On August 15, 2024, China Medical System Holdings Limited (“CMS” or
the “Company”) released its 2024 interim results announcement, with
a steady increase in overall revenue and profit for the period
compared to the second half (2H) of 2023. In the first half (1H) of
2024, the Company recorded a turnover of RMB3,611.1 million,
representing a decrease of 21.7% compared with 1H 2023, an increase
of 6.1% compared with 2H 2023. In the case that all medicines were
directly sold by the Company, the turnover was RMB4,287.5 million,
representing a decrease of 22.6% compared with 1H 2023, an increase
of 8.9% compared with 2H 2023; Among which, the total revenue of
non-National VBP exclusive products and innovative products was
RMB2,404.7 million, accounting for 56.1% of CMS’s revenue in the
case that all medicines were directly sold by the Company. Profit
for the period was RMB903.4 million, representing a decrease of
52.8% compared with 1H 2023, a substantial increase of 92.8%
compared with 2H 2023.
The year 2024, not only marks the first year of
the commercialization of CMS’s innovative products, but also a
crucial point for the release of National Volume Based Procurement
(“National VBP”) impact on its financial performance. Deanxit
entered the seventh batch of National VBP in November 2022, Plendil
and Ursofalk entered the eighth batch of National VBP in July 2023,
and none of the three original drugs were selected, which had a
negative impact on the Company’s business performance. In 1H 2024,
the Company’s overall performance showed a growth trend compared
with 2H 2023, indicating that CMS has basically digested the impact
of National VBP and successfully entered the "New Product Era"
where non-national VBP exclusive products and innovative products
drive its growth.
With the approval for marketing of LUMEBLUE
(Methylthioninium Chloride Enteric-coated Sustained-release
Tablets) in June and METOJECT (Methotrexate Injection)’s additional
indication of active rheumatoid arthritis (RA) in adults in July
this year, CMS's innovative drug portfolio in the commercialization
stage has expanded into 5 products (including 6 indications);
simultaneously with a rich and differentiated innovative pipeline
reserve. Gathering the power of innovation and riding the momentum
of development, CMS is comprehensively shaping new drivers for
development with a healthier product structure, further opening up
a new cycle of quality development.
The "Collaborative and In-house" dual-engine
R&D model drives the simultaneous improvement in quantity and
quality of the pipeline, accelerating the transformation of
innovative biotechnology
A profound innovative drug R&D pipeline is
an important driving force for the long-term development of CMS.
The Company adheres to the purpose of innovation for meeting the
unmet clinical needs and solving the difficulties of patient
medication, and promotes innovation development through a two-wheel
drive of “Collaborative R&D and In-house R&D”, continuously
deploying FIC (first-in-class) and BIC (best-in-class) innovative
products, and enhancing the capabilities and efficiency of research
and clinical development to achieve a rapid transformation of
scientific outcomes into social and commercial values.
As of now, CMS's innovative product portfolio
approved for marketing in China has been expanded into 5 products
(including 6 indications), among which, 4 innovative drugs
(VALTOCO, ILUMETRI, METOJECT - psoriasis indication, VELPHORO) have
been included in the National Reimbursement Drug List (NRDL) and
entered large-scale clinical application; also, CMS newly added
LUMEBLUE and METOJECT (RA), for being approved for marketing in
China recently.
CMS has also steadily advanced the clinical
development of innovative products. Currently, Desidustat Tablets
is under NDA review in China; Also, a total of about 10 projects
have been prepared/launched for their registrational clinical
trials, mainly randomized controlled trials (RCT).
At the same time, the Company had continued to
strengthen basic research and independent innovation capabilities,
and successfully promoted more than 10 in-house R&D projects,
among which, three innovative drugs (VEGFA/ANG2 Tetravalent
Bispecific Antibody, Highly Selective TYK2 Inhibitor CMS-D001
Tablets, and GnRH Receptor Antagonist CMS-D002 Capsules) have
entered the clinical development stage.
In addition, the Company’s innovative pipeline
has continued to expand. CMS Skinhealth collaborated with Incyte
once again, and has obtained exclusive license to research,
develop, register and commercialize povorcitinib, a selective oral
small-molecule JAK1 inhibitor, in countries/territories including
Mainland China, Hong Kong, Macau, Taiwan Region and 11 Southeast
Asian countries. This further enriched the product portfolio of CMS
Skinhealth in the treatment of vitiligo and other immune-mediated
dermatology diseases.
Subsequently, CMS will continue to produce
innovative products with higher efficiency and more controllable
costs every year, accelerating the release of innovative value and
embracing quality and sustainable performance growth through a
healthy product structure dominated by non-National VBP exclusive
products and innovative products.
Successful commercialization system releases
the clinical value of innovative products in an efficient and
collaborative manner
After 32 years of deep cultivation in specialty
therapeutical fields, successful commercialization capability is
one of CMS’s core competitiveness. By continuously reinforcing and
integrating its commercialization platform, it has achieved
in-depth development of its three major business segments including
cardio-cerebrovascular/gastroenterology, dermatology, and
ophthalmology, and expanded its boundaries in related fields.
Additionally, the Company established a highly qualified,
professional promotion team with strong execution, as well as
extensive channel and resource coverage, which has laid a solid
foundation for the rapid market entry and brand building of its
innovative products.
Four innovative drugs of CMS have entered
large-scale clinical applications, covering various disease fields
such as central nervous system, dermatology, nephrology, and
gastroenterology, and developed synergistically with the existing
marketed products in promotion team and channels. Meanwhile,
leveraging on the opportunity of being included in the NRDL, CMS is
advancing hospital development, brand building, real world studies
and medically-driven academic promotion. CMS is improving patients’
accessibility to innovative drugs with the help of patient aid and
disease knowledge popularization programs, promoting the release of
products’ clinical value.
The Dermatology and Medical Aesthetic Business
"CMS Skinhealth" regards dermatology prescription products as its
core, and extends to light medical aesthetic products and
dermatology-grade skincare products, continuously improving the
construction of a full life-cycle skin-health management platform
covering dermatological treatment, skincare, and medical aesthetics
through internal development and external collaboration. In terms
of clinical development of dermatology prescription drugs, CMS has
completed the Pivotal Real World Study for ruxolibinib cream in
vitiligo, and is advancing the registration application process in
Mainland China. At the same time, it has continuously complemented
the regenerative light medical aesthetic portfolio, among which the
China’s medical device registration application of the
Poly-L-lactic Acid Microparticle Filler Injection has been accepted
by the NMPA during the Reporting Period; and the Company has newly
obtained exclusive licenses of three regenerative light medical
aesthetic products (Polycaprolactone Microsphere Gel for Injection,
Calcium Hydroxylapatite Microsphere Gel for Injection, and
Decellularized Extracellular Matrix Implant), which are currently
under the registrational clinical trial stage in China.
The results announcement shows that, as of the
end of June, the promotion network of CMS has covered over 55,000
hospitals and medical institutions, and approximately 280 thousand
retail pharmacies in China.
Leveraging the accumulated advantages in
cardio-cerebrovascular, gastroenterology, central nervous system,
nephrology, ophthalmology, dermatology and other specialty
therapeutical fields, CMS steadily releases the scale effect of its
specialty businesses, and builds high competition barriers,
creating broad commercial potential for its innovative products and
exclusive products.
Drawing up the internationalization layout to
gather momentum for the incremental market
Integrating the advantageous resources of the
Company, its Southeast Asia business “Rxilient Health”, shares and
expands the successful experience of CMS gained from the China
market, as well as global quality products and innovative
technological resources, into the Southeast Asia market. This
accelerates the improvement of the platform integrating “R&D,
manufacture, and commercialization” of the Southeast Asia business,
empowering Chinese and global pharmaceutical companies to implement
the “overseas development” strategy, and also opening up a larger
space for incremental development opportunities for CMS.
As of the end of June, Rxilient Health has
established a competitive product portfolio with more than ten
differentiated products, covering therapeutic areas such as
oncology, central nervous system, autoimmune, dermatology, and
ophthalmology, etc. Rxilient Health is accelerating the relevant
work on the market registration processes in Southeast Asian
countries for innovative pipeline products, such as ruxolitinib
cream, Methylthioninium Chloride Enteric-coated Sustained-release
Tablets, and Diazepam Nasal Spray, etc. Furthermore, Rxilient
Health collaborated with Junshi Biosciences to promote the
registration process of toripalimab (anti-PD-1 monoclonal antibody)
in multiple countries in Southeast Asia, aiming to benefit local
cancer patients as soon as possible.
In December last year, the Company and Rxilient
Health joined hands with Pharmaron and other partners to complete
the purchase of the Singapore manufacturing plant. This year, all
relevant parties have been orderly advancing a series of work for
the Singapore manufacturing plant, including equipment testing,
quality verification, and production quality system certification,
etc., so as to accelerate the CDMO business development, and to
optimize the Company’s overseas supply chain and manufacturing
capabilities. The business layout will further facilitate more
inter-industry cooperation between CMS and global partners in the
future, thus jointly building a win-win medical innovation
ecosystem with mutual benefits.
Conclusion
Since its establishment in 1992, CMS has
followed the development pattern of the industry and has promoted
three significant strategic transformations successfully with a
forward-looking vision. The Company started as an agent of imported
original drugs, gradually developed to control the rights of
original/exclusive products, and then achieved a comprehensive
innovative transformation. Each step of the transformation is in
sync with the industry development trends. CMS steadily aims
towards the ultimate goal, and constantly builds up its strength
and resilience to persist through the industry development cycle.
With the gradual release of the impact of national VBP on its
financial performance, CMS has been transforming into a brand-new
company. While embracing the innovation achievements in each stage,
CMS is fully prepared for a sustainable and healthier development
in the future.
About CMSCMS is a platform company
linking pharmaceutical innovation and commercialization with strong
product lifecycle management capability, dedicated to providing
competitive products and services to meet unmet medical needs.
CMS focuses on the global first-in-class (FIC)
and best-in-class (BIC) innovative products, and efficiently
promotes the clinical research, development and commercialization
of innovative products, enabling the continuous transformation of
scientific research into clinical practices to benefit
patients.
CMS deeply engages in several specialty
therapeutic fields, and has developed proven commercialization
capabilities, extensive networks and expert resources, resulting in
leading academic and market positions for its major marketed
products. CMS continues to promote the in-depth development of its
advantageous specialty fields and expand business boundaries. While
strengthening the competitiveness of the
cardio-cerebrovascular/gastroenterology business, CMS independently
operates its dermatology and medical aesthetics business, and
ophthalmology business, aiming to gain leading positions in
specialty therapeutic fields, whilst enhancing the scale and
efficiency. At the same time, CMS has expanded its business
territory to the Southeast Asian market, striving to become a
"bridgehead" for global pharmaceutical companies to enter the
Southeast Asian market, further escorting the sustainable and
healthy development of the Group.
CMS Disclaimer and Forward-Looking
StatementsThis press release is not intended to promote any
products to you and is not for advertising purposes. This press
release does not recommend any drugs, medical devices and/or
indications. If you want to know more about the diagnosis and
treatment of specific diseases, please follow the opinions or
guidance of your doctor or other medical and health professionals.
Any treatment-related decisions made by healthcare professionals
should be based on the patient’s specific circumstances and in
accordance with the drug package insert.
This press release which has been prepared by
CMS does not constitute any offer or invitation to purchase or
subscribe for any securities, and shall not form the basis for or
be relied on in connection with any contract or binding commitment
whatsoever. This press release has been prepared by CMS based on
information and data which it considers reliable, but CMS makes no
representation or warranty, express or implied, whatsoever, and no
reliance shall be placed on, the truth, accuracy, completeness,
fairness and reasonableness of the contents of this press release.
Certain matters discussed in this press release may contain
statements regarding the Group’s market opportunity and business
prospects that are individually and collectively forward-looking
statements. Such forward-looking statements are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. Any
forward-looking statements and projections made by third parties
included in this press release are not adopted by the Group and the
Company is not responsible for such third-party statements and
projections.
Media Contact
Brand: China Medical System Holdings Ltd.
Contact: CMS Investor Relations
Email: ir@cms.net.cn
Website: https://web.cms.net.cn/en/home/
Source: China Medical System Holdings
Ltd.