3sbio, Inc. · HKEX:1530
3sbio — FY2021 Earnings Presentation
45 slides from 3sbio's earnings presentation, Mar 28, 2022
Slide 1: 2021 Annual Results Presentation
2021 Annual Results Presentation March 28, 2022
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 01 02 03 04 05 Business R&D Financial 2021 Highlights Q&A Overview Review 3
Slide 4: 2021 Highlights
01 2021 Highlights Chairman, Director & CEO Dr. Jing LOU 4
Slide 5: 2021 Financial Highlights
2021 Financial Highlights Norm NI Attributable to Revenue NI Attributable to Parent Earnings Per Share Parent 14.2% 97.6% 48.1% 97.1% +14.3% +15.3% RMB RMB +17.6% RMB 1,651 1,727 HKD million 6,382 million million 0.80 5,318 5,587 1,277 1,392 0.62 4,584 1,166 1,166 3,734 935 974 904 0.45 0.47 836 0.4
Slide 6: 2021 Highlights
2021 Highlights • Mandi sales jumped 64% to RMB 602 million, All Hair varieties leaped by 61% • Core products sales kept sustainable growth • TPIAO sales increased 12% to RMB 3.1 billion • Mandi tops the sales list of OTC drugs in Alibaba Health pharmacy and JD skin-care dept during “618”, • rhEPO s
Slide 7: Business Overview
02 Business Overview Chairman, Director & CEO Dr. Jing LOU 7
Slide 8: Business I: Biopharmaceuticals
Business Ⅰ: Biopharmaceuticals
Slide 9: Core Products Sustained Steady Growth
Core Products Sustained Steady Growth 2021 +12% TPIAO Recombinant Human Thrompoietin 2020 2021 +15% rhEPO Recombinant Human Erythropoietin 2020 Core biopharmaceuticals Yisaipu 2021 +28% revenue grew to 5.1 billion, Recombinant Human TNF-α Receptor Ⅱ:IgG Fc Fusion Protein for Injection 2020 accountin
Slide 10: TPIAO - Exclusive Commercialized rhTPO Product
TPIAO- Exclusive Commercialized rhTPO Product Revenue of TPIAO, 2021 Top 1 market share 1 72.1% 1 market share in terms of sales, still tops the first position in rhTPO products RMB million YOY：11.5% 72.1% TPIAO Product A (Class Interleukin) 3,080 2,763 Product B (Class 2,323 Small-molecule) 1,670 O
Slide 11: TPIAO - Competitive Edge
TPIAO- Competitive Edge 独家品种，首选用药 Exclusive Product & Primary Treatments Safety and Efficacy Shows 11 Exclusive commercialized rhTPO worldwide. 全球唯一商业化rhTPO，超四种 1 Primary treatment 1 血小板减少症指南 recommended by four types of guideline on the Diagnosis of Adult 与专家共识推荐的首选用药 Primary Immune Thrombocytopeni
Slide 12: TPIAO - Distinct Space for Stable Growth
TPIAO- Distinct Space for Stable Growth Replacement and Penetration of Current Therapy Anticipated Indication Expansion 31% The continued increase in the number of hospitals covered, the penetration rates improved to 31% and still could Est. NDA submission : continually supplant traditional IL plate
Slide 13: rhEPO - EPIAO & SEPO
rhEPO- EPIAO & SEPO Revenue of rhEPO , 2021 TOP 1 Market share 1 Two brands dominate 42.4% market share, preside Top 1 1 position in terms of EPO market share RMB million YOY：15.0% 42.4% EPIAO&SEPO rhEPO A 1,120 974 rhEPO B 855 897 773 749 rhEPO C rhEPO D Others 2016 2017 2018 2019 2020 2021 1. EPIA
Slide 14: rhEPO - Prospects
rhEPO- Prospects 10% 40% 36% Treatment rate Growth rate Penetration rate 4 million+ CIA patients, 800K+ patients, Extremely low treatment Sales in low-tier market 10% annual rate of growth rate of anemia increased rapidly CKD Standards Enhanced CIA Broke Growth Bottleneck Low-tier Penetration Accumu
Slide 15: Yisaipu - Earliest Commercialized TNF-α Inhibitor
Yisaipu – Earliest Commercialized TNF-α Inhibitor Revenue rebound to surge attribute to price reduction offset by enlarged quantity Prospects: Expand to lower-tier market 2021 Q4 2020 initiated 2021 sales 789 m 1 YoY+90% List of Essential Drugs promoting Yisaipu being listed 50% price cut Volume 28%
Slide 16: Remitch - Exclusive Drug Targeting Hemodialysis Pruritus Patients
Remitch- Exclusive Drug Targeting Hemodialysis Pruritus Patients First-line Drugs for Liver& Kidney Disease 80% of patients had no sleep disorders after usage Pruritus in Japan Guidelines Current Indications of Remitch in Japan Bef. 29 8 12 3 Use Uremic pruritus (UP) -2009 Chronic Liver Disease Prur
Slide 17: Remitch - Prospects
Remitch- Prospects Focus on Millions of Nephrology Patients’ Clinical Demands Indications in Domestic Potential Market: No Effective Drug for Pruritus Patients in Mainland China: Hemodialysis 800K … Irregular diagnosis and treat Lack treatment guidelines, patient do not 01 test, diagnose, treat corr
Slide 18: Business II: Hair Healthcare
Business II: Hair Healthcare
Slide 19: Mandi – Effective & Reliable Hair Growth Product
Mandi – Effective & Reliable Hair Growth Product 2021, Revenue of Mandi Top 1 Market Share 1 71.2% Market Share, secured top 1 minoxidil 1 RMB million YOY：63.7% 71.2% Mandi Product A Product B 602 others 368 250 “Double 11 Shopping Frenzy” Ecommerce Platform Field Rank 127 Sales Achievement 65 94 Al
Slide 20: Mandi – 3 Channels Propel Sales Increase
Mandi – 3 Channels Propel Sales Increase Hospital Wholesale Retail Pharmacy Ecommerce Platform Revenue Increase： Revenue Increase： Revenue Increase： ~35%YOY ~150%YOY ~55%YOY 20% of Revenue ~ ~23% of Revenue ~ 57% of Revenue 200 plus Personnel 100 plus Personnel Reached 20 million plus people/year, 2
Slide 21: Mandi – Competitive edge
Mandi – Competitive edge Minoxidil- Only Scientific EffectiveTopical OTC Drug Mandi- Excellent Quality • Three times process optimization, BPS patent， stability for room temperature storage of Minoxidil, suit pH value on scalp Changes on Market Shares of Hair Loss Products • Receives the highest Hai
Slide 22: Mandi - Prospects
Mandi- Prosects Hair Matrix Gradually Formed Vast Market Size Enrich hair related products, enhance convenience and user stickiness; extend to basics for broader population coverage Huge potential of 10 billion market • Customer Base • Volume Per Capita Mandi Standard Finasteride Version Sell agents
Slide 23: Business III: CDMO
Business Ill: CDMO AS) ©;
Slide 24: CDMO - Global One-stop Service Supported Platform
CDMO- Global One-stop Service Supported Platform 2021, Revenue of CDMO Business 70% Revenue from Overseas Clients 1 Foreign revenue came from European subsidiary Sirton and other foreign clients license; Domestic clients contributed to large amount of incremental revenue RMB million YOY：4.6% 77% 23%
Slide 25: CDMO - Competitive Edge
CDMO- Competitive Edge Comprehensive Technology Transfer Process Transfer experience sourced from dozens of projects in various stages and is combined with company Biopharmaceuticals CDMO Revenue1 Boosted know-how to accelerate projects RMB10 thousand Dec 2021, SIGO Platform Rich Project Management
Slide 26: CDMO - Global CDMO Plants
CDMO- Global CDMO Plants Sirton Italy Zhangjiang Group CDMO Map Bulks Clients include Mylan, Plant Shanghai Biopharmaceuticals Sanofi and on Depend on Sunshine Guojian professional biopharmaceuticals system, honored as Desen Plant Shenyang Veteran in Biologics Biopharmaceuticals Stage Ⅰ199K liters •
Slide 27: CDMO - Prospects
CDMO- Prospects • Improve localization of key • Expand GT, CT Business • Integrated resources material • Realize sustainable • Expand domestic & overseas development • Begin operate independently • Planning 1.5K L /year Protein- business complying with A affinity resin and 105 ton • Leading domestic
Slide 28: R&D
03 R&D Chief Scientific Officer Dr. Zhenping Zhu 28
Slide 29: R&D Pipeline
R&D Pipeline + Pre-clinical IND I II III&BE NDA\ANDA 4 5 5 7 5 7 Dept Candidates Pre-clinical IND Phase I Phase II Phase III NDA SSS06 Long-acting rhEPO RD001 Long-acting rhEPO Nephrology SSS17 HIF inhibitor SSS12 Hydrochloride ANDA SSS13 Carbonate ANDA TRK-820 Remitch NDA 302H anti-HER2 Ab 304R ant
Slide 30: R&D Progress
R&D Progress 304R anti-CD20 mAb (Non-Hodgkins Lymphomas) Phase III inspection completed 301S TNFR-Fc R-protein NMPA accepted for review 602 anti-EGFR mAb Phase II 608 anti-IL-17mAb（PsO）Phase II 302H anti-HER2 mAb Phase II 608 anti-IL-17mAb（SpA）IND 612 anti-HER2 IND approval SSS07anti-TNF-α mAb（RA）Ph
Slide 31: R&D Strategy - Balance between Risk and Efficiency
R&D Strategy-Balance between Risk and Efficiency Strategy-Balance between Risk and Efficiency within Controllable Costs • Traits: high risk, long R&D • Traits: specific druggability, low • Traits: clear mechanism, cycle, high yield risk, short cycle, high yield druggability, undefined clinical benef
Slide 32: Clinical Strategy - Accelerate Autoimmune Clinical Pipelines
Clinical Strategy- Accelerate Autoimmune Clinical Pipelines Based on Clinical Demands for Pipeline strategy： Autoimmune & Inflammation Pipeline Pipelines Newly Indications Expansion， Indications Coverage Coverage: Construct FIC/BIC AD, Chronic Sinusitis, 4.2% prevalence of Asthma in the population p
Slide 33: Autoimmune Major Products: 608 Plaque Psoriasis
Autoimmune Major Products 608- Moderate-to-Severe Plaque Psoriasis Brand-new Amino Acid High Incidence Rate, Huge Market Size Significant Safety and Drug Effect Sequence Targeting IL-17A • 608 Ab adopts recombinant • Significant safety and tolerance; • ~0.47% prevalence rate, 6.5-7 million /year PsO
Slide 34: Autoimmune Major Products: 610 Eosinophil Asthma
Autoimmune Major Products 610- Eosinophil Asthma Brand-new mAb Targeting IL-5, Outstanding Safety, High Incidence Rate, Huge Market Size Variable Region Sequences Significant PK Linear Relation • Adopt recombinant DNA technology, new • Outstanding safety and tolerance, • The article1 launch on the L
Slide 35: Autoimmune Major Products: 613 Acute Gout Arthritis
Autoimmune Major Products 613- Acute Gout Arthritis Outstanding Safety, Brand-new mAb Targeting IL-1β High Incidence Rate, Huge Clinical Demands Significant PK Linear Relation • Adopt DNA recombinant DNA • Study conducted on healthy Chinese • Worldwide: the research based on Asian, European, and Nor
Slide 36: International Cooperation
International Cooperation International R&D Collaboration International Registration /Clinical Trial ● Massachusetts U.S. • VSIG-4 、 PSGL-1 targets research, Sunshine is Commercialized products registered abroad responsible for commercialization in Chinese • Yisaipu was acquired launching license fr
Slide 37: R&D Centers
R&D Centers 4 Centers, 5 Platform: Cover All-process of Drug Discovery, R&D, Register, Clinical Study, Production Shenyang-Biologics, Shenyang-Biologics, Shenyang-Biologics, Hangzhou-Synthetic Drugs Synthetic Synthetic Synthetic BsAb & Polyspecific Ab Multifunctional Fc Protein Ab Maturity and Ab Se
Slide 38: Financial Review
04 Financial Review Chief Financial Officer Mr. Fei WANG 38
Slide 39: Revenue Continually Grow for 5 Years, Gross Profit Rate Over 80%
Revenue Continually Grow for 5 years, Gross Profit Rate Remained over 80% Revenue Gross Profit +14.3% 14.2% RMB million +14.6% RMB million 16.6% 6,382 5,276 5,318 5,588 4,393 4,525 4,584 3,707 3,734 3,058 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 NI Attributable to Parent NORM NI Attributabl
Slide 40: Extremely Attractive Earnings
Extremely Attractive Earnings EPS (HKD) ROE HKD 97.1% 0.80 14.3% 12.1% 0.62 11.1% 9.5% 0.45 0.47 0.40 5.9% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 40
Slide 41: R&D Ratio Improved Constantly, Costs Reasonably Controlled
R&D Ratio Improved Constantly, Costs Reasonably Controlled Selling and Distribution Expenses R&D Costs 30 28% 15% RMB 100 million 4% RMB 100 million 11% 15% 47% 20 27% 38% 7.5 23.2 10 19.5 20.2 5.3 5.9 16.9 13.3 3.6 2.6 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 S&D Ratio (%) 35.6 36.9 36.7
Slide 42: Total Assets & Net Assets Increased, Debt Asset Ratio Declined
Total Assets & Net Assets Increased, Debt Asset Ratio Declined Total Assets Debt Asset Ratio 8.7% 50% RMB 100 million +8.7% 44.5% 40% 177 192 35.6% 138 138 148 30.1% 30% 28.0% 2017 2018 2019 2020 2021 25.9% 23.7% Net Assets 11.9% 19.0% 20% RMB 100 million +17.8% 14.5% Include CB 12.0% 11.9% 147 10%
Slide 43: Sublime CF condition, Sufficient FCF
Sublime CF condition, Sufficient FCF OCF Cash Equivalents (Financing Proceeds Included) RMB 100 million RMB 100 million 10.3% 2017 10.7 +12.3% 2018 11.5 2019 18.9 49.5 44.9 2020 13.4 31.2 17.4% 25.8 18.8 2021 15.8 0 5 10 15 20 2017 2018 2019 2020 2021
Slide 44: Q&A
05 Q&A Management 44
Slide 45: THANKS
THANKS 3SBio Inc. (1530.HK) Investor Relations ir@3sbio.com 珍 爱 生 命 · 关 注 生 存 · 创 造 生 活 CHERISH LIFE CARE FOR LIFE CREATE LIFE