China Grand Pharmaceutical and Healthcare Holdings Ltd (HKG: 0512; CGP) has reported its financial results for 2023, with revenues reaching HKD 10.53 billion (USD 1.35 billion), marking a 15.8% year-on-year increase. The net profit stood at HKD 2.04 billion (USD 260.8 million), up by a modest 0.2% year-on-year. The company achieved 30 product approvals and concluded 3 significant M&A deals over the course of the year. CGP now has over 10,000 employees globally, operates across more than 30 domestic and foreign subsidiaries, and maintains 5 technology platforms and 8 R&D centers. The company has over 200 products listed in the National Reimbursement Drug List (NRDL) and boasts 16 products with sales exceeding RMB 100 million (USD 13.9 million) each.
In 2023, CGP launched 5 new products, advanced 5 into the New Drug Application (NDA) filing stages, and initiated clinical trials for 8 products. Additionally, 4 radionuclide drug conjugates (RDCs) progressed into clinical trials. Pharmaceutical technology products saw a 17.1% increase in revenue to HKD 6.813 billion (USD 871 million), with the respiratory and critical care sector leading with a 38.2% growth to HKD 1.375 billion. The ophthalmology and otorhinolaryngology segment contributed HKD 2.314 billion, up 10%, and the cardiovascular and cerebrovascular emergency department generated HKD 2.448 billion, up 15.9%.
Biotechnology products revenue increased by 12.4% to HKD 3.381 billion, primarily driven by the amino acid business, which includes taurine, with sales reaching HKD 2.758 billion, up 16.1%. The group’s nuclear drug anti-tumor diagnosis and treatment, along with precise intervention diagnosis and treatment technology products for cardiovascular and cerebrovascular diseases, saw a revenue increase of 26.7% to HKD 335 million. The nuclear drug anti-tumor sector revenue skyrocketed by 279.5% to HKD 217 million, while the precision intervention diagnosis and treatment sector for cardiovascular and cerebrovascular diseases reached HKD 118 million.
In the nuclear drug anti-tumor diagnosis and treatment field, CGP acquired 87.5% of US-based BlackSwan, making it a non-wholly-owned subsidiary and marking another step in the company’s Tumor intervention field. In the cardiovascular and cerebrovascular disease sector, CGP executed two major M&A deals, acquiring 75.35% of Tianjin Tanabe Seiyaku and 90% of Chongqing Duoputai Pharmaceutical Co., Ltd.
In June 2023, OncoSec, a former affiliate, filed for bankruptcy in the US. CGP allocated HKD 59.65 million for the liquidation and resigned its appointed directors, thus severing ties with OncoSec. The company has a robust pipeline of 138 investigational programs, including 46 innovative projects. In 2023, CGP achieved 77 major milestones and established a new R&D center, secured 17 core patents, and obtained 118 patent authorizations. The company invested HKD 1.44 billion in R&D and product development, and by the end of 2023, its cash and cash equivalents stood at HKD 1.34 billion.- Flcube.com
