn 1% 1% 90 4% 2% 300 15% 8% 60 200 21% 43% 59% 47% 30 100 0 0 2011 2016 2021 2006 2007 2008 2009 2010
Slide 36: Attractive Biologics CDMO Market Globally
Attractive Biologics CDMO Market Globally Pharmaceutical and biotechnology companies are increasingly outsourcing their biologic development and manufacturing activities to CDMOs to cut costs and meet regulatory requirements Global Pharma and Biotech R&D Spend Growing Global Biologics CDMO Market Bi