Jiangsu Simcere Pharmaceutical Co., Ltd (HKG: 2096) has reported its financial results for the first half of 2024, with revenues amounting to RMB 3.114 billion, marking a 7.9% year-on-year (YOY) decline. The innovative drug business contributed RMB 2.203 billion, representing approximately 70.7% of total revenues and reflecting an 8.7% YOY decrease. Profit attributable to the company’s equity shareholders plummeted by 79.9% YOY to RMB 457 million.
In segment analysis, oncology revenue was RMB 619 million, a 20.9% YOY decrease, and accounted for 19.9% of total revenue. The nervous system segment generated RMB 909 million in revenue, a 13.8% YOY drop, and made up 29.2% of total revenue. Autoimmune disease products saw a 29.0% YOY increase in revenue to RMB 850 million, constituting 27.3% of total revenue. Revenue from other areas was RMB 736 million, down 16.8% YOY, and represented 23.6% of total revenue.
The overall decline was attributed to reduced income from promotion services, particularly after the involvement of Olmesartan medoxomil and hydrochlorothiazide in volume-based procurement, which led to the termination of the promotion service agreement with Daiichi Sankyo. Additionally, Envafolimab fell short of expected promotion service income, and sales of Xiannuoxin (simnotrelvir, ritonavir) declined post-COVID-19 pandemic.
Simcere Pharma boasts seven commercialized innovative drugs. During the period, the EGFR monoclonal antibody Enlituo (cetuximab β) received marketing approval, while the VEGF monoclonal antibody suvemcitug and the insomnia drug daridorexant are pending regulatory decisions in China. The company’s total R&D expenditure was RMB 612 million, a 38.1% YOY reduction. Operating activities yielded a net cash income of RMB 863 million, with cash and cash equivalents standing at RMB 2.755 billion, indicating that the overall financial condition of the company remains stable.- Flcube.com
