Jacobson Pharma Announces FY2022 Interim Results
Backed by the gradual recovery of both Public and Private Sectors for its generic drugs business alongside the stabilisation of COVID-19 pandemic in Hong Kong, the Group delivered total revenue of approximately HK$750.4 million, which represented a 7.9% growth during the Reporting Period. The profit from operations reached HK$116.9 million while profit for the period was recorded at HK$82.9 million, both with a considerable growth of about 28.5% and 46.2% respectively, as compared to the adjusted profit from operations* and adjusted profit for the period* ended 30 September 2020.
The Group maintains a healthy financial position as supported by its strong cash flows, with adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) of HK$203.9 million for the Reporting Period such that the net gearing ratio decreased significantly from 38.4% as of 31 March 2021 to 27.7% as at the end of the Reporting Period. In addition, the Group has a strong cash position, with cash balance of HK$537.1 million as at the end of the Reporting Period. The Board has resolved to declare an increased interim dividend by 50% to HK1.2 cents per share for the six months ended 30 September 2021 (FY2021 Interim: HK0.8 cent).
Resilience Performance of Generic Drugs Business
The generic drugs business of the Group recorded revenue of HK$562.2 million (FY2021 Interim: HK$503.8 million) in the Reporting Period, which represented a steady growth of 11.6%. This was driven by the stable and solid growth of 9.3% in its Public Sector, along with a notable recovery of its Private Sector delivering growth at 13.8%.
Although there was a slow down in medication demand of common cold and flu drugs during the pandemic due to social distancing measures and face mask wearing practice, medications for the aging population and chronic disease patients continue to exhibit a strong demand. For instance, among the Group's cardiovascular offerings, the angiotensin II antagonist class and lipid-lowering product class recorded a notable growth of 34.4% and 27.7% in sales respectively during the Reporting Period, generated by new businesses secured for Losartan Tablets and Rosuvastatin Tablets as well as the continuous increase in consumption of anti-hypertensive drugs such as Perindopril Tablets in the Public Sector.
Furthermore, the Group's therapeutic sectors of psoriasis preparations and attention deficit hyperactivity disorder drugs (ADHD) also exhibited robust growth of 328.1% and 88.8% respectively, due to new public tenders awarded in the Public Sector. During the Reporting Period, the Group also secured first-time public tenders, which included Atosiban Injection, Idarubicin Injection, Quetiapine Extended Release Tablet 200mg, as well as Haloperidol Tablets 5mg and 10mg. The Group's antiulcer drugs and anti-hypertensive class products also delivered strong growths of 24.2% and 88.0% respectively in the Private Sector.
As a continuous drive for portfolio enhancement, the Group launched a number of new products during the Reporting Period, including Antisob Injection, Indarubicin Injection, Acitretin Capsule, Atomoxetine Capsule, Finasteride Tablet, Homatropine Eye Drops, Ofloxacin Eye Drops and Ear Drops. Additionally, the Group has secured the registration approvals for a group of new products such as Febuxostat Tablet, Brimonidine and Timolol Eye Drops, Olmesartan Tablet and Telmisartan and Hydrochlorothiazide Tablet for upcoming market launches.
In addition to its research and development ("R&D") pipeline, the Group also signed exclusive in-license agreements for 4 specialised drugs of the central nervous system (CNS) and immunomodulatory classes from Europe.
Stable Performance of Branded Healthcare Business
The Group's subsidiary in consumer branded healthcare, JBM (Healthcare) Limited (Stock Code: 2161), recorded revenue of HK$188.2 million during the Reporting Period, a soft decline of 1.8%. The decline was mainly attributable to the sluggish consumer demand in both domestic and certain overseas markets caused by the COVID-19 pandemic.
Distribution of Fosun BioNTech Comirnaty Vaccine in Hong Kong and Macau
The Group is the exclusive distributor of Fosun BioNTech Comirnaty Vaccine (the "Vaccine") in Hong Kong and Macau. The vaccination programme started in Hong Kong on 10 March 2021, and up to the end of the Reporting Period, the Group had delivered a total of 6.9 million doses of the Vaccine to the Department of Health and community vaccination centers in Hong Kong as well as the Macau government. Jacobson Pharma will continue to collaborate with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. on supplying the third vaccination doses for the public if the booster shot is deemed necessary by the health authorities.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, concluded, "The unprecedented impact of COVID-19 has rippled across Hong Kong's economy and taken its toll since the beginning of 2020. Amid the tough market environment, we were committed to maintaining stable business development. This was achieved in part by virtue of the Group's diversified product portfolio, with generic drugs in particular showing continuous and resilient growth driven by the increasing prevalence of chronic diseases and the aging population in Hong Kong. Our persistent efforts in maximising the commercial opportunities of our portfolio of offerings, strengthening our product pipelines through in-licensing and in-house R&D have helped us endure market challenges, as well as laying a solid foundation for healthy business development in coming days.
We are confident that the challenges of the pandemic are largely behind us and that the growth momentum will continue into the second half of FY2022, thus taking the Group's business to the next level. We will continue to leverage our strengths in R&D capabilities as well as sales and distribution network, to seize market opportunities and drive the stable business development of Jacobson Pharma."
About Jacobson Pharma Corporation Limited (Stock Code: 2633)
Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated with the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public market sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 10 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.
The Group aims at the continued strategic enrichment of its generic drug portfolios through the addition of high value-added products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan, Singapore and Cambodia forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group's website: http://www.jacobsonpharma.com
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