|- Revenue Climbs 11.1% to HK$575.4 Million with;|
- Adjusted Profit Up by 30.4% to HK$79.7 Million;
- Declares an Interim Dividend of HK0.8 cents per share
HONG KONG, Nov 23, 2016 - (ACN Newswire) - 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 generic drugs and proprietary Chinese medicines and the largest generic drug company in Hong Kong, today announced its unaudited interim results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 September 2016 (the "Reporting Period").
During the Reporting Period, the Group's revenue increased by 11.1% to HK$575.4 million (1H2015: HK$518.2 million). Gross profit rose by 11.0% to HK$244.6 million (1H2015: HK$220.4 million), with gross profit margin maintained at 42.5%. Profit attributable to the equity shareholders of the Company was HK$57.1 million (1H2015: HK$61.1 million). Excluding the one-off listing expenses of HK$22.6 million, the adjusted profit attributable to the equity shareholders of the Company would have been increased by 30.4% to HK$79.7 million. Basic and diluted earnings per share were HK4.27 cents.
The Group maintains a strong financial position with cash and cash equivalents of HK$699.4 million and net cash at the end of the Reporting Period. The Board has declared a payment of an interim dividend for the six months ended 30 September of HK0.8 cents per share (1H2015: nil).
During the Reporting Period, revenue of generic drugs achieved HK$506.6 million, representing an increase of 14.0%. Benefitting from the new tenders awarded, the revenue from public sector saw a promising growth of 13.3% to HK$170.7 million, while the revenue from private sector, mainly attributed to the Group's gain in market shares coupled with price escalation across the major selling product categories, increased by 14.4% to HK$335.9 million.
Manufacturing units were operating effectively with a steady rise on production output. There were over 1,100 millions of tablets and capsules, over 1,300 tones of oral liquid and over 94 tones of cream product produced, representing a respective increase of 12%, 28% and 37% versus same period in 2015.
Proprietary Chinese Medicines ("PCM")
During the Reporting Period, the sales of Po Chai Pills in Hong Kong reached HK$36.6 million (1H2015: HK$28.7 million). The total revenue from the PCM segment decreased slightly by 6.9% to HK$68.8 million (1H2015: HK$74.0 million), mainly due to a temporary sales vacuum induced by the cessation of the distribution arrangement with the previous distributor of Puji Pills in China.
Leveraging the high brand awareness of Po Chai Pills and the extensive network and experience of the Group's distribution partners in China, including a subsidiary of Yunnan Baiyao Group Co., Limited and Zhuhai Jinming Medicine Co., Limited, the Group is confident that the sales penetration as well as market shares of Puji Pills in China will be much enhanced along with a full exploitation of its newly secured Over-the-Counter (OTC) classification status.
During the Reporting Period, with the addition of 13 newly selected products, there are a total of 98 products in the Group's research and development ("R&D") pipeline. With effective project management protocols, the Group's R&D team has made encouraging progress during this period with the completion of the development process and stability study for 13 products. Furthermore, the Group has finished the formulation development process for another 13 products.
The Group has also achieved good progress on several collaboration projects with local and overseas R&D institutions. The Group has signed a R&D collaboration agreement with the Hong Kong Institute of Biotechnology ("HKIB") on September 23, 2016. The renovation work for the new R&D Center has gone underway, which is targeted to be completed by the end of 2016. The center will be equipped with advanced equipment for development of specialized formulation and coating technology to be applied on premium generics and PCM.
Merger and Acquisition Opportunities
On October 11, 2016, the Group entered into the sale and purchase agreement with an independent third party, pursuant to which the Group agreed to purchase the entire issued share capital of Cawah Holdings Limited and its operating assets which include certain pharmaceutical manufacturing machinery and equipment, at a consideration of HK$100 million.
The transaction was completed on October 31, 2016. The subsidiary of Cawah Holdings Limited namely, Medipharma Limited, is a reputable generic drug manufacturer in Hong Kong, the product portfolio of which is highly complementary to that of the Group. It currently enjoys a decent market share in the public sector and also carries with it some popular and well-known brands such as Doan's Ointment and Methyl Salicylate Compound Ointment thus providing the Group with a platform to explore the potential in the OTC channels. This acquisition helps sustain the Company's leadership position in generic drug market and opens up new business development opportunities in both private and public sectors.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma said, "Looking forward, we will leverage our pre-eminent position in Hong Kong to faciliate our business development plans in China, Macau and strategicially-selected markets in Asia Pacific region. We will continue to look for potential targets that either carry products which are complementary to our current portfolio or bear proprietary brands and technologies that would bring about strategic synergies with our current businesses. On the front of product research and development, we will further develop and enhance our portfolio of generic drugs with a focus on specialized formulations. Operationally we also aim to consolidate and streamline our manufacturing capacities as well as to leverage our operational efficiency to ramp up the overall economies of scale and pricing advantage hence maximizing returns to our shareholders."
About Jacobson Pharma Corporation
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 according to Frost & Sullivan. The Group's proprietary Chinese medicines, notable ones being Po Chai Pills and Tong Tai Chung Woodlok Oil are widely carried in the market. For more details about Jacobson Pharma, please visit the Group;s website: http://www.jacobsonpharma.com
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Nov 23, 2016 21:27 HKT/SGT
Source: Jacobson Pharma Corporation
Topic: Press release summary
Sectors: Daily Finance, Daily News, BioTech
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