Slide 1: 2023 Annual Results Presentation
2023 Annual Results Presentation 21 March, 2024
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 Highlights Q&A Overview Review 3
Slide 4: 01 Highlights
01 Highlights Chairman, Director & CEO Dr. Jing LOU
Slide 5: 2023 Financial Performance
2023 Financial Performance Net Profit Attributable to Revenue Gross Profit Owners of the Parent Adjusted for Non-Operating Items Financial Resource 13.8 % 17.1 % 17.7 % 8.2 Bn YOY YOY YOY Gross profit ratio: 85.0% Bn Bn Bn Bn 8.2 7.4 7.8 6.6 2.0 6.9 5.7 6.4 5.3 1.7 1.7 5.6 4.5 5.0 5.3 4.4 1.4 4.5 1.
Slide 6: Business Overview
Business Overview Biopharmaceutical Dermatology CDMO Four core products developed steadily No.1 hair-grow brand “Mandi” High-quality, cost-effective License in Winlevi for acne treatment and full-process service TPIAO, EPIAO, YSP, Cipterbin Target the broad dermatology market capabilities 2023 reven
Slide 7: Milestones in 2023
Milestones in 2023 • Updated results of a • Phase II study of • TPIAO® was recommended • License in the commercialization Hematology/On • 2023 ASCO conference 7 exploratory study of Neoadjuvant in expert consensus for HRT1 and manufacturing rights of cology published 3 reports about Inetetamab in HE
Slide 8: Advancing ESG Governance
Advancing ESG Governance • Take social responsibilities , devote to public welfare actively • Support “Ankylosing Spondylitis Healthy Village Program”, Aided and treated cumulative thousands of patients in AS, cancer, dialysis etc. • ESG governance retained the AA rating by MSCI, exceeding 84% biote
Slide 9: 02 Business Overview
02 Business Overview
Slide 10: Biopharmaceuticals
1 0 Biopharmaceuticals
Slide 11: TPIAO- Global Exclusive Commercialized rhTPO
TPIAO- Global Exclusive Commercialized rhTPO Revenue of TPIAO, 2023 Top 1 market share 1 65% 1 market share in terms of sales, still tops the first position in rhTPO products RMB Mn YOY：23.8% 65.0% 4,205 3,397 3,080 2,763 2,323 2019 2020 2021 2022 2023 TPIAO Class A（Interleukin-11） Class B（Oral TPO-
Slide 12: TPIAO— Improving Patients Coverage
TPIAO— Improving Patients Coverage Chemotherapy Cancer therapy induced Chronic liver Bone marrow Primary immune thrombocytopenia（CTIT） Got SIT，HRT Expert induced Pediatric disease related protection form thrombocytopenia thrombocytopenia got Grade A recommendation Consensus preferred thrombocytopeni
Slide 13: rhEPO- EPIAO & SEPO
rhEPO- EPIAO & SEPO Revenue of rhEPO, 2023 TOP 1 Market share 1 Two brands dominate 42%1 market share, preside Top 1 position in terms of EPO market share RMB Mn YOY：-16.8% • EPIAO® quality standard is consistent with EU Pharmacopeia • Treatment guidelines added more recommendations2, penetration ra
Slide 14: Yisaipu- Explore to Reform
Yisaipu- Explore to Reform Revenue of Yisaipu, 2023 RMB Mn Market penetration rate improved • Enhance hospitals coverage and related department coverage, prompt market YOY：10.5% penetration Expand new formulation • Pre-filled injection got approval 1,144 and marketed in May 2023 789 615 565 Persiste
Slide 15: Cipterbin- Provide More Choice for Patients
Cipterbin- Provide More Choice for Patients Revenue of Cipterbin, 2023 HER2-positive advanced breast cancer H treatment Grade I recommendations Grade I recommendations: (1) THP (IA); (2) TXH (2A) --Anti-HER2 mAb (H), including commercialized Trastuzumab, RMB Mn biosimilars, Inetetamab YOY：41.8% • Co
Slide 16: Dermatology
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Slide 17: Mandi – Effective & Reliable Hair Growth Drug
Mandi – Effective & Reliable Hair Growth Drug Revenue of Mandi, 2023 Top 1 Market Share 1 73% market share in medical institutions, secured Top 1 among all minoxidil 1 RMB Mn YOY：25.8% 72.6% Mandi Product A 1,124 894 Product B 602 Others 368 250 2019 2020 2021 2022 2023 1. Market share data source:
Slide 18: Target at Consumption, Digital Marketing Lead Brand Growth
Target at Consumption, Digital Marketing Lead Brand Growth Scientific and effective hair growth choice wins more recognition • Mandi (5% minoxidil) got the highest endorsement level of recommendation in female androgenetic alopecia (FAGA) • Minoxidil, as a scientific, effective safe and convenient h
Slide 19: Mandi- Build Product Matrix, Expand Brand Value
Mandi- Build Product Matrix, Expand Brand Value Mandi Mini Bottle • Launched in June 2023 • Dedicated to hairline , upgraded Mandi Comb Mandi for Male Mandi for Female medication devices, enhance usability Mandi Selenium disulfide anti-dandruff shampoo Shampoo & hair conditioner • Wipe off the dandr
Slide 20: CDMO
2 0 CDMO
Slide 21: Domestic CDMO Pioneer
Domestic CDMO Pioneer Revenue of CDMO, 2023 93% 73% 61 200 Revenue from Mn commercialized Customer New orders retained rate signed in 2023 Backlogs orders RMB Mn YOY：4.9% • Shanghai Plant: self-developed affinity resin completed DMF records and trademark registration, take full advantages of the sca
Slide 22: Differentiation Advantages Support Clients
Differentiation Advantages Support Clients • 4 plants, providing comprehensive biopharmaceutical R&D service and equipping with manufacture capabilities SIGO Disposable + stainless flexible capabilities; provide professional Biopharmaceuticals Formulations GCT biopharmaceutical CDMO service Culture
Slide 23: R&D Review
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Slide 24: R&D Pipeline
R&D Pipeline Therapeutic Area Candidates Pre-clinical IND Ph I Ph II Ph III NDA 2 Pre-clinical SSS06 Long-acting rhEPO RD01 Long-acting rhEPO Nephrology TRK-820 Remitch CLD pruritus SSS17 HIF inhibitor TPO-105 Pediatric ITP NDA 6 IND& Phase I TPO-106 CLDT 304R anti-CD20 Ab CS1003 anti-PD1 Ab License
Slide 25: Key Candidates — Nephrology
Key Candidates — Nephrology SSS06 Glycosylation sites • Extend half-life, dosing at longer intervals, match modified EPO treatment cycles of chemotherapy patents SSS06 NuPIAO (rESA) • Phase III clinical trail met primary endpoints, Long-acting EPO demonstrate that SSS06 wase safe and effective; CIA
Slide 26: Key Candidates — Hematology / Oncology
Key Candidates — Hematology / Oncology Explore New Indication TPIAO: 130K /year new pediatric ITP patients1 and 350K+ CLDT patients2 , clinical studies prove safety and efficacy Recommended in the treatment of HRT in the “Chinese expert consensus TPO-105&106 on the clinical management of hepatopathy
Slide 27: Key Candidates — Autoimmune
Key Candidates — Autoimmune Focus on Broad Chinese Autoimmune Market Indication Moderate-to-severe PsO 2024E 608 Dermatology anti-IL- 17A Ab AS Rheumatism Nr-axSPA 45 Mn 613 anti- Acute Gout Arthritis 2025E 24 Mn IL-1β Ab Adult AD 2026E AD (U.S.) 611 anti-IL-4R CRSwNP Ab Respiratory COPD Pediatric A
Slide 28: Key Candidates — Consumer Health
Key Candidates — Consumer Health First new mechanism of action in acne approved The most prescribed topical acne drug in the US 1st by the FDA in 40 years Winlevi® is the global 1st external topical androgen receptor inhibitor developed by Cosmo for the acne vulgaris in patients 670K Winlevi® is alr
Slide 29: Product Portfolio Outlook
Product Portfolio Outlook Winlevi 601A Key （Acne） (anti-VEGF Ab) Est. NDA Candidates 608 613 610 (anti-IL-17 Ab) (anti-IL-1β Ab) (anti-IL-5 Ab) Remitch 611 Eltrombopag suspension 2023 SSS06 (long-acting EPO) (CLD pruritus) （anti-IL-4R Ab) ITP & SAA Prior reviewing Mandi Foam SSS06 (long-acting EPO)
Slide 30: SSS06 (Recombinant Erythropoiesis Stimulating Protein Injection)
SSS06 (Recombinant Erythropoiesis Stimulating Protein Injection) The phase III trial demonstrated that rESP was safe and effective rhEPO VS SSS06 clinical efficacy data： rhEPO • 2nd generation EPO, extend half life, dosing Efficacy Endpoint* （dosage and schedule rESP QOW identical to the screening （
Slide 31: 608 (anti-IL17A mAb)
608 (anti-IL17A mAb) Phase II clinical study in PsO patients shows significant efficacy Week 12 primary endpoint data of 608, Secukinumab, Ixekizumab in PsO patients • Week 12 Data shows the efficacy of 608 at different doses is much better than placebo group & launched products *** 96.43 100. * * *
Slide 32: 613 (anti-IL1β mAb)
613 (anti-IL1β mAb) Phase II study of 613 in acute gouty arthritis met primary endpoints Recurrence rate of acute gout in 12 weeks was • Effect begins 6 Hrs after administration significantly lower than control group 16/31 • 613 performed better in reducing pain with time Patients with acute gout re
Slide 33: 611 (anti-IL4R mAb)
611 (anti-IL4R mAb ) Phase II trial of 611 in AD shows better performance than control group • Data from Week shows 611 has better performance IGA declined ≥2 from baseline than Dupilumab on EASI-75 and NRS IGA 0/14 and 46.7% declined ≥2 from baseline 41.9% 33.3% 35.5% EASI 752 IGA 0 /1 EASI 50 NRS
Slide 34: 610 (anti-IL5 mAb)
610 (anti-IL5 mAb ) Significantly improve the pulmonary function of severe asthma patients Phase II data indicates significant improvement in FEV1 • Progress ranks NO.1 in China 0.4 0.365 0.35 0.35 0.289 0.3 Company Code Indication 0.248 0.25 Phase II in eosinophil asthma met primary 0.183 0.187 SSG
Slide 35: 601A (anti-VEGF mAb)
601A (anti-VEGF mAb) BRVO phase II clinical trial data shows significant efficacy • W24 data indicates better trend of 601A primary Eyes differences FAS of BCVA versus baseline and key efficacy than ranibizumab during 52 weeks study period 601A trial group (n=31) Ranibizumab control group (n=29) Ran
Slide 36: Cooperative product -Nofazinlimab / CS1003 (anti-PD-1 mAb)
Cooperative product -Nofazinlimab / CS1003 (anti-PD-1 mAb) CS1003-1021 study shows great PoC data of CS1003 +lenvatinib in 1L HCC treatment • In this phase 1b corhort of 1L HCC (n=20), CS1003 (200mg Q3W) plus lenvatinib demonstrated a numerically higher ORR and longer PFS compared to competitors. ➢
Slide 37: 04 Financial Review
04 Financial Review Chief Financial Officer Mr. Tony HE
Slide 38: Financial Analysis
Financial Analysis Net Profit Attributable to Revenue Gross Profit Net Profit Attributable to Parent Owners of the Parent Adjusted for Non-Operating Items 13.8 % YOY 17.1 % YOY -19.1% YOY 17.7 % YOY RMB Mn Gross profit ratio: RMB Mn RMB Mn RMB Mn 7,816 85.0% 6,642 1,916 1,952 6,866 5,672 1,651 1,727
Slide 39: Retain Stable Expense Ratio
Retain Stable Expense Ratio Selling and Distribution Expenses R&D Costs Administrative Expenses Finance Costs RMB Bn RMB Mn RMB Mn RMB Mn 3.0 250 850 2.6 795 700 676 212 800 2.3 754 650 200 750 2.0 2.0 694 600 700 150 550 650 110 600 590 500 481 100 453 100 80 550 527 450 70 393 500 400 371 50 450 3
Slide 40: Maintain Stable Asset Structure
Maintain Stable Asset Structure Total Assets Net Assets Debt Asset Ratio RMB Bn RMB Bn 30% 30% 30% 26% 24% 23.6 22.0 19.2 16.5 17.7 14.7 15.4 14.8 13.1 10.4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 40
Slide 41: Sublime CF Condition, Sufficient FCF
Sublime CF Condition, Sufficient FCF Financial Resource Operating Net Inflow RMB Bn 8.2 Bn RMB Bn 8.2 7.4 2.1 2.1 1.9 1.6 5.0 1.3 4.5 2.6 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 41
Slide 42: Dividend Payout Ratio Improved
Dividend Payout Ratio Improved Deliver solid financial performance, Persist in repaying shareholders Dividends HKD/share Financial performance delivery • Net Profit Attributable to Owners of the Parent Adjusted for Non-Operating Items 5 tears of CAGR 10.6% Dividend payout • Robust profit supports su
Slide 43: Major transactions in 2023
Major transactions in 2023 Nofazinlimab CS1/BCMA CAR-T Eltrombopag (CS1003) (SA102) Suspension 01 Nov, 2023 15 Dec, 2023 20 Dec, 2023 • 3SBio obtained the exclusive rights to develop, • 3SBio obtained the exclusive rights to develop, • 3SBio reached cooperation agreement with HQ register, manufactur
Slide 44: Our Future BD Strategy
Our Future BD Strategy Focus on Advantageous Therapeutic Area “End-to-end” Comprehensive Abilities of R&D, Manufacturing and Marketing Sufficient Financial Resource Over RMB 8 bn available Over RMB 2 bn operating cash net inflow annually ✓ Unmet clinical needs ✓ Innovative drugs Flexible Cooperation
Slide 45: Q&A
05 Q&A
Slide 46: 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