3sbio, Inc. · HKEX:1530
3sbio — H1 2018 Earnings Presentation
35 slides from 3sbio's earnings presentation, August 2018
Slide 1: 3SBio Investor Presentation
3SBio Investor Presentation August 2018
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: Table of Contents
Table of Contents 1 Investment Highlights 2 2018 Interim Results Highlights 3 Financial Review
Slide 4: Industry Policy Review since 2017
Industry Policy Review since 2017 The Policy of “Healthy China” Accelerates the Development of the Industry The Ministry of Human Resources and Social Security issued the "National Basic Medical Insurance, Industrial Injury Insurance and Maternity Insurance Drug Catalog (2017 Edition)", February 21
Slide 5: Industry Policy Reform Deepens
Industry Policy Reform Deepens Current Situation Implication to the Industry Continuing to speed up new drug application ‒ According to DXY Insight, CDE has received 3,553 applications in 2018, involving 1,770 drug varieties, an increase of 62% over the same period last year (1,092 drug varieties
Slide 6: History and Key Milestones
History and Key Milestones Interfen 1993 Established Shenyang Sunshine, the major operating subsidiary of our Company (interferon alpha-2a) Listed on Nasdaq Inleusin 1995 (interleukin 2) 1996 Privatized by a consortium led by management and CPE and delisted from Nasdaq EPIAO 1998 Acquired Sciprogen
Slide 7: Outlook and Future Strategies
Outlook and Future Strategies 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 30+ new products with at least half being innovative biological products
Slide 8: Investment Highlights
Section 1 Investment Highlights
Slide 9: 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 10: Leader in the Highly Attractive PRC Biotechnology Industry
Leader in the Highly Attractive PRC Biotechnology Industry Well-Positioned to Capture Vast Industry Opportunities Pioneer in the PRC Biopharmaceutical Industry Highly Attractive PRC Biotechnology Market 7 A pre-eminent player with approved biological products in China’s fast growing Strong gover
Slide 11: Leader in the Highly Attractive PRC Biotechnology Industry (Cont'd)
Leader in the Highly Attractive PRC Biotechnology Industry (Cont’d) Strengthened Leadership by Expanding to Areas with Significant Growth Potential Key Therapeutic Areas & Capability Focus H1 2018 Auto Nephrology Oncology Immune Metabolic Dermatology CDMO Toray’s TRK-820(3) Collaboration with Refuge
Slide 12: 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 Higher efficacy, faster platelet recovery and fewer side effects compared t
Slide 13: Market-Leading Products: TPIAO Market and Efficacy
Market-Leading Products with Significant Growth Potential (Cont’d) TPIAO China’s rhTPO Market is Still Under-Penetrated rhTPO: A Safer and More Effective Treatment Option for CIT and ITP Patients Indications Target Patients in China rhTPO rhIL-11 Eltrombopag Chemo patients with More effective in i
Slide 14: Market-Leading Products: TPIAO Leadership
Market-Leading Products with Significant Growth Potential (Cont’d) TPIAO First to market Higher efficacy, faster platelet recovery and fewer side effects compared to alternative treatments for CIT and ITP Achieved a market share of 63.2% in H1 20181, and demonstrated strong hospital sales in H
Slide 15: Market-Leading Products: Yisaipu Anti-TNF Market
Market-Leading Products with Significant Growth Potential (Cont’d) Yisaipu Rapid Growth of China Anti-TNF Market in the Past Decade… Anti-TNF Therapies’ Sales Reached approximately RMB1.8 bn in China in 2017 4,800 4,142 4,200 3,395 3,600 (RMB mm) 3,000 2,552 2,400 1,772 1,738 1,800 1,503 1,230 1,177
Slide 16: Market-Leading Products: Yisaipu Leadership
Market-Leading Products with Significant Growth Potential (Cont’d) Yisaipu First to market Anti-TNF drug Indicated for the treatment of rheumatoid arthritis, plaque psoriasis and ankylosing spondylitis On 3 treatment guidances (the experts consensus on the Treatment of Childhood Idiopathic Art
Slide 17: Market-Leading Products: 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, consistently ranking #1 in terms of revenue and volume since 2002 — Market share reached 41.3% in H1 2018 (together with SEPO) SEPO is our sec
Slide 18: Market-Leading Products: Diabetes Franchise
Market-Leading Products with Significant Growth Potential (Cont’d) Diabetes Franchise (Humulin and GLP-1) China Diabetes Market Is Large and Underpenetrated with Tremendous Growth Potential • Humulin market share dropped in Q3 2017 due to the transition period and • China has the largest diabetes po
Slide 19: Robust and Innovative Product Pipeline Supported by Integrated R&D Platform
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform 4 R&D centers with both biologics & chemical drugs platforms • 73 national patents，30 + launched products，32 product National Engineering Research Center candidates，among which we have 17 National Class I New Drugs for Antib
Slide 20: R&D Strategies and Recent Major Progress
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform R&D Strategies Recent Major Progress The Group’s core therapeutic areas are Oncology, Immunology, Nephrology, Bydureon: the first long-acting weekly-dosing GLP-1 receptor agonist on China Metabolic diseases and Dermatolo
Slide 21: Product Pipeline by Therapeutic Area
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d) Therapeutic Area Product Candidate Pre-Clinical Clinical Trial Application Phase I Phase II Phase III New Drug Registration Production Permit SSS06 RD001 SSS17 Nephrology SSS18 Nalfurafine hydrochloride SSS12 SSS13
Slide 22: Preclinical Pipeline Highlights
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform (Cont’d) Preclinical Pipeline Highlights Estimate IND Time Code Name 2018 2019 2020 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 608 a humanized anti-IL17 antibody ● 609A a humanized anti-PD1 antibody * ● 610 a humanized anti-IL5 antibody ● 611
Slide 23: Strong In-House Sales Capability
Strong In-House Sales Capability Enabling Us to Effectively Promote and Sell Innovative Pharmaceuticals Emphasis on Academic Marketing Effective Marketing Strategies Established and maintained strong relationships with leading hospitals and medical Marketed and promoted the majority of our produ
Slide 24: Comprehensive Manufacturing Platform with Strategic CDMO Capabilities
Comprehensive Manufacturing Platform with Strategic CDMO Capabilities Strong and Comprehensive Manufacturing Capability Manufacturing Platform CDMO Capabilities Shenyang Facility China CDMO Platform • In 2018, the mammalian cell-based production plant and the bacterial cell- based production plant w
Slide 25: Complete Quality System Voluntarily Adhering to Global Standards
Comprehensive Manufacturing Platform with Strategic CDMO Capabilities (Cont’d) Complete Quality System Voluntarily Adhering to Global Standards Shenyang Shanghai Shenzhen Hangzhou Italy • Certified plant by 11 • Certified plant by countries • All existing and new • All 10 production lines for • Serv
Slide 26: CDMO Strategic Rationale
Comprehensive Manufacturing Platform with Strategic CDMO Capabilities (Cont’d) CDMO Strategic Rationale Operates one of the largest mAb commercial facility in China, with free capacity being able to offer contracted manufacturing services worldwide Enhancing Asset More than a decade experiences
Slide 27: 2018 Interim Results Highlights
Section 2 2018 Interim Results Highlights
Slide 28: 2018 Interim Results Overview
2018 Interim Results Overview Key Highlights of 2018 Interim Results New Growth 2,174 ‒ TPIAO achieved 70.7% revenue growth. Hospital sales grew 101.0% according to IMS RMB mm 1,707 ‒ Yisaipu achieved 0.6% revenue growth. Hospital sales grew 36.9% according to IMS Revenue ‒ EPIAO and SEPO achieved
Slide 29: Financial Review
Section 3 Financial Review
Slide 30: Robust Revenue and Profit Growth
Robust Revenue and Profit Growth Revenue Gross Profit 4,000 3,734.3 4,000 3,058.1 2,797.3 (RMB mm) 3,000 3,000 2,395.0 (RMB mm) 2,174.0 2,000 1,673.1 1,706.7 2,000 1,746.6 1,431.2 1,457.1 (1) 1,000 1,000 85.5% 85.6% 81.9% 85.4% 80.3% 0 0 2015 2016 2017 H1 2017 H1 2018 2015 2016 2017 H1 2017 H1 2018
Slide 31: Market-Leading Products with Strong Growth Momentum
Market-Leading Products with Strong Growth Momentum TPIAO Yisaipu1 EPIAO + SEPO 1,000 974.8 1,200 900 855.3 800 772.8 840.7 1,012.9 150.7 727.2 1,000 800 765.0 925.2 95.6 700 43.5 842.3 800 600 605.1 600 2 500 (RMB mm) (RMB mm) (RMB mm) 492.6 426.8 600 409.0 400 65.2 87.4 400 439.8 442.4 704.6 683.7
Slide 32: Product Mix and Contribution
Product Mix and Contribution Sales of Goods Contribution1,2,3,4,5 100% 17.0% 15.4% 16.8% 13.8% 90% 0.3% 4.3% 80% 5.3% 5.0% 3.6% 3.5% 70% 28.0% 20.3% 25.7% 27.0% 60% 50% 40% 27.2% 28.7% 38.5% 26.0% 30% 20% 27.5% 23.9% 10% 22.8% 19.5% 0% 2016 2017 2017H1 2018H1 EPIAO+SEPO TPIAO Yisaipu Byetta+Bydureon
Slide 33: THANKS
THANKS CHERISH LIFE CARE FOR LIFE CREATE LIFE
Slide 34: Appendix
Appendix
Slide 35: Experienced and Visionary Management Team Leading the Growth
Experienced and Visionary Management Team Leading the Growth Dr. Lou Jing Extensive Experience Co-founder, Chairman, Executive Director and Chief Executive Officer • Joined Shenyang Sunshine as director of research and development in 1995 Senior management team on average has > 15 • Led the manufact