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Tonghua Dongbao achieves record product sales in 2023, driving performance growth
Date：2024-03-29
Author：東寶
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Performance summary
In 2023, Tonghua Dongbao Pharmaceutical Co., Ltd. (stock code: 600867, hereinafter referred to as "Tonghua Dongbao" or the "Company") reported:
RMB 3.075 billion in revenue, an increase of 10.69% year-on-year, mainly driven by strong product sales and an enhanced product mix;
RMB 1.168 billion in net profit attributable to owners of the parent company, a decrease of 26.17% year-on-year, influenced by gains from the prior year's sale of shares in Amoytop;
RMB 1.168 billion in net profit, excluding non-recurring gains and losses, attributable to shareholders of the listed company, an increase of 38.88% year-on-year, reflecting a robust recovery in core business profitability;
Lower sales and administrative expenses and higher profitability thanks to ongoing efforts to cut costs and increase efficiency;
A strategic move into the U.S. insulin market through a partnership agreement with Hong Kong King-Friend Industrial Co., Ltd., a fully-owned subsidiary of Nanjing King-Friend Biochemical Pharmaceutical.Co., Ltd., focusing on products like insulin glargine, insulin aspart, and insulin lispro. The partnership yielded technical service revenues during the reporting period, contributing to performance growth.
Growth in insulin sales and market share
During the reporting period, the Company not only fulfilled its centralized procurement volumes, but also expanded into markets beyond centralized procurement by broadening product coverage and strengthening collaborations with major retail chains. These efforts significantly boosted the Company's insulin sales and drove its performance back onto a growth trajectory.
In 2023, the Company's human insulin sales saw steady growth, with market share exceeding 40% (according to Pharmcube data), the highest figure in the industry; insulin analog sales grew by more than 60% year-on-year, further optimizing the product mix. Among these, insulin glargine continued its rapid growth, capturing nearly 10% of the market, while the insulin aspart series, in its initial launch phase, saw sales grow by over 200%.
Focus on R&D and innovation
The Company continued its focus on innovation in 2023. Clinical trials on multiple promising drugs in the endocrine and metabolic fields progressed efficiently, and significant novel products made positive interim advances.
For diabetes treatment, two new products were approved for marketing: empagliflozin tablets, an SGLT-2 inhibitor, and liraglutide injection, a GLP-1 receptor agonist. These products complement existing offerings to meet a broader range of diabetic patient needs. The insulin glargine and insulin lispro injection (THDB0207 injection) reached its primary endpoint in Phase I clinical trial in Germany.
For gout drugs, a novel URAT1 inhibitor (THDBH130 tablets) achieved its primary endpoint in Phase IIa clinical trials; a potential first-in-class dual-target XO/URAT1 inhibitor (THDBH151 tablets) also met its primary endpoint in Phase I trials; the production application for etoricoxib tablets has been accepted.
For GLP-1 drugs, two Class 1 antidiabetic drugs, i.e., an oral small molecule GLP-1 receptor agonist (THDBH110 capsules) and a dual GLP-1/GIP receptor agonist (THDBH120 injection), have both completed the enrollment of the first subject in Phase I clinical trials. In addition, the NMPA has accepted the clinical trial application for THDBH120 injection intended for weight loss indications.
Global expansion for new growth avenues
In 2023, apart from the domestic market, the Company also pursued opportunities abroad, accelerating its strategy to broaden its global footprint and develop new engines for growth.
During the reporting period, the Company's application for marketing authorization of its human insulin injection was accepted by the European Medicines Agency. The Company also formed a strategic partnership with Kingfriend to enter the U.S. insulin market with three insulin variants: aspart, glargine, and lispro. Furthermore, the Company expanded the registration and application efforts for insulin glargine and insulin aspart in developing countries.
For GLP-1 products, the Company partnered with Kexing Biopharm to expedite the registration and application processes for liraglutide in 17 emerging markets abroad. To date, registration applications for liraglutide have been submitted in several countries.
Focus on development
2023 was a key year for Tonghua Dongbao to revive its organic growth and solidify its market stance, as well as to accelerate innovation and expand globally, laying a solid groundwork for future growth. Looking to 2024, on the domestic front, the Company plans to further extend its product reach, deepen penetration into lower-tier markets, and swiftly increase the adoption of new products such as liraglutide in various medical institutions. Globally, with an increasingly diversified product lineup, the Company will intensify its overseas efforts, speeding up the registration and application processes to deliver more high-quality products to global patients and to craft a new growth trajectory. In R&D, the Company will stay committed to its strategy of "Internal R&D and External Cooperation" to strengthen its R&D capabilities and efficiency while actively seeking external collaboration. We will enrich our product portfolio to build robust momentum for future growth.
