Transcript Presentation Title - Sihuan Pharmaceutical Holdings Group Ltd.

Sihuan Pharmaceutical Holdings Group Ltd.
四環醫藥控股集團有限公司
2012 Interim Results Presentation
Stock Code : 0460
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1
Agenda
Results Highlights
I
Business Review
II
Financial Review
III
Growth Strategy
IV
Q&A
V
2
Section 1
Results Highlights
Market Overview in 1H2012
Favourable factors:
 Pharmaceutical industry maintained to be
one of the fastest growing industries in
China
 Rising demand driven by increased
medical insurance coverage and medical
reimbursement ratio
 Accelerated pace of urbanization and the
aging population
Challenges:
 Impact of healthcare reform measures in
2011, such as:
 Price adjustments for drugs in certain
therapeutic areas
 New measures implemented in pilot
hospitals in 2012, such as:
 Control of total medical insurance
budgets
 Separation of prescription and
dispensing of drugs
 Zero mark-up policy
 Delays in drug tendering in a majority of
provinces
4
1H2012 Major Achievements
1
 Satisfactory revenue growth of 40.3%. Net profit up 21.2%
 Continued to be the largest CCV franchise and 9th largest pharmaceutical company in
China’s prescription drug market
2




3
 Sound progress in innovative and generic drug R&D with new products to be launched in
near future
4
 Substantially completed the alignment of distribution network
 Maximized cost efficiency and improved yield of finishing products of newly acquired facilities
5
 Hebei API plant passed the new GMP standard in 2011
 Commenced upgrades of Beijing, Jilin and Liaoning production bases to comply with new
GMP standards
Further the growth of a diversified portfolio of high-margin products
Over 50% growth of 10 major products
Developed new markets for promising products
Furthered penetration of established products in current markets
5
Key Highlights for 1H2012
Satisfactory Growth Bolstered by a More
Diverse
3
and Optimized Product Portfolio
 Over 50% growth of 10 major products
 Robust growth of several established CCV products,
including GM1, Qu’Ao, Qingtong and Chuanqing
 Strong growth of several promising CCV products, e.g.
Aoliankang, Yuanzhijiu, Yimaining and Yeduojia,
 Key non-CCV products recorded satisfactory growth, e.g.
Ren’Ao, Bi’Ao, Zhuo’Ao and Luoanming
Sound R&D Progress
 Category I innovative drug L-Phencynonate Hydrochloride
(左旋鹽酸苯環壬酯) completed phase II of clinical trials
 Exclusive Category IV new drug Cinepazide Mesilate (甲
磺酸桂哌齊特) commenced Phase II of clinical trials
 First-to market Roxatidine Acetate Hydrochloride for
Injection (注射用鹽酸羅沙替丁醋酸酯) passed SFDA’s onsite inspection for drug registration with approval for
production expected in the near future
 Generic drug Nalmefene Hydrochloride (鹽酸納美芬)
pending on-site inspection by the SFDA
Sales Strategies Execution
Capabilities Enhanced
 Completed alignment of distribution network
 Expanded sales and marketing team for future growth
Production Capability
Strengthened
 API plant Langfang Sihuan Gaobo passed the new GMP
standards. The plant is currently producing over 10 APIs
 Production and quality management system of the plant
passed on-site audits carried out by well-known multinational pharmaceutical enterprises
 Commenced the upgrading of production base in Beijing,
Jilin and Liaoning, which are expected to be completed
by the end of 2013
6
Section 2
Business Review
Market Overview
China’s Hospital Pharmaceutical Purchases (RMB Bln)
China’s Hospital Pharmaceutical Purchases of
CCV Drugs (RMB Bln)
 Growth of CCV drugs outpaced industry growth rate
366
46.3
313
37.9
257
214
203
175
152
35.2
30.4
26.8
23.4
17.2
2007
2008
2009
2010
2011
1H2011 1H2012
2007
2008
2009
2010
2011
1H2011 1H2012
Source: IMS
 Pharmaceutical industry maintained to be one of the fastest growing industries in China
 Rising Demand for pharmaceutical industry, driven by increased medical insurance coverage and medical reimbursement ratio
 Operating environment was complex and relatively challenging, due to various health reform measures
8
Market Share in China’s Pharmaceutical Market
Rank
Shares in hospital market
in 1H2012 (%)*
Top 20 Corporations
1
PFIZER GROUP
2.27
2
ASTRAZENECA GROUP
1.78
3
SANOFI GROUP
1.67
4
BHC GROUP
1.65
5
JS.YANGZIJIANG FTY
1.54
6
SHANDONG QILU FTY
1.42
7
KE LUN GROUP
1.50
8
ROCHE GROUP
1.43
9
SIHUAN PHARMACEUTICAL
1.24
10
JS.L.Y.G. HENGRUI
1.20
Consistently Ranked No.1 in China’s CCV Market
Market Share (%)
2010
2011
**1H2012
Sihuan
7.5
9.4
7.53
Sanofi-Aventis
6.8
6.6
4.8
Shangdong Qilu
4.6
4.7
3.9
Pfizer
4.6
4.6
2.3
Novartis
3.4
3.0
1.5
Key players
Source: IMS
**New IMS statistics include TCM prescription drug, while statistics in or before 2011 only include
western prescription drugs
9
CCV Product Sales Contribution Breakdown
For the six months ended 30 June
Others
Yuanzhijiu* 1.5%
5.7%
Chuanqing
6.4%
Kelinao
22.3%
Qu’Ao
7.2%
Qingtong
7.5%
Oudimei*
18.8%
Yimaining*
8.6%
Anjieli
8.9%
* Promising Product
GM1
13.1%
Remarks: The percentage contribution are based on sales of the products in hospital purchase
price. Product with contribution less than 1% were not displayed
Source: IMS
10
Market Overview: Key Non-exclusive Sihuan Product
Share of Sihuan’s Qu’Ao
in Cerebroprotein Hydrolysate
market in 1H2012
Share of Sihuan’s GM1
in GM1 market in 1H2012
Beijing SaiSheng
(北京赛生制药)
4.7%
Sihuan*
Others
8.4%
15%
(2011:
16.3%)
Harbin Medical
University
( 黑龙江医科大药厂 )
16.6%
Qilu
(山东齐鲁)
55.3%
GD Baike Pharm
(广东百科制药)
7.6%
Others
12.3%
GZ Medical
Research
(广州医药研究院)
12.2%
Yunnan
Mengsheng
(云南盟生药业)
25.4%
Sihuan*
24.3%
(2011:26.4%)
Shanxi
Pude
(山西普德)
18.2%
Source: IMS
11
Market Overview: Key Non-exclusive Sihuan Product
Share of Sihuan’s Chuanqing
in Ligustrazine market in 1H2012
Share of Sihuan’s Qingtong
in Edaravone market in 1H2012
Share of Sihuan’s Yimaining
in Alprostadil market in 1H2012
Fujian Mindong Changchun
Guoao
Jiexun
(福建闽东捷讯) (长春国奥药业)
1.9% Others
3.2%
Shandong Tianfu
(山东天福制药)
4.1%
1.6%
Sihuan*
Anhui Guorui
(安徽国瑞制药)
17.6%
Hefei Pingguang
(合肥平光)
27.9%
14.9%
(2011:9.4%)
Sihuan*
Sihuan*
61.4%
(2011:60.3%)
16.4%
(2011:12.5%)
Jilin Boda
(吉林博大制药)
19.9%
Simcere
Dongyuan
(先声东源制药)
31.3%
Kunming
Taikang
(昆明泰康)
19.9%
Others
4.3%
Hayao Biological
(哈药生物)
21.6%
Xi’an Libang
(西安立邦)
5.8%
Chongqing
Yaoyou
(重庆药友)
2.4%
Others
2.3%
Beijing Tide
(北京泰德)
53.5%
Source: IMS
12
Highly-diversified Revenue Stream to
Support Stable Growth
Revenue of CCV Products
For the six months ended 30 June
For the six months
ended 30 June 2012
(RMB ‘000)
Contribution
to Sales of
CCV Products
Kelinao*
440,921
34.5%
Oudimei#
286,118
22.4%
GM1
96,061
7.5%
Yuanzhijiu#
91,506
7.2%
Aoliankang#
72,124
5.6%
Anjieli*
66,254
5.2%
Yimaining#
60,465
4.7%
Chuanqing
42,810
3.4%
Qu’Ao
40,829
3.2%
Qingtong
29,051
2.3%
Danshen Chuanxiongqin#
22,208
1.7%
Yeduojia#
19,585
(RMB million)
1,600
1,400
1,277.4
1,200
1,000
874.4
800
600
400
* Selling price increased
# Promising product
200
0
1.5%
2011
2012
For the six months ended 30 June

Various established CCV products, e.g. GM1, Qu’Ao, Qingtong and Chuanqing, and promising CCV products such as Aoliankang, Yuanzhijiu,
Yimaining and Yeduojia, recorded robust growth

Sales volume of Kelinao and Anjieli affected by slower-than-expected lifting of provincial reimbursement restrictions

Increase in sales amounts of Kelinao and Anjieli was mainly attributable to the increase in selling price

Sales of Oudimei was affected by the delay in provincial tendering and alignment of distribution network
13
Highly-diversified Revenue Stream to
Support Stable Growth
Revenue of Non-CCV Products
(RMB million)
120
For the six months ended 30 June
111.8
103.4
Product
For the six
months ended 30
June 2012
(RMB ‘000)
Contribution
to Sales of
Non-CCV
Products
Central nervous
system drug
Ren’Ao
6,597
6.4%
Respiratory drug
Bi’Ao
Zhuo’Ao
27,401
6,450
26.5%
6.2%
100
52.3
32.4
59.4
71.0
80
60
40
20
Metabolism drug
Luoanming
21,868
21.1%
0
2011
Anti-infective drug
Pojia
17,387
16.8%
Others
2012
Anti-infective Drug
For the six months ended 30 June

Stepped up efforts in the promotion of other drugs, such as central nervous system, respiratory system and metabolism drugs

Sales of other drugs grew by approximately 19.6%

Sales of anti-infective drugs decreased because of stricter restrictions on their clinical use
14
Strengthened Unique Sales and Marketing Model
 Aligned distribution network and expanded sales
and marketing force
Our Group
Sales managers
Product managers
Product and marketing support
Distributor
Distributor
Select and manage distributors
Distributor
•••
–
Recruited over 100 sales staff in 1H2012
–
Operated more than 60 sales offices with a sales
force of over 560 sales and marketing staff by the
end of June 2012
Distributor
 • • • 
Hospitals and physicians
 Continued to develop sales and marketing
capability
–
Organize more training sessions for internal staff
–
Arrange product training sessions for distributors to
facilitate market development and penetration
Patients
Product, marketing and promotional support;
distributor selection and management
Organizing and supporting medical/pharmaceutical
conferences
 Forged closer ties with academic and medical
specialists to enhance company image
– Organized 8 national medial conferences, 12
provincial medical conferences and 1,394
departmental seminars at hospitals in 1H2012
15
Improved Product Quality and Productivity
 Enhanced product quality standards and maximize cost
efficiency of newly acquired facilities
 Production yield of Yimaining improved by 10% with a
lowered production costs, and also doubled its
production volume in 1H2012
 Achieved a breakthrough in studies to boost the quality
and improve yield of finishing products of Oudimei and
Yuanzhijiu
Chemical Drugs Production Base
in Tongzhou District, Beijing
 Operates 6 chemical medicine
production lines
API and Intermediates Production
Base in Langfang, Hebei
 Passed the new GMP standards in
2011
 7 new APIs began production
 Commenced the upgrading of its new
chemical drug production
 The centre, with a total site area of
175 mu, is expected to commence
production in August 2013
 Produced more than 10 APIs with
aggregate production of 15 tonnes in
1H2012
 Passed individual on-site audits on
production and quality management
systems by various potential business
partners, including multinational
pharmaceutical companies
Other Products
Production Bases in
Jilin and Liaoning
 Production bases included Jilin
Sihuan, Changchun Xiangtong and
Benxi Hengkang plants, etc.
 Commenced the upgrading of its drug
production
 Expected to finish upgrades by the
end of 2013, the plants will be in
compliance with the new GMP
standards
16
Research & Development Achievements in 1H2012
Overview
Leading R&D capabilities and
strong product pipeline drive
sustainable growth
Project
 Applied for 4 major drug awards for their innovations, 2 for
innovative drugs and 2 for first-to-market generic drugs
 Granted 8 new patent rights
Product Characteristics
Category I innovative CCV drug for treatment of
Innovative Drugs L-Phencynonate
Hydrochloride
vertigo symptoms caused by vertebrobasilar
R&D Team
(左旋鹽酸苯環壬酯) ischemia and other diseases
Cinepazide
Mesilate
(甲磺酸桂哌齊特)
Generic Drugs
R&D Team
Project Progress
Completed phase II of clinical trials during the
Period, and will soon commence Phase III of
clinical trials
Exclusive Category IV new CCV drug for
Commenced Phase II of clinical trials
improving the ischemic tissue blood supply and
protecting the ischemic tissue. Widely used in the
treatments of cardiovascular and cerebrovascular
and peripheral vascular diseases
Roxatidine Acetate Category III first-to-market generic drug.
Hydrochloride for
Digestive drug for the treatment of severe
Injection
stomach acidity and other stomach illnesses
(注射用鹽酸羅沙替
丁醋酸酯)
Passed SFDA’s on-site inspection for drug
registration in May 2012. Approval for
production expected to receive in the near
future
Nalmefene
Hydrochloride
(鹽酸納美芬)
Pending SFDA’s on-site inspection
Drug to prevent and reverse the effects of
opioids, including respiratory depression,
sedation and hypotension
17
Section 3
Financial Review
Financial Highlights
Key Income Statement Items
For the six months ended 30 June
2012
(RMB’000)
2011
(RMB’000)
Change
Revenue
1,389,297
990,568
+40.3%
Gross Profit
1,071,419
774,730
+38.3%
Operating Profit
533,425
446,326
+19.5%
Profit Attributable to Equity Holders of the Company
461,445
380,685
+21.2%
Key Financial Ratios
2012
(RMB’000)
2011
(RMB’000)
Gross Profit Margin
77.1%
78.2%
Net Profit Margin
33.2%
38.4%
Basic EPS (RMB Cents)
8.917
7.339
Receivable Turnover (days)
60
15
Inventory Turnover (days)
36
55
Dividend Per Share (RMB Cents)
3.1
1.9
Special Dividend Per Share (RMB Cents)
Nil
7.8
19
Stable and Sustained Growth
Revenue
(RMB million)
1,600
1,389
0.7%
7.4%
CCV
Non-CCV
Others
1,200
991
91.9%
800
400
Revenue by Segment:
0
2011
2012
CCV: RMB 1,277.4 million
Non-CCV: RMB 103.4 million
For the six months ended 30 June
 Revenue grew by a record 40.3% to RMB1,389 million
 Over 50% growth for 10 major products
 Sales of CCV products soared by 46.1% to RMB1,277.4million, mainly due to:
– Broadened revenue base from a further diversified product mix
– Further penetration of established products in current markets and developed new markets for promising
products

Sales of Non-CCV products reduced by 7.5%, mainly due to the decreased sales of anti-infective drugs which
face stricter restrictions on their clinical use
20
Cost Breakdown
Distribution Costs
Administrative Expenses
(RMB million)
(RMB million)
700
635
60%
140
6
125
588
600
50%
42.3%
500
40%
400
29.7%
300
294
120
100
80
78
30%
60
20%
200
40
10%
100
0
0%
2011
Distribu tio n Costs
2012
20
0
% of Revenue
For the six months ended 30 June
2011
2012
For the six months ended 30 June
 Distribution cost to total revenue increased to 42.3% due to:
– a change in marketing strategy to comply with common industry practices which is reflective of
marketing costs from third party service providers
 Administrative expenses increased by 60.4%, mainly due:
– An increase in administrative expenses related to operational expansion
21
Capital Expenditure
(RMB million)
250
205.7
200
101.9
150
114.4
7.8
Land use rights
Intangible Assets
100
6.2
Property, Plant &
Equipment
80.4
50
97.6
26.2
0
2011
2012
For the six months ended 30 June
22
Section 4
Growth Strategy
Market Overview in 1H2012
Favourable factors:

Pharmaceutical industry will continue to be one
of the fastest growing industries in China :




Challenges:

Growing medical insurance coverage in
China (95% by the end of 2011)
Rising per capita subsidy standard for
medical insurance
Various medical reform measures, including:

Separation of dispensing and prescribing
drugs

Price reductions of drugs in some other
therapeutic areas

Control of total medical insurance budgets
at the individual hospital level
Increasing maximum reimbursements for
medical treatment and reimbursement
ratio

Government drug tendering and procurements in
irregular time bases
Accelerated pace of urbanization and the
aging population

Increasingly stringent tender procedures

Chinese government’s support for innovation
accelerates consolidation and optimization

Room for development for fully-integrated
pharmaceutical companies
24
Effective Strategies Supporting Stable and Sustained Growth

Optimize Product Portfolio
&
Enhance Sales & Marketing
Strategies


Maintain steady growth of established products

Expand market coverage in first-to-second tier cities and make inroads into third-to-fourth tier
cities

Seek removal of Kelinao and Anjieli’s insurance reimbursement coverage restrictions in more
provinces

Step up marketing promotions for provinces with reimbursement restrictions recently removed

Secure tenders at stable price levels
Scale up market expansion of fast-growing promising products

Expand market coverage by securing outstanding provincial tenders in 2H2012

Step up academic and media promotion events to establish brand awareness and boost
subsequent clinical usage

Launch two new products in 2H2012, e.g. Scutellarin Glucose Injection and Roxatidine
Hydrochloride Injection, to drive the robust growth
Further expand sales and marketing team

Strengthen R&D Capabilities
Exploit Growth Opportunities
through Partnerships,
Product Collaboration &
Innovative Transactions
Product managers and sales managers expected to reach approx. 100 and 700 staff respectively

Continuous investment in the R&D of key projects in the pipeline with major focus on first-tomarket generic drugs, with an aim to shorten time to market

Explore collaborative opportunities to maximize the sources of new R&D projects, shorten the
product development cycle, further enhance technology platforms and strength its overall R&D
capability

Continue to identify strategic product collaborative opportunities with overseas pharmaceutical
companies to obtain new resources or high quality products, e.g. project acquisitions, distribution
rights acquisitions and joint ventures
Expected to maintain sustained growth and meet 2012 internal operating target
25
Section 5
Appendix
26
Our History
2011



2010


Acquired Jilin Sihuan/Dupromise which owns three exclusive CCV drugs
Acquired 80% interest in Changchun Xiangtong which owns GM1 injection and API
manufacturing facility
Acquired Jilin Sichan/Vinise Pharmaceutical which owns 4 TCM CCV products

Listed on the Hong Kong Stock Exchange
Ranked No. 4 in the Forbes 2010 list of the most promising enterprises in the PRC and No. 1 among
pharmaceutical companies
Obtained a 30-year exclusive distribution rights to Yimaining


Qingtong was launched
MSPEA invested and privatised the Company with major shareholders, which then was delisted from the SGXST



Acquired 60% interest in KBP BioSciences to enhance R&D capabilities of innovative drugs
Aogan was launched
Received a 20-year patent protection in the PRC for the invention and production method of non-solvated cinepazide
maleate crystal for producing Kelinao and Anjieli



Sihuan Pharmaceutical was listed on the main board of the SGX-ST on 23 March 2007
Commanded the largest share of the CCV market in China
Hainan Sihuan CVD Research became a wholly-owned subsidiary of the Group



Kelinao was granted “State Torch Programme” status by the Science and Technology Ministry of the PRC
Beijing Sihuan became a wholly-owned subsidiary of the Group
Received a 20-year patent protection in the PRC for the improved method for producing of Kelinaoi

Hainan Sihuan was granted the “High and New Technology Enterprise” status

Received a 20-year patent protection in the PRC for the synthesis process of Kelinao
2003



Kelinao was launched
Acquired a 28% interest in Beijing Sihuan and expanded the Company’s business into product manufacturing
Chuanqing was launched
2002

Developed a differentiated sales and distribution model
2001

Hainan Sihuan was founded
2009
2008
2007
2006
2005
2004
27
Management team
Our senior management has an average of 15-years experience in the Chinese
pharmaceutical industry
 Proven entrepreneurial success
 Expertise in operating high growth companies
 High standard of corporate governance
 Deep understanding of China's pharmaceutical industry
 Proven R&D and drug acquisition track record
 Extensive clinical experience
Dr. Che Fengsheng
Co-founder,
Executive Chairman &
Chief Executive Officer,
Executive Director
Dr. Guo Weicheng
Co-founder,
Executive Deputy
Chairman
Executive Director
Ms. Jia Zhongxin
Chief Operating Officer
Mr. Choi Yiau Chong
Chief Financial Officer

8 years of clinical
experience as a
neurologist

4 years of clinical
experience as a
general surgeon



Over 17 years of
experience in sales and
marketing of
pharmaceutical
products and managing
pharmaceutical
companies

Over 17 years of
experience in sales
and marketing of
pharmaceutical
products
Extensive finance and
accounting experience
gained from a publiclylisted company and
Deloitte & Touche

Member of the
Chartered Institute of
Management
Accountants (UK) and
the Institute of Certified
Public Accountants of
Singapore

Over 20 years of
experience in
operational
management of
pharmaceutical
companies in the
PRC
Previously CEO of a
publicly listed
Chinese
pharmaceutical
company
28
Management team

Ms. Gu Jin
Ms. Yuan Tingjun
Deputy General
Manager
(Administration and
Human Resources)
Vice President
(Production and
Quality Control)
Over 7 years of experience
in administration and
human resources
management

Held various managerial
and marketing posts in
several pharmaceutical
companies

Extensive experience in
production management
Mr. Frank Wu
CSO
(Drug Innovation)
Dr. Huo Caixia
Director of our R&D
Management Center
and General Manager
of Beijing Ao He
Research Institute Co.
ltd.(R&D)

16 years of experience in

the pharmaceutical industry
at Guilford Pharmaceuticals
and Boehringer Ingelheim
Pharmaceutical Inc.
Former assistant
researcher at the
Chemistry Research
Institution of the Chinese
Academy of Sciences

Extensive research project 
leadership experience in
multidisciplinary
environment with multiple
therapeutic areas
Responsible for the
registrations of
pharmaceutical products
and assists in overseeing
the research and
development functions of
our Group
29
Continuous Diversification of Product Portfolio
Kelinao
Ren’Ao
2003
2003
Anjiejian
2005
2004
Chuanqing 2004Kanglixin
Qingtong
2007
2005
Zhuo’Ao /
Bi’Ao
2006
2006Anjieli
2007
Pojia
Yimaining
2009
2008
2008 Aogan
2009
Breviscapine
Sodium Chloride
Injection
2011
2010
2011
2010 Oudimei
Yuanzhijiu
Qu’Ao
Salvia Miltiorrhizae
and Ligustrazine
Hydrochloride
Injection
Fufangsanwei
B Injection (II)
30
Established CCV Products
Product
Kelinao
(Cinepazide Maleate Injection) (80 mg)
Anjieli
(Cinepazide Maleate Injection) (320 mg)
Product Characteristics
For improving ischemic tissue blood supply and protecting ischemic
tissue. Widely used in the treatments of cardiovascular and
cerebrovascular and peripheral vascular diseases.
GM1
(Monosialotetrah exosylganglioside
sodium Injection)
For neural tissue cells protection and repairing agents; for treatment of
traumatic brain injuries, cerebral vascular accidents and Parkinson’s
disease.
Chuanqing
(Ligustrazine hydrochloride for injection)
Widely used to treat ischemic cerebrovascular disease, coronary heart
disease, cerebral embolism, vasculitis and vascular dementia.
Qu’ao
(Cerebroprotein hydrolysate)
For promoting neural cell metabolism and differentiation and synthesis of
brain protein. Widely used to treat brain cell dysfunctions caused
by cerebrovascular disease, traumatic brain injuries and Alzheimer’s
disease.
Qingtong
(Edaravone Injection)
An oxygen free radical scavenger widely used to treat cardiovascular and
cerebrovascular diseases, as well as peripheral vascular disease (PDA)
for people with diabetes.
31
Promising CCV Products
Product
Product Characteristics
Oudimei
(Cerebroside-Kinin Injection)
For promoting metabolism of the heart, brain tissues, and neurons of the brain
tissue regeneration process, improving cerebral metabolic functions; clinically
used for the treatment of dysfunctions caused by cardiac and brain diseases.
Aoliankang
(Compound of aceglutamide
and safflower extract/
Guhong Injection)
For the treatment of cerebrovascular
problems such as cerebral insufficiency,
cerebral embolism and cerebral hemorrhage recovery period; dysfunctions
caused by the awareness of liver disease, neurological surgery; mental
deterioration, and memory impairment.
Yuanzhijiu
(Troxerutin and Cerebroprptein Hydrolysate
Injection)
For the treatment of cardiocerebral vascular diseases.
Yimaining
(Alprostadil lipid emulsion injection)
Used for targeting microcirculation and protecting organs and tissue cells.
Widely used to treat chronic arteriosclerosis obliterans, unstable angina,
myocardial infarction, coronary artery bypass surgery, cerebral infarction,
ischemic spinal cord injury, diabetes, peripheral neuropathy, diabetes and kidney
disease.
Yeduojia
(Compound trivitamin B for Injection (II))
Currently the only intravenous administration of a vitamin B compound
formulation; used for peripheral nerve injuries, multiple neuritis, trigeminal
neuralgia, sciatica, radiation sickness, antineoplastic-induced vomiting,
pernicious anemia, nutritional anemia
Danshen Chuanxiongqin
Injection
(Salviae miltiorrhizae and ligustrazine
hydrochloride injection)
Featuring anti-platelet aggregation, vasodilation and improving microcirculation,
it can be used to treat occlusive cerebrovascular diseases such as brain
dysfunction, cerebral thrombosis, cerebral infarction; and ischemic
cardiovascular diseases such as angina pectoris, myocardial infarction, etc
32
Research and Development Strategy
Optimized
Tem p la t e
for
Microsoft
Overview
 Continuous investments in R&D
PowerPoint
2003
Primarily focuses in Innovative Patent Drugs
and First-to-market Generic Drugs
 One of the largest drug R&D teams in China
 Currently over 70 drugs under various development stages, including 10 innovative patented drugs
Innovative Drug
R&D Team
 Focuses in discovery and development of new chemical
entities as novel therapeutic agents
 Key research scientists have on average over 10 years of
drug R&D experience from their tenures at multinational
pharmaceutical companies
Generic Drug
R&D Team
 Focuses on first-to-market generic drugs
 Potential to result in intellectual property rights in
relation to formulation, production process, improved
chemical attributes or drug delivery system
33
Jilin Sihuan, Changchun
Xiaongtong Plants in Jilin
Province
• Other products production
base
34
Improving Product Quality and Productivity (cont.)
New Production and
R&D Centre in Beijing
35
Improving Product Quality and Productivity (cont.)
New Production and
R&D Centre in Beijing
36
Improving Product Quality and Productivity (cont.)
Other Products
Production Base
in North China
37