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Tonghua Dongbao 2022 results: Insulin sales continue to grow
Date：2023-02-07
Author：東寶
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On February 6, 2023, Tonghua Dongbao Pharmaceutical Co., Ltd. (stock code: 600867, hereinafter referred to as "Tonghua Dongbao" or the "Company") released its financial results for 2022. Revenue is estimated to hit RMB 2.775 billion, down 15.09% YoY; the net profit attributable to owners of the parent company grew 21.46% YoY to RMB 1.589 billion; the net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, decreased 23.45% YoY to RMB 846 million.
During the reporting period, the decrease in the Company's revenue and net profit excluding non-recurring gains and losses was mainly attributed to (1) the markdown of insulin products amid the implementation of China's national centralized volume-based procurement program; (2) the write-off or one-time refund of the difference between the original supply price and the centralized purchasing price for the insulin products in circulation; and (3) recurrent pandemic outbreaks.
Insulin sales growth continues
2022 was a year full of challenges and opportunities. Despite the influence from the implementation of the national centralized procurement program and pandemic outbreaks in some areas, the Company saw increasing market share thanks to its steady operation, reasonable strategy, and strong commercialization capability. The price drop in insulin products was primarily offset by sales growth, demonstrating the Company's strong resilience.
The sales of human insulin products maintained double-digit growth, while the sales of insulin analogs more than doubled from a year earlier. As the insulin aspart 30 and 50 were approved in China, the insulin aspart products were expected to reproduce the strong momentum of insulin glargine sales. The steady growth of the Company's current products and the potential new markets for novel products will drive its long-term development.
R&D marks a new milestone
In 2022, the Company continued to beef up investment in novel drug R&D, kept a finger on the pulse of cutting-edge technology and targets in endocrine and metabolic treatment, and accelerated the R&D process. The Company has made impressive progress on the products under research:
(1) In biopharmaceuticals, the application of the blockbuster GLP-1RA liraglutide injection was accepted, and the clinical trials of next-generation ultra-rapid-acting insulin lispro and BC Combo (THDB0207) went smoothly.
(2) As for novel drug development, the Phase IIa clinical trial of URAT1 inhibitor, a Class 1 novel drug for gout, was initiated as the Phase I clinical trial met the primary endpoint; the clinical trial application for a novel dual-target drug for gout (a potential best-in-class drug) was approved; the clinical trial application for the dual GLP-1/GIP receptor agonist for diabetes treatment was accepted, and the Company will explore the drug's other indications, such as obesity.
(3) About oral antidiabetic drugs, the Company has made significant headway in the production of repaglinide tablets, empagliflozin tablets, and sitagliptin metformin tablets, which will complement the existing drugs and contribute to more robust growth, so as to meet the needs of different diabetic patients.
Global expansion strategy makes steady progress
The Company's global expansion strategy has been coming along fine since 2022, as numerous drugs have reached their milestones. With the diversification of its product portfolio, the Company will speed up its global expansion with more high-quality products.
In December 2022, the Company inked a partnership agreement with Kexing Biopharm, aiming to boost the sales of GLP-1RA liraglutide injection in 17 emerging overseas markets. In February 2023, the European Medicines Agency accepted the marketing authorization application for Human Insulin Injection. The registration of the Company's human insulin products in many countries will be accelerated if the application gets approved.
Tonghua Dongbao will rev up growth in 2023
Going forward in 2023, the Company will continue to adhere to the philosophy of "Establishing a Global Brand Through Consistent Innovation" and advance its business on two fronts: in-house R&D and external collaboration. As it strengthens its R&D capabilities, the Company will seek inorganic growth to power its transformation into an innovative pharmaceutical company. In terms of commercialization, the Company will keep exploring new markets and diverse sales channels beyond centralized procurement in China, in a bid to boost the market share of its products. Moreover, it has set its sights on expanding into global markets to find new growth engines.
