Transcript Forward Strategies

ASIApharm Group Ltd
亚洲药业集团有限公司
1H2006 RESULTS PRESENTATION
MR LIU DIANBO, EXECUTIVE CHAIRMAN
August 2006
FINANCIAL
Highlights
Key Financial Highlights
FINANCIAL PERFORMANCE
1H06
1H05
CHANGE
(%)
REVENUE (RMB’000)
153,079
162,892
(6.0)
NET PROFIT TO EQUITY HOLDERS
(RMB’000)
41,142
40,025
2.8
EPS (RMB CENTS)
9.58*
9.82*
(2.4)
NET ASSET VALUE (RMB CENTS)
141.5
84.6**
67.3
NET PROFIT MARGIN (%)
26.7
24.6
-
*based on the weighted average number of 429,583,082 and 407,764,900 shares respectively
**FY2005 value
Revenue Growth Drivers
REVENUE GROWTH DRIVERS BY
SEGMENT 1H05 TO 1H06
REVENUE GROWTH
DRIVERS
1H06
1H05
CHANGE
(%)
PHARMACEUTICAL DRUGS
(OUR PRODUCTS)
134,344
132,228
1.6
R&D
9,571
14,241
(32.8)
ACTIVE INGREDIENTS
8,185
14,655
(44.2)
PHARMACEUTICAL DRUGS
(DISTRIBUTION)
979
1,768
(44.6)
TOTAL
153,079
162,892
(6.0)
Pharmaceutical Sales
RMB(m)
200
132.2
89.3
100
134.3
77.3
65.6
53.2
53.2
30.8
0
2003
2004
For period ending 30 June
2005
2006
2Q
1H
Revenue Growth Drivers
REVENUE GROWTH DRIVERS BY
PRODUCT 1H05 TO 1H06
DRUG
1H06
RMB'000
1H05
RMB'000
CHANGE
%
MAITONGNA
48,528
57,110
(15.0)
LUTINGNUO
53,830
47,207
14.0
NUOSEN
23,047
17,031
35.3
OKAI
2,474
3,597
(31.2)
ELCATONIN
2,189
1,241
76.4
OTHERS
4,277
6,042
(28.9)
TOTAL
134,344
132,228
1.6
Revenue Segmentation
1H2006
1H2005
9%
9%
1%
6%
81%
5% 1%
88%
PHARMACEUTICAL DRUGS (OUR PRODUCTS)
R&D
PHARMACEUTICAL DRUGS (OUR PRODUCTS)
R&D
ACTIVE INGREDIENTS
PHARMACEUTICAL DRUGS (DISTRIBUTION)
ACTIVE INGREDIENTS
PHARMACEUTICAL DRUGS (DISTRIBUTION)
Net Profit
RMB(m)
45
40
35
30
25
20
15
10
5
0
41.1
40.0
26.2
24.5
20.3
16.1
3.6
7.4
2003
2004
For period ending 30 June
2005
2006
2Q
1H
BUSINESS
OVERVIEW
Profile in Brief
AsiaPharm Group Ltd:
• Leading pharmaceutical group of
specialty drugs in China
• Focus on research &
development, production and
sale of natural drugs and Drug
Delivery Systems (DDS)
• Main operations based in Yantai
of Shandong
Product Specialisations
Orthopaedics 骨科
Neurology 神经科
Gastroenterology 消化科
Hepatology 肝脏科
Oncology 肿瘤科
Business Scope
COMPREHENSIVE RANGE OF PRODUCTS & SERVICES
MANUFACTURE
AND SALE OF
PHARMACEUTICAL
DRUGS
SALE OF R & D
RESULTS / PATENTS
TRADING OF
ACTIVE INGREDIENT
& DISTRIBUTION
PRESCIPTIVE
DRUGS FOR
HOSPITAL USAGE
NEW PRODUCTS
INTRODUCED
ANNUALLY
EXPORT TO NORTH
AMERICA &
WESTERN EUROPE
Competitive Strengths
•Strategically located in Yantai high-tech Industrial
Development Zone
-Fully integrated, FDA/SFDA compliant production facilities
Strong R&D capability
-Over 120 research staff
-62 products developed or currently under development
Significant market penetration
-Distribution network encompassing more than 2,000 hospitals
-35 sales offices covering 30 provinces and municipals
-280 sales staff
KEY PRODUCTS
OUR KEY PRODUCTS
• Maitongna (麦通纳) • Anti-inflammatory and
anti-swelling drug used in
(Sodium Aescinate
the fields of orthopaedics
for injection)
and neurology
• Okai (欧开)
(Sodium Aescinate
tablet)
• Used for vein dysfunction,
varix, piles
• Used in pain relief and
• Olai (欧莱)
anti- inflammatory
(Compound Sodium
purposes
Aescinate Gel)
KEY PRODUCTS
• Nuosen (诺森)
(Sodium
Pantroprazole for
Injection)
• Used in
gastroenterological
ailments
• Lutingnuo (绿汀诺)
(Reduced
Glutathione for
Injection)
• Used in hepatology
(liver ailments) and
antioxidants
• Sidinuo (斯迪诺)
(Elcatonin for
Injection)
• Used for orthopaedics
(osteoporosis)
New Products
• Ximingting
(希明婷)
• Used in the treatment
of menopausal ailment
• Otong (欧通)
(Capsaicin Gel)
• Used in pain relief for
rheumatism and softtissue damage
• Sailimai (塞立迈 )
(Encapsulated
Smectite powder)
• Used in the treatment
of acute and chronic
diarrhoea
PRODUCTS APPROVED UNDER NHI
KEY PRODUCTS APPROVED
UNDER NHI
•
•
•
•
Maitongna (麦通纳)
Lutingnuo (绿汀诺)
Nuosen (诺森)
Sidinuo (斯迪诺)
PRODUCT
PIPELINE
Product Pipeline
Year
2006
2007
Product
Usage
Status
Capsaicin Gel (Otong)
(欧通)
Received New Drug
Pain relief for rheumatism/softCertification, to be
tissue injury
launched in 2006
Dioctahedral Smectite
Dispersible Tablets
(Sailimai)
(塞立迈 )
Acute/chronic diarrhoea
Received New Drug
Certification, to be
launched in 2006
Pantoprazole Pellets
Capsule
Used for Gastric and
duodenum ulcers
To be launced 2nd half
2006
Arginine Aescin for
Injection
(七叶皂苷精氨酸)
Anti-inflammation and antiswelling, increase vein
vasodilation
Clinical Trials Phase
II
Lutingnuo Enteric
Capsules
(绿汀诺肠溶胶囊)
Liver aliments such as acute
alcoholic hepatitis, alcoholic
hepatic fibrosis and liver
cirrhosis
Approved for Clinical
Trials
Chlorogenic Acid +
Baicalin (炎可清)
Respiratory infection caused
Application for
by both bacteria and virus; flu;
Clinical Trials
tonsillitis and faucitis
Product Pipeline
Year
2008
2009
Product
Huperzine A Tablet
(石杉碱甲缓释片 )
Usage
Alzheimer’s disease
Status
Clinical Trial Approval
Huperzine A Depot
Injection
Alzheimer’s disease
(moss Huperzia serrata) (
石杉碱甲微球)
Preclinical
MD102 Depot Injection
Parkinson’s disease
Preclinical
Dihydroxy-phenyl lactate
(Danshensu) (丹参素)
Cerebral vascular disease
Preclinical
STRATEGIC
PARTNERSHIPS
Strategic Partnerships
NAPO
LATEST
DEVELOPMENTS
Latest Developments
8 May 06
• Placement of 80 million new shares to
strategic investors
• Attracts significant interest from investment
community with entry of several key
investors
• Raises RMB 322.0 million to fund future
growth initiatives
17 May 06
• New product OTONG® obtains SFDA new
drug approval
• Used in the treatment of Rheumatism and
soft-tissue injury
• Targets over 100 million Rheumatism
patients in PRC
Latest Developments
30 May 06
• Acquires remaining stake in trading
subsidiary Luye Trading
• Strategic restructuring of Yantai Luye Drug
Trading to focus on higher margin in-house
and imported drugs
30 June 06
• New product SailiMai ® obtains SFDA new
drug approval
• Used in the treatment of acute and chronic
diarrhoea
• Targets a market worth approximately RMB
500 million annually
Industry
Outlook
Industry Outlook
• Regulatory reviews follows initiative to keep healthcare affordable to the general population
• Government to increase expenditure in the healthcare sector
• NHI to double total number of participants from 140
million to 300 million by 2010
• Extend basic healthcare into to rural communities
• Control percentage of revenue from sales of
prescription drugs for hospitals
Industry Outlook
• Temporary restriction of promotional activities in
hospitals and purchase of drugs not under stocklist
• SFDA new procedures and guidelines on new drug
approvals
• Stricter compliance with GMP and GSP standards
• Price cutting measures on generic drugs; but will
encourage companies to develop new proprietary
drugs
• These reforms will benefit established
pharmaceutical companies like AsiaPharm in the
long run
FORWARD
STRATEGIES
Forward Strategies
Domestic pharmaceutical sales
• Increase in selling efforts of key products
Lutingnuo, Nuosen, Sidinuo and Okai to achieve
steady growth
• Recovery in sales of Maitongna by switching to
other dosage
• Ximingting, a safe, natural alternative to the
chemical drugs used for Hormone Replacement
Therapy (“HRT”) will drive future growth
Forward Strategies
• Capsaicin gel (Otong) and Dioctahedral Smectitie
Disperse Tablet (Sailimai), together with Olai will
form OTC portfolio of the Group
• Pantoprazole Pellets Capsule (oral formulation of
Nuosen), targeted for launch in FY2006
• Restructuring of Luye Drugs Trading, to focus on
our own drugs and distribute imported drugs with
higher margin
Forward Strategies
International pharmaceutical sales
• Sale of drugs to Vietnam, Pakistan and other
Asian countries
• Attaining GMP approvals by TGA, EMEA and
FDA through the collaboration with foreign
pharmaceuticals companies
• Strategic alliance with foreign partners to
manufacture and distribute products overseas
Forward Strategies
R&D
• Devote more resources towards R&D for our
future product pipeline
• Provide third party contract services and
transfer of technology
• Co-develop new products with foreign partners
(eg. Napo, USA)
Forward Strategies
Merger & Acquisition
• Placement of new shares provides RMB 322.0
million for Asiapharm to fund its M&A strategy
• Strategic targets with high-earning potential, similar
strategic direction and products
• Currently in final negotiations with several M&A
targets
• Objective finalisation probable by 2006/07
QUESTION &
ANSWER
ASIApharm Group Ltd
For further information, please contact:
Tel : (065) 62200119 Fax: (065) 62200282
Website: www.asiapharm.biz