(MENAFNEditorial) Jacobson Pharma Announces FY2018 Interim Results
Realizing Growth Strategies With Both Revenue and
Net Profit Up Declares Interim Dividend of HK0.9 cent per share
HONG KONG, CHINA
- -22 November 2017 - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Company";
HKSE: 2633), a leading company engaged in the research, development,
production, marketing and sale of generic drugs and proprietary medicines,
today announced its unaudited interim results of the Company and its
subsidiaries (collectively the "Group") for the six months ended 30 September 2017
(the "Reporting Period").
During the
Reporting Period, the Group's revenue increased by 29.1% to HK$743.0 million
(1H2016: HK$575.4 million). Gross profit and profit from operations rose by 14.0% to HK$278.9 million
(1H2016: HK$244.6 million) and 43.9% to HK$112.7
million (1H2016: HK$78.3 million) respectively. Profit attributable
to the shareholders of the Company surged
by 40.6% to HK$80.3 million (1H2016: HK$57.1 million). Basic and diluted earnings
per share were HK4.42 cents.
The Group
maintains a healthy financial position with cash and cash equivalents of HK$326.3
million at the end of the Reporting Period. The Board has
declared payment of an interim dividend for the six months ended 30 September
of HK0.9 cent per share (1H2016: HK0.8 cent).
Business
Review
Generic Drugs During the
Reporting Period, the Group's generic drugs
business achieved revenue of HK$542.2
million, up by 7.0% compared with the same period last year. Revenue from the public
sector segment grew 7.9% to HK$184.2 million, primarily attributed to the rise in
demand for oral anti-diabetic and cardiovascular products along with contributions from
newly awarded tenders. Private
sector business posted a revenue growth of 6.6% to HK$358.0 million, attributing to organic growth as well as revenue contribution from the
business of Medipharma that the Group acquired in November 2016.
The Group is
a market leader in a number of therapeutic categories and its research and
development ("R & D") team has been progressively
enriching
the product pipeline to help fuel the Group's growth momentum in those categories. A noteworthy example is
the recent launch of losartan which witnessed
a robust sales growth of 87.5% during the Reporting Period.
In
terms of productivity, the Group's manufacturing operations continued to perform
well affording
a steady rise in production output. The total output of the three major product
dosage forms -- solid, semi-solid and liquid -- grew respectively by 17.3% to
1,341 million tablets and capsules, 37.0% to 135 tons and 4.9% to 1,373
kilo-liters as compared to corresponding period of 2016.
Proprietary Medicines
Revenue from the Proprietary Medicine segment witnessed a
significant 76.2% growth to HK$121.2 million, attributable to the robust sales performance of Ho Chai Kung, a long-standing household brand that the Group acquired in January 2017, which
contributed HK$45.2 million to the segmental revenue, plus the
strengthening sales of Po Chai Pills (「保濟丸」) and Tong Tai Chung
Woodlok Oil (「唐太宗活絡油」).
The Group
continues to contemplate geographical
expansion into
strategic markets in the Asia Pacific, such as
Taiwan and certain ASEAN countries. It has put in place a dedicated business development team to pursue market evaluations and to expedite market entry and regulatory
clearance.
Wholesale and Retail In April 2017, the Group completed the
acquisition of 70% interest in the retail and
wholesale operator Hong Ning Hong Group which has a
well-established commercial infra-structure and customer network. The
acquisition was a strategic move by the Group
to expand sales channels and boost distribution of products of its proprietary medicine brands. The Wholesale and Retail segment
contributed revenue of HK$79.6 million, accounting for 11.0% of the Group's total
revenue.
Product Development
During the
Reporting Period, the Group has an addition of 18 newly selected products to
supplement the Group's R & D pipeline and successfully registered 8 products
during the Reporting Period which are ready for launch and supply in Hong Kong.
Furthermore, the Group finished the formulation development process of another
22 products, which are currently undergoing stability program.
The Group
also made good progress on
collaboration projects with various R & D
institutions. Derived from the collaboration with Nano & Advanced Materials
Institute Limited (NAMI), a commercialized product being
trademarked as "NanoAZDTM" was launched in April 2017. The product
was first introduced at the Alzheimer's Association
International Conference in London in July 2017 and received encouraging
feedback as well as recognition for its potential in subsequent clinical application.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson
Pharma, said, "We are delighted that Jacobson Pharma maintained healthy
business momentum and executed the necessary growth strategies in line with our
original plans and schedule
for the first half of FY2018. Underpinning the financial results in the period
under review is a continued focus on the key growth drivers, encompassing
first-to-opportunity generics, such as losartan and mesalazine and proprietary
brands, including Po Chai Pills, Ho Chai Kung (「何濟公」) and Shiling Oil (「十靈油」).
Looking ahead, we will continue to take
measured and disciplined approach to R & D investment and capital allocation
whilst expecting further progress with its development pipeline, offering
potential value through multiple licensing opportunities on both generic drugs
as well as biopharmaceuticals. We will continue to pursue expanding our
footprint in certain strategic markets in Asia with a view to creating
sustainable values for our shareholders."
About Jacobson Pharma
Corporation Limited (雅各臣科研製藥有限公司;Stock Code: 2633) Jacobson Pharma is the largest generic drug company
in Hong Kong with over 30% share of the total generic drug market for each year
since 2012. The Group's proprietary medicines, notably being Po Chai Pills (「保濟丸」), Tong Tai Chung Woodlok Oil (「唐太宗活絡油」), Ho Chai
Kung Tji Thung San (「何濟公止痛退熱散」), Contractubex Scar Gel (「秀碧除疤膏」) Doan's Ointment (「兜安氏藥膏」), Flying Eagle Wood Lok Medicated Oil (「飛鷹活絡油」), Saplingtan (「十靈丹」), Shiling Oil (「十靈油」) and Col-gan Tablet (「傷風克」) have been widely recognized by the market. 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:
MENAFN2211201700703245ID1096134192
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