China-based biopharmaceutical company Hua Medicine (HKG: 2552) has released its financial report for 2023, with revenues amounting to RMB 76.6 million (USD 10.57 million), primarily from its core product, HuaTangNing (dorzagliatin tablets), an oral hypoglycemic agent. The revenues were generated from the sale of 251,000 boxes of the drug since its market launch in China in October 2022, which achieved first-year sales revenues of RMB 17.6 million (USD 2.43 million) from 53,000 boxes sold.
For the year, total other income reached RMB 130.6 million (USD 18.02 million), with approximately RMB 65.1 million (USD 8.98 million) attributed to the amortization of milestone payments from German partner Bayer. The two companies entered into a deal for the China market in August 2020, with Bayer taking on the marketing, promotion, and medical education activities for HuaTangNing in China.
The company’s annual research and development (R&D) expenses saw an increase of about 32% year-on-year, reaching RMB 171.5 million. Pre-tax losses increased by about 4% to RMB 211.2 million. At year-end, the bank balance and cash held by Hua Medicine was RMB 1.4608 billion.
HuaTangNing was included in the National Reimbursement Drug List (NRDL) at the end of 2023 for the treatment of type 2 diabetes. With an NRDL payment standard of RMB 5.39 per tablet, the drug’s economic advantages are expected to drive a significant increase in sales volume in 2024. In anticipation of this growth, Hua Medicine is expanding its manufacturing capabilities in China, in collaboration with partners WuXi STA, Ribo Life Science Co., Ltd, and Shanghai Desano Biopharmaceutical Co., Ltd.-Fineline Info & Tech
