Country for PR: China
Contributor: PR Newswire Asia (China)
Thursday, March 29 2018 - 19:40
Luye Pharma: A Healthy Thirty Percent Annual Growth Rate, with Competitive Product Pipelines across Different Therapeutic Areas
HONG KONG, March 29, 2018 /PRNewswire-AsiaNet/ --

One of China's leading pharmaceutical companies, Luye Pharma (02186. HK), 
released its annual results on March 26, 2018. The financial report shows that 
the company enjoyed strong growth last year, both in its domestic and 
international business, and that the development and launch of its new products 
in domestic and overseas markets is progressing smoothly.

In 2017, Luye Pharma achieved a total sales revenue of RMB 3.82 billion, an 
increase of 30.7% y-o-y; normalized EBITDA reached RMB1.49 billion, an increase 
of 30.6% y-o-y; normalized net profit attributable to shareholders reached RMB 
1.06 billion, an increase of 19% y-o-y. In addition, the company improved its 
operation efficiency through effective control of its accounts receivable. 
Accounts receivable turnover decreased from 98 days in 2016 to 80 days in 2017, 
and the days' sale in inventory (DSI) decreased from 251 days to 150 days.

"2017 is an exciting year. With the combined efforts of our employees around 
the world, Luye Pharma has achieved outstanding performance and exceeded market 
expectations. Not only do the existing products continue to exhibit strong 
vitality, future pipelines are also welcoming policy opportunities and being 
constructed in an accelerated manner, in terms of registration and R&D. We 
believe that this high-speed growth momentum will continue with all business 
segments going hand in hand, especially with some of the breakthrough progress 
we expect from our overseas pipeline development", the management of Luye 
Pharma stated.

Highlights of 2017 Results  

1. Key Products

Domestic market- Rated within China's Top 20 Pharmaceutical Companies, the 
company has significantly outperformed the industry average in terms of growth.

According to IQVIA (formerly known as IMS) data, Luye Pharma's growth rate in 
2017 reached 10.4%, significantly higher than the industry average of 3.3%. 
Luye Pharma has become one of China's top 20 pharmaceutical companies by sales 
revenue. Sales revenue is expected to be further boosted under the 2017 
versions of China's National Basic Medical Insurance, Work-Related Injury 
Insurance and Maternity Insurance Catalogue (the ''Insurance Catalogue''), 
particularly for products like Beixi, Xuezhikang, and Oukai.

In 2018, the company will continue to implement a "channel deepening" strategy 
to further increase hospital coverage of Lipusu, expand sales networks for 
Beixi and Xuezhikang at the primary care level, and make the most of the 
"Insurance Catalogue update" opportunity to drive the annual sales revenue of 
its key products to over RMB 100 million each.

International Market-Leading position continues

Rivastigmine Patches continue to maintain their leading sales position in the 
United States and the European Union.

The company will actively seek further expansion in the European transdermal 
patch market, and strive for new market access by strengthening its cooperation 
with partners. 

2. R&D Innovation - Significantly increase R&D investment and reduce 

Over the past one year, Luye has been actively responding to state policies 
which stimulate drug innovation. A large number of R&D projects have got 
underway with approximately RMB 100 million net increase in R&D expenses. At 
the same time, the company has been striving to accelerate regulatory reviews 
for its new drug candidates, while significant progress has been made in the 
field of new chemical entities (NCE), new drug delivery system (NDDS), and 
biological antibodies.

In terms of new chemical entities, Phase II clinical trials for the new 
anti-depressant Ansofaxine Hydrochloride Extended Release Tablets ('LY03005') 
have achieved positive results in China. Meanwhile, the clinical trial 
application for IDO/TDO dual-target inhibitors, the second application of such 
kind in China thus far, (LY01013) has been officially accepted by the CFDA. 
With respect to innovative drugs and formulations, Risperidone Extended Release 
Microspheres for Injection (LY03004) has been exempted from US pediatric 
clinical trials, and key clinical trials for Rivastigmine Multi-Day Transdermal 
Patches have been initiated in Europe. In terms of biological antibodies, 
Recombinant anti-VEGF humanized monoclonal antibody injection (LY01008) has 
entered into phase III clinical trials and Recombinant anti-RANKL whole human 
monoclonal antibody injection (LY06006) has entered into phase I clinical 
trials. In addition, the company has launched a series of R&D projects on the 
subject of biological antibodies, in collaboration with domestic and foreign 

3. Synergy Effect Achieved Through Overseas M&A

At the end of 2016, the company completed the acquisition of Acino's 
transdermal patch and implants business, and established a company in Europe. 
After more than one year of integration, the synergy effect of the business has 
taken shape.

In 2017, multiple patch products such as Buprenorphine patches and Rivastigmine 
patches were introduced into China, while the company started their local 
production and import registration applications. At the same time, the company 
is closely tracking other mergers and acquisitions opportunities at home and 
abroad, with the expectation of new asset injections and momentum for the 
company's business in 2018.

When asked about the business outlook for 2018, the management of the Group 
responded in full confidence, "We will reshape Luye Pharma's global strategy 
and implement strategic planning for our future pipelines. We will seek 
in-depth, scaled expansions for our already highly competitive new formulation 
technology platform, while accelerating the launch of existing products and 
investigational drugs in global markets. We will also work on technological 
transformation and upgrades, in particular, product pipeline building in a 
number of innovation areas, such as target antibodies, protein drugs, tumor 
immunotherapy, cellular therapy, and smart & precision drug delivery systems. 
We will strengthen our competitive advantage in the international market 
through M&As and partnerships, achieving overall leapfrog development."

SOURCE: Luye Pharma