HONG KONG—Hua Medicine (HKG: 2552), a China-based pharmaceutical company, has announced its financial results for the first half of 2024, reflecting a 46.0% year-on-year increase in revenues, which reached RMB 102.7 million. This growth is primarily attributed to the strong performance of its flagship hypoglycemic agent, HuaTangNing (dorzagliatin tablets).
Despite the revenue increase, the company’s pre-tax loss also expanded by 57.9% year-on-year, amounting to RMB 142.2 million. As of June 30, 2024, Hua Medicine’s bank balance and cash reserves stood at a substantial RMB 1338.8 million, indicating a healthy cash position.
HuaTangNing, co-promoted by the German pharmaceutical giant Bayer, was incorporated into China’s National Reimbursement Drug List (NRDL) at the end of 2023 for the treatment of type 2 diabetes. This inclusion led to a significant price reduction from RMB 341.95 to RMB 124.88 per box, impacting the company’s gross profit margin, which dropped to 46.5% from 62.6% during the same period in the previous year.
Since its market launch in October 2022, HuaTangNing has generated a total revenue of RMB 196.9 million in mainland China. Sales volume during the reported period reached 846,000 boxes, marking a considerable increase from the 212,000 boxes sold in the first half of 2023. Hua Medicine is optimistic about its financial trajectory and anticipates achieving profitability by 2025.- Flcube.com
