3sbio, Inc. · HKEX:1530
3sbio — FY2016 Earnings Presentation
36 slides from 3sbio's earnings presentation, Jun 13, 2017
Slide 1: 2016 Annual Results Presentation
2016 Annual Results Presentation
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 Section 1 Company Overview Section 2 2016 Annual Results Highlights Section 3 Business Review Section 4 Financial Review Section 5 Growth Strategies Section 6 Investment Highlights 2
Slide 4: Company Overview
Section ] Company Overview pharm
Slide 5: A Pioneer and Undisputed Market Leader in the PRC Biotechnology Industry
A Pioneer and Undisputed Market Leader in the PRC Biotechnology Industry A Pioneer in the PRC Biopharmaceutical Industry Leading Core Products A pre-eminent player with 7 approved biological products in China’s Self developed and the only commercialized rhTPO fast growing biopharmaceutical indus
Slide 6: History and Key Milestones
History and Key Milestones Interfen Inleusin EPIAO TPIAO IV Sucrose SEPO (rhEPO) Wansheng Product Yisaipu (interferon (interleukin 2) (rhEPO) (rhTPO) (iron sucrose Sparin (LMWH-Ca) Portfolio Byetta alpha-2a) injection) Bydureon 1993 1995 1996 1998 2005 2006 2007 2013 2014 2015 2016 2017 Established
Slide 7: Established Global Operation Presence
Established Global Operation Presence Shenyang Facility Guojian Sirton (Italy) Shenyang Shanghai Hangzhou Zhejiang Wansheng Italy Shenzhen Sciprogen 6
Slide 8: 2016 Annual Results Highlights
Section 2 2016 Annual Results Highlights
Slide 9: 2016 Annual Results Overview
2016 Annual Results Overview Key Highlights of 2016 Results • Achieved strong revenue and normalized EBITDA YoY growth of 67.2% and 56.5% respectively in a 2016(3) 2015 Change challenging operating environment (RMB) (RMB) • Core products maintained market leadership and growth momentum – TPIAO: achi
Slide 10: Business Review
Section 3 Business Review pharm
Slide 11: Market-Leading Products with Strong Growth Momentum and Significant Growth Potential
Market-Leading Products with Strong Growth Momentum and Significant Growth Potential EPIAO and SEPO: Market Leader in rhEPO TPIAO: Blockbuster in Early Growth Stage Yisaipu: First-to-market mAb Drug Market • Self-developed, the only commercialized rhTPO • A TNF α inhibitor product launched by Guojia
Slide 12: Successful Integration Post the Major Acquisitions
Successful Integration Post the Major Acquisitions Sales & Marketing 6 BUs of more than 1,900 sales & marketing employee under the leadership of Kevin Xiao, supported by integrated compliance, market access, commercial operation, marketing, sales force efficiency and finance, with improved overall
Slide 13: Exclusive In-licensing with AstraZeneca
Exclusive In-licensing with AstraZeneca On 11 October 2016, we entered into an Exclusive License Agreement with AstraZeneca for the commercialization of Byetta and Bydureon in the PRC for 20 years. • Licensed Products - Byetta - Bydureon single dose tray, Bydureon dual chamber pen, and Bydureon auto
Slide 14: Robust and Innovative Product Pipeline
Robust and Innovative Product Pipeline Supported by Integrated R&D Platform and Collaboration with Industry Leaders and International Partners Therapeutic Area Product Candidate Intended Indication Development Status Classification SSS06 Anemia associated with CKD Phase I (completed) Class I Biologi
Slide 15: Our Manufacturing Capabilities
Our Manufacturing Capabilities EPIAO and TPIAO SEPO and Sparin mAb Small Molecule CMO Shenyang Facility Shenzhen Facility Currently operates five Integrated platform for Located in Como, Italy Capable of bulk Used for manufacturing antibody bioreactors R&D, production and Authorized to p
Slide 16: 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 • Marketed and promoted TPIAO, Yisaipu, EPIAO, Byetta, IV Iro
Slide 17: Rapid Expansion Bolstered by Strong Organic Growth and Successful Acquisitions
Rapid Expansion Bolstered by Strong Organic Growth and Successful Acquisitions 2014 Now 2014 revenue: RMB1.13Bn 2016 revenue: RMB2.80Bn Revenue 2014 normalized net profit: RMB411 MM 2016 normalized net profit: RMB721 MM 2 key products: EPIAO and TPIAO Diversified product portfolio with 5
Slide 18: Financial Review
Section 4 Financial Review pharm
Slide 19: Robust Revenue and Profit Growth
Robust Revenue and Profit Growth Revenue Gross Profit (RMB MM) (RMB MM) 3,000 2,797.3 3,000 2,395.0 2,000 1,673.1 2,000 1,431.2 1,130.9 1,043.4 1,000 1,000 92.3% 85.5% 85.6% 0 0 2014 2015 2016 2014 2015 2016 Gross Margin Normalized EBITDA(1) Normalized Net Profit(2) (RMB MM) (RMB MM) 800 721.7 1,500
Slide 20: Product Mix and Contribution
Product Mix and Contribution Sales of Goods Contribution (1) (2) (%) 100% 8.9% 9.4% 14.7% 7.9% 6.1% 3.4% 80% 2.6% 39.0% 28.0% 60% 36.0% 40% 27.2% 52.1% 20% 40.6% 24.1% 0% 2014 2015 2016 EPIAO TPIAO Yisaipu SEPO Wansheng Products Others Note: 1 Sales of TPIAO, Yisaipu, EPIAO and SEPO shown above are
Slide 21: Healthy Working Capital Ratios and Strong Operating Cash Flow
Healthy Working Capital Ratios and Strong Operating Cash Flow Finished Goods Turnover Days Trade Receivables Turnover Days (Days) (Days) 80 100 54 80 71 (1) 72 (2) 60 60 41 60 40 31 40 20 20 0 0 2014 2015 2016 2014 2015 2016 Trade Payables Turnover Days Net Cash Flows From Operating Activities (Days
Slide 22: Growth Strategies
Section 5 - Growth Strategies : pharm
Slide 23: Outlook and Future Strategies
Outlook and Future Strategies • Building world-class marketing and sales platform with target RMB8-10 billion sales within 3-5 years (CAGR over 25%) • Further expand TPIAO, YISAIPU, EPIAO/SEPO franchise and BYETTA Marketing/ • Expand our BROAD market network to penetrate wider market Sales • Add add
Slide 24: Investment Highlights
Section 6 Investment Highlights
Slide 25: Investment Highlights
Investment Highlights Leader in the Highly Attractive PRC Biotechnology Industry with 7 Approved 1 Biological Products Market-Leading Products with Significant Growth Potential in Oncology, 2 Rheumatology, Nephrology and Metabolic Therapeutic Areas 3 Leading Commercial Platform with more than 1,900
Slide 26: Appendix
Appendix “ pharm
Slide 27: Biopharmaceutical Industry Overview
Biopharmaceutical Industry Overview Global Biopharmaceutical Market Growth Driven by Innovation Biopharmaceuticals have Larger and More Complex Molecular Introduction of Biopharmaceuticals Structures than Chemical Medicines • Biopharmaceuticals are therapeutic proteins produced Chemical Medicine Bio
Slide 28: Biopharmaceutical Industry Overview (Continued)
Biopharmaceutical Industry Overview (Continued) Fast-growing PRC Biopharmaceutical Market with Large Growth Potential China Biopharmaceutical Market Significantly Outperformed China Pharmaceutical Market in Recent Years and is Projected to Maintain Strong Growth Momentum (RMB Bn) 350 18% 316 18% 300
Slide 29: Our Broad Product Portfolio
Our Broad Product Portfolio Generic Insurance Product Indication Highlights Name Coverage • Treatment of anemia associated with Injectable Recombinant CKD • Only product approved for all three EPIAO Human Erythropoietin • Reduction of allogeneic blood • NMIC1 Category B drug indications in China (益比
Slide 30: Pipeline Product – SSS06 NuPIAO
Pipeline Product – SSS06 NuPIAO® (Recombinant Erythropoiesis Stimulating Protein) Proprietary IP The second generation long-lasting EPO analogue: Higher glycosylation and longer half-life in vivo. The molecular structure of SSS06 The efficacy of SSS06 qw (4 weeks) is comparable to the rhEPO tiw.
Slide 31: Pipeline Product – SSS07 Anti-TNFα Monoclonal Antibody
Pipeline Product – SSS07 Anti-TNFɑ Monoclonal Antibody Class I new drug fully humanized mAb from rabbit counterpart Global Proprietary IP High specificity－only recognizes human TNFɑ High affinity－the highest potency in its class Unique epitope SSS07 can only bind and block human TNFɑ, does
Slide 32: Pipeline Product – SSS11 Pegsiticase
Pipeline Product – SSS11 Pegsiticase®(Pegylated Recombinant Candida Utilis Uricase) Global IP, indication: refractory gout and hyperuricemia High potency－the highest activity of catalyze uric acid at human physiology pH Efficacy in humans have been established in US phase I clinical trials－hig
Slide 33: Pipeline Product – SSS22 PEG-Irinotecan
Pipeline Product – SSS22 PEG-Irinotecan (Pegylated Irinotecan) Class I new drug Proprietary IP Indications: refractory cancers, including colorectal cancer, metastatic breast cancer, and platinum-resistant ovarian cancer Passively targeting tumor tissues selectively due to their leaky vascul
Slide 34: Diabetes Market Overview
Diabetes Market Overview China Diabetes Market Is Large and Underpenetrated with Tremendous Growth Potential China Diabetes Population and Incidence Rate Diabetes Diagnosis, Treatment and Control rates China Anti-diabetic Pharmaceuticals Market million 100% 92% US$Bn 4.5% 9.3% 10.6% Global China US
Slide 35: AstraZeneca Licensed Products Overview
AstraZeneca Licensed Products Overview Byetta Bydureon • Description • Description - Byetta (generic name “exenatide injection”) is an injectable - Bydureon is an extended-release formulation of exenatide Glucagon-Like Peptide-1 receptor agonist (GLP-1 RA) • Indication • Indication - Improve glycemi
Slide 36: 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 years of • Led the