Standard Chemical & Pharmaceutical Co. Ltd. · TWSE:1720
Standard Chemical & Pharmaceutical — Standard Chem. & Pharm. Co., Ltd. (SCP) — FY2019 Earnings Presentation
41 slides from Standard Chemical & Pharmaceutical's earnings presentation, Apr 15, 2020
Slide 1: Standard Chem. & Pharm. Co., Ltd. (SCP) Investor Roadshow
Stock Symbol :1720 Standard Chem. & Pharm. Co., Ltd. (SCP) Investor Roadshow 2020.04.15 1
Slide 2: Safe Harbor Notice
免責聲明 Safe Harbor Notice 本次簡報與討論包含特定預測性的說明，而其內容有關於營運結 果、財務狀況，以及對未來事件的預期。因為此等前瞻性說明是有關 於未來事件，而且取決於未來發生時的環境因素，所以必然含有風險 與不確定性。 本公司將不負擔公開更新或修改這些預測性的說明之義務，無論是 出現新資訊、未來發生任何事件，或其他情況。實際結果可能與此等 預測性說明推測的內容有重大差異。 In these presentations and discussions, there are certain forward looking statements regarding the r
Slide 3: Agenda
Agenda Corporate Introduction to 2019 Forward-Looking Social Standard Group Operating Strategies Responsibility (SCP Group) Results (CSR) Milestones Consolidated • Future Fan Dao Nan Resource Financial Development Foundation Integration Statements Direction Past • Parent • Actions for Fina
Slide 4: Introduction to Standard Group (SCP Group)
Introduction to Standard Group (SCP Group) 4
Slide 5: International Accreditation
International Accreditation 1998 2000 2008 2009 2010 2017 2018 The first TW pharmaceutical company to be ISO9001 certified The first TW company to pass US FDA SCP passed subsequent US FDA inspection cGMP inspections without 483 SCP received JP PMDA’s “Certificate Y2018 FDF Plant and API Plant of For
Slide 6: SCP and Related/Affiliated Companies
SCP and Related/Affiliated Companies 1967 1982 1995 1999 2005 2016 2019 SCP is established in Became TWSE listed company (1720) 1967 Syn-Tech is established Became listed company at in 1982 OTC market (1777) Syngen is established Became listed company at in 1999 OTC market (8279) Invested to Multipo
Slide 7: Syn-Tech (1777) Historical Milestone
Syn-Tech(1777) Historical Milestone 2004 2014 2000 2019 Passed ISO 45001 Awarded TW Passed ISO14001: Passed subsequent US validation Pharmaceutica Environmental FDA and JP PMDA 1995 Management System Awarded by TFDA for l Industry GMP inspection Passed US FDA API cGMP Award 2009 R&D Award valida
Slide 8: Syngen Biotech (8279) Historical Milestone
Syngen Biotech(8279) Historical Milestone 2017 2019 2011 2004 Awarded the Copper Prize 2014 Passed US NSF inspection Awarded the Golden Award of Awarded the Silver of Awarded National The 33rd World Genius TW healthcare & Awarded National Prize of TW Biotechnology Medical Convention & Educatio
Slide 9: SCP Group Resource Integration
Standard Chem.& Pharm.Co.,Ltd . Souriree Biotech.Co.,Ltd (Syn-Tech Chem. & Pharm. Co., Ltd.) Syngen Biotech Co., Ltd. Pharmaceuticals - Rx API (CNH) Software/ Hardware Service Intermediates & API SCP Group Inforight Technology Resource Integration Co., Ltd. DNA Microarry Biological Fermenta
Slide 10: 52 Years of Continuous Profit
52 Years of Continuous Profit (Profit and Dividend Performance in past 15 years) An average cash dividend of NT$1.46 per share was distributed for past 15 years (Expressed in thousands of New Taiwan Dollars) EPS 400000 Net Income Stock Dividend Cash Dividend EPS 3 350000 2.5 300000 2.09 2.15 2.09 2.
Slide 11: 2019 Operating Results
2019 Operating Results 11
Slide 12: Income Statement (Consolidated)
Income Statement (Consolidated) (Expressed in thousands of New Taiwan Dollars) Growth 2019 2018 +(-) Rate Amount % Amount % Amount % Operating revenue 3,937,129 100 3,573,093 100 364,036 10 Operating cost 2,227,998 57 2,028,483 57 199,515 10 Gross profit 1,709,131 43 1,544,610 43 164,521 11 Operatin
Slide 13: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Expressed in thousands of New Taiwan Dollars) 2019年12月31日 2018年12月31日 Amount % Amount % Cash and cash equivalents 1,556,352 22 1,305,141 20 Accounts receivable 911,021 14 931,257 15 Inventories 914,629 13 793,128 12 Investments 755,474 11 731,794 12 Property, plant, and
Slide 14: Global Revenue Ratio of past 5 Years
Global Revenue Ratio of past 5 Years (Consolidated) (Expressed in thousands of New Taiwan Dollars) International Sales of past 5 years Ratio of International-to-Domestic Sales of past 5 years 1,000,000 Domestic International 800,000 745,705 686,077 678,464 100% 13.4% 17.5% 17.2% 644,528 19.4% 19
Slide 15: Income Statement (Parent Company Only)
Income Statement (Parent Company Only) (Expressed in thousands of New Taiwan Dollars) Growth 2019年 2018年 +(-) Rate Amount % Amount % Amount % Operating revenue 2,403,678 100 2,385,819 100 17,859 1 Operating cost 1,318,348 55 1,287,252 54 31,096 2 Gross profit 1,085,330 45 1,098,567 46 -13,237 -1 Ope
Slide 16: Balance Sheet (Parent Company Only)
Balance Sheet (Parent Company Only) (Expressed in thousands of New Taiwan Dollars) 2019/12/31 2018/12/31 Amount % Amount % Cash and cash equivalents 837,940 15 976,973 18 Accounts receivable 673,731 13 683,451 13 Inventories 574,519 10 510,031 10 Investments 2,053,644 37 1,765,909 33 Property, plant
Slide 17: Global Revenue Ratio of past 5 Years (Parent Company Only)
Global Revenue Ratio of past 5 Years (Parent Company Only) Ratio of International-to-Domestic International Sales of past 5 years Sales of past 5 years (Expressed in thousands of New Taiwan Dollars) 700,000 International Domestic 593,234 600,000 100% 526,951 16.8% 18.5% 501,616 23.4% 24.6% 22.1%
Slide 18: Comparison of Quarterly Revenue of past years (Consolidated)
Comparison of Quarterly Revenue of past 4 years (Consolidated) (Expressed in thousands of New Taiwan Dollars) 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Season 1 Season 2 Season 3 Season 4 2016 2017 2018 2019 2020 Consolidated Annual Revenue Season 1 Season 2 Season 3 Season 4 Statistics
Slide 19: Forward-looking Strategy
Forward-looking Strategy 19
Slide 20: Future Milestone
Future Milestone Taiwan Generics International Better than Generics 20
Slide 21: SCP – Major International Operations of the past years
SCP – Major International Operations of the past 2 years Taiwan China Japan Agent for Japanese Anti- Continues export of Export of Asthma psychotic brand drug antibiotic injection product to Japan Latuda® Continuous Launch of Anti- Agent for Herceptin® , a commercialized inflammatory Ora
Slide 22: Revenue Growth Strategy - Taiwan
Revenue Growth Strategy - Taiwan Taiwan as Base of Operations for Global R&D and Pharmaceutical Manufacturing • Increasing export to Southeast Asia, China and Japan in 2020 • Maximizing market by new product launch in US, China, Japan, and ASEAN Strengthen Manufacturing Capability • Manufacturin
Slide 23: Distribution of Mylan anti-cancer drugs in Taiwan
Distribution of 20 Mylan anti-cancer drugs in Taiwan 5 kinds of Macromolecules Biosimilar Drugs • 3 ingredients, 5 drug licenses • 3 drug licenses have been approved in Taiwan • 2 drug was officially approved with NHIA reimbursement price 15 kinds of Small Molecule Drugs • 9 ingredients, 15 drug l
Slide 24: Mylan Ogivri
Mylan Ogivri Herceptin • The product is ranked 4th in global drug sales, and it has taken the first spot of cancer NHIA reimbursement for many years. • The product was approved with NHIA reimbursement price in 2002, and the current NHIA reimbursement Price: NT$46,895/dose; 2018 annual NHIA expendi
Slide 25: Mylan Fulphila
Mylan Fulphila Original Drug: Neulasta • Indication：to help reduce the chance of infection due to a low white blood cell count, while non-myeloid cancer patient receive anti-cancer medicines that can cause fever and low white blood cell count. • Short-acting, 3~10 injections per therapy • Long-act
Slide 26: Revenue Growth Strategy - China
Revenue Growth Strategy - China SCP Competitiveness NMPA review of importation SCP has successful experience with Continuous export of antibiotic U.S. and Japan regulatory dossiers injection products c SCP to continue to specialize Diabetes products passed the BE test. Application for review
Slide 27: NMPA Reforms: Consistency Evaluation
NMPA Reforms: Consistency Evaluation Total received & approved submissions • 2017.07~2020.03 1,955 submissions were received in total, 581 submissions were passed. 27 Source： www.yaozh.com Report of CDE Statistics
Slide 28: NMPA Reforms: Consistency Evaluation Total received & approved submissions
NMPA Reforms: Consistency Evaluation Total received & approved submissions Revised status of GQCE Period Received # Approved # 2017 71 21 2018 604 154 2019 1,034 314 2020 Jan. to Mar. 246 92 Total 1,955 581 Cost of Research and Development • According to Pharmcube’s statistic, during Jan. 2018 t
Slide 29: Procurement by Volume Policy Implementation: in 4+7 cities
Procurement by Volume Policy Implementation: in 4+7 cities Decrease of drug prices via Procurement by Volume Policy On Nov. 14, 2019, “Pilot Program for Centralization Drug Procurement by National Organization” was approved by China Announcement of purchase volume while bidding; the lowest bid
Slide 30: Impact of Procurement by Volume Policy
Impact of Procurement by Volume Policy No Guarantee Market • There is no guarantee to win the Procurement by Volume tender even after approval of Consistency Evaluation Vicious Price Competition • Dramatic price drop after Procurement by Volume policy • Entecavir (for Hepatitis B) price dropped
Slide 31: Revenue Growth Strategy - Japan
Revenue Growth Strategy - Japan Collaboration Model Raw Material Strategy Japanese Distribution Partner Strategic alliance with Contract Development, and API manufacturer. Manufacturing API Vertical Integration License Holder with Syn-Tech. Current State On Going Obtained marketing licen
Slide 32: Revenue Growth Strategy – U.S.A.
Revenue Growth Strategy – U.S.A. U.S.A. Market Largest Rx Market Characterized by lengthy review timelines and costly compilation and filing work Part of SCP’s long term goals Strategy Current Status Export of one diabetic treatment Strategic alliance with API One approval, pending paten
Slide 33: Forward-looking Strategy Layout
Forward-looking Strategy Layout 2018 2020 2020 Future: International China Japan U.S.A. Better-than-Generics Increase Core technology and Leverage International professional development of Competitiveness in Revenue Ratio international performance Overseas Markets Increase international Utilize
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility 34
Slide 35: Fan Dao Nan Foundation
Fan Dao Nan Foundation Fan Dao Nan Foundation Established in 1987 Endowment Fund: NT$196 Million Annual Budget: NT$12 Million Principal Activities Cultural and educational Non-profit education development activities Scholarships and Talent Cultivation Sponsor R&D and Innovation Rewards an
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility Scholarships Hope After-school Class Sunflower Wednesdays University (related fields): 2 universities/5 students Weekday afternoons Every Wednesday afternoon High school: 8 schools/108 students 22 schools 6 schools Middle school: 57 schools/797 students
Slide 37: The First Senior Gym in Taiwan
The First Senior Gym in Taiwan – The Center of Athletic Training and Health Intelligence analysis of health test results; customized design for sports course Provide a comfortable and professional health promotion place for middle-aged and senior people The first center was opened in July 2019
Slide 38: Public Service Activity: Bone Mass Measurement
Public Service Activity: Bone Mass Measurement Cooperate with medical institution, local community, and pharmacy for conducting public service activity: bone mass measurement. The activity were hold 48 times in 2019; 4,600 people in total were measured. 38
Slide 39: Infection and Prevention Control: COVID-19
Infection and Prevention Control: COVID-19 Within 3 months of COVID-19 epidemic, over 1,000 liters of alcohol(75%) in different container sizes were donated to publics. Alcohol were donated to donees, including general public, elementary schools, kindergartens, police station, fire departments,
Slide 40: re H
re H STANDARD CHEM.& PHARM. Co.,LTD
Slide 41: Thanks for your attention
STANDARD Thanks for your attention STANDARD CHEM.& PHARM. CO. LTD
Standard Chem. & Pharm. Co., Ltd. (SCP) — FY2019 Earnings Presentation on 6ix