Successful Turning Loss into Profit, Strong Release of Market Potential; Sales of Key Products Doubled, Business Restructuring Completed Smoothly
HONG KONG, CHINA – EQS – 30 August 2019 – A fully integrated biopharmaceutical company — Uni-Bio Science Group Limited (the “Company”, together with its subsidiaries, the “Group”; Stock code: 0690.HK) are pleased to announce that its interim results for the period ended 3 0 June 201 9 (the “Period” or “1H2019”) ， During the period, the Group succeeded in turning its loss into profit, with a net profit of HK$44.9 million and a basic profit of HK$0.73 cents per share . Compared with the core performance indicators in the first half of 2018 (“1H2018”), the figures have improved considerably, standing on a turning point of the performance and entering a new phase of growth.
Key Accomplishments in 1H2019
During the Period, The Group has made a series of important progress in sales, corporate governance, Manufacture, R&D and clinical affairs. The key highlights include:
1. During the period, the Group continued to optimize its marketing team and enhance its market penetration. Overall sales rose 63.2% over 1H2018, recording HK$97.3 million. Especially, the sales of recombinant human epidermal growth factor (rhEGF) related drugs from our proprietary biological products were strengthened. The total sales of EGF products were HK$72.1 million, up 54.9% from 1H2018, and their performance accounted for 74.1%. The Group continuously pushes its core products to hospitals at all levels, drug sales terminals and community clinics in key drug-using provinces or municipalities, which greatly promotes the Group’s revenue growth. Among them, 15ml of GeneTime® performed best, with sales volume and sales increased significantly, compared with 1H2018, by 89.3% and 93.6% respectively. The increment of GeneSoft® recorded 19.6% growth in sales volume and 9.9% growth in sales, respectively.
2. During the period, the contribution of the chemical drug Pinup® (Voriconazole Tablets) to the overall sales continued to increase. Single product performance doubled, with revenue of HK$24.0 million. Sales volume and sales increased by 118.3% and 103.8% respectively over 1H2018. Since the end of 2018, the Group has signed a National Promotion Cooperation Agreement with Shanghai Loymed Pharma Technology Co., Ltd. for Pinup® Marketing Project. Through close collaboration, the product has entered more than 500 key hospitals in China, which is one of the important reasons for the recovery of growth for this product during this period. In addition, since the Group has completed the consistency evaluation of Pinup®, compared with most competitors of the same kind without this quality and policy guarantee, the future growth trend will be more stable.
3. During the period, the high-end project of industrialization for tripeptide (rhPTH1-34), supported by government funds, received the first batch of government subsidy of RMB10 million in April 2019. Pursuant to the Public Notice on the 2018 Incubation Programme (Batch II) of High-Tech Industries from the Sub-Parks of the Zhongguancun National Innovation Demonstration Zone, the Major Frontline Innovative Technology Commercialization and Industrialization Project, namely the Industrialization Project of recombinant human Teriparatide (rhPTH1-34) for Injection, which was undertaken and submitted by Beijing GeneTech Pharmaceutical Co., Ltd. (“Beijing GeneTech”), a wholly-owned subsidiary company of the Group, has been approved and recognized by the Zhongguancun Science Park Management Committee. The funds will be used to support the optimization and upgrading of production lines, the protection of independent intellectual property rights and major core technologies, as well as the launch and marketing of this product.
4. During the period, the group completed an organizational restructuring, changing from a divisional structure to a business unit structure. The company formed eight business units that directly report to the new CEO. The new organizational structure is designed to be more streamlined and flat, and focus on better cost control. Especially in the marketing and sales BU, the BU streamlined the structure from 125 employees to around 50 by the end of 2018. Sales expenses over revenue during the period was significantly reduced, down 24.9 percent per revenue point to 74.9% in1H2019.
5. During the period, the R&D cost of the Group was about HK$21.3 million (including capitalized portion), which was used to carry out or complete different R&D projects, including new drug applications for the 2nd generation Uni-E4 exenatide and Uni-PTH tripeptide injection. For the three chemical drugs of the group: Bokangtai (Miglinide Tablets), Boshutai (Acarbose Tablets) and Pinup®, have reached very significant milestones in the bioequivalence study. Boshutai have completed BE studies and submitted application in January 2019. Pinup® have completed BE studies and currently preparing a final filling to the NMPA. Finally, partnering with Jiangsu Hansoh, Bokantai have kicked off bioequivalence study with target to fill in early 2020. In addition, Uni-PTH tripeptide lyophilized powder is in the process of clinical onsite verification and production onsite verification, and is expected to obtain new drug certification and production license from drug regulatory authorities in early 2020.
6. During this period, a new “three in one” biologic fill-finish production line was completed and ready for service in Beijing GeneTech, a wholly-owned subsidiary located in Beijing Zhongguancun Science Park. The production capacity of lyophilized powder in syringe bottle, Cartridge and pre-filled syringe can reach 3,000-8,000 units per hour, 11,000 units per hour and 20 million units per year respectively. It is worth mentioning that, due to the high technical barriers in the production of pre-filling injection,, small and Medium-sized Pharmaceutical Enterprises need to invest a lot of cost and infrastructure to support high-quality production. Therefore, our Group has officially launched the CMO business to the public to save the relevant costs for the partners and bring considerable benefits to the non-core revenue of the Group. At present, Beijing GeneTech has signed two commissioned production contracts and will deliver the products on time.
Looking ahead, the Group remains confident in the long-term development of the sector. We believe that the innovation, business diversification and effective resource integration can ensure the substantial and stable development of pharmaceutical enterprises despite regulatory pressures and policy risks. With the reform in the PRC pharmaceutical industry to innovation-oriented and the increasing competitions, drug innovation has become a key growth driver to support sector development in the long run. Over the years, the Group has focused on innovation and R&D for metabolic diseases, such as diabetes, osteoporosis and epidermal growth factor products. The growing age population and increasing health awareness will help the industry with expertise in specific diseases seize growth opportunities. The group’s chronic disease product portfolio with huge market potential will be launched in the near future. In terms of long-term strategic cooperation, two strategic partnership were established in June and July between TimeCity Tourism Development Co., Ltd. in Kaiping, Guangdong Province and CHMT Peaceful Development Fund Management Ltd. in Hong Kong, respectively for the collaboration in chronic disease, deploying health care bases and funding for research on new endocrine drugs. The Group believes that above achievements will lay a solid foundation and drive the development of the Uni-Bio Science Group.
Mr. Kingsley Leung , Chairman of Uni-Bio Science, commented “Looking back on the achievements made by Uni-Bio Science Group in the first half of 2019, the board of directors and I are very pleased to inform our stakeholders that we have ushered in a turning point of performance before the original targeted timeline. We implemented a five-year development plan in 2015 to breakeven by 2020. The good result is from years of hard work from our employees and improvement of our corporate governance. What is more encouraging is the recent recognition by the capital market. Another important strategic investor, CHMT Peaceful Development Fund, made an investment after in-depth due diligence on the company. Also, we have been seeing a very positive performance of our stock price, further showing the increased confidence of shareholders and investors on the Group. Finally, we must realize clearly that we are still undervalued, we are focused to progress our R&D pipeline products to the next value incremental milestone, and show to our stakeholders that we can effectively commercialize these products. Overall, 1H2019 results are encouraging and we will continue this momentum to ensure this success continues in the near future.”