Satisfactory currency-adjusted growth in all businesses
Major investments in sites in Germany and France
INGELHEIM, Germany, Aug. 1, 2018 /PRNewswire/ — In the first half of 2018, Boehringer Ingelheim made important advances in the research and development area and thereby further strengthened its basis for developing new medical breakthroughs for patients. Of some 80 development projects, 65 per cent have the potential for a therapeutic breakthrough or to be the first active ingredient in a new class. Good study results for empagliflozin in the treatment of type 1 diabetes in addition to insulin therapy, and the US Food and Drug Administration’s fast-track designation (i.e. a faster approval process than usual) for nintedanib in the treatment of systemic sclerosis, are seen as important milestones.
“We concentrate on diseases for which there is currently no satisfactory treatment or prevention for people and animals. We are affirmed in our strategy and the focus on new, innovative approaches,” said Hubertus von Baumbach, Chairman of the Board of Managing Directors. “We will also in future be able to offer patients innovations that provide a significant improvement to the therapeutic options – even the only options in some diseases.” The focus in human pharmaceuticals is particularly on the fields of cardiometabolic diseases, oncology, respiratory diseases, diseases of the central nervous system and immunology.
In the first half of 2018, Boehringer Ingelheim achieved net sales of 8.6 billion euros. Currency-adjusted net sales growth in both of the most important business areas — human pharmaceuticals and animal health — was in the mid-single-digit percentage range. Services for Sanofi provided and accounted for last year in conjunction with the business swap have now been largely completed, which has a negative impact on group net sales. For the current financial year, Boehringer Ingelheim continues to expect modest growth in net sales on a comparable basis.
“In the first half of the year, we have grown in all our businesses, as expected, a little less strongly than in the extraordinarily successful 2017 financial year,” explained von Baumbach. “One reason, which we took account of in planning, is the increased generic competition in the important Japanese market for the blood pressure medicines MICARDIS® and TWYNSTA®.”
With human pharmaceuticals, Boehringer Ingelheim’s largest business area, the company achieved net sales of 6.1 billion euros in the first half of the year. This corresponds to a currency-adjusted increase in the mid-single-digit percentage range. The business thus contributed around 71 per cent of total net sales. Diabetes medicines in particular continued to be growth drivers. JARDIANCE®, for the treatment of type 2 diabetes, increased by a currency-adjusted 68 per cent to 664 million euros. Boehringer Ingelheim markets its diabetes medicines together with Eli Lilly and Company. OFEV®, for the treatment of idiopathic pulmonary fibrosis (IPF), also registered significant growth: net sales increased by a currency-adjusted 35 per cent to 531 million euros.
“We are also very pleased with the development of our animal health business, which is growing satisfactorily, despite extensive integration work,” said Michael Schmelmer, member of the Board of Managing Directors responsible for Finance. “We expect that we will grow in line with the animal health market in the 2018 financial year.” Boehringer Ingelheim generated around two billion euros of net sales in animal health in the first half of the year, which corresponds to a currency-adjusted increase in the mid-single-digit range. This business thus contributed nearly a quarter of total net sales. The best-selling products were the two antiparasitic medicines NEXGARD®, at 331 million euros, and FRONTLINE®, at 215 million euros.
Net sales in biopharmaceutical contract manufacturing increased to 298 million euros and thus contributed about three per cent of total sales.
Furthermore, Boehringer Ingelheim gave special focus in the first half of 2018 to major investments. “A few days ago, we approved 200 million euros for a new plant for veterinary products in France in order to meet global market demand and 230 million euros for a new biological research center in Biberach, Germany,” Schmelmer said. “In addition, there are numerous further investments in various countries.”
Boehringer Ingelheim
Improving the health and quality of life of patients is the goal of the research-driven pharmaceutical company Boehringer Ingelheim. The focus in doing so is on diseases for which no satisfactory treatment option exists to date. The company therefore concentrates on developing innovative therapies that can extend patients’ lives. In animal health, Boehringer Ingelheim stands for advanced prevention.
Family-owned since it was established in 1885, Boehringer Ingelheim is one of the pharmaceutical industry’s top 20 companies. Some 50,000 employees create value through innovation daily for the three business areas human pharmaceuticals, animal health and biopharmaceuticals. In 2017, Boehringer Ingelheim achieved net sales of nearly 18.1 billion euros. R&D expenditure, exceeding three billion euros, corresponded to 17.0 per cent of net sales.
As a family-owned company, Boehringer Ingelheim plans in generations and focuses on long-term success. The company therefore aims at organic growth from its own resources with simultaneous openness to partnerships and strategic alliances in research. In everything it does, Boehringer Ingelheim naturally adopts responsibility towards mankind and the environment.
BANGKOK, Aug. 1, 2018 /PRNewswire/ — The Thailand Board of Investment (BOI) has agreed to expand seven additional sites as “Food Innopolis”, aiming to create value-added agricultural products nationwide through research and development. Moreover, incentive packages for investment in the Eastern Economic Corridor of Innovation (EECi) will be extended to cover those investing in science parks across the country while the EECi remains under development.
Thailand Board of Investment (BOI)
Ms. Duangjai Asawachintachit, BOI’s Secretary General, said after a board meeting chaired by Prime Minister Gen. Prayut Chan-o-cha that the meeting agreed to include seven more sites that the Ministry of Science and Technology classifies as Food Innopolis projects in the BOI-promoted area, in addition to the existing Food Innopolis located at the Thailand Science Park in Pathum Thani province.
The new measure will allow investors in the aforementioned areas to be eligible for special incentives offered by BOI. The move is part of the government’s plan to remake Thailand into a global food innovation hub and also promote the Food Innopolis projects initiated by the Ministry of Science and Technology and now operated by the National Science, Technology and Innovation Policy Office.
“Targeted activities — such as agricultural and food research and development, biotechnology, animal and plant breeding, and scientific laboratories, which will be established at the eight Food Innopolis sites — will receive both normal and additional tax incentives,” Ms. Asawachintachit said. “These activities will be eligible for obtaining 5-10 years of corporate income tax exemption depending on the type of business. Additional incentives will also be available, such as a 50% corporate income tax exemption for five years or additional years on corporate income tax exemption. The Food Innopolis network will be located nationwide, such as the Thailand Science Park in Pathum Thani, Kasetsart University, Chulalongkorn University, Mahidol University, and King Mongkut University of Technology Thonburi in Bangkok, and Chiang Mai University, Khon Kaen University and Prince of Songkhla University in the provinces.”
Encourage more investments in innovation in EECi
According to Ms. Asawachintachit, the meeting also approved the Ministry of Science and Technology’s request for the BOI to provide incentives to investment projects in the science parks nationwide while the EECi is under development.
The meeting set a condition: to be eligible for EECi investment incentives schemes, applicants will have to be operating businesses in the targeted industries, such as research and development, scientific laboratories, production of automation machinery system and high-valued software development. Applications must be submitted by 30 December 2019 and the project must be relocated to the EECi by 30 December 2023. In addition, these projects must work in collaboration with educational institutes or research institutes to provide science and technology trainings for Thais, according to pre-set terms.
A 22% increase in project applications in the first half of 2018
According to Ms. Asawachintachit, 754 projects applied for investment incentives during the first six months of this year, amounting to an increase of 22% over the same period last year. The investment applications’ total value during the period was 284 billion baht, which is similar to the same period last year. Out of all applications, 316 projects (46%) are in the targeted industries, totaling 224 billion baht (82% of the total investment value).
The total applications in the EEC area were 142 projects, totaling 1830 billion baht, a significant increase of 122% compared to that in the same period last year. BOI is confident that there will be more applications in large-scale projects in the second half of this year.
NANJING, China, Aug. 3, 2018 /PRNewswire/ — IMPACT Therapeutics, Inc. (IMPACT), a China-based clinical-stage biopharmaceutical company dedicated to the discovery and development of “best-in-class” medicine for the treatment of cancer and other life-threatening diseases, today announced the completion of $30 million in series C financing. The series C round was led by Decheng Capital (Decheng), with participation from existing investor Lilly Asian Ventures (LAV). Proceeds from the series will be used for the clinical development of IMP4297, a potential best-in-class PARP inhibitor, and to advance IMPACT’s integrated programs targeting DNA Damage Response (DDR).
PARP inhibitors are targeted therapies for cancer patients with defects in DNA repair mechanisms, such as with BRCA1 and BRCA2 mutations. Three PARP inhibitors, which have been shown to be tolerable and effective in clinical studies, have already been approved for marketing outside of China. IMP4297 has demonstrated an excellent safety profile and good preliminary efficacy in phase I clinical trials in Australia and China, which is consistent with the high potency and large therapeutic window found in pre-clinical studies.
“We are grateful for the faith our new and existing investors have shown in us, and for sharing our vision of developing the best potential treatments for cancer patients with DNA repair defects,” commented Dr. Ye Edward Tian, CEO of IMPACT. “Decheng and LAV are renowned global VC firms in the biomedical industry. With the capital and resources provided by Decheng and LAV, we will be able to advance the clinical development of IMP4297 and enrich our pipeline.”
“IMPACT is committed to the discovery and development of best-in-class therapeutics to treat cancer and other life-threatening diseases. Our data indicates that IMP4297 could be more efficacious and/or less toxic than other PARP inhibitors currently in the market, making it a potential best-in-class drug,” added Dr. Sui Xiong Cai, SVP and CTO of IMPACT. “With this series C financing, we are well-positioned to achieve key data milestones as we accelerate the clinical development of IMP4297, in the hope of bringing it to market and patients soon.”
“IMP4297 has shown potential to be a best-in-class drug in both pre-clinical studies and clinical trials. IMPACT is an excellent Chinese company with products that can compete globally,” said Dr. Xiangmin Cui, Founder and Managing Director of Decheng. “We are very happy to collaborate with the IMPACT team and to support IMPACT’s growth.”
“IMPACT is advancing its IMP4297 program steadily,” said Dr. Fei Chen, Managing Partner of LAV. “We have seen excellent results from the clinical trials of IMP4297. As an existing investor from the previous two rounds of financing, LAV will continue to support IMPACT with capital and resources.”
About Decheng Capital
Founded in 2012, Decheng is a leading VC firm investing in the biomedical and healthcare sectors. With more than $1 billion in capital under management, Decheng provides financial and strategic support to entrepreneurs, innovators and startup companies to take advantage of opportunities in China’s fast-growing healthcare, biomedical and pharmaceutical industries. Well placed to capitalize on revolutionary breakthroughs in life-science innovation worldwide, Decheng has offices in Shanghai and Silicon Valley.
About Lilly Asia Ventures
Founded in 2008 and headquartered in Shanghai, LAV is a leading VC firm investing in the biomedical, pharmaceutical and medical devices/diagnostics industries. LAV provides early-to-growth-stage companies with capital, professional expertise and valuable resources. LAV has offices in northern California, Shanghai and Hong Kong.
About IMPACT Therapeutics, Inc.
Based in China, IMPACT is committed to the discovery and development of best-in-class therapeutics to treat cancer and other life-threatening diseases. IMPACT is a clinical-stage company with a unique small-molecule drug discovery and development platform targeting DDR. IMPACT’s leading program, PARP inhibitor IMP4297, is currently undergoing phase I trials in Australia and China.
— 2Q18 Total Sales Up 25.5% YoY and Non-GAAP Adjusted Net Income Down 2.8% YoY in RMB terms, or Total Sales Up 34.8% YoY to $120.4 Million and Net Income Down 7.7% YoY to $28.6 Million in USD terms — — 1H18 Total Sales Up 19.5% YoY and Non-GAAP Adjusted Net Income Down 0.4% YoY in RMB terms, or Total Sales Up 28.8% YoY to $232.8 Million and Net Income Down 1.3% YoY to $60.2 Million in USD terms — —Revises Full Year Financial Forecast —
BEIJING, Aug. 4, 2018 /PRNewswire/ — China Biologic Products Holdings, Inc. (NASDAQ: CBPO) (“China Biologic” or the “Company”), a leading fully integrated plasma-based biopharmaceutical company in China, today announced its unaudited financial results for the second quarter of 2018.
Second Quarter 2018 Financial Highlights
Total sales in the second quarter of 2018 increased by 25.5% in RMB terms and 34.8% in USD terms to $120.4 million from $89.3 million in the same quarter of 2017.
Gross profit increased by 39.7% to $82.7 million from $59.2 million in the same quarter of 2017. Gross margin increased to 68.7% from 66.3% in the same quarter of 2017.
Income from operations decreased by 15.3% in RMB terms, and 8.9% in USD terms to $35.9 million from $39.4 million in the same quarter of 2017. Operating margin decreased to 29.8% from 44.1% in the same quarter of 2017. Excluding TianXinFu, income from operations decreased by 30.3% in RMB terms and 25.1% in USD terms in the second quarter of 2018 compared to the same quarter of 2017, and operating margin decreased to 27.5% from 44.1% in the same quarter of 2017.
Non-GAAP adjusted income from operations decreased by 3.7% in RMB terms and increased by 3.6% in USD terms to $49.2 million from $47.5 million in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted income from operations decreased by 21.0% in RMB terms and 15.1% in USD terms in the second quarter of 2018 compared to the same quarter of 2017.
Netincomeattributable to the Company decreased by 14.1% in RMB terms and 7.7% in USD terms to $28.6 million from $31.0 million in the same quarter of 2017. Fullydilutedearningsper share decreased by 23.9% to $0.83 compared to $1.09 in the same quarter of 2017. Excluding TianXinFu, netincomeattributable to the Company decreased by 29.7% in RMB terms and 24.2% in USD terms in the second quarter of 2018 compared to the same quarter of 2017.
Non-GAAP adjusted net income attributable to the Company decreased by 2.8% in RMB terms and increased by 4.4% in USD terms to $40.2 million from $38.5 million in the same quarter of 2017. Non-GAAP adjustedearningsper share decreased to $1.17 from $1.35 in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted net income attributable to the Company decreased by 19.4% in RMB terms and 13.2% in USD terms in the second quarter of 2018 compared to the same quarter of 2017.
Certain income statement and balance sheet items impacted by the TianXinFu acquisition are presented for comparison purposes.
Mr. David Hui Li, Chairman of the Company, commented, ” Our second quarter of 2018 continued to be challenging due to the ongoing impact of regulatory changes and intensified competition in China’s healthcare market. Because of spending controls by regional government-sponsored medical insurance programs, an increasing number of hospitals across various provinces are implementing stricter drug purchase budgets by capping drug revenue to no more than 30% of a hospital’s total revenue. This has led to another high-double-digit decline in our direct sales channel revenue in the second quarter. To offset this negative impact, the Company pursued new distributor and pharmacy channels. However, the intensified competition in the distribution market has caused over 10% year-over-year price declines across all major plasma products, deteriorated payment terms, and increased marketing expenditures. In addition, although our placenta polypeptide product experienced a 70% sales revenue growth in RMB terms, its sales volume declined over 30% due to the implementation of the two-invoice policy and the exclusion of it as a supplemental drug from the reimbursement lists of certain provinces. Our TianXinFu business performance met our expectations, and we remain conservatively optimistic about its growth in the second half of the year.”
“Recently, the Board of Directors implemented certain important personnel changes. As previously disclosed, the Board removed David Gao as Chairman and director of the Board, and CEO and President of the Company. Subsequently, the Board also terminated David Gao’s employment for cause based on the Board’s review of the facts and circumstances of his removal. Concurrent to Mr. Gao’s removal, two other directors stepped down from the Board. The Board elected me as Chairman, and elected two industry veterans Mr. Qi Ning and Mr. Bing Li to the Board as independent directors. While the Board is conducting search for a new CEO, the Board has appointed Mr. Zhijun Tong as the acting CEO. Mr. Tong is an experienced entrepreneur and executive, and has been a director of the Company since 2012. The Board believes that the overhaul of the senior management and the changes at the Board level will greatly improve the Company’s governance and management and rejuvenate our business, particularly in today’s challenging environment.”
Mr. Li continued, “In July, we received the operating permit for our new Feicheng branch plasma collection facility and commenced commercial operations immediately. We also recently extended our strategic collaboration agreement with Xinjiang Deyuan for another 3 years to purchase at least an additional 500 tonnes of plasma. We believe this extended collaboration is mutually beneficial, as it secures plasma supply to enhance our Guizhou facility’s utilization efficiency.”
“For the second half of the year, we expect the regulatory headwinds and market competitive dynamics to persist, which will impact our guidance for the year. However, we remain optimistic about the mid- to long-term prospects of our industry, which we believe will continue to transit from a market of demand serving to demand creation in the next three to five years. Specifically, the industry growth engine will shift from albumin to IVIG and coagulation products, which have much higher margins and greater market potential. This transition will open many new opportunities for us and will take China’s plasma industry into the next development stage to replicate what happened in the U.S and Europe decades ago. Currently, due to limited awareness among Chinese doctors and medical practitioners, the growth of immunoglobulin products and high-end premium coagulation products have lagged behind that of albumin, and under-penetration of these products will persist in China’s markets. Our new Board leadership will support the executive management team to upgrade our commercial capabilities and to solidify our leading market position by expanding into new sales channels and by promoting our immunoglobulin and coagulation products. We will remain focused on improving per liter economics by leveraging our leading R&D capabilities to expedite the launch of new pipeline products. As always, we remain focused on pursuing long-term, sustainable growth and maximizing long-term shareholder value,” concluded Mr. Li.
Second Quarter 2018 Financial Performance
Total sales in the second quarter of 2018 increased by 25.5% in RMB terms, or 34.8% in USD terms due to the benefit of favorable exchange rates, to $120.4 million from $89.3 million in the same quarter of 2017. The increase in total sales was partly attributable to a $13.0 million contribution from TianXinFu, which accounted for approximately 10.8% of total sales for the quarter. Excluding TianXinFu, total sales in the second quarter of 2018 increased by 11.9% in RMB terms, attributable to the sales increases in placenta polypeptide products, human albumin products, coagulation factor products, and certain immunoglobulin products, which was partly offset by the decrease in the sales of IVIG products. For plasma products, total sales in the second quarter of 2018 increased by 5.0% in RMB terms, or 12.7% in USD terms, to $90.3 million from $80.1 million in the same quarter of 2017.
During the second quarter of 2018, human albumin and IVIG products remained the Company’s two largest sales contributors. Revenue from human albumin increased by 9.6% in RMB terms, or 17.6% in USD terms, from $32.4 million in the second quarter of 2017 to $38.1 million in the second quarter of 2018. Revenue from IVIG products decreased by 11.8% in RMB terms, or 5.4% in USD terms, from $29.7 million in the second quarter of 2017 to $28.1 million in the second quarter of 2018. As a percentage of total sales, sales from human albumin and IVIG products were 31.7% and 23.4%, respectively, in the second quarter of 2018. Excluding the contribution from TianXinFu, human albumin and IVIG products represented 35.5% and 26.2% of total sales, respectively, compared to 36.3% and 33.3%, respectively, in the second quarter of 2017. The large decrease of IVIG sales’ percentage mainly reflected the combined effects of decreased sales volume and sales prices year over year.
The sales volume of human albumin products increased by 15.6% for the second quarter of 2018 compared to the same quarter of 2017, primarily due to increased sales volumes in the distributor and pharmacy channels, which was partly offset by decreased prescription volumes at various hospitals due to the ongoing healthcare regulatory changes in China. The sales volume of IVIG products decreased by 9.0% for the second quarter of 2018 compared to the same quarter of 2017, mainly reflecting decreased prescription volumes at various hospitals with the same effect of policy headwinds to human albumin.
The average prices for human albumin and IVIG products decreased by 5.2% and 3.1%, respectively, in RMB terms in the second quarter of 2018 compared to the same quarter of 2017 because of greater sales volume in the distributor channel and further price discounts to certain distributors reflecting intensified market competition for major plasma products. In USD terms, due to favorable exchange rates, the average price for human albumin and IVIG products increased by 1.9% and 4.1% year over year, respectively.
Revenue from specialty immunoglobulin products increased by 12.8% in RMB terms, or 21.2% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017, reaching 12.8% of total sales. This increase was mainly due to higher sales volumes of human rabies immunoglobulin products and human tetanus immunoglobulin products.
Revenue from coagulation factor products, including human coagulation factor VIII, human prothrombin complex concentrate, and the newly launched human fibrinogen products, increased by 50.9% in RMB terms, or 62.3% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017, representing 7.1% of total sales. The growth mainly came from the launch of our human fibrinogen products in the beginning of 2018 and the increased sales volumes of the Company’s human coagulation factor VIII and human prothrombin complex concentrate products, which is reflective of the Company’s ongoing medical marketing activities.
Revenue from placenta polypeptide products increased by 71.6% in RMB terms, or 84.4% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017, reaching 14.1% of total sales, which was supported by higher unit selling prices in connection with the wider implementation of the two-invoice policy. However, the sales volume of placenta polypeptide products continued to decline as a result of their inclusion in regional supplemental drug lists, which put pressure on their prescription volume.
Cost of sales increased by 24.9% to $37.6 million in the second quarter of 2018 compared to the same quarter of 2017. As a percentage of total sales, cost of sales decreased to 31.2% from 33.7% in the same quarter of 2017. The decrease in cost of sales as a percentage of total sales mainly reflected the higher gross margin of TianXinFu. Excluding TianXinFu, cost of sales was 33.6% of total sales, remaining stable year over year, a net impact of a higher sales price for the Company’s placenta polypeptide product and lower sales prices for its human albumin and IVIG products.
Gross profit increased by 39.7% to $82.7 million in the second quarter of 2018 from $59.2 million in the same quarter of 2017. Gross margin was 68.7% and 66.3% in the second quarters of 2018 and 2017, respectively.
Total operating expenses in the second quarter of 2018 was $46.9 million compared to $19.8 million in the same quarter of 2017. As a percentage of total sales, total operating expenses increased to 39.0% in the second quarter of 2018 from 22.2% in the same quarter of 2017. Excluding TianXinFu, total operating expenses increased by $22.0 million, or 111.1%, to $41.8 million in the second quarter of 2018. This increase mainly consisted of an increase of $16.7 million in selling expenses and an increase of $5.6 million in general and administrative expenses.
Selling expenses in the second quarter of 2018 was $24.4 million compared to $3.6 million in the same quarter of 2017. More than half of the increase was related to the sales of placenta polypeptide products with the remainder related to the sales of plasma products and TianXinFu’s sales of its dura mater products. For placenta polypeptide products and certain hyper-immune products, because certain previous multi-layer distributor channels were disqualified due to the two-invoice regulation, the Company implemented new sales strategies including using an internal sales force and engaging third party contract service organizations to promote its placenta polypeptide products. For other plasma products, in order to solidify its competitiveness within distributor channel customers, the Company incurred additional promotion and marketing costs. TianXinFu’s selling expenses included a $2.0 million amortization expense for the intangible asset of customer relationships associated with the Company’s acquisition of TianXinFu. Excluding this intangible asset amortization expense, selling expenses accounted for 18.6% of total sales in the second quarter of 2018 compared to 4.0% in the same quarter of 2017.
General and administrative expenses in the second quarter of 2018 was $20.6 million compared to $14.3 million in the same quarter of 2017. As a percentage of total sales, general and administrative expenses were 17.1% and 16.0% in the second quarter of 2018 and the same quarter of 2017, respectively. The increase in general and administrative expenses mainly included a $2.7 million increase of share-based compensation expenses and a $1.0 million increase of Shandong Taibang’s depreciation expense and property tax for its new facility. Excluding the impact of share-based compensation expenses, non-GAAP general and administrative expenses would have been 8.1% and 6.9% of total sales in the second quarter of 2018 and the same quarter of 2017, respectively.
Research and development expenses in the second quarter of 2018 remained at $1.9 million compared to the same quarter of 2017. As a percentage of total sales, research and development expenses decreased to 1.6% in the second quarter of 2018 from 2.1% in the same quarter of 2017.
Income from operations for the second quarter of 2018 decreased by 15.3% in RMB terms, or 8.9% in USD terms, to $35.9 million from $39.4 million in the same quarter of 2017. Operating margin decreased to 29.8% in the second quarter of 2018 from 44.1% in the same quarter of 2017. Excluding TianXinFu,income from operations for the second quarter of 2018 decreased by 30.3% in RMB terms, or 25.1% in USD terms, to $29.5 million from $39.4 million in the same quarter of 2017.
Income tax expense was $6.7 million for the second quarter of 2018 compared to $6.9 million in the same quarter of 2017. The effective income tax rate was 16.4% and 16.5% for the second quarters of 2018 and 2017, respectively.
Net incomeattributable to the Company decreased by 14.1% in RMB terms, or 7.7% in USD terms, to $28.6 million in the second quarter of 2018 from $31.0 million in the same quarter of 2017. Net margin decreased to 23.8% in the second quarter of 2018 from 34.7% in the same quarter of 2017. Diluted net earnings per share decreased to $0.83 in the second quarter of 2018 compared to $1.09 in the same quarter of 2017. Excluding TianXinFu, net income attributable to the Company decreased by 29.7% in RMB terms, or 24.2% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017, and net margin decreased to 21.9% in the second quarter of 2018 from 34.8% in the same quarter of 2017.
Non-GAAP adjusted income from operations decreased by 3.7% in RMB terms, or increased by 3.6% in USD terms, to $49.2 million in the second quarter of 2018 from $47.5 million in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted income from operations decreased by 21.0% in RMB terms, or 15.1% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017.
Non-GAAP adjusted net income attributable to the Company decreased by 2.8% in RMB terms, or increased by 4.4% in USD terms, to $40.2 million in the second quarter of 2018 from $38.5 million in the same quarter of 2017. Non-GAAP net margin decreased to 33.4% in the second quarter of 2018 from 43.1% in the same quarter of 2017. Non-GAAP adjusted net income per diluted share decreased to $1.17 in the second quarter of 2018 from $1.35 in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted net income attributable to the Company decreased by 19.4% in RMB terms, or 13.2% in USD terms, in the second quarter of 2018 compared to the same quarter of 2017.
Non-GAAP adjusted income from operations for the second quarter of 2018 excludes $10.8 million in non-cash employee share-based compensation expenses and $2.5 million in amortization expense of intangible assets and land use rights related to the acquisition of TianXinFu.
Non-GAAP adjusted net income and diluted earnings per share for the second quarter of 2018 exclude $9.9 million in non-cash employee share-based compensation expenses and $1.7 million in amortization expense of intangible assets and land use rights related to the acquisition of TianXinFu.
First Half 2018 Financial Performance
Total sales in the first half of 2018 increased by 19.5% in RMB terms, or 28.8% in USD terms, to $232.8 million from $180.7 million in the same period of 2017. This includes a $24.4 million contribution from TianXinFu, which accounts for approximately 10.5% of total sales for the first half of 2018. Excluding TianXinFu, total sales in the first half of 2018 increased by 7.0% in RMB terms as a result of increases in the sales of placenta polypeptide products and certain immunoglobulin products, which was partly offset by decreases in the sales of human albumin and IVIG products. For plasma products, total sales in the first half of 2018 increased by 0.8% in RMB terms, or 8.7% in USD terms, to $175.3 million from $161.3 million in the same period of 2017. As a percentage of total sales, sales from human albumin products and IVIG products accounted for 30.9% and 25.7%, respectively, for the first half of 2018. Excluding the contribution from TianXinFu, human albumin and IVIG products were 34.5% and 28.7% of total sales, respectively.
Cost of sales increased by 14.4% to $71.3 million in the first half of 2018 compared to $62.3 million in the same period of 2017. As a percentage of total sales, cost of sales decreased to 30.6% from 34.5% in the same period of 2017. The decrease in cost of sales as a percentage of total sales mainly reflected the higher gross margin of TianXinFu. Excluding TianXinFu, cost of sales decreased to 32.9% of total sales, mainly due to the higher sales price of the Company’s placenta polypeptide product.
Gross profit increased by 36.4% to $161.5 million in the first half of 2018 from $118.4 million in the same period of 2017. Gross margin was 69.4% and 65.5% in the first half of 2018 and 2017, respectively.
Total operating expenses in the first half of 2018 was $86.7 million compared to $40.2 million in the same period of 2017. As a percentage of total sales, total operating expenses increased to 37.2% in the first half of 2018 from 22.2% in the same period of 2017. Excluding TianXinFu, total operating expenses increased by $36.3 million, or 90.3%, to $76.5 million in the first half of 2018. This increase mainly consisted of an increase of $29.8 million in selling expenses and an increase of $7.2 million in general and administrative expenses.
Income from operations for the first half of 2018 decreased by 11.3% in RMB terms, or 4.3% in USD terms, to $74.8 million from $78.2 million in the same period of 2017. Excluding TianXinFu,income from operations for the first half of 2018 decreased by 24.9% in RMB terms, or 19.1% in USD terms, in the first half of 2018 compared to the same period of 2017.
Income tax expense in the first half of 2018 was $13.5 million compared to $13.8 million in the same period of 2017. The effective income tax rate was 15.9% and 16.6% for the first halves of 2018 and 2017, respectively.
Net incomeattributable to the Company decreased by 8.5% in RMB terms, or 1.3% in USD terms, to $60.2 million in the first half of 2018 from $61.0 million in the same period of 2017. Net margin decreased to 25.9% in the first half of 2018 from 33.8% in the same period of 2017. Diluted earnings per share for the first half of 2018 decreased to $1.75 from $2.15 for the same period of 2017. Excluding TianXinFu, net income attributable to the Company decreased by 22.8% in RMB terms, or 16.8% in USD terms, in the first half of 2018 compared to the same period of 2017, and net margin decreased to 24.4% in the first half of 2018 from 33.8% in the same period of 2017.
Non-GAAP adjusted income from operations decreased by 2.4% in RMB terms, or increased by 5.2% in USD terms, to $99.3 million in the first half of 2018 from $94.4 million in the same period of 2017. Excluding TianXinFu, non-GAAP adjusted income from operations decreased by 18.3% in RMB terms, or 11.9% in USD terms in the first half of 2018 compared to the same period of 2017.
Non-GAAP adjusted net income attributable to the Company decreased by 0.4% in RMB terms, or increased by 7.5% in USD terms, to $81.6 million in the first half of 2018 from $75.9 million in the same period of 2017. Non-GAAP adjusted net income per diluted share decreased to $2.37 in the first half of 2018 from $2.67 in the same period of 2017. Excluding TianXinFu, non-GAAP adjusted net income attributable to the Company decreased by 15.8% in RMB terms, or 9.1% in USD terms, in the first half of 2018 compared to the same period of 2017.
Non-GAAP adjustedincome from operations for the first half of 2018 excludes $19.8 million in non-cash employee share-based compensation expenses and $4.6 million in amortization expense of intangible assets and land use rights related to the acquisition of TianXinFu.
Non-GAAP adjusted net income and diluted earnings per share for the first half of 2018 exclude $18.2 million in non-cash employee share-based compensation expenses and $3.1 million in amortization expense of intangible assets and land use rights related to the acquisition of TianXinFu.
As of June 30, 2018, the Company had $103.3 million in cash on hand and demand deposits, $118.3 million in time deposits, and $144.6 million in financial instruments.
Net cash provided by operating activities for the first half of 2018 was $45.5 million, including an $11.6 million contribution from TianXinFu, compared to $36.9 million for the same period of 2017. Excluding TianXinFu, the $3.0 million decrease in net cash provided by operating activities was a combined result of: 1) the negative impact from a decrease in net income, an increase in accounts receivable, an increase in prepayments and deferred expenses, and decreases in accounts payable and tax payable; and 2) the positive impact from an increase of other payables and accrued liabilities, and a slowdown of increase in inventory compared to the first half of 2017.
Excluding TianXinFu, accounts receivable increased by $30.3 million during the first half of 2018 compared to $26.1 million in the same period of 2017. The accounts receivable turnover days for plasma products increased to 88 days during the first half of 2018 from 51 days in the same period of 2017, reflecting longer credit terms to hospitals as a result of the nationwide healthcare regulation changes and intensified competition in the distributor channel.
Excluding TianXinFu, inventories increased by $20.3 million in the first half of 2018. This is lower than a $22.8 million inventory increase in the same period of 2017, when Shandong Taibang stockpiled inventory to prepare for the planned temporary production suspension.
Excluding TianXinFu, other payables and accrued liabilities increased by $17.9 million in the first half of 2018 compared to a decrease of $2.9 million in the first half of 2017. The increase mainly reflected more marketing activities carried out by third party contract service organizations that the Company engaged to promote its placenta polypeptide and certain plasma products in compliance with the two-invoice policy.
Net cash used in investing activities for the first half of 2018 was $168.9 million compared to $16.6 million for the same period of 2017. Net cash used in investing activities in the first half of 2018 mainly consisted of a $529.6 million payment for the purchase of time deposits and financial instruments and a $19.1 million payment for the acquisition of property, plant, and equipment, intangible assets, and land use rights. This was partly offset by $97.7 million in cash received upon acquisition of TianXinFu and the maturity of $282.1 million in time deposits and financial instruments. In the same period of 2017, the Company paid $16.6 million for the acquisition of property, plant, and equipment and land use rights for Shandong Taibang and Guizhou Taibang.
Net cash provided by financing activities for the first half of 2018 was $0.8 million compared to $14.8 million for the same period of 2017. Net cash provided by financing activities in the first half of 2018 represented proceeds of $0.8 million from stock options exercised. Net cash provided by financing activities in the first half of 2017 mainly consisted of $14.3 million in short-term loan net proceeds.
Financial Outlook
The Company is making a downward revision to its full year 2018 forecast. The company expects non-GAAP adjusted income from operations to increase by 0% to 2% in RMB terms and non-GAAP adjusted net income to decrease by 2% to 4% in RMB terms over full year 2017 financial results. Excluding TianXinFu, full year 2018 non-GAAP adjusted income from operations is expected to decrease by 16% to 18% in RMB terms and non-GAAP adjusted net income to decrease by 19% to 21% in RMB terms over full year 2017 financial results.
The full year 2018 forecast was lowered to account for worse-than-expected results for the first half of 2018 and an ongoing challenging outlook in the second half of the year due to the following factors:
persisting regulatory headwinds, which places downward pressure on sales growth;
intensified competition in China’s plasma industry, which continues to drive costs higher and prices lower among plasma product providers in China;
investments in long-term improvements and upgrades to the marketing and sales capabilities, which places additional downward pressure on the bottom line; and
a one-time provision in connection with the new facility project in Guizhou and certain fixed assets among certain non-operating collection stations.
In the interest of increasing transparency, the Company intends to provide future financial outlook using non-GAAP adjusted income from operations and non-GAAP adjusted net income instead of sales. The Company believes that providing a financial outlook using income from operations, while excluding non-GAAP factors such as non-cash employee share-based compensation expenses and amortization expense of intangible assets and land use rights related to the acquisition of TianXinFu, provides greater clarity and understanding of the Company’s operations, especially in light of price surges for polypeptide products and certain hyper-immune products under the two-invoice policy accompanied by proportionately increased selling expenses.
This guidance does not factor in any potential foreign currency translation impact. Having previously adopted an exchange rate of approximately RMB6.76 = $1.00 based on weighted average quarterly exchange rates in 2017 in translating 2017 financial results, the Company expects that the non-GAAP adjusted income from operations and non-GAAP adjusted net income in USD terms in 2018 could be affected by the foreign currency translation impact.
This guidance excludes potential acquisitions, and necessarily assumes no significant adverse product price changes during 2018. This forecast reflects the Company’s current and preliminary views, which are subject to change.
Conference Call
The Company will host a conference call at 7:30 am Eastern Time on August 6, 2018, which is 7:30 pm Beijing Time on August 6, 2018, to discuss its second quarter 2018 results and answer questions from investors. Listeners may access the call by dialing:
US:
1 888 346 8982
International:
1 412 902 4272
Hong Kong:
852 301 84992
China:
4001 201203
A telephone replay will be available one hour after the conclusion of the conference all through August 13, 2018. The dial-in details are:
US:
1 877 344 7529
International:
1 412 317 0088
Passcode:
10122849
A live and archived webcast of the conference call will be available through the Company’s investor relations website at http://chinabiologic.investorroom.com.
About China Biologic Products Holdings, Inc.
China Biologic Products Holdings, Inc. (NASDAQ: CBPO) is a leading fully integrated plasma-based biopharmaceutical company in China. The Company’s products are used as critical therapies during medical emergencies and for the prevention and treatment of life-threatening diseases and immune-deficiency related diseases. China Biologic is headquartered in Beijing and manufactures over 20 different dosage forms of plasma products through its indirect majority-owned subsidiary, Shandong Taibang Biological Products Co., Ltd. and its wholly owned subsidiary, Guizhou Taibang Biological Products Co., Ltd. The Company also has an equity investment in Xi’an Huitian Blood Products Co., Ltd. The Company sells its products to hospitals, distributors and other healthcare facilities in China. For additional information, please see the Company’s website www.chinabiologic.com.
Non-GAAP Disclosure
This news release contains non-GAAP financial measures that exclude non-cash compensation expenses related to options and restricted shares granted to employees and directors under the Company’s 2008 Equity Incentive Plan, and amortization of acquired intangible assets. To supplement the Company’s unaudited consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this release. The Company’s management believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. A reconciliation of the adjustments to GAAP results appears in the table accompanying this news release. This additional non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.
In addition, as the Company evaluates certain key items of its financial results on a local currency basis (i.e., in RMB) in addition to the reporting currency (i.e., in USD), this news release contains local currency information that eliminates the impact of fluctuations in foreign currency exchange rates. The Company believes that, given its operations primarily based in China, providing local currency information on such key items enhances the understanding of its financial results and evaluation of performance in comparison to prior periods. Changes in local currency percentages are calculated by comparing financial results denominated in RMB from period to period.
Safe Harbor Statement
This news release may contain certain “forward-looking statements” relating to the business of China Biologic Products Holdings, Inc. and its subsidiaries. All statements, other than statements of historical fact included herein, are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “intend,” “believe,” “expect,” “are expected to,” “will,” or similar expressions, and involve known and unknown risks and uncertainties. Among other things, the Company’s plans regarding the construction and operation of plasma collection stations, the commercial launch of pipeline products and the integration with TianXinFu, as well as the management’s quotations and forecast of the Company’s financial performance in this news release contain forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect.
Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including, without limitation, quality of purchased source plasma, potential delay or failure to complete construction of new collection facilities, potential inability to pass government inspection and certification process for existing and new facilities, potential inability to achieve the designed collection capacities at the new collection facilities, potential inability to achieve the expected operating and financial performance, potential inability to find alternative sources of plasma, potential inability to increase production at permitted sites, potential inability to mitigate the financial consequences of a temporarily reduced raw plasma supply through cost cutting or other efficiencies, and potential additional regulatory restrictions on its operations and those additional risks and uncertainties discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contact:
China Biologic Products Holdings, Inc. Mr. Ming Yin Senior Vice President Phone: +86-10-6598-3099 E-mail: ir@chinabiologic.com
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended
For the Six Months Ended
June 30, 2018
June 30, 2017
June 30, 2018
June 30, 2017
USD
USD
USD
USD
Sales:
120,377,293
89,277,897
232,842,183
180,731,009
Human Albumin
38,134,120
32,375,022
71,930,081
69,233,313
Human Immunoglobulin for Intravenous Injection
28,111,148
29,663,496
59,896,369
61,416,482
Other Immunoglobulin products
15,405,847
12,709,939
28,425,404
21,003,606
Placenta Polypeptide
17,013,150
9,225,786
33,107,795
19,472,755
Artificial Dura Mater
12,815,856
–
22,759,839
–
Others
8,897,172
5,303,654
16,722,695
9,604,853
Cost of sales
37,638,545
30,110,272
71,330,228
62,325,745
Gross profit
82,738,748
59,167,625
161,511,955
118,405,264
Operating expenses
Selling expenses
24,352,111
3,577,599
45,047,326
7,385,151
General and administrative expenses
20,583,026
14,264,476
37,970,101
29,521,242
Research and development expenses
1,945,921
1,924,671
3,662,875
3,282,034
Income from operations
35,857,690
39,400,879
74,831,653
78,216,837
Other income (expenses)
Equity in income of an equity method investee
430,509
972,359
1,498,554
1,884,102
Interest expense
(68,109)
(286,358)
(135,673)
(348,868)
Interest income
3,237,207
1,617,054
6,241,136
3,240,893
Fair value changes of financial instruments
1,341,402
–
2,626,465
–
Total other income, net
4,941,009
2,303,055
10,230,482
4,776,127
Income before income tax expense
40,798,699
41,703,934
85,062,135
82,992,964
Income tax expense
6,743,682
6,867,434
13,451,137
13,817,973
Net income
34,055,017
34,836,500
71,610,998
69,174,991
Less: Net income attributable to noncontrolling interest
5,412,147
3,806,016
11,383,051
8,152,658
Net income attributable to China Biologic Products Holdings, Inc.
28,642,870
31,030,484
60,227,947
61,022,333
Earnings per share of ordinary share:
Basic
0.84
1.10
1.76
2.17
Diluted
0.83
1.09
1.75
2.15
Weighted average shares used in computation:
Basic
33,213,938
27,213,984
33,187,923
27,199,011
Diluted
33,345,062
27,478,935
33,347,605
27,472,301
Net income
34,055,017
34,836,500
71,610,998
69,174,991
Other comprehensive income:
Foreign currency translation adjustment, net of nil income taxes
(43,595,004)
10,692,318
(11,801,779)
13,413,286
Comprehensive income
(9,539,987)
45,528,818
59,809,219
82,588,277
Less: Comprehensive income attributable to noncontrolling interest
508,757
4,859,899
9,872,451
9,510,461
Comprehensive income attributable to China Biologic Products Holdings, Inc.
(10,048,744)
40,668,919
49,936,768
73,077,816
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2018
December 31, 2017
USD
USD
ASSETS
Current Assets
Cash and cash equivalents
103,299,204
219,336,848
Time deposits
118,272,768
22,895,200
Financial instruments
144,601,301
–
Accounts receivable, net of allowance for doubtful accounts
105,802,083
77,267,275
Loan receivable – current
–
45,912,000
Inventories
230,257,973
209,570,835
Prepayments and other current assets, net of allowance for doubtful accounts
26,233,100
18,139,453
Total Current Assets
728,466,429
593,121,611
Property, plant and equipment, net
182,744,108
166,812,749
Intangible assets, net
59,629,211
536,338
Land use rights, net
28,838,934
24,853,163
Equity method investment
16,161,541
14,903,908
Loan receivable – non-current
45,342,000
–
Goodwill
329,364,009
–
Other non-current assets
10,371,424
8,829,648
Total Assets
1,400,917,656
809,057,417
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable
6,201,994
7,548,909
Income tax payable
13,313,019
14,258,544
Other payables and accrued expenses
97,068,349
75,827,864
Total Current Liabilities
116,583,362
97,635,317
Deferred income
3,181,686
3,476,877
Non-current income tax payable
33,817,138
37,067,138
Other liabilities
13,827,349
6,553,088
Total Liabilities
167,409,535
144,732,420
Shareholders’ Equity
Ordinary share:
par value $0.0001;
100,000,000 shares authorized;
35,498,338 and 29,866,545 shares issued at June 30, 2018 and December 31, 2017, respectively;
33,243,634 and 27,611,841 shares outstanding at June 30, 2018 and December 31, 2017, respectively
3,550
2,987
Additional paid-in capital
595,732,735
140,230,395
Treasury share: 2,254,704 shares at June 30, 2018 and December 31, 2017, respectively, at cost
(56,425,094)
(56,425,094)
Retained earnings
566,654,383
506,426,436
Accumulated other comprehensive income
(2,333,875)
7,957,304
Total equity attributable to China Biologic Products Holdings, Inc.
1,103,631,699
598,192,028
Noncontrolling interest
129,876,422
66,132,969
Total Shareholders’ Equity
1,233,508,121
664,324,997
Commitments and contingencies
–
–
Total Liabilities and Shareholders’ Equity
1,400,917,656
809,057,417
Note: “Ordinary share” when used with respect to a date before July 21, 2017 refers to the common stock of our predecessor, China Biologic Products, Inc.
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
June 30,
2018
2017
USD
USD
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
71,610,998
69,174,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
6,577,959
6,043,854
Amortization
5,149,167
683,276
Loss on sale of property, plant and equipment
98,555
119,557
Fair value changes of financial instruments
(2,626,465)
–
Allowance (reversal) for doubtful accounts – accounts receivable, net
(4,703)
23,783
Deferred tax benefit
(4,314,498)
(166,369)
Share-based compensation
19,846,826
16,201,189
Equity in income of an equity method investee
(1,498,554)
(1,884,102)
Change in operating assets and liabilities:
Accounts receivable
(30,298,478)
(26,068,071)
Inventories
(21,365,581)
(22,769,252)
Prepayments and other current assets
(8,339,852)
(1,862,700)
Accounts payable
(1,321,840)
33,359
Income tax payable
(1,747,739)
519,895
Other payables and accrued expenses
17,286,649
(2,910,237)
Deferred income
(261,672)
(242,713)
Non-current income tax payable
(3,250,000)
–
Net cash provided by operating activities
45,540,772
36,896,460
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired from acquisition of Tianxinfu
97,702,278
–
Purchase of time deposit
(206,656,231)
–
Maturity of time deposit
108,029,200
–
Purchase of financial instruments
(322,948,071)
–
Maturity of financial instruments
174,086,107
–
Payment for property, plant and equipment
(18,443,583)
(15,975,643)
Payment for intangible assets and land use rights
(700,720)
(667,068)
Proceeds from sale of property, plant and equipment
17,562
24,674
Net cash used in investing activities
(168,913,458)
(16,618,037)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock option exercised
766,906
506,239
Proceeds from short-term bank loans
–
23,009,280
Repayment of short-term bank loan
–
(8,715,000)
Net cash provided by financing activities
766,906
14,800,519
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH
6,568,136
4,399,014
NET INCREASE IN CASH AND CASH EQUIVALENTS
(116,037,644)
39,477,956
Cash and cash equivalents at beginning of period
219,336,848
183,765,533
Cash and cash equivalents at end of period
103,299,204
223,243,489
Supplemental cash flow information
Cash paid for income taxes
23,356,958
13,621,188
Noncash investing and financing activities:
Acquisition of property, plant and equipment included in payables
5,028,782
4,202,934
Issuance of ordinary shares in connection with the Tianxinfu acquisition
434,889,170
–
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
For the Three Months Ended
June 30,
June 30,
2018
2017
USD
USD
Income from Operations
35,857,690
39,400,879
Non-cash employee stock compensation
10,837,592
8,129,124
Amortization of acquired intangible assets and land use rights
2,472,350
–
Adjusted Income from Operations – Non GAAP
49,167,632
47,530,003
Net Income Attributable to the Company
28,642,870
31,030,484
Non-cash employee stock compensation
9,914,207
7,475,563
Amortization of acquired intangible assets and land use rights
1,681,198
–
Adjusted Net Income Attributable to the Company – Non GAAP
40,238,275
38,506,047
Diluted EPS – Non GAAP
1.17
1.35
Weighted average number of shares used in computation of Non GAAP diluted EPS
33,345,062
27,478,935
For the Six Months Ended
June 30,
June 30,
2018
2017
USD
USD
Income from Operations
74,831,653
78,216,837
Non-cash employee stock compensation
19,846,826
16,201,189
Amortization of acquired intangible assets and land use rights
4,629,652
–
Adjusted Income from Operations – Non GAAP
99,308,131
94,418,026
Net Income Attributable to the Company
60,227,947
61,022,333
Non-cash employee stock compensation
18,176,844
14,913,802
Amortization of acquired intangible assets and land use rights
3,148,163
–
Adjusted Net Income Attributable to the Company – Non GAAP
81,552,954
75,936,135
Diluted EPS – Non GAAP
2.37
2.67
Weighted average number of shares used in computation of Non GAAP diluted EPS
HANGZHOU, China and SHAOXING, China, Aug. 1, 2018 /PRNewswire/ — Ascletis announced today it has received the acceptance letter from the China Food and Drug Administration (CFDA) for Ravidasvir (RDV, ASC16) new drug application (NDA). Ravidasvir in combination with Ganovo® (RDV/DNV Regimen) is the first all-oral interferon-free HCV regimen developed by a domestic company in China. Phase II/III clinical trial has shown that RDV/DNV Regimen demonstrated a cure rate of 99% (SVR12) with a short treatment duration of 12 weeks in genotype 1 patients. In patients with baseline NS5A resistance mutations, RDV/DNV Regimen demonstrated a cure rate of 100% (SVR12).
“Ascletis was successfully listed this morning on Hong Kong Exchange as the first ever pre-revenue biotech. The NDA for our all-oral HCV regimen was accepted by CFDA in the afternoon.” Jinzi J. Wu, Ph.D., Ascletis’ founder, President and CEO, commented, “Two significant accomplishments on the same day reflect our unremitting effort to provide affordable and effective HCV cures to the patients and to fulfill our commitment to the investors.”
Ganovo Regimen, Ascletis’ first breakthrough HCV regimen, was approved on June 8 and launched on June 27, 19 days after the approval. The acceptance of the NDA for its all-oral HCV regimen enables Ascletis soon to provide two HCV treatment options for Chinese patients, strengthening its leading position in China’s HCV field.
– Detection of cancer biomarkers within 10 minutes with a single drop of blood
– markB is a point-of-care testing device, that can be used by anyone
– After beginning with cancer diagnosis, markB will address cardiovascular disease and Alzheimer’s disease
– Reduction of time and costs of analysis
SEOUL, South Korea, Aug. 2, 2018 /PRNewswire/ — Jaekyu Choi, CEO of BBB Inc., presented the technology behind markB, a portable cancer analyzer, at the American Association for Clinical Chemistry (AACC) 2018 Annual Scientific Meeting & Clinical Lab Expo.
markB, a POCT (Point-of-Care-Testing) analyzer
AACC held its 70th annual meeting, featuring in-vitro diagnostic testing companies from around the world, at one of the largest exhibitions in the field, in Chicago from July 31st until August 2nd.
markB is a POCT (Point-of-Care-Testing) analyzer that detects biomarkers from a single drop of blood drawn from the fingertips. Once blood is loaded onto the cartridge, the analyzer immediately carries out immunoassay to draw a result in 10 minutes.
This technology is based upon two of BBB’s patented technologies: passive plasma separation technology and magnetic force-assisted electrochemical sandwich immunoassay. While the conventional approach of using centrifugation to separate plasma from whole blood takes more than 30 minutes, BBB’s technology allows this to take place instantly. Once the reaction is filled with plasma, the immunoassay process is controlled by magnetic fields. Then, the device quantifies biomarkers by measuring the electrochemical signals from the magnetic nanoprobes.
BBB has drastically improved precision of analysis in point-of-care testing with markB. Furthermore, markB reduces time and cost of analysis while demonstrating equivalent accuracy of hospital equipment.
BBB’s Vice President, Hyundoo Hwang stated: “We have already completed our research on three cancer biomarkers thus far, including that of prostate cancer (PSA), liver cancer (AFP) and colon cancer (CEA). Our research indicates that this technology is applicable to multiple biomarkers.” Hwang also proposed a roadmap for an expansion plan towards cardiovascular diseases and Alzheimer’s disease.
Finally, Hwang stated that: “With this handheld device, diagnosis is not only possible in hospitals, but also in emergency situations and or in individuals’ homes without the assistance of professionals — making point-of-care-testing possible for everyone.”
Following the presentation at AACC, BBB is scheduled to demonstrate markB at MEDICA, World Forum for Medicine, at Dusseldorf, Germany this November.
BBB is a Korean mobile healthcare startup founded in Oct 2014. The company develops and sells elemark®, an Android-based blood testing device that enables personalized blood tests and biomarker monitoring. Its purview spans the U.S.A., France, South Africa, China, Malaysia, and the U.A.E., among others. with local partners in R&D, production, and sales. After introducing elemark® dual check to the market in Nov 2017, BBB is developing various other IVD solutions such as a cholesterol testing device and lab-on-a-chip technology for cancer diagnosis and prognosis management.
ISNES, Belgium, Aug. 1, 2018 /PRNewswire/ — VolitionRx Limited (NYSE AMERICAN: VNRX) (“Volition”) today announced that its first product the “Total Nu.Q™ Assay” research use only (RUO) kit, is ready and available for purchase through Active Motif, its Global Sales and Distribution Partner (https://www.activemotif.com/catalog/1266/NuQ-total-assay). This kit, based on Volition’s proprietary Nucleosomics® technology, is the first in a range of kits due to be released over the coming months.
The new Nu.Q(TM) Total Assay Kit
Founder and Chairman of Active Motif, Joseph M. Fernandez, commented “We are continuously looking for innovative products in the field of epigenetics and believe that Nucleosomics® is a breakthrough technology. These RUO kits will provide researchers throughout the world with a new way to explore epigenetic modifications in circulating cell-free nucleosomes across different diseases from clinical samples. We are delighted that the first kit is now available for sale and continue to work with Volition to develop a broad range of assays focused on important targets for future roll-out. We expect revenue this quarter from the sales of these RUO kits.”
The RUO kits are based on the same Nu.Q™ immunoassay technology as Volition’s cancer screening panels and may be used to investigate a variety of clinical questions beyond Volition’s core focus in cancer biomarkers. The range of the RUO kits will allow researchers to explore patterns of epigenetic modifications in circulating nucleosomes in disease models, pre-clinical testing and clinical trials across a broad spectrum of clinical applications including cancer, inflammatory and infectious diseases and trauma. The RUO kits will offer a complete profiling solution from cell to serum.
Chief Executive Officer of Volition, Cameron Reynolds, commented, “This is a fantastic achievement for both Volition and Active Motif; it was very exciting to see the first pack come off the production line. We expect that the RUO kits will provide an additional revenue stream beyond that from the expected commercialization of our blood-based tests for cancer. If the assays are developed as a companion diagnostic for another company’s therapeutic, this could also potentially result in further future revenue through a licensing or similar arrangement.”
An interview with Cameron Reynolds and Mark Eccleston, Business Development Director of Volition regarding, the RUO Kits is available to view at https://volitionrx.com/news/video-gallery
About Active Motif
Active Motif is an industry leader in developing and delivering innovative tools to enable epigenetics and gene regulation research for the life science, clinical and pharmaceutical and drug discovery communities. The company has a significant portfolio of assays, genome wide services and validated antibodies for use in ChIP-Seq. Active Motif operates globally through its corporate headquarters in Carlsbad, California, regional headquarters in Belgium, Japan and China, as well as a worldwide network of sales and support offices. Active Motif applies a multi-disciplinary approach to create new and modify existing technologies to meet the current and future needs of life science researchers. To learn more please visit www.activemotif.com.
About Volition
Volition is a multi-national life sciences company focused on developing simple, easy to use, cost effective blood tests designed to help diagnose a range of cancers. The tests are based on the technology platform of Nucleosomics®, which is the practice of identifying and measuring nucleosomes in the bloodstream or other bodily fluid – an indication that disease is present.
As cancer screening programs become more widespread, Volition’s products aim to help to diagnose a range of cancers quickly, simply, accurately and cost effectively. Early diagnosis has the potential to not only prolong the life of patients, but also to improve their quality of life.
Volition intends to expand the application of its technology beyond cancer by exploring other disease applications. The company’s research and development activities are currently centered in Belgium, with additional offices in London, Texas and Singapore, as it focuses on bringing its diagnostic products to market first in Europe, then in the U.S. and ultimately, worldwide.
The contents found at Volition’s website address, Twitter, LinkedIn, Facebook, and YouTube are not incorporated by reference into this document and should not be considered part of this document. The addresses for Volition’s website, Twitter, LinkedIn, Facebook, and YouTube are included in this document as inactive textual references only. The contents found at any third party’s website address are the sole responsibility of such third party, are not incorporated by reference into this document, such website addresses are to be considered inactive textual references only, and Volition makes no representations or warranties regarding such contents.
Statements in this press release may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that concern matters that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or projected in the forward-looking statements. Words such as “expects,” “anticipates,” “intends,” “plans,” “aims,” “targets,” “believes,” “seeks,” “estimates,” “optimizing,” “potential,” “goal,” “suggests,” “could,” “would,” “should,” “may,” “will” and similar expressions identify forward-looking statements. These forward-looking statements relate to the effectiveness of Volition’s bodily-fluid-based diagnostic tests as well as Volition’s ability to develop and successfully commercialize such test platforms for early detection of cancer and/or other disease applications. Volition’s actual results may differ materially from those indicated in these forward-looking statements due to numerous risks and uncertainties. For instance, if Volition fails to develop and commercialize diagnostic products, it may be unable to execute its plan of operations. Other risks and uncertainties include Volition’s failure to obtain necessary regulatory clearances or approvals to distribute and market future products in the clinical IVD market; a failure by the marketplace to accept the products in Volition’s development pipeline or any other diagnostic products Volition might develop; Volition will face fierce competition and Volition’s intended products may become obsolete due to the highly competitive nature of the diagnostics market and its rapid technological change; and other risks identified in Volition’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other documents that Volition files with the Securities and Exchange Commission. These statements are based on current expectations, estimates and projections about Volition’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are made as of the date of this release, and, except as required by law, Volition does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.
Nucleosomics®, NuQ®, Nu.Q™ and Hypergenomics® and their respective logos are trademarks and/or service marks of VolitionRx Limited and its subsidiaries. All other trademarks, service marks and trade names referred to in this press release are the property of their respective owners. Additionally, unless otherwise specified, all references to “$” refer to the legal currency of the United States of America.
– Direct sharing of symptoms and treatment processes and provision of compensation for the sharing of information.
– Expected to release blockchain-based “Humanscape” later this year.
SEOUL, South Korea, Aug. 2, 2018 /PRNewswire/ — Today, more and more people are suffering from serious, incurable, and/or rare illnesses. However, access to information on such conditions has been quite limited, to hospitals or internet surfing. Even though there were communities and organizations serving people with certain illnesses, information was not widely available, due to the general nature of the illnesses.
Min-hoo Chang, the CEO of Humanscape, giving a speech at ‘Blockchain Expo 2018’ held in Amsterdam
Developing and implementing IT solutions in the healthcare sector for the past four years, Humanscape realized that there is a lack of proper health information platforms. They believed that providing an information exchange platform that gives patients complete control over their patients-generated health data (PGHD) and allowing pharmaceutical companies, doctors, and hospitals to utilize the data, will help us find new treatments and further improve existing treatments.
In addition, applying blockchain technology to such patient health data management will enable safe data exchange and storage. When patients record information on their illnesses via Humanscape, the information is encrypted and can only be used in designated areas. Additionally, patients will be compensated accordingly when they share information on the patient’s platform. Min-hoo Chang, CEO of Humanscape, commented, “Since the simple act of sharing information can be so helpful for people suffering from rare and incurable diseases, we expect to see a high participation rate.” Patients can exchange their compensation for cash. Humanscape Team is also planning on having various dApps (decentralized apps) to allow patients to purchase non-prescription, functional foods and medical equipment with its own currency earned as compensation.
The welcoming responses of patient organizations and pharmaceutical companies towards Humanscape exceeded its expectations. Chang commented, “Patient organizations that were in dire need of well-structured patients data have come to recognize the value of the Humanscape Project. Humanscape has signed MOUs with patient organizations for rare retina-related diseases, Korean Foundation Fighting Blindness and Amseungmo (one of the most well-known cancer patient communities), and is also discussing multi-faceted cooperation with many more.” Chang also mentioned that, “Executives of global pharmaceutical companies that needed patient information on patients’ medication, physical condition, and lifestyle, have joined Humanscape as advisors and are actively involved in the company’s business activities.”
Humanscape’s long-term goal is to provide the best healthcare community service in Asia, especially in countries with poor medical services. To this end, the company has established a subsidiary in Indonesia and is currently establishing partnerships with local companies and hospitals. Furthermore, Humanscape is entering the Vietnamese market through the Ministry of SMEs and Startups’ Global Expansion Program (GEP) with the support of the Chungnam Center for Creative Economy and Innovation.
Chang said, “There are relatively few patients with rare and incurable diseases, which makes it difficult for pharmaceutical companies to be active in this field. However, if a proper medicine is to be developed, it would be a blue ocean. In this context, if we are able to achieve our goal of creating the best patient community in Asia, I am certain that it will be beneficial to all.”
YONGIN, South Korea, July 31, 2018 /PRNewswire/ — GC Pharma (formerly known as Green Cross Corporation) (KRX: 006280), a South Korean biopharmaceutical company, today announced unaudited results for the three months ended June 30, 2018.
Key Figures
Q2 2018(1)
Growth(1)
Total revenues
KRW 341.8 billion
+3.5%
Operating income
KRW 13.3 billion
(61.5%)
K-IFRS net income
KRW 2.7 billion
(89.9%)
(1) Results and percentages compare to equivalent 2017 period.
Financial Highlights
Delivered total revenues growth of 3.5% to KRW 341.8 billion (Q2 2017: KRW 330.2 billion); plasma products oversea sales increased 11.9% in Q2 2018.
Operating income decreased 61.5% to KRW 13.3 billion (Q2 2017: KRW 34.5 billion), primarily due to a dramatic increase in R&D expenses.
EC Huh, Ph.D., GC Pharma President commented:
“Our second quarter financial performance was in-line with expectations. This is a solid result, achieved amid continued investment in future innovation and growth engines.”
About GC Pharma
GC Pharma is a biopharmaceutical company that delivers life-saving and life-sustaining protein therapeutics and vaccines. Headquartered in South Korea, GC Pharma is the largest plasma protein product manufacturer in Asia and has been dedicated to quality healthcare solutions more than half a century. Green Cross Corporation updates its corporate brand as GC Pharma in early 2018. Green Cross Corporation remains the company’s registered, legal name.
This release includes forward-looking statements, which express the current beliefs and expectations of GC Pharma’s management. Such statements speak only as of the date on which they are made and the company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CHENGDU, China, Aug. 1, 2018 /PRNewswire/ — Enterprises from Chengdu, organized by Chengdu Hi-Tech Industrial Development Zone (CDHT), visited three European and American countries to recruit talents. On July 13, the third tour of “Tianfu Talent Recruitment” first started in the UK. Enterprises in fields such as electronic information, new economy and biomedicine in CDHT, will launch a series of overseas fairs for recruiting high-level talents and interact with overseas enterprises and institutions.
“Tianfu Talent Recruitment” is a large-scale milk round sponsored by the Administrative Office of CPC Working Committee of CDHT, and organized by the Party and Mass Work Department of CDHT and Chengdu Tianfu Software Park Co., Ltd. As “Tianfu Talent Recruitment” has been held for 11 consecutive years, talent service platforms have thus formed with brand characteristics, including “City Tour”, “Campus Tour” and “Overseas Tour”. It has attracted more than 50,000 professionals backflow. The first two overseas tours have drawn attention from over 770 high-end talents and reached more than 160 employment agreements.
This year, the European tour of “Tianfu Talent Recruitment” lasts from July 13 to 20, and the North American tour from September 13 to 18. Changhong, Ubisoft, ANZ, WinnerSoft, ThoughtWorks, KG, Borns, Ygomi, Corntree and other enterprises in electronic information, new economy and bio-pharmaceutical industry in CDHT travelled to numerous cities for talent recruitment, such as London in the UK, Dublin in Ireland, and later on those enterprises will travel toNew York and Boston in the United States.
This year sees the third overseas tour of “Tianfu Talent Recruitment”. In terms of event arrangement, the tour this year will more cater to the needs of enterprises and focus on practice. In addition to in-depth cooperation with local talent agencies, the talent policy promotion conference and the high-level talent recruitment fair, CDHT will set up more offshore innovation and entrepreneurship bases (workstations), to build platforms for high-level overseas returnees.
In this year’s overseas tour, the business delegation will visit trading institutions and well-known enterprises such as China-Britain Business Council, Intron, Overseas Chinese Service Center in Dublin, Guinness, and IBM to establish cooperation channels between overseas enterprises and CDHT. It will also visit the prestigious universities and colleges such as King’s College and Judge Business School of Cambridge University, University of Dublin, Career Development Center of Trinity College, and Career Development Center of Harvard University to promote school-enterprise cooperation. The delegation will also go to St John’s Innovation Center, Cambridge Hub and the Entrepreneurship Center of University of Cambridge to explore the cooperation in offshore incubators and experience in the operation and management of incubators.
It is the third time for Ubisoft and Changhong to be in the delegation. They benefited a lot from the first two overseas tours.
Sangsoo Jeong, a Korean talent born in the 1980s, is well known in the game circles of Seoul for his inherent enthusiasm toward games and now serves as a technical artist of Ubisoft. He attended “Tianfu Talent Recruitment – Korean Station” in 2016 and decided to make a change to his life by joining Ubisoft in Chengdu. “In Chengdu, I will get to know the technology and process for 3A-level game development.” Jeong said, “Ubisoft Chengdu is a global leader in this regard and I will never get to know it in Korea.” Currently, Jeong has a “friend circle” of his own in Chengdu. He said, “Chengdu is international. I have known many friends from abroad and we often hang out.”
Speaking of Jeong, Han Han, Recruiting Manager of Ubisoft Chengdu, seemed still elated, “You know, a ‘technical artist’ is as scarce as the ‘little panda’ in the game circles.” According to Han, as a bridge between programmers and artists, the “technical artist” has to know about programs and art. This highand mediumranking position has extremely high requirements for comprehensive ability and it is difficult to find these talents in China. “I didn’t expect to find the ‘little panda’ in Korea. We have joined the overseas tour for three consecutive years in hopes of finding more scarce talents.”
Changhong is another beneficiary of “Tianfu Talent Recruitment”. It recruited the long-awaited general manager of the North American R&D Center in 2016 and the “chief security scientist” Tang Bo and other high-end talents in 2017. According to Wang Baoli, HR of Changhong, the overseas tour may help the company find talents in high-grade, precision and advanced fields and scare ones, and is also cost-effective, especially in such popular areas as data capture and AI. “In China, these talents are rare and have requirement of high salaries. In contrast, the requirements of talents from overseas are more reasonable.”
This year, Changhong plans to recruit “Senior Research Fellow (NLP\Visual\Big Data\Healthcare)”, “Advanced IC Design Engineer”, “Technical Management Trainee”, etc., in the overseas tour and has currently established the contact with over 40 overseas candidates. Wang Baoli said, “They are appropriate with excellent quality, and we expect a greater harvest this year.”
Dr. William Levine, Co-founder and CTO of Borns Medical Robotics, one of the participants in the overseas tour, has been working in Chengdu for three years. He enjoys international reputation in optimal control theory and human-computer interaction systems. He received a doctorate of philosophy in electrical and computer engineering at the Massachusetts Institute of Technology (MIT). He is a lifelong professor in the Department of Electrical and Computer Engineering at the University of Maryland, a master in optimal control theory, a lifelong academician at IEEE and a Millennium Medal winner, and can thus live up to the title of “Golden Panda”.
“Chengdu is my second hometown. Engineers of Borns are from top companies in the industry with great technical strength. We support and encourage each other for the common goal of launching surgical robots in the market as soon as possible. The happiness is ineffable.” He said that he is amazed by the speed at which the international aviation hub is being constructed in Chengdu. Direct flights from Chengdu to San Francisco, Los Angeles and New York have been launched to connect the east and west coast of the US. “The route network across the world provides great convenience for overseas talents in life and work.” Out of his love for Chengdu, Dr. William Levine decided to bring to Chengdu the “2019 Annual Conference of Society for Industrial and Applied Mathematics (SIAM)” to “arrest more attention to this beautiful city.”
In recent years, leading industries such as electronic information, new economy and biomedicine in CDHT have developed rapidly. Globally renowned companies such as Intel, GlobalFoundries and Dell have settled here. Siemens, H3C and Medtronic have successively set up R&D centers here. In Chengdu Tianfu Software Park only, there are more than 600 well-known enterprises at home and abroad, including IBM, SAP, EMC and Philips, 34 of which are listed on the Fortune Global 500. Numerous enterprises and organizations are “desperate for” mid-end to high-end professionals.
To attract more overseas talents and create a globally lively zone with talents, CDHT released the “Golden Panda” talent program in April, proposing to hire top talents with high salaries, support top teams with RMB 100 million at most, introduce overseas talents in an innovative and flexible way, and provide the “one-stop” service in settlement, financing, children’s enrollment, healthcare, and government affairs. Up to now, CDHT has gathered 482,000 talents of various types, introduced six Nobel Prize winners in a flexible manner, and set up 21 offshore innovation and entrepreneurship bases in Silicon Valley in the United States, Seoul in South Korea, Frankfurt in Germany and other places.
With the highest degree of economic extroversion in Chengdu, CDHT is nurturing an international entrepreneurial environment by promoting high-level international cooperation parks such as Singapore-Sichuan Hi-tech Innovation Park and building “China-Europe Center”, the only comprehensive cooperation platform for Europe in China, and from many other perspectives. Chengdu High-tech Zone has become an international talent gathering place. In addition, Chengdu Tianfu Software Park, an important base for CDHT to build an international innovation and entrepreneurship center, including foreign nationals from over 20 countries and regions, such as the United States, Canada, Australia, India, Japan, South Korea and Singapore. Therefore, CDHT specially created a series of international communities, international schools, and “home for foreigners to innovate and start a business”, to provide one-stop international services for foreign nationals in life and work.
