3sbio, Inc. · HKEX:1530
3sbio — FY2018 Earnings Presentation
36 slides from 3sbio's earnings presentation, Mar 21, 2019
Slide 1: 3SBio 2018 Full Year Investor Presentation
3SBio 2018 Full Year Investor Presentation March 21, 2019
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 1 Welcome and Introduction Dr. Lou Jing, Chairman and CEO 2 R & D Update Dr. Zhu Zhenping, President of R&D and CSO 3 Operational and Financial Review Mr. Tan Bo, CFO 4 Q&A 3
Slide 4: Welcome and Introduction
Welcome and Introduction Dr. Lou Jing, Chairman and CEO
Slide 5: 2018 Highlights – Strong Operating Performance
2018 Highlights – Strong Operating Performance Investment in Innovative R&D Supported by Strong Operating Performance Revenue Revenue increased by approximately RMB 849.5 million or approximately 22.7% to approximately RMB 4,583.9 million. EBITDA EBITDA increased by approximately RMB 416.0 milli
Slide 6: 2018 Highlights - R&D
2018 Highlights - R&D Investment in Innovative R&D Supported by Strong Operating Performance Well-positioned biologics oncology pipeline (antibodies to HER2, CD20, PD1, VEGF and EGFR) Resubmitted NDA application of anti-HER2 antibody Inetetamab (302H) to CDE and achieved priority review status
Slide 7: 2018 Highlights (Con'd)
2018 Highlights (Con’d) Investment in Innovative R&D Supported by Strong Operating Performance Products and Sales Strategic Partnering and Licensing Bydureon was launched in May 2018 in China as the first- Refuge Biotechnologies: research collaboration to develop to-market once-weekly therap
Slide 8: 2019 Outlook
2019 Outlook Accelerate Product Development through Strong Pipeline and Strategic Partnership and Business Development R&D New Products New Development New IND applications: Antibodies to PD1, IL17, IL5 and IL4R in China, and New product launch: Inetetamab Increase sales of marketed products b
Slide 9: Company Strategy
Company Strategy ONCOLOGY AUTOIMMUNE NEPHROLOGY METABOLIC DERMATOLOGY DISEASES DISEASES Innovative Biologics & Core Product Portfolio China-based Global Leader in Biologics In the next 10 years, 3SBio will launch 20+ new products, at least half of which will be innovative biologics products R&D Manu
Slide 10: R&D Update
R&D Update Dr. Zhu Zhenping, President of R&D and CSO
Slide 11: 3SBio is a Leader in Improving Patient Access to Cutting-Edge Biologics Medicines
3SBio is a Leader in Improving Patient Access to Cutting-Edge Biologics Medicines China healthcare reforms over the past 25 years have aimed to bridge the gap in international treatment standard through improved access and affordability 3SBio was a pioneer in this first wave of biologics in Chin
Slide 12: 3SBio Integrated R&D Centers and Platforms
3SBio Integrated R&D Centers and Platforms 4 R&D Centers with Biologics & • 70+ national patents，30 + launched products，32 product Chemical Drugs Platforms candidates，among which we have 22 National Class I New Drugs National Engineering Research Center • 330 experienced scientists under the leaders
Slide 13: Major Progress in Pipeline Development in 2018
Major Progress in Pipeline Development in 2018 Well-positioned biologics oncology pipeline (antibodies to HER2, CD20, PD1, VEGF, and EGFR) Resubmitted NDA application of the anti-HER2 antibody Inetetamab (302H) to CDE and achieved priority review status Completed the Phase III trial report of
Slide 14: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform 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 Nephrology SSS12 S
Slide 15: Growing Cancer Patient Population Globally and in China
Growing Cancer Patient Population Globally and in China Rising Mortality and Diagnosis Rates Estimated Number of New Cases in 2018 Annual Worldwide Cancer Projections China 4,285,033 25 US 2,129,118 19.3MM 20 India 1,157,294 Japan 883,395 15 Germany 608,742 10 Brazil 559,371 11.2MM Russia 543,045 5
Slide 16: Oncology Market in China
Oncology Market in China Top 10 Oncology Drugs by Generic Name Globally and in China Globally (2018 Forecast) China (2018 Q1-Q3 Sales from Sample Hospitals) Market Size Brand Name of Patented 2018 Q1-Q3 Sales (Billion Generic Name Brand Name of Patented Drug Generic Name (Billion USD) Drug* RMB) Len
Slide 17: Growth Potential
3SBio Position in Addressing Cancer Challenge Growth Potential Bispecific PD1 HER2 CD20 TPO TLC EGFR VEGF Products EPO Pre-clinical CTA Commercialization 17
Slide 18: Inetetamab (302H)
Inetetamab (302H, 伊尼妥单抗) • From 2009 to 2013, the Company successfully conducted an open label, multi-center, perspective Phase III trial in China for Inetetamab (302H), a humanized anti-HER2 antibody for injection, in patients with HER2 over-expressing metastatic breast cancer • In September 2018,
Slide 19: Positioned to be the Leader in Next Generation Immuno-Oncology Programs
Positioned to be the Leader in Next Generation Immuno-Oncology Programs Macrophage Targeting Immunotherapies CAR-T Cell Therapy • First-in-class macrophage checkpoint modulators (MCMs) to benefit patients with cancer, immune and inflammatory diseases. • Partnership leverages gene engineering technol
Slide 20: Integrated Strategic Collaborations
Integrated Strategic Collaborations • Will jointly design and carry out research programs • Exclusive License Agreement for the focusing on developing Programmed Therapeutic commercialization of short-acting and long-acting Cells GLP-1 products in China • Exclusive license to develop and commerciali
Slide 21: Comprehensive Manufacturing Platform with Strategic CMO Capabilities
Comprehensive Manufacturing Platform with Strategic CMO Capabilities Complete Quality System Voluntarily in Compliance with Global Standards All 10 production lines for different dosage forms Plant certified by 11 countries, including Ukraine, are certified by GMP in 2010 Brazil and Mexico QA
Slide 22: Operational Review
Operational Review Mr. Tan Bo, CFO
Slide 23: Broader Core Products Achieved High Revenue
Broder Core Products Achieved High Revenue 8 Products with Revenue1 > RMB 100mm in 2018 8 Revenue > RMB 1 Bn 6 • IV Sucrose (Iron Sucrose) • Sparin (LMWH-Ca) • 3 • • Byetta (Exenatide) Humulin (rh Insulin) Mandi (Minoxidil) 2 • SEPO (rhEPO) • Yisaipu (rhTNFR-Fc) • TPIAO (rhTPO) • EPIAO (rhEPO) 2015
Slide 24: Market-Leading Products with Significant Growth Potential
Market-Leading Products with Significant Growth Potential Attractive Products with Unique Value Positions and Significant Growth Potential TPIAO Self-developed and the only commercialized rhTPO product in the world rhTPO Achieved a market share of 65.3% in 20181. Inclusion in 2017 NRDL as a cl
Slide 25: Market-Leading Products with Significant Growth Potential (cont'd) - TPIAO
Market-Leading Products with Significant Growth Potential (cont’d) TPIAO First to market The first choice in second tier treatments list per PRC ITP Experts Consensus Achieved a market share of 65.3% in 2018 Inclusion in 2017 NRDL as a class B drug Higher efficacy, faster platelet recovery
Slide 26: Market-Leading Products with Significant Growth Potential (cont'd) - Yisaipu
Market-Leading Products with Significant Growth Potential (cont’d) Yisaipu First-to-market Anti-TNF drug Inclusion in 2017 NRDL as a Class B drug Indicated for the treatment of rheumatoid arthritis, ankylosing Completed phase III trial for prefilled syringe of Yisaipu and is spondylitis and
Slide 27: Market-Leading Products with Significant Growth Potential (cont'd) - EPIAO and SEPO
Market-Leading Products with Significant Growth Potential (cont’d) EPIAO and SEPO EPIAO has been market leader in China’s rhEPO market for over a decade, continuously ranked as #1 in terms of revenue and volume since 2002 Market share reached 41.0% in 2018 (together with SEPO) SEPO is our seco
Slide 28: Financial Review
Financial Review Mr. Tan Bo, CFO
Slide 29: Consistent Strong Growth Since IPO
Consistent Strong Growth Since IPO Revenue Gross Profit 5,000 4,000 Gross Margin 3,706.6 4,583.9 3,058.1 4,000 3,734.3 3,000 (RMB mm) 2,395.0 (RMB mm) 3,000 2,797.3 2,000 1,431.2 2,000 1,673.1 1,000 85.6% 81.9% 80.9% 1,000 85.5% 0 0 2015 2016 2017 2018 2015 2016 2017 2018 EBITDA Net Profit Attributa
Slide 30: Market-Leading Products with Strong Growth Momentum
Market-Leading Products with Strong Growth Momentum TPIAO Yisaipu1 EPIAO + SEPO EPIAO SEPO 1,669.5 1,111.4 896.6 855.3 1,012.9 925.2 772.8 192.5 727.2 150.7 842.3 95.6 43.5 974.8 765.0 605.1 683.7 677.2 704.6 704.1 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 30 Note: 1 Yisaipu was co
Slide 31: Investment Highlights
Investment Highlights 1 Leader in the Highly Attractive PRC Biotechnology Industry 2 Market-Leading Products with Significant Growth Potential 3 Focused and Innovative Product Pipeline with Steady Growth Expected 4 Leading Commercial Platform Supported by Extensive Sales Network 5 Comprehensive Manu
Slide 32: Q&A
Q&A
Slide 33: Slide 33
Slide 34: BACK-UP
BACK-UP
Slide 35: Experienced and Visionary Management Team Leading the Growth
Experienced and Visionary Management Team Leading the Growth Dr. Lou Jing Co-founder, Chairman, Executive Director and Chief Executive Officer Joined Shenyang Sunshine as director of R&D in 1995 Led the manufacturing process development and manufacturing of EPIAO and TPIAO Obtained Ph.D from F
Slide 36: Well Positioned to Meet the Needs of Patients in Oncology
Well Positioned to Meet the Needs of Patients in Oncology Key Challenge for Health Care Systems Globally China Oncology Market Forecast (2013-2022E) US$Bn Size of bubble represents WW Sales (US$Bn) in 2017 40.3 % Sales Growth: CAGR 2017-2024 23 35.7 31.4 18 Immunosuppressants Oncology 27.3 24.0 13 D