Jacobson Pharma Announces FY2022 Annual Results
HONG KONG, Jun 29, 2022 – (ACN Newswire via SEAPRWire.com) – 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 essential medicines, specialty drugs and branded healthcare products, today announced the annual results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 March 2022 (“FY2022” or the “Reporting Period”).
— Year-on-year revenue up by 10.3%, amounting to HK$1,595.5 million
— Profit for the year up by 78.4%*, amounting to HK$187.7 million
— Strong growth witnessed on key therapeutic classes for chronic diseases such as lipid lowering agents and angiotensin II inhibitors
— Progress with expansion plan in Greater China as facilitated by Greater Bay Area (“GBA”) healthcare policy and formation of joint venture with an established partner
— Delivery of approximately 9 million doses of Fosun BioNTech Comirnaty Vaccine in Hong Kong and Macau for the collaborative fight against COVID-19
During the Reporting Period, the Group delivered total revenue of HK$1,595.5 million with a year-on-year growth of 10.3%, primarily driven by the solid growth momentum of business in the public sector. The profit from operations and profit for the year was registered at HK$260.9 million and HK$187.7 million, representing a promising growth of about 48.9%* and 78.4%* respectively, as compared to the adjusted profit from operations* and adjusted profit* for the corresponding year of 2021.
The Group’s financial position remains stable as supported by a healthy cash flow, with adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) posted at HK$441.6 million for the Reporting Period and a net gearing ratio at 29.2% as of 31 March 2022. With a cash balance of HK$478.7 million as of the end of the Reporting Period, the Group also recently secured a syndicated loan of HK$1.4 billion to enhance its capital capability.
The Board has recommended the payment of a final dividend of HK2.68 cents per share (FY2021: HK1.50 cents per share). Excluding the FY2021 special interim dividend in the form of distribution in specie of shares of JBM (Healthcare) Limited (Stock code: 2161.HK), an indirectly non-wholly owned subsidiary of the Company, total dividend for the Reporting Period amounts to HK3.88 cents per share (FY2021: HK2.30 cents per share), an increase of 68.7%.
Solid Performance of Generics Business
The Group’s generic drugs business demonstrated a resilient performance amidst the COVID-19 pandemic, presenting a solid growth of 13.6%, with revenue posted at HK$1,191.3 million for the Reporting Period.
The Group’s product offerings in the key therapeutic classes for chronic diseases such as diabetes and cardiovascular disease achieved high double-digit growth. For instance, the lipid-lowering product class recorded a strong growth of 37.2% in sales during the Reporting Period. In addition, the oncology drug class has also shown a significant growth of 572.6%, owing to the increased acceptance of the new Arsenic Trioxide Oral Solution.
As a major supplier of essential medicines in Hong Kong, the Group responded swiftly to cater to the surged demand for medications during the fifth wave of the epidemic. This was reflected by the strong growth in the Group’s analgesics (+18.6%), cough & cold preparations (+45.8%) and anti-inflammatory products (+77.5%).
Steady Pipeline and Portfolio Enhancement
The Group continued to make steady progress with its research and development (“R&D”) pipeline. As of 31 March 2022, the Group has a total of 172 products in the pipeline, among which 54 items have been approved for registration, 15 of them have been submitted for registration, 52 items have finished the development stage and are under stability preparation or stability study, plus 25 items are currently under formulation or pre-formulation research development stage.
As a continuous drive for portfolio enhancement, the Group launched a number of new products during the Reporting Period, including Rabeprazole Tablets, Valsartan and Amlodipine Tablets, Telmisartan and Hydrochlorothiazide Tablets, Pregabalin Capsules, Atosiban Injection, and Idarubicin Injection. Additionally, the Group has secured the registration approvals for a group of new products such as Levetiracetam Tablets, Febuxostat Tablet, Dexmedetomidine Infusion, Pramipexole Extended Released Tablets, Brimonidine and Timolol Eye Drops, Telmisartan and Amlodipine Tablets for upcoming market launches.
Tapping Specialty Drugs Market in China and Asia
Facilitated by new measures under the “Work Plan for Regulatory Innovation and Development of Pharmaceutical and Medical Devices in the Guangdong-Hong Kong-Macau Greater Bay Area”, the Group has established collaboration with the University of Hong Kong-Shenzhen Hospital for the introduction of its Arsenic Trioxide Oral Solution (indicated for the treatment of acute promyelocytic leukaemia) into designated hospitals in the Greater Bay Area. The collaboration will also be part of a multi-centre clinical trial covering Guangdong, Singapore and Hong Kong.
More recently, the Group, together with its non-wholly owned subsidiary, JBM (Healthcare) Limited (Stock code: 2161.HK), formed a joint venture with Ban Loong Holdings Limited (Stock code: 0030.HK), a company of which Yunnan Baiyao Group Co., Ltd (Stock code: 0538.SZ) is the controlling shareholder, to capture the growth opportunities of the specialty medicines in Greater China and the Asia-Pacific region. The joint venture will be primarily engaged in exploring business opportunities in various growth streams including specialty medicines (including orphan drugs), over-the-counter drugs, and branded healthcare products as well as medical devices in the Greater China region.
Distribution of Fosun BioNTech Comirnaty Vaccine in Hong Kong and Macau
The Group is the exclusive distributor of Fosun BioNTech Comirnaty Vaccine (the “Vaccine”) in Hong Kong and Macau. Up to the end of the Reporting Period, the Group delivered approximately 9 million doses of the Vaccine to the Department of Health and community vaccination centres in Hong Kong and the Macau governments.
To protect the public against COVID-19 and help ensure herd immunity through vaccination, the Group is committed to supporting the governments and professional partners in the acceleration of vaccination in Hong Kong and Macau, especially among the elderly, and will continue to collaborate with the Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and its subsidiaries to supply booster vaccination doses for the public, as encouraged by the health authorities.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, concluded, “While the pandemic continues to impact the market environment, the Group delivered a solid performance in FY2022 by focusing on strong execution, bolstered by our core capabilities and enhanced product pipeline and portfolio. We also take pride in playing a collaborative role in the distribution of the Fosun BioNTech Comirnaty Vaccine in Hong Kong and Macau and have demonstrated our commitment to robust manufacturing and logistics operations by ensuring a continuous supply of our essential medicines were delivered to hospitals and patients during Hong Kong’s fifth wave of the epidemic.
“Looking ahead, we are entering 2022 with positive momentum as we aim to build a differentiated portfolio that anticipates future healthcare needs. By executing our R&D and in-licensing strategies, fostering strong partnerships, and cementing our foothold in key strategic markets, we will further diversify and transform our business, bringing sustainable growth and value to shareholders.”
About Jacobson Pharma Corporation Limited (Stock Code: 2633)
Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated and engaged in the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 10 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.
The Group aims at the continued strategic enrichment of its generic drug portfolios through the addition of high-value-added products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan and Cambodia, forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. 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: http://www.jacobsonpharma.com
* Excluding the one-off Employment Support Scheme subsidy from the Hong Kong Government of about HK$81.1 million in FY2021
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