China-based Sino Biopharmaceutical Ltd (HKG: 1177) has released its 2022 interim report, recording revenues of RMB 15.19 billion ($2.1 billion), up 5.9% year-on-year (YOY). However, net profits fell 77.3% YOY to RMB 1.92 billion ($268.5 million). The company’s new products (launched within the past five years) generated RMB 6.61 billion ($924.5 million), up 24.6% YOY, with contributions from innovative drugs increasing 14.2% YOY to RMB 3.49 billion ($488.1 million).
Product Segment Performance
Anti-tumor drugs were a significant revenue driver, generating RMB 4.957 billion ($642.9 million), up 16.7% YOY and accounting for 32.6% of total revenues. Surgical and analgesic drug revenue was RMB 2.521 billion ($352.6 million), up 7.1% YOY and accounting for 16.6% of total revenues. Liver disease drug revenue was RMB 2.009 billion ($281 million), up 11.1% YOY and accounting for 13.2%. Respiratory system drug revenue was RMB 1.513 billion ($211.6 million), up 8.4% YOY and accounting for 10.0%. Cardiovascular and cerebrovascular drug revenue was RMB 1.552 billion ($217 million), up 13.8% YOY and accounting for 10.2%. Other drug revenue was RMB 2.643 billion ($369.7 million), up 9.8% YOY and accounting for 17.4%.
R&D Expenditure and Future Outlook
Research and development (R&D) expenses were RMB 2.19 billion ($306.3 million), representing 14.4% of total revenues, up from 13.1% in 2021. In response to the potential impact of volume-based procurement (VBP) on generic drugs, Sino Biopharmaceutical has decided to increase investment in R&D facilities, personnel, and programs. The company expects novel drugs to account for 24% of total revenues in 2022 and aims to generate over RMB 10 billion ($1.4 billion) in sales from these drugs in 2023. Sino Biopharmaceutical is targeting HKD 100 billion ($12.7 billion) in revenues by 2030, with novel drugs contributing 60% of the total.-Fineline Info & Tech
