3sbio, Inc. · HKEX:1530
3sbio — H1 2020 Earnings Presentation
30 slides from 3sbio's earnings presentation, Jul 18, 2020
Slide 1: 2020 Interim Results Announcement
珍 CHERISH LIFE CARE FOR LIFE CREATE LIFE 爱 生 2020 Interim Results 命 / 关 Announcement 注 生 存 / 创 造 生 活 July 18, 2020
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: 2020 Interim Results Highlights
2020 Interim Results Highlights Sales • Cipterbin (Inetetamab) was successfully launched to sale in June 2020. In the first 12 days, first prescription was issued in 5 cities domestically. • TPIAO sales reached CNY 1.3 billion in 2020H1, YoY increased 15.2%, Rank climbed from 24th in 2019H1 to 14th,
Slide 4: Industry Policy Reformation Fully Rolled Out and Continues to Encourage Innovation
Industry Policy Reformation was Fully Rolled Out and Continues to Encourage Innovation • Encourage the development and sales of innovative drugs • Improve the generic quality and standardize market competition Continues to Accelerate New Drug Application Biological Products was Included in the Centr
Slide 5: Strong Sales Capability and Country-Wide Sales Network
Strong Sales Capability and Country-Wide Sales Network Sales Network Construction Sales Team Construction Reached all provinces, autonomous regions and special municipalities in China Robust marketing team with nearly 30 years proven record Covered over 2,500 top tier core (Grade III) hospitals 3,37
Slide 6: Comprehensive Manufacturing Capabilities Adhere to Int'l Quality Standards
Comprehensive Manufacturing Capabilities Adhere to Int’l Quality Standards All 10 production lines for different dosage forms are Plant certified by 11 countries, including Ukraine, certified by GMP in 2010 Brazil and Mexico QA personnel represent 20%+ of all manufacturing QA personnel repre
Slide 7: Integrated Cell Expression Systems and Sufficient Production Capacity
Integrated Cell Expression Systems and Sufficient Production Capacity Expression System Prokaryotic Eukaryotic Present Production Capacity Cell Chemical Cell Annual capacity of 50 million injections, in accordance with EU standard Shenyang Commercialized manufacturing base with more than 38,000 lite
Slide 8: Integrated International Strategic Collaborations
Integrated International Strategic Collaborations Mature Products and Platforms Innovative Products and Platforms Exclusive license for the commercialization of Exclusive license to develop and commercialize GLP-1 products in China programmed therapeutic cells in Greater China Exclusive license for
Slide 9: Core Products Revenue Generally Stable Under COVID-19 Impact
Core Products Revenue is Generally Stable Under the Impact of COVID-19 Pandemic Unit: RMB mm Market 2015 2016 2017 2018 2019 1H 2019 1H2020 Ratio(%) Share (%)1 TPIAO 605 765 975 1,670 2,323 1,194 1,375 51.0 72.8 Yisaipu 2 842 925 1,013 1,111 1,144 501 331 12.3 54.5 3 EPIAO/SEPO 727 773 855 897 749 4
Slide 10: Market-Leading Products with Significant Growth Potential: TPIAO
Market-Leading Products with Significant Growth Potential TPIAO • First-to-market and the only commercialized rhTPO product in the world • One of the treatments for lymphoma CIT 1 • Market is still under-penetrated with significant growth potential • The first-choice recommendation for boosting plat
Slide 11: Market-Leading Products: Yisaipu
Market-Leading Products with Significant Growth Potential (con’d) Yisaipu Contributes most to overall category growth First-to-market TNFa inhibitor product The indication of the treatment for adult patients with severe plaque psoriasis was newly covered by 2019 NRDL Penetration rate may be in
Slide 12: Market-Leading Products: Yisaipu vs Adalimumab
Market-Leading Products with Significant Growth Potential (con’d) Yisaipu Price is under pressure, but growth potential is Comparison of Etanercept and Adalimumab still significant Etanercept Adalimumab Sales of TNFa and Yisaipu1 fusion protein in 2019&2020H1 1.62 per 100 person-years All products (
Slide 13: Market-Leading Products: EPIAO and SEPO
Market-Leading Products with Significant Growth Potential (con’d) EPIAO and SEPO • Still the only rhEPO product approved by the NMPA for all three indications • Consistently been the dominant market leader in Mainland China rhEPO market since 2002 In H1 2020 • EPIAO and SEPO sales increased to RMB46
Slide 14: Market-Leading Products: Mandi
Market-Leading Products with Significant Growth Potential (con’d) Mandi Used in the treatment of androgenetic alopecia RMB mm The only topical drug recommended by the guideline for diagnosis and treatment of androgenetic alopecia Sales grew strongly in the past three years, with sales expected
Slide 15: New Product Launch
New Product Launch Cipterbin (Inetetamab) Xenopax (Anti-CD25 antibody) • Approved by NMPA for treatment of HER2-positive on June • Only approved Anti-CD25 antibody in domestic China 19, 2020 • Launched to sale in the market since October 2019 • Self-developed, China first innovated with engineered F
Slide 16: Robust and Innovative Product Pipeline
Robust and Innovative Product Pipeline 32 product candidates, including 22 National New Drugs Therapeutic Area Product Candidate Pre-Clinical Clinical Trial Application Phase I Phase II Phase III New Drug Registration Production Permit SSS06 Long-acting EPO RD001 Long-acting EPO SSS17 HIF inhibitor
Slide 17: Major Progress in R&D in 2019-2020H1
Major Progress in R&D in 2019-2020H1 Area Code Target Name Indication Situation SSS06 Long Acting EPO Second-generation rhEPO Renal Anemia • Completed multiple Phase I trials and initiated patient enrollment in Phase II RD001 PEG-EPO Long-acting rhEPO Renal Anemia • Completed Phase I trials and init
Slide 18: Biologics Pipeline in Nephrology, Auto-immune and Other Diseases
Biologics Pipeline in Nephrology, Auto-immune and Other Diseases Production Product Target Indication Pre-Clinical CTA Phase I Phase II Phase III BLA/NDA Permit Rheumatoid arthritis, plaque psoriasis and 301S TNFa ankylosing spondylitis Rheumatoid arthritis, ankylosing spondylitis, SSS07 TNFa ulcera
Slide 19: Biologics Pipeline in Oncology
Biologics Pipeline in Oncology Production Product Target Indication Pre-Clinical CTA Phase I Phase II Phase III BLA/NDA Permit 302H HER2 Breast Cancer 304R CD20 NHL 602 EGFR Colorectal Cancer 609A PD1 NSCLC, Gastric and Liver Cancer 615 VEGF Multiple Cancer 612 HER2 Breast and Gastric Cancer 705 BsA
Slide 20: 2020-2022 R&D Outlook
2020-2022 R&D Outlook Production Permit • 302H (H1 2020) 7 New IND / Phase I • IND of 10-15 new mAbs and bispecific (2020-2021) • 301S (H1 2021) (2020-2022) antibodies (China and US) • 615 • TRK-820 Autoimmune Initiation of Registration Generics BE Study and Inflammation Nephology Clinical Trials •
Slide 21: Extensive Coverage of Key Targets and Next-Generation Biologic Therapies
Extensive Coverage of Key Targets and Next-Generation Biologic Therapies 4 R&D Centers and over 420 Experienced Scientists Shenyang-Biologics/Chemicals Shanghai - Biologics Shenzhen - Biologics Hangzhou - Chemicals Covered Key Oncology Targets Next Generation Biologic Therapies HER2 CD20 EGFR MCM 1
Slide 22: Major Income Affected by COVID-19 in 2020H1 but Steady Growth
Major Income was Effected by Covid-19 Pandemic in 2020H1, but Maintains an Overall Steady Growth Unit: RMB mm CAGR = 28% 2% 22% 2,643 2,695 27% 2,174 31% 1,706 65% 1,304 790 2015H1 2016H1 2017H1 2018H1 2019H1 2020H1 22
Slide 23: Gross Profit Remains Steady Growth
Gross Profit Remains Steady Growth even under the Impact of Covid-19 Pandemic in 2020H1 Unit: RMB mm CAGR = 26.3% 1.5% 25% 2,184 2,217 19.9% 1,747 1,457 28.6% 64.2% 1,133 690 2015H1 2016H1 2017H1 2018H1 2019H1 2020H1 23
Slide 24: Net Profit Attributable to the Parent Soared for 119%
Net Profit Attributable to the Parent Soared for 119% with Strong and Sustained Profitability in 2020H1 Unit: RMB mm CAGR = 24% 119% [值] -38% [值] [值] [值] [值] [值] 2015H1 2016H1 2017H1 2018H1 2019H1 2020H1 24
Slide 25: Normalized Net Profit Attributable to the Parent is Flat
Normalized Net Profit Attributable to the Parent is Flat with Stable Profitability in 2020H1 Unit: RMB mm CAGR = 20% 0% 34% [值] [值] [值] [值] [值] [值] 2015H1 2016H1 2017H1 2018H1 2019H1 2020H1 25
Slide 26: Total Assets Increased Significantly While Debt Ratio is Low
Total Assets Increased Significantly in 2020H1 While the Debt Ratio is Relatively Low Unit: 100 million RMB CAGR = 13% Include CB 19% Exclude CB 55 [值] 7% 50 [值] 45 [值] 40 35 [值]% 30 [值]% [值]% 25 20 19% 15 14.5% 10 12.5% 5 0 2018 2019 2020H1 2018 2019 2020H1 26
Slide 27: Excellent Cash Flow with Sufficient Funds in 2020H1
Excellent Cash Flow with Sufficient Funds in 2020H1 Unit: 100 million RMB Cash Flows from Operating Activities Cash and Bank Balances 83.7% [值] 2018H1 4 16.2% [值] 2019H1 7 [值] 2020H1 7.1 2018 2019 2020H1 27
Slide 28: Excellent Operations Management Capabilities
Excellent Operations Management Capabilities Unit: RMB mm Net Cash Flows from Operating Activities R&D Expense 1,887 527 CAGR=43% CAGR=47% 363 1,150 1,074 1,004 264 243 257 254 700 708 455 111 2015 2016 2017 2018 2019 1H 2019 1H 2020 2015 2016 2017 2018 2019 1H 2019 1H 2020 Sales and Marketing Expen
Slide 29: Outlook
Outlook Operation ✤ Operating indicators and revenue of key products will continue to grow steadily New Products ✤ Launch of new products (Pre-filled injection of Yisaipu) ✤ Increase the investment in R&D, continue to accelerate clinical trials R&D and IND of pipeline products ✤ Continue to seek bus
Slide 30: Thanks Q & A
THANKS Q & A 珍 爱 生 命 · 关 注 生 存 · 创 造 生 活 CHERISH LIFE CARE FOR LIFE CREATE LIFE