Olon S.p.A., a world leading Active Pharmaceutical Ingredients (API) contract development and manufacturing organization (CDMO) and generics supplier, announced today the acquisition of a local generics chemical operations API manufacturing facility in Mahad, India, as part of a continuing expansion of its global footprint.
Paolo Tubertini, CEO of Olon, commented, “By acquiring a manufacturing base in India, Olon will have the opportunity to accelerate growth by adding new CDMO projects and to develop new generic products for the Indian market. It comes with a world-class manufacturing facility and a dedicated team of experts that will support us in delivering high-quality pharmaceuticals that meet or exceed customer expectations and regulatory requirements.
“Following the acquisition of Ricerca Biosciences’ Chemical Division in mid-2017 and the investment of more than €10 million to expand APIs manufacturing lines in the Settimo Torinese facility, – a leading-edge plant for development and production of APIs and advanced intermediates through microbial fermentation technology – we have now completed a further step in our strategic plan. To accomplish all the objectives listed in the Olon 3 years’ development plan, we will move to the next target: to play an important role in the manufacturing of biologics API’s.”
The Mahad site, which supplies products to Sandoz, a division of the Novartis Group, is an established and reputable API manufacturing facility in India and provides a number of lifesaving medicines to the Indian healthcare system and patients around the world. As part of the asset purchase agreement, the parties have committed to sign a long-term supply contract to guarantee continuous supply of Sandoz products manufactured in Mahad. No impact on jobs is planned and Olon intends to invest in the site and pursue business development opportunities to optimize the plant’s utilization and expand its customer base.
“We look forward to a seamless transition for employees, patients, customers, partners and other stakeholders,” added Mr. Tubertini. “We are impressed by the know-how at the Mahad plant and intend to leverage their expertise to develop new opportunities in the pharmaceutical market, in India and elsewhere.”
The acquisition of the Mahad API manufacturing facility is expected to be completed in early 2019, following a transition process. No financial details were disclosed.
About Olon
Olon is an Italian company world leader in the Active Pharmaceutical Ingredients (APIs) production, using synthetic and biological processes for generic market as well as in Contract Development and Manufacturing (CDMO). Recently the Dossier Unit has been enlarged, considering the development of the Finished Drug Formulations (FDFs) and the preparation of the Common Technical Documents (CTD) dossier.
With a 2017’s Turnover of 400 Mio$, Olon supplies more than 250 APIs for Generic market and more than 60 between API and chemical Intermediates under CDMO.
Thanks to 1,500 employees, and to the highly qualified R&D team – more than 200 people – Olon can offer complete integrated packages and services to support the full development of APIs based on strong knowledge in both Chemical and Biological process, all of them under a full cGMP and regulatory coverage – holder of about 130 active US DMFs and 50 granted CoS.
Always considering human safety and environmental security, Olon handles different and not-common manufacturing process technologies, such as Fluorination, Carbonylation and Fermentation.
Headquartered in Rodano (Milan, Italy), Olon has 9 manufacturing facilities – 7 located in Northern Italy, 1 in Spain and 1 in USA – compliant with international requirements, and 3 branch offices: Hamburg (D), Florham Park NJ (USA) and Shanghai (China).
All manufacturing sites are regularly inspected by the most important national and international Authorities, and regularly audited by our partners and customers. All plants are FDA-inspected and self-identified under GDUFA.
Olon SpA Elena Barboni Regional Sales Director Phone: +39-029-523-5208 Email: ebarboni@olonspa.it
As the market for synthetic biology grows, customers can now access proven GeneArt products
CARLSBAD, California, Sept. 4, 2018 /PRNewswire/ — Asia Pacific is predicted to be the fastest growing market for synthetic biology from 2018 to 2025, driving increased demand for genome editing and gene synthesis technologies. To fulfill researchers’ needs, Thermo Fisher Scientific Inc., the world leader in serving science, is now offering its portfolio of Invitrogen GeneArt products and services in China.
“Scientists in China are increasingly using synthetic biology for basic research and more targeted translational R&D initiatives, such as screening for biomarkers in cancer research or developing new approaches to cancer therapies,” said Helge Bastian, vice president and general manager of synthetic biology at Thermo Fisher. “In addition, many start-up companies are leveraging our ability to design, write, edit, modify and manufacture the digital code of biology—namely nucleic acids—for game-changing applications that spread across a wide range of industries from clinical markets to various consumer end-users. In response to the growing customer demand for more efficient, reliable gene synthesis and genome editing technologies, we are launching our line of GeneArt products in China. GeneArt products will not only enable our customers to continually enhance our understanding of how biology works, it will also help them accelerate the path from planning experiments to executing them in the lab.”
With the Invitrogen GeneArt product line, researchers in China now have access to:
Invitrogen GeneArt Gene Synthesis Service: Thermo Fisher’s team of highly skilled scientists design and synthesize genes in-house for superior protein production and sequence accuracy. The team has successfully produced more than 900,000 constructs for customers as diverse as large pharmaceutical companies, biotechnology startups and basic research institutions. Genes are assembled on an industrial scale for rapid order fulfillment and all constructs are sequence-verified; only those that match the requested sequence are shipped.
GeneArt Strings DNA Fragments and Libraries: Assembled using the same high-quality process developed for GeneArt Gene Synthesis, GeneArt Strings DNA Fragments are uncloned, double-stranded, sequence-verified linear DNA fragments. Compared to similar solutions, GeneArt Strings DNA Fragments have better sequencing accuracy, reducing the screening effort to obtain a correct clone. GeneArt Strings DNA Fragments and Libraries offer full gene design and cloning flexibility and can be optimized for protein expression.
GeneArt Genome Editing Tools: Thermo Fisher has developed the only complete toolset for every step in the cell engineering workflow. Designed to work together, the collection of optimized, validated technology systems includes solutions for both CRISPR- and TALEN-based genome editing. The toolkit offers products such as GeneArt CRISPR Nuclease mRNA, GeneArt Genomic Cleavage Detection Kits, GeneArt PerfectMatch TAL effectors and GeneArt Precision TAL effectors.
“Thermo Fisher’s GeneArt technology was integral in our research on insect resistance and molecular toxicology,” said Yi-Hua Yang, professor at the College of Plant Protection, Nanjing Agricultural University. “The technology not only enabled us to knock out and validate a receptor for Bt toxins used in insect controls, we were also able to demonstrate that the CRISPR-Cas9 technique can act as a powerful and efficient genome editing tool to study gene function in a global agricultural pest.”
GeneArt products are available for purchase within Thermo Fisher’s online order portal.
PRODUCTS FOR RESEARCH USE ONLY. NOT FOR USE IN DIAGNOSTIC PROCEDURES.
About Thermo Fisher Scientific Thermo Fisher Scientific Inc. is the world leader in serving science, with revenues of more than $20 billion and approximately 70,000 employees globally. Our mission is to enable our customers to make the world healthier, cleaner and safer. We help our customers accelerate life sciences research, solve complex analytical challenges, improve patient diagnostics, deliver medicines to market and increase laboratory productivity. Through our premier brands – Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific and Unity Lab Services – we offer an unmatched combination of innovative technologies, purchasing convenience and comprehensive services. For more information, please visit www.thermofisher.com.
— China’s oldest TCM brand partners with America’s iconic Roosevelt family to open the House of Roosevelt GuangYuYuan National Traditional Chinese Medicine Medical Center in Shanghai, China.
— Oldest TCM brand in China, with a history of nearly 500 years
— Guo Jiaxue, Head of GuangYuYuan: “With nearly 500 years of history, we are about more than just Traditional Chinese Medicine. We represent the preservation of culture and in the spirit of “One Belt, One Road,” sharing TCM culture with the world.”
SHANGHAI, Aug. 29, 2018 /PRNewswire/ — In its latest international partnership, the oldest of the “Big 4” TCM brands celebrated the opening of the GuangYuYuan TCM Medical Center at the House of Roosevelt in Shanghai. The opening ceremony was the latest in a series of cultural exchanges initiated by GuangYuYuan in an effort to share Traditional Chinese Medicine with the world.
GuangYuYuan Hospital of Traditional Chinese Medicine Opens a New Branch at the Roosevelt Residence in Shanghai
Guo Jiaxue, Chairman of Topsun Group and Head of GuangYuYuan Chinese Herbal Medicine Co., Ltd. explained the significance of this collaboration: “With nearly 500 years of history, we are about more than just Traditional Chinese Medicine. We represent the preservation of our national heritage and in the spirit of ‘One Belt, One Road,‘ sharing TCM culture with the world. The Roosevelt family also makes considerable conservation efforts and continues to make investments around the globe.”
Tweed Roosevelt warmly congratulated GuangYuYuan on the opening of the GuangYuYuan National TCM Medical Center. The intimate event was attended by approximately 100 guests from home and abroad including: the President of the Shanghai Medical Association Xu Jianguang, Deputy director of Shanghai Health and Family Planning Commission Zhang Huaiqiong, Executive Vice President of Shanghai TCM Association Hu Hongyi, Deputy District Chief Official,Li Yuan, Consul General of Egypt Khaled Youssef, Consul General of Greece Vassilis Xiros.
About GuangYuYuan
GuangYuYuan was founded in 1541. In 2003 it was acquired by a leading Chinese pharmaceutical conglomerate, Xi’an Topsun Group, and is listed on the Shanghai Stock Exchange under the name GuangYuYuan Chinese Herbal Medicine Co. Ltd., stock number 600771. In 2006, GuangYuYuan was honored by the Chinese Ministry of Commerce, receiving its “Time-Honored Brand” appellation. Two of GuangYuYuan’s oldest products, GuilingJi and Dingkun Dan, have been declared to be part of China’s intangible cultural heritage and their formulas have been named national secrets.
HONG KONG, Aug. 29, 2018 /PRNewswire/ — Luye Pharma Group (02186.HK) released its financial results for the first half of 2018 on August 26, with the financial report showing the company has maintained strong business performance and double-digit growth in the sale of its established products – significantly higher than the industry average. Meanwhile, the company has been accelerating the development of both its product pipeline and commercialization in global markets, further enhancing its abilities in the realm of international operations.
In the first half of 2018, Luye Pharma recorded a revenue of RMB 2.204 billion, up 19.1% year on year. Profits attributable to shareholders reached RMB 563 million, up 46.1% year on year.
A senior management spokesperson at Luye Pharma commented: “With the combined efforts of our employees around the world, Luye Pharma’s financial results for the first half of 2018 exceeded market expectations. Not only have the existing products continued to experience strong growth in sales, we have also been able to take advantage of policy opportunities to accelerate registration of our pipeline products in major markets, such as China and the United States. Furthermore, through acquisitions and partnerships, we have taken additional steps towards realizing our global development strategy with our ever-increasing competitiveness in product offerings and commercialization. We believe that the company will maintain this momentum of rapid growth and continue to make breakthroughs in sales, R&D, and M&A in the future.”
First Half of 2018 Highlights:
Products — Luye Pharma achieved double-digit growth in product sales, becoming a Top 15 Chinese pharmaceutical company.
In the first half of 2018, the company’s core products registered double-digit growth in sales. Among these core products, sales of Lipusu continued to grow rapidly, and thanks to the reimbursement policy, Beixi, Xuezhikang and CMNa also performed strongly, contributing more to the company’s overall sales than they have in the past.
According to IQVIA (formerly known as IMS) data, the overall growth rate for China’s pharmaceutical industry in the first half of 2018 was 2.84%. This is compared to Luye Pharma’s rate of 12.14%, which significantly outperformed the industry average. In terms of total sales, Luye Pharma’s ranking has jumped from within the top 20 Chinese pharmaceutical companies at the end of 2017, to within the top 15 currently.
The company expects its market share will continue to grow in the second half of 2018, given the strength of its products’ competitiveness.
R&D — Time to market was reduced, with a rich product pipeline being developed across a variety of therapeutic areas
In the first half of 2018, Luye Pharma’s R&D expenditure increased by 57.7% year-on-year. Through independent R&D and external partnerships, the company has been able to integrate global R&D resources to accelerate the development and launch of new drugs. As of now, significant results have been achieved in areas of new drug delivery systems (NDDS), new chemical entities (NCE), and biological antibodies.
With respect to NDDS, Risperidone Extended Release Microspheres (LY03004) for the treatment of schizophrenia and bipolar disorder has entered its final stage of NDA (new drug application) in China and the United States; Rotigotine Extended Release Microspheres (LY03003) for the treatment of Parkinson’s disease has been exempted from Phase II clinical trials in China and the United States, and has moved into the Phase III trials stage. Additionally, Rivastigmine Multi-day Transdermal Patches for the treatment of mild to moderate Alzheimer’s disease has reached a critical stage of clinical development.
Among the NCEs, Ansofaxine Hydrochloride Extended Release Tablets (LY03005), a new Class 1.1 drug for the treatment of depression, has shown positive results in phase II clinical trials in China. The new immuno-oncology drug LY01013, an IDO/TDO dual target inhibitor, was approved for clinical trials, while the application for LY03012, a new class 1.1 analgesic drug, has been put forward for clinical trials.
In terms of biological antibodies, Recombinant anti-VEGF humanized monoclonal antibody injection (LY01008), for the treatment of colorectal cancer and non-small cell lung cancer, as well as the Recombinant anti-RANKL whole human monoclonal antibody injection (LY06006), indicated for postmenopausal women with osteoporosis, are both progressing well in their phase III and phase I studies respectively.
In addition, the company has been actively seeking opportunities in fields such as cell and gene therapies and immune-oncology through a series of collaborative projects. In the first half of this year, Luye Pharma entered into strategic partnerships with two U.S. biotech companies, Excel Biopharm LLC and ELPIS Biopharm, to jointly develop the next generation of therapeutic antibodies for use in immuno-oncology and CAR-T therapy respectively.
M&A — Global operations capability further enhanced with increased synergy
Luye Pharma acquired the assets of AstraZeneca’s Seroquel and Seroquel XR in 51 countries and regions around the world. This move strengthens Luye Pharma’s ability for commercialized access to the global central nervous system therapeutics market. Further, it establishes a solid foundation for Luye Pharma’s pipeline products to become available to the world’s major markets.
In addition to the above, the transdermal patch business acquired by Luye Pharma at the end of 2016 is also running well, driven by increased synergy. This year, Luye Pharma’s two subsidiaries in Germany and Switzerland closed a deal with Bayer on the acquisition of the global rights to Apleek, Bayer’s contraceptive transdermal patch product. Moreover, Luye Pharma has launched a number of transdermal patch products in major markets around the world, including Japan, Israel, Thailand, South Korea, Switzerland, etc. The company has also set up local manufacturing and will start new drug applications for Buprenorphine transdermal patches and Rivastigmine transdermal patches to accelerate their entry into China.
Looking forward to the future, Luye Pharma’s management team is full of confidence, with a senior management spokesperson adding: “Driven by innovation and our development strategy, we will continue to enhance our capabilities in global R&D, global manufacturing and global marketing. We will increase our R&D investment in areas that work with our competitive advantages and strategic focus, allowing us to bring our global pipelines to global markets sooner to meet the needs of patients worldwide.”
-Eliminate Poverty and Promote Sustainable Development between Humans and Nature
YINCHUAN, China, Aug. 29, 2018 /PRNewswire/ — From August 18th to 19th Ningxia Yanbao Charitable Foundation and China Global Philanthropy Institute (CGPI) jointly sponsored Ningxia Sustainability Summit in Yinchuan, Ningxia. Ningxia Baofeng Group, East-West Philanthropy Forum (EWPF), Beijing Normal University and China Philanthropy Research Institute (CPRI) also supported the summit.
The summit brought together domestic and foreign guests from various fields to discuss eliminating poverty in the fields of climate change, education, public welfare, elderly care, and medical care through case sharing, experience exchange, and project field visits. Through the lenses of global experience and wisdom, the summit focused on eight different aspects such as new challenges, initiatives, progress, forces, etc. The summit proclaimed that We strive for a better future, using joint efforts on poverty reduction and sustainable development.
Under the theme of Working Together to Promote Green and Low-carbon Development, Building a Clean and Beautiful World, Xie Zhenhua, Special Representative for Climate Change Affairs of China, pointed out that tackling climate change and achieving sustainable development required the participation of the whole society. The role of entrepreneurs as well as the public sector was crucial.
Zhang Wenkang, Former Minister of National Health Commission, PRC gave a speech on The Combination of elderly-care and medical care systems. According to Zhang, building such sytem with the integration of medical resources and elderly-care services would be the main direction for future development.
Speaking at theUNDP – Sustainable Development, Devanand Ramiah, Deputy Country Director of UNDP China said that sustainable development goals had been universally accepted and recognized, and that China’s achievements in poverty reduction had attracted worldwide attention.
In the opening speech entitled Eliminate Poverty and Promote Sustainable Development between Humans and Nature, Dang Yanbao, Chairman of Ningxia Yanbao Charity Foundation and Ningxia Baofeng GROUP Co., Ltd., said since the establishment of that Yanbao Foundation, it had funded 169,900 college students, donated 9 schools and 16 health centers. Baofeng GROUP Co., Ltd. runs on the principle of social entrepreneurship, and improves the healthcare, elderly-care and education conditions in remote areas.
David Rutstein, founder and executive director of SolHEALTH, shared his experience on Sustainability of Public Health, which required strategic planning, policy support, collaberative action, and good communication.
Gary Dirks, director and distinguished sustainability scientist of Julie Ann Wrigley Global Institute of Sustainability shared his thoughts on Sustainable Development and Renewable Energy. He believed that the construction of energy system was to achieve justice, which provided evey individual the access to energy use.
Soichiro Fukutake, the honorary adviser, former chairman and CEO of Benesse Holdings, Inc, Board Chair of Fukutake Foundation, president of Benesse Art Site Naoshima, explained how the art site in Naoshima revitalized local communities through modern art.
Wang Zhenyao, President of CGPI and CPRI, secretary-general of EWSS shared his insight on Social Organizations and Targeted Poverty Alleviation: models and Innovations. Wang Zhenyao pointed out that in China, it is an important decision to have social forces participating in targeted poverty alleviation. The cooperation, complementation, independent exploration and integrated innovations together contributed to the process of redefining poverty. He hoped that interactive innovation would reshape our poverty reduction model in the future.
During the summit, United Action Responding to Climate Change, United Action Reducing Poverty Through Education, United Action Improving Elder Care and United Action Social Innovation were released. Philanthropic cooperation between China and the United States has begun and pushed forward as an inevitable choice.
This summit extended the vision of EWPF, and served as an important mission for China to achieve global sustainable development and explore successful models on international poverty reduction.
BANDUNG, Indonesia, Aug. 31, 2018 /PRNewswire/ — Global health is supposed to be a global concern rather than individual business. But in general, either the government or its people often forget to put the global health issues into consideration. Hence, the solution of global health issues is still being scattered puzzles. As a resort to arrange those puzzles, the second Global Health Diplomacy (GHD 2.0) training in Grand Bidakara Savoy Homann Hotel, Bandung, Indonesia was commenced on25 August 2018.
The participants and speakers of Global Health Diplomacy 2.0
GHD applicants’ enthusiasm was over the cloud. OH Technical Officer INDOHUN, Professor Agus Suwandono stated that from more than 140 applicants, only 40 of them were chosen as GHD 2.0 participants.
Prof. Agus appraised that GHD this year is more proportionally held than the previous one, due to the more systematic organizing process and longer preparation period. The previous GHD experience also notably contributes to the smooth organization of this program, including participants selection, speakers and trainers’ selection, and event organization.
During the first two days of training, the participants of GHD 2.0 were given public lectures by international speakers related to global health governance, health system, global health negotiation, health policy framework, global health leadership, health innovation in strengthening global health system, health advocacy, and diplomacy practice.
Dr. Aidil Chandra Salim, an expert from Indonesia’s National Agency of Narcotics, who is also one of the GHD 2.0 speakers, shows a huge support for the commencement of GHD training, although he has already retired from the Ministry of Foreign Affair, “I think this Global Health Diplomacy training is a good event that makes the participants ready to face the global health issues. This training program is enriched with not only global health issues, but also with diplomacy and other aspects of international issues.”
One of the speakers, Dr. Remco van de Pas from Maastricht Centre for Global Health, University of Maastricht, Netherland and Institute of Tropical Medicine, Antwerp – Belgium, states, “I think it’s very relevant for the students from different, several backgrounds to understand one health, the process of policies being made, and how it is being done across sectors, across different people, and how it is being done.”
It syncs with M. Chandra W. Yuda‘s, Director of ASEAN Political-Security cooperation, Ministry of Foreign Affairs, statement during an interview in GHD 2.0, that in facing global challenges countries have to work together to ensure peace, security and prosperity around the globe: “It need commitment from all countries to make it works.”
Dr. van de Pas also appreciates the participants’ active and interest attitude to engage in the GHD 2.0 activities. He also highlights the importance of innovation and practice learning for health diplomacy in global arena, “The participants are coming from different fields. In this training, they are learning about what it means to come up with new policies especially for international arena. Although many of them has studied abroad, how it is translated into international policies is on another scale.”
The training is continued with multi-stage negotiation simulation (MSNS) in the rest of the raining period. In MSNS sessions, the participants acted as delegations from various ASEAN countries that have different agendas, problems, and situations. The scenario began from the health problems outbreaks in multiple countries. They had to analyze any possible challenges and opportunities to mitigate the outbreaks and prevent it from spreading in the community, where the participants also needed to discuss the funding system and countries’ joint agreement to alleviate the particular problem.
During MSNS, the activities were divided into plenary session, and private meetings in community of whole (COW) or bilateral meetings. Delegates were also given situations where the press would give statements and interviews related to the issue, so that they will also be trained in giving statements in interviews, press conferences, and preparing press releases. Agnia Jolanda Putri, Medical Doctor by training from Center of Health Policy and Management at Gajah Mada University states her excitement of participating in the MSNS, “MSNS was a great experience because we, as secretariat have a chance to explore the nuance and know the system on how MSNS works. It was very interesting on how MSNS could elaborate every person in the forum to deliver their messages, representing their countries.”
Artauli Tobing, Indonesia Ambassador to Vietnam (2004-2007), who monitored the course of MSNS sessions states that the GHD 2.0 participants shows a great potential to be Indonesia’s future leaders. Not only because of their fluency in English, but also their adaptability into diplomatic mode that creates diplomatic nuance during the training.
About 90% of the participants understand very well on how to make statements, how to react in fluent English, even though in reality they sometimes use words that may be less diplomatic. This is understandable, because diplomacy is not something they usually do.
“The participants show a great progress over the sessions. Although they started the MSNS in an awkward manner, as the time went by, they got a hang of it!” Tobing added.
She also shows her admiration towards the participants’ efforts, “During the OCW activities which discussed various draft resolutions, it was seen the efforts of each participant representing the ASEAN countries in maintaining their positions. The participants could also fluently express their views without reservation or pretense.”
For the closing ceremony on29 August 2018, Indonesia One Health University Network (INDOHUN) as GHD 2.0 organizer helda gala dinner, delegation inauguration, and an awarding night for the participants to celebrate the end of the training period. M. Chandra W. Yuda, as one of GHD 2.0 speakers advised the participants: “Enlarge your horizon, do your work, keep in touch, and learn from each other. You’ll achieve what you dream for.”
Media Contact:
Syayu Zhukhruffa Communication Manager Indonesia One Health University Network (INDOHUN) G Building 3rd Floor, Room G316 Faculty of Public Health, Universitas Indonesia, Depok, West Java phone/fax: +6221-29302084
JINING, China, Aug. 31, 2018 /PRNewswire/ — China YCT International Group, Inc. (OTCQB: CYIG) (the “Company”) today announced that on August 28, 2018, the Company filed an amendment to its Articles of Incorporation with the State of Delaware in accordance with the provisions of Section 242 of the General Corporation Law of Delaware to change its name to “Spring Pharmaceutical Group, Inc.” The new name is effective today, August 31, 2018. The Company’s ticker symbol, “CYIG”, will remain unchanged.
Tinghe Yan, Chairman and Chief Executive Officer, said, “Changing our corporate name to Spring Pharmaceutical Group is important for us as we continue to execute on our long-term growth strategy and seek to improve value to our shareholders. As previously announced, we have filed a registration statement on Form S-1 with the SEC and have applied to up-list to the Nasdaq Capital Market, which will allow us to tap into broader capital market resources.”
About China YCT International Group, Inc.
Based in Jining, Shandong Province and founded in January 1989, China YCT International Group, Inc., through its subsidiaries, engages in the business of (i) distributing health care supplement products manufactured by Shandong Yongchuntang Group Co., Ltd. in the PRC, (ii) developing, manufacturing, and selling Huoliyuan capsules and tablets, a prescription medicine, (iii) developing acer truncatum bunge planting bases, and manufacturing and selling acer truncatum bunge seed oil in the PRC. Acer truncatum bunge plants are a species of maple tree. For more information about the Company, please visit http://zgyct.yongchuntang.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, please contact:
At the Company: Zecheng Shao, Vice President Phone: +86-156-5377-2006 Email: zc_shao@126.com
Investor Relations: Tony Tian, CFA Weitian Group LLC Phone: +1-732-910-9692 Email: ttian@weitianco.com
BEIJING, Aug. 29, 2018 /PRNewswire/ — Concord Medical Services Holdings Limited (“Concord Medical” or the “Company”) (NYSE: CCM), a leading cancer hospital operations management solutions provider and operator of a network of radiotherapy and diagnostic imaging centers in China, today announced its unaudited consolidated financial results for the six months ended June 30, 2018[1].
2018 First Half Highlights
Total net revenue was RMB105.1 million ($15.9 million) in the first half of 2018, representing a 49.0% decrease from total net revenue of RMB206.2 million in the same period last year. Total net revenue included net revenue from the network business of RMB79.4 million ($12.0 million) and net revenue from the hospital business of RMB25.7 million ($3.9 million).
Gross profit was RMB23.9 million ($3.6 million) in the first half of 2018, representing a 66.5% decrease from RMB71.3 million in the first half of 2017. The gross profit margin for the first half of 2018 was 22.8%, compared to 34.6% for the same period last year.
Net loss attributable to ordinary shareholders in the first half of 2018 was RMB128.1 million ($19.4 million), compared to RMB101.8 million in the same period last year.
Both basic and diluted loss per American Depositary Share (“ADS”)[2] in the first half of 2018 were both RMB2.95($0.45), compared to RMB2.34 in the same period last year.
Non-GAAP net loss in the first half of 2018 was RMB121.5 million ($18.4 million), compared to non-GAAP net loss of RMB100.1 million in the same period last year. Non-GAAP basic and diluted loss per ADS in the first half of 2018 were both RMB2.81($0.42).
Adjusted EBITDA[3] (non-GAAP) was negative RMB73.3 million ($11.1 million) in the first half of 2018, compared to negative RMB3.9 million in the same period last year.
Dr. Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, commented, “Changes in the policies regarding the hospital partners have further led to the closure of our centers, which put pressure on our operating income in the first half of 2018 and presented us with challenges. Nevertheless, our network business still has new demands. Within the past six months, we developed new centers with reliable partners in suitable locations, including the co-established cooperative radiotherapy center at PKU Healthcare Zibo Hospital and the comprehensive management cooperative center for the departments of radiotherapy and nuclear medicine at PKU International Hospital. Based on our extensive experiences in radiotherapy and imaging diagnosis over years, we believe our network business would continue to provide Chinese cancer patients with high-quality diagnosis and treatment services.”
“Although the revenue from the network business shrinks, our self-operating independent cancer hospital business is steadily growing and developing. The revenue from the hospital business in the first half of 2018 had a year-on-year increase of 160%, while its percentage of the Company’s total revenue increased from 5% last year to 25% this year.”
“The cumulative number of patient visits within the first half of 2018 at our independent cancer center in Shanghai had a good increase, compared with the number of the first half of 2017. Shanghai Concord Cancer Center is an outpatient department that integrates imaging diagnosis, radiotherapy, chemotherapy, and targeted therapy. At present this center has started to develop joint consultation with MD Anderson Cancer Center in the United States and our Concord International Hospital in Singapore, offering international diagnosis and treatment plans for patients with certain demands.”
“The revenue of the Concord International Hospital in Singapore in the first half of 2018 had a dramatical increase of 118%, compared with that of the same period in the last year, while the net loss had also decreased by 41%, compared with that in last year. As for operational data, the number of patients visits in surgery, radiotherapy, and internal medicine has been improved in Concord International Hospital in Singapore. Among them, the number of surgical patient visits was 359 in the first half of 2018, a 122% increase from 162 in the first half of 2017.”
“In general, 2018 is the start of a full upgrade of the Company’s business. Our new business mode that is focusing on self-established and operating cancer hospitals is steadily growing and developing, which relieves the influence of adverse impacts on one hand, and lays a solid foundation for our future development on the other. We have high hopes and firmly believe that we can provide good-quality and efficient medical services for more cancer patients in the future.”
2018 First Half Financial Results
Network Business
Net revenue from the network business was RMB79.4 million ($12.0 million), representing a 59.6% decrease from net revenue of RMB196.4 million in the first half of 2017, primarily attributable to the closure of certain centers in our network of centers. With one center closed in the first half of 2018, the Company operated a network of 30 centers in 21 cities in China as of June 30, 2018.
Cost of revenue of the network business was RMB42.9 million ($6.5 million), representing a 60.8% decrease from RMB109.5 million in the first half of 2017.
Gross profit from the network business was RMB36.5 million ($5.5 million), representing a 57.9% decrease from RMB86.8 million in the first half of 2017. The gross profit margin for the first half of 2018 was 46.0%, compared to 44.2% for the same period last year.
Selling expenses of the network business were RMB9.9 million ($1.5 million), representing a 67.3% decrease from RMB30.3 million in the first half of 2017. Selling expenses as a percentage of net revenue was 12.5% in the first half of 2018, compared to 15.4% in the first half of 2017. The decrease in selling expenses of the network business was mainly due to reduced marketing, conference, office and travel expenses.
General and administrative expenses of the network business were RMB82.6 million ($12.5 million), representing a 12.1% decrease from RMB94.0 million in the first half of 2017. General and administrative expenses as a percentage of net revenue was 104.0% in the first half of 2018, compared to 47.9% in the same period last year. The increase in general and administrative expenses as a percentage of net revenue was mainly due to the counsel fee and travel expense related to the closure of certain centers.
Compared to RMB11.1 million in the same period last year, capital expenditures were RMB4.8 million ($0.7 million) in the first half of 2018.
Accounts receivable were RMB105.9 million ($16.0 million) as of June 30, 2018, compared to RMB127.2 million as of December 31, 2017. The average period of sales outstanding for accounts receivable (“Days Sales Outstanding”) was 263 days in the first half of 2018.
As of June 30, 2018, the Company had bank loan totaling RMB592.6 million ($89.6 million).
During the first half of 2018, the Company handled 5,354 patient treatment cases and 70,562 patient diagnostic cases, representing a 37.9% decrease and a 38.7% decrease from the same period last year, respectively, mainly due to the closure of certain centers during the past year and first half of 2018.
Hospital Business
Hospital business includes Singapore Concord International Hospital, Datong Meizhong Jiahe Cancer Hospital, Shanghai Concord Cancer Hospital and Guangzhou Concord Cancer Hospital.
Net revenue from the hospital business was RMB25.7 million ($3.9 million) in the first half of 2018, representing a 160.0% increase from net revenue of RMB9.9 million in the first half of 2017, mainly due to the increased revenue from Singapore Concord International Hospital.
Cost of service of the hospital business in the first half of 2018 was RMB38.3 million ($5.8 million), a 50.2% increase from cost of service of RMB25.5 million in the first half of 2017, mainly because of the increased revenue of Singapore Concord International Hospital.
Gross loss from the hospital business was RMB12.6 million ($1.9 million) in the first half of 2018, a 19.2% decrease from RMB15.6 million in the same period last year, mainly due to the increased revenue of Singapore Concord International Hospital.
Selling expenses of the hospital business were RMB0.7 million ($0.1 million) in the first half of 2018. The selling expenses of the hospital business were RMB0.2 million in the first half of 2017.
General and administrative expenses of the hospital business were RMB31.8 million ($4.8 million) in the first half of 2018, of which employee benefit expenses were RMB10.8 million ($1.6 million). In the same period of last year, general and administrative expenses of the hospital business were RMB21.9 million.
Compared to RMB72.6 million in the first half of 2017, capital expenditures of the hospital were RMB282.1 million ($42.6 million) in the first half of 2018, which was mainly related to the construction fees and medical equipment payment for Shanghai Concord Cancer Hospital and Guangzhou Concord Cancer Hospital.
As of June 30, 2018, accounts receivable from hospital business is RMB5.7 million ($0.9 million), representing a 21.3% increase from accounts receivable of RMB4.7 million as of December 31, 2017. The number of Days Sales Outstanding was 44 days in the first half of 2018.
Recent Developments
Concord Medical and the investment institutions led by CICC Capital Management Company Limited (“CICC Capital”), a wholly-owned subsidiary of China International Capital Corporation Limited (“CICC”), jointly made a strategic investment in Concord Medical’s subsidiary, Beijing Meizhong Jiahe Hospital Management Co., Ltd. (“Meizhong Jiahe”). The total investment was RMB 1.5 billion. After completion of the investment, the total shares held by the institutions led by CICC Capital accounted for 37.5% of the equity interests of Meizhong Jiahe.
Shanghai Concord Medical Imaging Diagnostic Center (“Imaging Center”), the first independent imaging diagnostic center of Concord Medical, obtained an independent imaging diagnostic license. The Imaging Center is expected to introduce world-class diagnostic technology and management services, cover the Medical Center and the Yangtze River Delta region through a remote sharing consultation platform, and provide a full range of imaging diagnosis and high-quality services for domestic and foreign commercial insurance patients.
Notes:
[1] This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations of RMB into U.S. dollars are made at a rate of RMB6.6171 to $1.00, the noon buying rate in New York City for cable transfers payable in RMB, as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2018.
[2] Each ADS represents three Class A ordinary shares of the Company.
[3] Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, share-based compensation expenses, and other adjustments. Other adjustments include foreign exchange gain, gain from disposal of property, plant and equipment and other income.
About Concord Medical
Concord Medical Services Holdings Limited is a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China. As of June 30, 2018, the Company operated a network of 30 centers with 21 hospital partners that spanned 21 cities and 14 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, the Company provides radiotherapy and diagnostic imaging equipment and manages the daily operations of these centers, which are located on the premises of its hospital partners. The Company also provides ongoing training to doctors and other medical professionals in its network of centers to ensure a high level of clinical care for patients. For more information, please seehttp://ir.ccm.cn.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements can be identified by words or phrases such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions. Forward-looking statements are inherently subject to uncertainties and contingencies beyond the Company’s control and based upon premises with respect to future business decisions, which are subject to change. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Concord Medical uses certain non-GAAP measures. The Company presents certain of its financial information that is adjusted from results based on GAAP to exclude the impact of share-based compensation expense. The Company believes excluding share-based compensation expense from its GAAP financial measures is useful for its management and investors to assess and analyze the Company’s core operating results, as such expense is not directly attributable to the underlying performance of the Company’s business operations and do not impact its current cash earnings. Concord Medical also believes these non-GAAP measures excluding share-based compensation expense are important in helping investors to understand the Company’s current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. In addition, Concord Medical also presents the non-GAAP measure of Adjusted EBITDA, which is defined in this announcement as net income plus interest, taxes, depreciation and amortization, and share-based compensation expenses and other adjustments. Other adjustments include foreign exchange gain, gain from disposal of property, plant and equipment and other income. Furthermore, Adjusted EBITDA eliminates the impact of items that the Company does not consider to be indicative of the performance of the network business and hospital business. The Company believes investors will similarly use Adjusted EBITDA as one of the key metrics to evaluate its financial performance and to compare its current operating results with corresponding historical periods and with other companies in the healthcare services industry. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial information.
Concord Medical Services Holdings Co., Ltd.
Consolidated Balance Sheets
(in thousands)
December 31, 2017
June 30, 2018
RMB
RMB
US$
(audited)
(Unaudited)
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
98,191
459,968
69,512
Restricted cash, current portion
563,986
211,727
31,997
Accounts receivable
131,952
111,592
16,864
Inventories
6,284
5,195
785
Prepayments and other current assets
264,723
299,275
45,228
Non-current assets held for sale
27,100
5,048
763
Net investments in direct financing leases, current portion
18,900
23,646
3,573
Total current assets
1,111,136
1,116,451
168,722
Non-current assets
Property, plant and equipment, net
793,571
815,698
123,272
Intangible assets, net
7,799
6,946
1,050
Deposits for non-current assets
266,180
462,947
69,962
Net investments in direct financing leases, non-current portion
54,052
46,891
7,086
Equity method investments
732,167
740,286
111,875
Cost method investment
22,160
22,160
3,349
Other non-current assets
30,392
31,223
4,719
Prepaid land lease payments
447,933
443,351
67,001
Prepayment for long term investment
–
480,688
72,643
Total non-current assets
2,354,254
3,050,190
460,957
Total assets
3,465,390
4,166,641
629,679
LIABILITIES AND EQUITY
Current liabilities
Short-term bank borrowings
512,222
480,870
72,671
Long-term bank borrowings, current portion
197,139
110,364
16,679
Accounts payable
4,563
5,536
837
Accrued expenses and other liabilities
385,919
408,765
61,774
Income tax payable
5,990
5,512
833
Dividend payable
2,338
2,378
359
Total current liabilities
1,108,171
1,013,425
153,153
Non-current liabilities
Long-term bank borrowings, non-current portion
284,584
1,375
208
Deferred tax liabilities, non-current portion
73,577
70,970
10,725
Long-term secured borrowings
163,498
123,711
18,696
Other long term liabilities
73,392
77,751
11,750
Redeemable noncontrolling interest
396,281
403,279
60,945
Amount due to related parties, non-current portion
350,969
344,725
52,096
Total non-current liabilities
1,342,301
1,021,811
154,420
Total liabilities
2,450,472
2,035,236
307,573
EQUITY
Ordinary shares
105
105
16
Treasuary stock
(8)
(8)
(1)
Additional paid-in capital
1,860,763
1,860,763
281,205
Accumulated other comprehensive loss
(47,418)
(52,191)
(7,887)
Accumulated deficit
(879,393)
(1,007,519)
(152,260)
Total Concord Medical Services Holdings Limited shareholders’ equity
934,049
801,150
121,073
Noncontrolling interests
80,869
1,330,255
201,033
Total equity
1,014,918
2,131,405
322,106
Total liabilities and equity
3,465,390
4,166,641
629,679
Concord Medical Services Holdings Co., Ltd.
Consolidated Profit & Loss
(in thousands, except for number of ADS and per ADS data)
June 30, 2017
June 30, 2018
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
Revenues, net of business tax , value-added tax and related surcharges:
Network
196,350
79,393
11,998
Hospital
9,893
25,722
3,887
Total net revenues
206,243
105,115
15,885
Cost of revenues:
Network
(109,512)
(42,882)
(6,481)
Hospital
(25,458)
(38,287)
(5,786)
Total cost of revenues
(134,970)
(81,169)
(12,267)
Gross profit
71,273
23,946
3,618
Operating expenses:
Selling expenses
(30,513)
(10,621)
(1,605)
General and administrative expenses
(115,802)
(114,351)
(17,281)
Impairment of long-lived assets
(28)
–
–
Operating loss
(75,070)
(101,026)
(15,268)
Interest expense
(37,809)
(33,381)
(5,045)
Foreign exhange gain
9,636
10,693
1,616
Gain (loss) from disposal of property, plant and equipment
973
(2,060)
(311)
Interest income
6,728
5,129
775
Equity pick up of equity investee
3,967
(3,438)
(520)
Other income
3,002
2,161
327
Loss before income tax
(88,573)
(121,922)
(18,426)
Income tax expenses
(15,847)
(5,949)
(899)
Net loss
(104,420)
(127,871)
(19,325)
Net (loss) gain attributable to noncontrolling interests
(2,641)
255
39
Net loss attributable to ordinary shareholders
(101,779)
(128,126)
(19,364)
Loss per ADS
Basic
(2.34)
(2.95)
(0.45)
Diluted
(2.34)
(2.95)
(0.45)
Weighted average number of ADS outstanding:
Basic
43,543,956
43,363,992
43,363,992
Diluted
43,543,956
43,363,992
43,363,992
Other comprehensive income, net of tax
Foreign currency translation
3,041
4,773
721
Total other comprehensive income, net of tax
3,041
4,773
721
Comprehensive loss
(101,379)
(123,098)
(18,604)
Comprehensive loss attributable to noncontrolling interests
(931)
(614)
(92)
Comprehensive loss attributable to Concord Medical Services Holdings Limited’s shareholders
(100,448)
(122,484)
(18,512)
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, except ADS data, unaudited)
For the six months ended June 30, 2017
For the six months ended June 30, 2018
GAAP Measure
Adjustment
Non-GAAP Measure
GAAP Measure
Adjustment
Non-GAAP Measure
Operating loss
(75,070)
4,272
(70,798)
(101,026)
6,341
(94,685)
Net loss
(104,420)
4,272
(100,148)
(127,871)
6,341
(121,530)
Basic loss per ADS
(2.34)
0.10
(2.24)
(2.95)
0.15
(2.81)
Diluted loss per ADS
(2.34)
0.10
(2.24)
(2.95)
0.15
(2.81)
(*) The only adjustment is share-based compensation.
Reconciliation from net loss to adjusted EBITDA(*) (in RMB thousands, unaudited)
For the six months ended
For the six months ended
June 30, 2017
June 30, 2018
Net loss
(104,420)
(127,871)
Interest expenses, net
31,081
28,252
Income tax expenses
15,847
5,949
Depreciation and amortization
62,901
24,835
Share-based compensation
4,272
6,341
Other adjustments
(13,611)
(10,794)
Adjusted EBITDA
(3,930)
(73,288)
EBITDA margin
-2%
-92%
(*) Definition of adjusted EBITDA: Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, share-based compensation expenses and other adjustments. Other adjustments include foreign exchange gain, gain (loss) from disposal of property, plant and equipment and other income.
– Designed to enable employers to provide effective health promotion programs
– Leverages groundbreaking connected scale technology that was pioneered by Tanita
TOKYO, Aug. 29, 2018 /PRNewswire/ — Tanita Corporation, a comprehensive health solutions company, announced that it is launching its award-winning Tanita Health Program across the US from August 29. Already deployed in Japan, the Tanita Health Program is an integrated suite of hardware and software that helps employers improve the health of their employees. For employers, the program offers a proven track record in reducing employee healthcare expenditures. For employees, it offers an easy and engaging way to visualize their progress.
Image of Tanita Health Program’s smartphone application screen
Using the latest model of Tanita’s body composition scale, along with wearable activity trackers equipped with communications functionality, blood pressure measurement devices, and the internet, this program offers everything organizations need to establish an effective and comprehensive group health promotion program. The program is already being deployed by such organizations as local governments, companies, and health insurance associations, primarily in Japan.
Available throughout the US, the program is designed to raise the motivation of participants to improve their health and enjoy tracking their progress. Program participants carry an activity monitor that counts steps and measures calories burned, measuring a wide variety of data. This data is stored in the cloud, along with data measured with Tanita devices, such as its body composition scales and blood pressure measurement devices. Using this data, participants not only gain visibility into changes in their bodies and their activity levels, they can also graph trends using their PCs or smartphones. In addition, users can change the faceplate design of the activity monitors to an original design, and the program offers features such as a step count ranking, so that participants can virtually compete through their step counts each month, and a point program that awards points to participants based on factors such as their step counts, which can then be exchanged for gifts or other incentives.
The program has attracted attention for its effectiveness in reducing healthcare costs, including being mentioned in a white paper from Japan’s Ministry of Health, Labour and Welfare, and has also received an award for excellence from the ministry in its Smart Life Project Awards.
In 1992, Tanita developed the world’s first body scale that measures both body weight and composition. Thereafter, Tanita released various other tools to measure things like basal metabolic rate, total weight and lean body mass. Additionally, in 2003, Tanita released its first connected scale, called the “NT-101,” positioning the company as a global pioneer. Subsequently, Tanita went on to also launch its support network called “Health Planet” that connects the NT-101 with sphygmomanometers and pedometers. These, in turn, forward health data to personal computers for easy analysis. The health management services that utilize the connected scale have since been upgraded into the “Tanita Health Program.”
Tanita had already developed Tanita Body Composition Element, a smartphone application that converts body composition information into 3D elements, based on visualizations of atoms, presenting them in an impactful way. This app was exhibited in 2017 and 2018 at the Consumer Electronics Show (CES), the world’s largest consumer electronics exhibition, held in Las Vegas. The launch of the Tanita Health Program is an extension of these efforts in the US, with Tanita embarking on a full-scale expansion in the US due to the significant response to its body composition measurement technology at CES. This program is a service offered through Tanita’s US subsidiary, Tanita Corporation of America, Inc.
About Tanita
Tanita is a Japanese health measurement device manufacturer established in 1944. As a pioneer in body composition measurement, Tanita has been a leader in the worldwide health measurement device market since developing and launching the world’s first body fat scale that could measure body fat just by stepping on it in 1992, followed by achievements such as launching the world’s first body fat scale with the ability to measure visceral fat in 2001, and launching the world’s first body composition scale that could measure body fat by location in 2004. In addition, Tanita’s highly accurate body composition measurement technology has become a standard in the healthcare and research fields. Since 1991, over 200 papers using Tanita’s body fat and body composition scales have been presented at various academic conferences. These various research results are even now being fed back into product development, and Tanita has collected over 14,000 points of biometric data, which forms the foundation of Tanita’s analysis algorithm, with the goal of further improving accuracy. At the same time, Tanita led the world in launching activity monitors, which are currently becoming common as wearable devices, aimed at the general public in 2009. With Tanita’s unique analysis algorithm, the company’s devices produce highly accurate measurements of energy consumption, with a correlation coefficient of 0.907 with the results produced by human calorimeters, the gold standard in energy consumption measurement.
