China-based Lee’s Pharmaceutical Holdings Ltd (HKG: 0950) has released its financial report for the first half of 2023, recording revenues of HKD 512 million (USD 65.2 million), marking a year-on-year (YOY) decrease of 21.1%. The decline is primarily attributed to product rights expiration, falling sales volumes, and the devaluation of the renminbi. The company’s investment in research and development for the period was HKD 114 million, a 45.0% decrease YOY. Sales and distribution expenses also saw a reduction, coming in at HKD 147 million, down 16.6% YOY.
Growth in Existing Product Portfolios
Despite the overall revenue decline, all existing product portfolios reported growth. Notably, iron supplement Ferplex (iron proteinsuccinylate), renal transplant rejection inhibiting agent Bredinin (mizoribine), antemetic granisetron, and Trittico (trazodone) saw growth rates of 39.6%, 43.4%, 197.4%, and 176.3%, respectively.
Shift in Sales Focus to Patented and Generic Drugs
Since the beginning of 2023, Lee’s sales focus has shifted towards patented and generic drugs. Sales of in-licensed products accounted for 46.9% of the group’s revenue during H1’23, compared to 61.2% in the same period last year. The proportion of sales for patented and generic drugs increased from 38.8% in the same period last year to 53.1%.
Marketing Approvals for New Products
During the period, the company received marketing approvals for apremilast, a PDE4 inhibitor used to treat psoriasis, and vasodilator INOmax. These approvals are expected to contribute to the company’s future growth and product offerings.-Fineline Info & Tech
