Jacobson Pharma Corporation Limited (“Jacobson Pharma” or the “Company”; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of essential medicines, specialty drugs and branded healthcare products, today announced the interim results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 September 2022 (the “Reporting Period”).
KEY HIGHLIGHTS — Revenue grew by 8.9% period-on-period, totaled HK$817.4 million — Profit for the period up by 77.8%, amounted to HK$147.4 million — Profit attributable to equity shareholders up by 70.2%, amounted to HK$136.2 million — Sound financial position with net gearing ratio decreased from 29.2% to 20.8% — The Board declares an interim dividend of HK2.8 cents per share — Promising sales growth witnessed on certain key therapeutic lines including cardio-vascular, anti-diabetic as well as cold and flu products. — Arsenic Trioxide Oral Solution, being the first specialty medicine made in the Group’s PIC/S GMP plant alongside robust clinical substantiation, attained approval for use in designated hospitals in the Greater Bay Area
During the Reporting Period, the Group delivered total revenue of HK$817.4 million, which represented a period-on-period growth of 8.9%. Gross profit increased by 24.8% to HK$340.4 million, whilst profit attributable to equity shareholders amounted to HK$136.2 million, up by 70.2%, which was mainly attributed to the uplifted sales revenue, alongside the enhancement in product mix and operating leverage, coupled with the subsidies from the HKSAR Government pertinent to the Employment Support Scheme.
The Group maintains a healthy financial position as supported by its strong cash flows, with adjusted EBITDA of HK$290.5 million for the Reporting Period and the net gearing ratio decreased significantly from 29.2% as at 31 March 2022 to 20.8% as at the end of the Reporting Period. In addition, the Group has a sound cash position, with cash and cash equivalents of HK$860.4 million as at the end of the Reporting Period. The Board declares the payment of an interim dividend for the six months ended 30 September 2022 of HK2.8 cents per share, up by 133.3% as compared to HK1.2 cents of FY2022 Interim.
Robust Portfolio of Essential Medicines to Meet Healthcare Demand During the reported period, the generic drugs business of the Group demonstrated resilient performance, driven by steady growth in both private and public sectors. Overall growth was benefitted from the easing of social distancing measures which facilitated the resumption of medical consultation visits in both public and private sectors in Hong Kong, thus boosting the demand for essential drugs as well as specialty medicines.
Amid the fifth wave of the epidemic outbreak, the Group geared up its production and supply of symptomatic relief medicines to cater for the increased public demand, which was reflected by the growth of 48.5% in the Group’s range of cold and flu preparations in the public sector for the Reporting Period.
In addition, exhibiting a robust trend, medications for the aging population and chronic disease patients continued to present a strong demand. A case in point was that angiotensin II receptor antagonists and lipid-lowering products in the cardiovascular product class recorded a strong growth of 66.4% and 60.0% respectively in the private sector during the Reporting Period.
Steady Product Pipeline and Continuous Efforts in Portfolio Enhancement As a continuous effort to meet the medical and patient needs with quality essential medicines, the Group launched a number of new products including Atorvastatin Tablet, Trimetazidine Modified Release Tablet, Olmesartan Tablets, Bicalutamide Tablet, Ofloxacin Ear Drop and Idarubicin Injection during the Reporting Period. Additionally, the Group has secured registration approval for 21 new products for upcoming market launches.
As of 30 September 2022, the Group has a total of 177 products in its research and development pipeline, among which 59 items have been approved for registration, 14 of them have been submitted for registration, 48 items have finished the development stage and are under stability preparation or stability study, and 27 items currently under formulation or pre-formulation research development stage.
Making In-roads into the Greater Bay Area The Group’s collaboration with the University of Hong Kong-Shenzhen Hospital in introducing its oral solution treatment for acute promyelocytic leukemia, Arsenic Trioxide Oral Solution, into designated hospitals in the Greater Bay Area has been given approval by Guangdong Province Medical Product Administration. This marked the first Hong Kong-made specialty medicine ever gained approval under the “Interim Regulations on the Administration for Importing Urgently Needed Clinical Drugs and Medical Devices from Hong Kong and Macao to the Guangdong-Hong Kong-Macao Greater Bay Area of Guangdong Province”.
Formulation of ESG Strategy and Respective KPIs As a corporate citizen that places long-term commitment to environmental, social and governance (“ESG”) duties, Jacobson Pharma has formulated and progressed on its ESG strategy, “Jacobson 5 to Thrive”, which underpins five priority areas, namely, product responsibility, commitment to employees, environmental stewardship, societal engagement and corporate governance duty. In response to such strategy, key performance indicators (KPIs) have been set and will continue to be evaluated from time to time in order to track respective progress on priority issues and programs, including greenhouse gas emissions, water and electricity usage, as well as utilisation of renewable energy.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, noted, “Although COVID-19 has had an impact on the Group’s business performance, we believe it will be transient. We are delighted that Jacobson Pharma achieved notable growth momentum in the first half of FY2023 amid the volatile economic sentiment. Thanks to the concerted effort of our teams, we delivered a resilient performance across both private and public sectors for our core business demonstrating an enhanced operational efficiency and a disciplined cost control.
“We remain positive about the future outlook of the healthcare industry and the growth prospect of the market for essential medicines. To capitalise on the emerging opportunities, we will continue to focus on advancing the Group’s growth strategies and positioning it as an eminent provider of essential medicines and specialty drugs in Hong Kong and the Greater Bay Area.”
About Jacobson Pharma Corporation Limited (Stock Code: 2633) Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated and engaged in the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 10 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.
The Group aims at the continued strategic enrichment of its generic drug portfolios through the addition of high-value-added products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan and Cambodia, forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group’s website: http://www.jacobsonpharma.com
Ban Loong Holdings Limited (“Ban Loong”, together with its subsidiaries, “Ban Loong Group”; stock code: 0030.HK), of which Yunnan Baiyao Group Co., Ltd. (stock code: 000538.SHE) is the controlling shareholder, Jacobson Pharma Corporation Limited (“Jacobson”, together with its subsidiaries (excluding JBM Group), “Jacobson Group”; stock code: 2633.HK) and JBM (Healthcare) Limited (“JBM”, together with its subsidiaries, “JBM Group”; stock code: 2161.HK) jointly announced today on forming Ban Loong Jacobson JBM Pharma Limited (the “Joint Venture”) to capture the growth opportunities of the specialty pharmaceuticals and branded healthcare markets in Greater China and the Asia-Pacific region.
Back row: From left to right:
Mr. Tang Ming, Chief Executive Officer of Ban Loong and Mr. Yim Chun Leung, Executive Director of Jacobson & Non-executive Director of JBM
witness the signing ceremony; Front row: From left to right: Mr. Liu Zhouyang, Executive Director & Deputy Chief Executive Officer of Ban Loong and Mr. Yu Chun Kau, Chief Financial Officer of Jacobson sign the Joint Venture Agreement
The Joint Venture, which is owned 60% by Ban Loong, 20% by Jacobson and 20% by JBM respectively, will principally engage in the in-licensing of specialty pharmaceuticals (including orphan drugs), over-the-counter medicines, branded healthcare products (including herb-based products) and medical devices, and the sales and distribution of the products to Greater China and selected markets in Asia, alongside tapping merger and acquisition opportunities with a strategic fit.
Leveraging the partner companies’ respective market knowhow, capabilities and network, the Joint Venture is aimed at establishing a strong foothold and realizing tangible business opportunities available in the high-growth specialty pharmaceuticals, branded healthcare products and medical device markets in the aforementioned regions.
Mr. Tang Ming, Chief Executive Officer of Ban Loong, said, “In light of the promising growth of the pharmaceutical, healthcare and medical device markets in Greater China and the Asia-Pacific region, coupled with the increased awareness of personal healthcare in the post-pandemic era, there is a substantial market potential for the Joint Venture to capture. Indeed, a strong growth forecast is also expected in the next few years, with an average annual growth rate of over 9% in the pharmaceutical and healthcare markets in China. We are excited with the strategic partnership with Jacobson and JBM in expanding our healthcare trading portfolio and riding on our synergetic strengths to seize and realize the opportunities in the markets.”
Mr. Raymond Yim, Executive Director of Jacobson, said, “We are very honored to partner with Ban Loong and aspire to strengthen our foothold through the Joint Venture in Greater China and markets in Asia. In line with our market expansion strategy, the Joint Venture will facilitate and enhance our access to the specialty drugs, branded healthcare products and medical devices markets in the regions, as well as generate cross-selling synergies for respective partner’s products marketed and distributed through the Joint Venture platform. “
About Ban Loong Holdings Limited (Stock Code: 0030) Ban Loong Holdings Limited is an internationalized healthcare products trading company with its business presence covering Greater China and key Asian markets including Japan, South Korea and ASEAN countries, as an authorized general agent for branded products from the United States, Switzerland and other European Union firms, Ban Loong possesses a wide range of well-selected healthcare products in its portfolio. For more details about Ban Loong, please visit the Group’s website: http://0030.com.hk
About Jacobson Pharma Corporation Limited (Stock Code: 2633) Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated and engaged in the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 10 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.
The Group aims at the continued strategic enrichment of its generic drug portfolios through the addition of high-value-added products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan, Singapore and Cambodia, forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group’s website: http://www.jacobsonpharma.com
About JBM (Healthcare) Limited (Stock Code: 2161) JBM Healthcare is a Hong Kong-based company that markets and distributes branded healthcare products across Greater China, Southeast Asia and certain other countries. The Group is a unique field player with marketing expertise and a drug heritage that prioritizes product efficacy and quality to meet consumers’ healthcare needs. As a renowned healthcare brand operator in Hong Kong, the Group carries a wide-ranging portfolio of branded healthcare products comprising branded medicines, proprietary Chinese medicines and health and wellness products, which include well-recognized household brands such as Po Chai Pills, Ho Chai Kung Tji Thung San, Contractubex, BITE-X, Mederma Kids, Tong Tai Chung Woodlok Oil, Flying Eagle Woodlok Oil, Saplingtan and Shiling Oil. JBM Healthcare has been a constituent stock of the MSCI Hong Kong Micro Cap Index since 27 May 2021. For more details about JBM Healthcare, please visit: www.jbmhealthcare.com.hk
Jacobson Pharma Corporation Limited (“Jacobson Pharma” or the “Company”; Stock Code: 2633), a leading company engaging in the research, development, production, marketing and sale of essential medicines, specialty drugs and branded healthcare products, today announced the interim results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 September 2021 (the “Reporting Period”).
Backed by the gradual recovery of both Public and Private Sectors for its generic drugs business alongside the stabilisation of COVID-19 pandemic in Hong Kong, the Group delivered total revenue of approximately HK$750.4 million, which represented a 7.9% growth during the Reporting Period. The profit from operations reached HK$116.9 million while profit for the period was recorded at HK$82.9 million, both with a considerable growth of about 28.5% and 46.2% respectively, as compared to the adjusted profit from operations* and adjusted profit for the period* ended 30 September 2020.
The Group maintains a healthy financial position as supported by its strong cash flows, with adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) of HK$203.9 million for the Reporting Period such that the net gearing ratio decreased significantly from 38.4% as of 31 March 2021 to 27.7% as at the end of the Reporting Period. In addition, the Group has a strong cash position, with cash balance of HK$537.1 million as at the end of the Reporting Period. The Board has resolved to declare an increased interim dividend by 50% to HK1.2 cents per share for the six months ended 30 September 2021 (FY2021 Interim: HK0.8 cent).
Resilience Performance of Generic Drugs Business The generic drugs business of the Group recorded revenue of HK$562.2 million (FY2021 Interim: HK$503.8 million) in the Reporting Period, which represented a steady growth of 11.6%. This was driven by the stable and solid growth of 9.3% in its Public Sector, along with a notable recovery of its Private Sector delivering growth at 13.8%.
Although there was a slow down in medication demand of common cold and flu drugs during the pandemic due to social distancing measures and face mask wearing practice, medications for the aging population and chronic disease patients continue to exhibit a strong demand. For instance, among the Group’s cardiovascular offerings, the angiotensin II antagonist class and lipid-lowering product class recorded a notable growth of 34.4% and 27.7% in sales respectively during the Reporting Period, generated by new businesses secured for Losartan Tablets and Rosuvastatin Tablets as well as the continuous increase in consumption of anti-hypertensive drugs such as Perindopril Tablets in the Public Sector.
Furthermore, the Group’s therapeutic sectors of psoriasis preparations and attention deficit hyperactivity disorder drugs (ADHD) also exhibited robust growth of 328.1% and 88.8% respectively, due to new public tenders awarded in the Public Sector. During the Reporting Period, the Group also secured first-time public tenders, which included Atosiban Injection, Idarubicin Injection, Quetiapine Extended Release Tablet 200mg, as well as Haloperidol Tablets 5mg and 10mg. The Group’s antiulcer drugs and anti-hypertensive class products also delivered strong growths of 24.2% and 88.0% respectively in the Private Sector.
As a continuous drive for portfolio enhancement, the Group launched a number of new products during the Reporting Period, including Antisob Injection, Indarubicin Injection, Acitretin Capsule, Atomoxetine Capsule, Finasteride Tablet, Homatropine Eye Drops, Ofloxacin Eye Drops and Ear Drops. Additionally, the Group has secured the registration approvals for a group of new products such as Febuxostat Tablet, Brimonidine and Timolol Eye Drops, Olmesartan Tablet and Telmisartan and Hydrochlorothiazide Tablet for upcoming market launches.
In addition to its research and development (“R&D”) pipeline, the Group also signed exclusive in-license agreements for 4 specialised drugs of the central nervous system (CNS) and immunomodulatory classes from Europe.
Stable Performance of Branded Healthcare Business The Group’s subsidiary in consumer branded healthcare, JBM (Healthcare) Limited (Stock Code: 2161), recorded revenue of HK$188.2 million during the Reporting Period, a soft decline of 1.8%. The decline was mainly attributable to the sluggish consumer demand in both domestic and certain overseas markets caused by the COVID-19 pandemic.
Distribution of Fosun BioNTech Comirnaty Vaccine in Hong Kong and Macau The Group is the exclusive distributor of Fosun BioNTech Comirnaty Vaccine (the “Vaccine”) in Hong Kong and Macau. The vaccination programme started in Hong Kong on 10 March 2021, and up to the end of the Reporting Period, the Group had delivered a total of 6.9 million doses of the Vaccine to the Department of Health and community vaccination centers in Hong Kong as well as the Macau government. Jacobson Pharma will continue to collaborate with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. on supplying the third vaccination doses for the public if the booster shot is deemed necessary by the health authorities.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, concluded, “The unprecedented impact of COVID-19 has rippled across Hong Kong’s economy and taken its toll since the beginning of 2020. Amid the tough market environment, we were committed to maintaining stable business development. This was achieved in part by virtue of the Group’s diversified product portfolio, with generic drugs in particular showing continuous and resilient growth driven by the increasing prevalence of chronic diseases and the aging population in Hong Kong. Our persistent efforts in maximising the commercial opportunities of our portfolio of offerings, strengthening our product pipelines through in-licensing and in-house R&D have helped us endure market challenges, as well as laying a solid foundation for healthy business development in coming days.
We are confident that the challenges of the pandemic are largely behind us and that the growth momentum will continue into the second half of FY2022, thus taking the Group’s business to the next level. We will continue to leverage our strengths in R&D capabilities as well as sales and distribution network, to seize market opportunities and drive the stable business development of Jacobson Pharma.”
About Jacobson Pharma Corporation Limited (Stock Code: 2633) Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated with the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public market sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 10 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.
The Group aims at the continued strategic enrichment of its generic drug portfolios through the addition of high value-added products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan, Singapore and Cambodia forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group’s website: http://www.jacobsonpharma.com
