SYS-CON MEDIA Authors: Roberto Medrano, Dmitriy Stepanov, Gilad Parann-Nissany, Srinivasan Sundara Rajan, Sean Houghton

News Feed Item

Sihuan Pharmaceutical Announces 2013 Annual Results

Revenue and Profit Attributable to Owners of the Company Up by 55.6% and 44.1% Respectively

HONG KONG, March 11, 2014 /PRNewswire/ -- Sihuan Pharmaceutical Holdings Group Ltd. (HKEx: 0460) ("Sihuan Pharmaceutical" or the "Company"), a leading pharmaceutical company with the largest cardio-cerebral vascular ("CCV") drug franchise in China's prescription drug market, today announced its annual results for the year ended 31 December 2013 ("2013" or the "Year").

Financial Highlights


For the Year Ended 31 Dec 2013

Key Income Statement Items

RMB Million

Change


2013

2012


Revenue

4,732.7

3,042.5

+55.6%

Gross Profit

3,699.7

2,289.4

+61.6%

Profit Attributable to Owners of the Company

1,303.0

904.4

+44.1%

Proposed Final Dividend per Share (RMB Cents)

2.1

5.8

N/A






In 2013, the Company not only achieved a sharp sales rebound for its two key products, Kelinao and Oudimei, but also recorded rapid growth of its fast-growing promising products such as Yuanzhijiu, Yeduojia, and Danshen Chuangxionqin. With the increase of sales growth of our CCV drugs, the Company's revenue surged 55.6% to RMB4,732.7 million. Overall gross profit increased by 61.6% from RMB2,289.4 million in 2012 to RMB3,699.7 million in 2013 due to an increase in the sales of products with higher gross profit margins, while profit attributable to owners of the Company jumped 44.1% to RMB1,303 million. A final dividend of RMB2.1 cents per share (2012: RMB5.8 cents) was recommended by the Board together with a bonus issue of 1 bonus ordinary share at par value of HK$0.01 each for every 1 existing ordinary share in return for shareholders' support and are subject to the approval of the shareholders at the annual general meeting of the Company to be held on 30 May 2014.   

Dr. Che Fengsheng, Chairman and CEO of the Company, said, "Backed by our industry-leading capabilities in integration and sales and marketing, we not only completed integrating of the acquired companies, but also grew bigger and stronger in the increasingly fierce pharmaceutical market. In 2013, we reaped the fruits of our labor and achieved rapid financial growth and outstanding operational results. This reflected the success of our previous expansion, which brought us a more diversified product portfolio, further balanced revenue stream and strengthened market leadership. On top of that, we achieved breakthroughs in our research and development for new drugs, ensuring that our strong growth momentum will be sustained by an enhanced product pipeline in the long run. As a result, we become the fourth largest pharmaceutical company in the Chinese hospital market and kept our lead in China's cardio-cerebral vascular ("CCV") prescription drug market."

Sharp Rebounds of Key CCV Products and Rapid Growth of Fast-growing Promising Products Boosted Strong Growth in Sales

CCV Products

Thanks to a young and diversified product portfolio, sales of CCV products grew 60.7% to RMB4,505.0 million, which accounted for 95.2% of the Company's total revenue, continuing to be the Company's largest revenue contributor. The significant growth was mainly attributable to the exciting rebound in sales for its two key products, Kelinao and Oudimei, and the rapid growth of its promising products. The Company stepped up its support to Kelinao's distributors for academic promotion and deepened its penetration into low-end markets, sales of Kelinao increased by 71.7% year-on-year to RMB1,115.3 million. As for Oudimei, the successful integration of its distribution network boosted its sales and marketing efficiency. As a result, sales of Oudimei jumped 93.1% to RMB 1,343.9 million during the Year. Promising products such as Yeoduojia, Danshen Chuanxiongqin, Guhong, Yimaining and Yuanzhijiu maintained strong growth in sales, which were up significantly by 225.7%, 83.9%, 59.8%, 54.9% and 19.7% respectively.

Non-CCV Products

The Company's non-CCV products maintained stable growth in sales volume. The Company launched its first non-CCV exclusive first-to-market generic drug Roxatidine, which has expanded its market by tender wins in two provinces and supplementary tender submissions in another province. In addition, it entered drug reimbursement list ("DRL") of one province. The product is expected to generate significantly more revenue with more extensive marketing and after winning tenders and entering provincial DRL in more provinces.

Clear Sales and Tendering Strategies Achieved Promising Results

During the Year, the Company stepped up its academic promotion work and boosted incentives to distributors for Kelinao and Oudimei, to motivate distributors to promote the Company's products. In the meantime, the Company devised clear tendering strategies for its products, i.e. horizontal expansion to increase market coverage of its products by provincial tender wins and supplementary tender submissions, as well as vertical expansion into low-end markets with provincial Essential Drug List ("EDL") tender wins and provincial New Rural Cooperative Medical Scheme List ("NRCMSL").

Positive Results from New Products Development

The Company has intensified efforts on innovative drug projects and achieved promising results by leveraging its effective resources integration. To date, the Company has submitted investigational new drug ("IND") applications for seven Category 1.1 innovative drugs and has obtained Approval for Clinical Trial for five Category 1 innovative drugs from the China State Food and Drug Administration ("CFDA"). Among them, Category 1.1 innovative drug Benapenem and Imigliptin Dihydrochloride have been awarded as The National Major Innovative Drug Projects.

As for generic drugs, after securing production licenses for the exclusive first-to-market generic drug Roxatidine and Category 3.1 new drug Nalmefene Hydrochloride Injection at the end of 2012 and start of 2013 respectively, the products have successfully passed on-site inspections and were officially launched. In total, the Company has 17 Category 3.1 first-to-market generic drug projects under development. By the end of 2013, production license applications of 22 generic drugs were filed in total and these products are expected to be launched progressively in the coming years.

Production and Quality Management

The Company completed the construction of its main production and R&D base in Tongzhou, Beijing and the upgrade of all its other production bases. In compliance with the new Good Manufacturing Practice standard, these constructions projects cover a total of over 300,000 square meters which mark the largest constructions in the Company's history. The Company's Active Pharmaceutical Ingredients production base, Langfang Gaobo Jingband, received certification from the Food and Drug Administration of United States during the Year.

Future Prospects

Looking forward, the development of China's pharmaceutical industry will continue to be driven by market potential released from expanded national medical insurance coverage, accelerated urbanization and ageing population, enabling it to maintain fast growth in 2014. The management believes that companies such as Sihuan Pharmaceutical will reap benefits from the government's policies for encouraging innovation and industry consolidation, being an innovative company with strong integrated capabilities, in R&D, production and sales and marketing, with its focus on exclusive and patented drugs. 

Looking ahead, the Company plans to continue to tap potential of its strong existing product resources, with all six key and potential blockbusters being exclusive products, coupled with over ten products with exclusive formulations or dosages. In addition, many of its products have been included in the national or provincial EDL or were recently added to NRCMSL of many provinces to further market penetration. This is a prestigious product mix which helps the Company to differentiate itself amidst fierce market competition, and is expected to sustain business growth in the coming years. Also, the Company will continue to reinforce its nationwide distribution network and optimize its unique sales and marketing system. Moreover, the Company will continue to enriching its product resources through R&D, acquisitions and product collaboration. The Company's long-term growth momentum will be supported by a variety of patented drugs and first-to-market generic drugs under development. These products are expected to launch from 2015.

Dr. Che concluded, "I have full confidence in Sihuan Pharmaceutical's future development, as we have established an effective operating system and a solid business foundation. I firmly believe that we are poised to seize opportunities arising from the industry consolidation and will be able to achieve stable and sustainable growth. We are making strides towards achieving our goal of becoming the most competitive Chinese pharmaceutical company and developing a global reputation for excellence." 

About Sihuan Pharmaceutical Holdings Group Ltd.

Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading Chinese pharmaceutical corporation and the largest cardio-cerebral vascular drug franchise in China's prescription drug market by market share. The Company also became the fourth largest pharmaceutical company in terms of hospital purchase in China's hospital market by the end of 2013. The success of the Company can be attributed to its differentiated and proven sales and marketing model, extensive nationwide distribution network, young and diversified product portfolio, and strong R&D capabilities. The Company's current products encompass the top five medical therapeutic areas in China: cardio-cerebral vascular system, central nervous system, metabolism, oncology and anti-infectives. Its major products such as Kelinao, Oudimei, Yuanzhijiu, Yeduojia and Guhong are widely used in the treatment of various cardio-cerebral vascular diseases.

SOURCE Sihuan Pharmaceutical Holdings Group Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables c...