Sihuan Pharmaceutical Holdings Group Ltd (HKG: 0460) has released its financial report for the first half of 2023, recording revenues of RMB 1.0557 billion (USD 144 million), marking a 27.9% decrease year-on-year (YOY). The research and development (R&D) expenses for the period were RMB 294 million (USD 40 million), a 35.7% decrease YOY, attributed to the completion of Phase III clinical studies for several in-house developed products.
Revenue Contributions and Sector Performance
Subsidiaries Huisheng Pharm and Xuanzhu Biopharm, along with the medical aesthetics platform Meiyoung, contributed to the total revenues. The medical aesthetics sector stood out, generating RMB 194 million, a 96.8% increase YOY, driven by product uptake and an expanded market share. In contrast, the generics segment reported a decline, with revenues of RMB 845.7 million, down 31.4% YOY, due to volume-based procurement (VBP) price reductions and the inclusion of some products in key monitoring drug lists. Novel drugs and other products saw a significant decrease in revenue, bringing in RMB 16 million, down 87.9% YOY, primarily due to the spin-off of some API units at the end of 2022.
Strategic Investments and Pipeline Developments
During the period, Huisheng Pharm secured a RMB 580 million Series A+ financing round and made market filings for insulin degludec and insulin aspart, along with a clinical trial filing for semaglutide in China. Xuanzhu Biopharm made significant strides with its antibody drug conjugate (ADC) XZP-KM501, which received a clinical trial nod for solid tumors with medium-to-low HER2 expression. Additionally, the CD80 fusion protein XZP-KM602 and DNA-PK inhibitor XZP-6877 obtained clinical approval for the treatment of advanced solid tumors. The CDK4/6 inhibitor birociclib reached endpoints in a Phase III study for HR+/HER2- advanced breast cancer.-Fineline Info & Tech
