Luye Pharma Group (2186.HK) announced its 2023 half year results and recent developments on August 29, 2023.
Remarkable sales revenue
During the reporting period, the group’s operating revenue was RMB 2,904.1 million, with an EBITDA of RMB 867.3 million.
The sales of product contributed RMB 2,785 million to the operating revenue, growing 18.7% year-on-year. Specifically, the contribution from the sales of oncology products was RMB 810 million, up 34.9% year-on-year, the contribution from the sales of cardiovascular products was RMB 980 million, up 24.8% year-on-year, and the contribution from the sales of central nervous system (CNS) products was RMB 670 million, up 16.5% year-on-year.
Remarkable payoff for innovation
Starting 2021, the group would have 2-3 new products approved for launch each year. In the first half of this year, the group had two new products approved for launch: one was first-in-China, and the other was the only one in the world.
Robust growth for mature products
The sales of mature products began to grow again, and some exclusive products further demonstrated their benefits for patients.
Fast sales ramp-up for new products
The group focuses on two key therapeutic areas for new product development: CNS and oncology. Thanks to the successful launch of several new products, the group’s revenue stream is evolving from relying on individual products to being driven by a matrix of products acting in concert.
In the therapeutic area of CNS where product development is difficult with relatively fewer players, the group has launched multiple new drugs in China, the U.S., and Europe. These products are acting in concert with products that were already available in international markets including Seroquel® and the Rivastigmine Transdermal Patch to form a CNS portfolio that holds promise for outperforming competitors and propelling the group to a leading player in the CNS area.
In the therapeutic area of oncology where the demand for treatments is huge, the group has been introducing competitive new products to cement its leading position in China.
The group has built a comprehensive and internationally competitive pipeline in key therapeutic areas. 10 projects in the pipeline are under review for marketing authorization and 9 are undergoing Phase III/pivotal clinical studies. This strong pipeline will underpin the group’s future growth.
In addition, Boan Biotech, a subsidiary of the group, achieved several significant advancements. In the field of biosimilars, the Biologics License Application (BLA) for two products were accepted in China and Brazil respectively, and the Phase III clinical trials of five products were taking place in China and abroad. Furthermore, the IND application for two innovative antibody products was approved.
Strong capabilities in international operations
In recent years, the group has accelerated its pace to launch innovative products abroad. This year, Rykindo was approved for launch in the U.S.; Seroquel and transdermal patch products expanded their presence in the international markets; and Xuezhikang was approved for marketing in Uzbekistan. These achievements once again demonstrated the group's strong capabilities in conducting R&D, regulatory, commercial, clinical and supply chain activities internationally. They are all at the core of the group's effort to build a competitive edge and ensure strong growth in the future.
Boosting growth through M&A
The group is also seeking high-quality and valuable assets and products with a high demand in the marketplace to form a synergy and drive growth in therapeutic areas such as CNS, oncology, cardiovascular diseases, metabolism, and pain. This will enable the group to further expand its pipeline, increase its return-on-investment (ROI), improve R&D efficiency and business operations, and ensure long-term, sustainable growth.
Looking ahead, the group’s competitive CNS and oncology pipelines and portfolios will take its overall business to a new level globally. On the one hand, the group will deepen operations in the two strategic therapeutic areas and accelerate the go-to-market process of those products; on the other hand, it will continue to gear up the development of key products and expedite their launch both in China and abroad. This will allow the group to deliver more innovative and differentiated products useful in clinical practice to address the unmet health needs of patients across the globe.