3sbio, Inc. · HKEX:1530
3sbio — H1 2021 Earnings Presentation
48 slides from 3sbio's earnings presentation, Aug 25, 2021
Slide 1: 2021 Interim Results Presentation
2021 Interim Results Presentation August 25, 2021
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 1H 2021 Highlights Q&A Overview Review 3
Slide 4: 1H 2021 Highlights
1H 2021 Highlights 01 Chairman, Director & CEO Dr. Jing LOU 4
Slide 5: 1H 2021 Financial Highlights
1H 2021 Financial Highlights Revenue Net Income Attributable to Parent Earnings Attributable to Shareholders YOY 15.3% YOY 28.0% YOY 7.8% RMB Million 3107.1 RMB Million 898.9 RMB Million 1014.4 702.5 2695.2 941.4 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 Gross Profit NORM Net Income Attributab
Slide 6: 1H 2021 Highlights
1H 2021 Highlights • Market share of the four core varieties continues to maintain the first place • Mandi sales jumped 100% to RMB 260 million • TPIAO sales increased 11% to RMB 1.5 billion OTC sales leaped 111% yoy • rhEPO sales increased 18% to RMB 540 million • Mandi tops the sales list of Aliba
Slide 7: Business Overview
Business Overview 02 Chairman, Director & CEO Dr. Jing LOU 7
Slide 8: Four Core Lines of Business
Four Core Lines of Business Biopharmaceuticals Aesthetic & Hair Growth • 33 products, TPO, EPO included, are on • Developing a series of consumer goods with core sale product Mandi including Finasteride tablets & • Top 1 in terms of market share, great Mansensi shampoo sustainable growth capacity 01
Slide 9: Biopharmaceuticals
Biopharmaceuticals vn J ||\\ ».) . eo
Slide 10: Core Products sustained steady growth – Biologics
Core Products sustained steady growth – Biologics REV. of core biologics 1H, 2021 Brand YoY RMB million YOY 16.1% TPIAO 10.7% 2533.0 2181.1 428.9 331.1 543.4 rhEPO 17.6% 462.1 Others EPIAO® SEPO® Yisaipu 1521.4 rhEPO Yisaipu 29.5% 1374.7 TPIAO 1H 2020 1H 2021 Others1 198.4% 1. Cipterbin(Inetetamab m
Slide 11: Core Products sustained steady growth – Small Molecules
Core Products sustained steady growth – Small Molecules REV. of core synthetic drugs 1H, 2021 Brand YoY RMB million 426.4 YOY 63.7% 57.9 Mandi 100.3% 260.5 110.6 Others 45.5 Heparin 86.3 Heparin 28.1% Sparin® Saiboning® 258.0 Mandi 128.8 Others1 27.2% 1H 2020 1H 2021 1. Siqudi, Laizi, Laiduofei are
Slide 12: TPIAO – Exclusive Commercialized rhTPO product
TPIAO – Exclusive Commercialized rhTPO product REV. of TPIAO 1H, 2021 TOP 1 Market share 1 72.3% 1 market share in terms of sales, still tops the first position in rhTPO products RMB million YOY：10.7% TPIAO, TPIAO 72.3% 2,763 Interleukin-11 2,323 1,670 Eltrombopag 1,375 1,521 975 Others 765 2016 201
Slide 13: TPIAO – Competitive Edge
TPIAO – Competitive Edge Exclusive Product & Primary Treatments Promising efficacy drives market 1 Exclusive commercialized rhTPO worldwide. Primary treatment recommended by four types 1 of guideline on the Diagnosis of Adult Primary Immune Thrombocytopenia 73% share increase Sales & hospital reach
Slide 14: TPIAO – Prospects
TPIAO – Prospects Stable domestic In-patient market 5 billion TPO as treatment for ITP & Est. peak sales 95% CIA in-patients, differentiated In-patient from oral agonist 3 billion Est. sales SSS20 Eltrombopag will be 5% on sale in 2022, competing ~1 billion Outpatient - Paying ability of lower- on o
Slide 15: rhEPO – EPIAO & SEPO
rhEPO – EPIAO & SEPO REV. of rhEPO 1H, 2021 TOP 1 Market share 1 Two brands dominate 42.8% market share, preside Top 1 1 position in terms of EPO market share RMB million YOY：17.6% 42.8% EPIAO & SEPO EPOSINO 974 855 897 773 749 Yibao 543 Jimaiyin 462 Huanerbo Others 2016 2017 2018 2019 2020 1H 2020
Slide 16: rhEPO – Competitive Edge
rhEPO – Competitive Edge Reliable, affordable and effective treatment 4 production plants with sufficient capacity 1 8 90% plus1 efficacy, more dependability than oral products & cost of treatment equals 1/8 of oral products 4 Dual brand are manufacturing in Shenyang Sunshine, Shenzhen Sciprogen. Sh
Slide 17: rhEPO – Prospects
rhEPO – Prospects Substantial market size Innovation propels growth • SSS06 long-acting EPO • 3.5 m stage IV CKD patients, 70% of dialysis patients suffer from anemia • Frequency of shots: every week/twice a week • Phase III coming to be enrolled CKD anemia patient 3 million 70% SSS06 • RD001 long-a
Slide 18: 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 1H 2021 Q4 2020 initiated 1H, 2021 sales 429 m 1.5x List of Essential Drugs promoting Yisaipu being listed 50% price cut Volume 3
Slide 19: Potential sales of Remitch
Potential sales of Remitch Remitch (nalfurafine hydrochloride) an κ (kappa)-opioid receptor agonist, avoid respiratory depression, constipation and addiction caused by μ receptor excitement while being analgesic and antipruritic Cooperation between Sunshine & Toray Trump Card: Exclusive product matc
Slide 20: Remitch – Market Size
Remitch – Market Size 3 indications in Japanese market Domestic market: alternative treatment millions patients Current Indications of Remitch in Japan Current indication Uremic pruritus (UP) -2009 • Hemodialysis Patients 500K Chronic Liver Disease Pruritus(CLD- • Pruritus conditions in Hemodialysis
Slide 21: Potential sales of Ampholipad
Potential sales of Ampholipad Ampholipad(amphotericin B liposome) used for the treatment of systemic fungal infections, licensed by TLC Taiwan Equivalent Generics 1 st • AmBisome ® similar products absent in Chinese market, Ampholipad proves equivalence It will be Initial exclusive product of amphot
Slide 22: Aesthetic & Hair Growth Products
Aesthetic & Hair Growth Products
Slide 23: Mandi – Effective & Reliable Hair Growth Product
Mandi – Effective & Reliable Hair Growth Product 1H 2021 REV. of Mandi Top 1 Market Share 1 71.5% Market Share, secured top 1 minoxidil RMB million YOY：100.3% 71.5% Mandi Dafeixin Sibishen Others 368 250 258 127 129 94 65 Ecommerce Platform “618” shopping frenzy achievement Field Rank 2016 2017 2018
Slide 24: Mandi – 3 Channels Propel Sales Increase
Mandi – 3 Channels Propel Sales Increase Hospital Wholesale Retail Pharmacy Ecommerce Platform REV. Increase： REV. Increase： REV. Increase： ~74% YOY ~233% YOY ~78% YOY Approx. 20% of REV. Approx. 25% of REV. Approx. 55% of REV. 200 plus Personnel 100 plus Personnel Reached 10 million people/year 2 m
Slide 25: Mandi – Competitive edge
Mandi – Competitive edge Secure Brand Certificate OTC Storage • 20 years clinical experiences, exclusively hair growth product License approved by FDA, NMPA and Guidance on Hair Loss Mandi Y Y Room Temperature Brand A N Y 20-25℃ inexposure Effective • “protective vessel” manufacturing process provid
Slide 26: Mandi – Prospects
Mandi – Prospects Minoxidil Foam Coming Soon Market Size Considerable advantage over competitors, unique Huge potential of 10 billion market product domestically • Upgrade of solution aim at alleviating itchy scalp caused by tincture • Customer Base • Volume Per Capita • More adhesive & precisely lo
Slide 27: CDMO
CDMO
Slide 28: CDMO
CDMO Customer Base Covers Multiple Domestic & Overseas Pharmaceutical, Biotechnology Companies 1H 2021 REV. of CDMO business Satiate Diverse Demand Throughout Industry life cycle RMB millions • Sample/structural Test YOY：9.4% • Cell Bank Establishing & Thawing CMC services • Pre-clinical CMC service
Slide 29: Manufacturing Site of CDMO
Manufacturing Site of CDMO Shenyang Desen Biotechnology Sirton in Italy 500 mu 110 mu (82.35 acres) (18.12 acres) Plant Area Stage I construction area 70 years of GMP Clients include Certified Manufacturing & Sales experiences Production Mylan, Sanofi and 199K liters on planning capacity Line CDMO s
Slide 30: CDMO Services Spectrum
CDMO Services Spectrum End-To-End CDMO Services Pre-Clinical Phase I Phase II Phase III Commercialize r s ified e - E. coli, yeast, mammalian cells and other expression system cell lines Div uction od - Downstream protein drugs, mRNA, LNP liposome production and purification Pr & - 14L bioreactor fo
Slide 31: Incrementing CDMO Capacity
Incrementing CDMO Capacity Guojian (Shanghai, Suzhou) Desen: 60m doses, 01 --Experienced Ab research and manufacturing media Guojian(Suzhou)： 8000L disposable 2 0K liter stainless bio Dongguan Site: reacter mRNA, Plasmid, Shenyang Desen LNP 02 --Planning CDMO center certified by GMP for manufacturin
Slide 32: CDMO – Competitive Edge
CDMO – Competitive Edge Highly Equipped + Experienced BioTechnology Team + Low Cost = Long-term Protective Moat 01 • Completed and high quality manufacturing site Highly-Equipped • Cutting-edge construction technology ensured leading in equipment in next 10 years • Unmanned, lighting-avoid and compl
Slide 33: R&D
R&D 03 Sunshine Guojian President & CSO Dr. Zhenping Zhu 33
Slide 34: R&D Progress
R&D Progress • 302H(anti-HER2 Ab，Inetetamab) • 601A(anti-VEGFAb) Ø Anti-EGFR Ab 602 treatment of colorectal cancer Ø AMD, DME I complete; III prep IND approved Add The Title Ø BRVO II complete CRVO & CNV II enroll Ø Anti-PD1 Ab 609A NACT breast cancer IND You can click here to add • 608(IL17A Ab) I
Slide 35: R&D Pipeline
R&D Pipeline Pre-Clinical 临床前 IND I期临床 II期临床 III期临床&BE & BE NDA + 6 3 5 11 10 1 Dept Candidates Pre-Clinical IND I II III NDA SSS06 rhEPO RD001 rhEPO SSS17 HIF inhibitor Nephrology SSS12 BE 2021 SSS13 BE 2021 TRK-820/Remitch 302H anti-HER2 304R anti-CD20Ab 602 anti-EGFRAb 609A anti-PD1Ab 612 anti-HE
Slide 36: Oncology Spectrum
Oncology Spectrum 13 Ab pre-clinical & research 4 Pre-clinical 7 IND & Clinical Trial 3 临床中：4个品种 3 2 1 IND Phase I Phase II Phase III Pre- Drug Target Indication clinical IND I II III 304R CD20 NHL Apropos HER2 targeted 602 EGFR colorectal cancer diversified R&D strategy HER2 positive solid 302H HER
Slide 37: AID & other Biologics Spectrum
AID & other Biologics Spectrum 14 Biologics pre-clinical & research 2 Pre-clinical 7 IND & Clinical Trial 5 临床中：4个品种 5 1 1 Phase I Phase II Phase III NDA Pre- Dept Drug Target Indication IND I II III NDA clinicl Targeted most influential Biologics 301S TNFa RA，PS，AS SSS07 TNFa RA，AS，UC IL-17A target
Slide 38: Small molecule
Small molecule Nephrology AID Oncology Dermatology Eltrombopag(SSS20) • Oral treatment for ITP, collaborating Apremilast (AP506) Trifluridine(SSS24) Minoxidil(MN709) with TPIAO • Oral treatment for PsA • Oral treatment for • foam • NDA 2022 • First patch of generics colorectal cancer • Collaborating
Slide 39: International Cooperation
International Cooperation Oncology Nephrology • SB8 generic of Bevacizumab • American Rights of Chinese Rights Pegsiticase bestowed Selecta • VSIG-4、PSGL-1 targets research, Sunshine is responsible • Chinese Rights of Remitch for commercialization in Chinese for treatment of pruritus in Market1 hemo
Slide 40: R&D Prospects
R&D Prospects 2025 Est. Status 601A 612 613 705,706,707 617 VSIG-4 SSS17 （RVO/CNV ） Phase III 10+ Sales Peak E RMB 100m 161 10 30 30 10-20 - 20 2 601A 602 609A 610 611 RD001 SSS06 others （DME） （CN） NDA 7+ 16 1 5 15 3 15 30 20 2 20 2 TPIAO4 Remitch 301S 304R 615 608 609A 601A 6-10 small （US）（AMD） mol
Slide 41: R&D Centers
R&D Centers Shenyang-Biologics, Synthetic Shanghai-Biologics Shenzhen-Biologics Hangzhou-Synthetic Drugs GMP Protein bulk Verification & Ab Platform Ab & Protein Characterization GMP for Clinical Raw-material Biologics R&D Engineering production Platform platform Analysis Trial Animal immune, Recomb
Slide 42: Financial Review
Financial Review 04 Chief Financial Officer Mr. Fei WANG 42
Slide 43: REV Sustained 5 Years Growth, GP Remained +80%
REV Sustained 5 Years Growth， GP Remained +80% REV. GP RMB million +18.9% +17.2% RMB million 15.3% 16.7% 5,318 5,588 4,393 4,525 4,584 3,707 3,734 3,058 3,107 2,395 2,587 2,797 2,695 2,217 2016 2017 2018 2019 2020 1H 20201H 2021 2016 2017 2018 2019 2020 1H 20201H 2021 NI Attributable to Parent Norm
Slide 44: R&D to REV Grow, CAPEX for CDMO Swell
R&D to REV Grow， CAPEX for CDMO Swell SE 30 Administrative Expense Equity Incentive 113% RMB 100 million 4% RMB 100 million -34% Administrative 15% 27% 20 31% 18% 1% 3.5 5% 1.0 13% 10 19.5 20.2 16.9 13.3 11.5 3.5 10.2 9.7 3.0 2.9 3.0 3.3 1.5 1.7 0 2016 2017 2018 2019 2020 1H 20201H 2021 2016 2017 20
Slide 45: TASSET & Shareholder Equity Increase Debt/Asset Decline
TASSET & Shareholder Equity Increase Debt/Asset Decline TASSET Debt Ratio 4.9% RMB 100 million 50% +12.5% 45% 39% 40% 177 185 36% 138 138 148 110 30% 30% 28% 2016 2017 2018 2019 2020 1H 2021 26% 24% SE 7.9% 19% 20% RMB 100 million 15% +18.1% 12% CB included 11% 141 10% 131 104 CB excluded 89 68 76 0
Slide 46: Sublime CF condition, Sufficient FCF
Sublime CF condition，Sufficient FCF OCF Cash Equivalents(Financing Proceeds included) 2016 10.0 RMB 100 million 9.4% 2017 10.7 +43.8% 2018 11.5 2019 18.9 2020 13.5 49 45 2020H1 7.1 31 14.1% 26 19 2021H1 8.1 10 0 5 10 15 20 2016 2017 2018 2019 2020 1H 2021
Slide 47: Q&A Management
Q&A 05 Management 47
Slide 48: 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