ScinoPharm Reports Financial Performance for 2015
14 Feb, 2016, 07:30 ET
TAINAN, Taiwan, Feb. 14, 2016 /PRNewswire/ -- ScinoPharm Taiwan, Ltd (TWSE: 1789), an active pharmaceutical ingredient (API) and formulation specialty company, announced unaudited financial results for its fiscal year 2015. The consolidated revenue was NT$3.955 billion (US$124.6 million), after-tax net profits were NT$ 635 million (US$20.0 million), an increase of 31 % compared to the same period in 2014. The after-tax earnings per share was NT$0.87 (US$0.027).
In 2015, overall revenue decreased by 3.5% compared to 2014 primarily as a result of unfavorable sales volumes of our anti-depressant and anti-obesity drugs experienced by our marketing partners. This adversely affected our contract manufacturing revenues and business growth, and resulted in idle capacity. However, ScinoPharm did demonstrate strong profitability improvement. As a result of increased sales volumes of higher profit oncology products and tighter cost control, process optimization and enhanced management efficiency, the company successfully increased its 2015 gross profit to 42% of sales from 39% in 2014. This was in spite of carrying a high level of inventory of expensive 10-DAB, the upstream raw material for our main oncology products.
ScinoPharm's financial results also reflected the equity swap with Foresee Pharmaceuticals Co. Ltd., the current parent company of its joint venture partner Foreseeacer. The capital gain derived from this equity swap was about NT$95 million dollars.
The Changshu site in Jiangsu, China began full operations in late 2015 following the USD FDA inspection and approval. As a key part of ScinoPharm's long-term strategy, this facility will provide the company with an advantageous position in the joint development of specialty generic formulations, a critical driver in the continuing long-term growth for the company.
Dr. Yung Fa Chen, CEO of ScinoPharm, stated that the company continues to be very active in the joint development of specialty generic formulations with global strategic partners through cost and profit sharing. This strategy allowed entry into the formulation market which facilitated ScinoPharm's vertical integration into the higher value end of the manufacturing chain. Now that the Changshu plant has been inspected and approved by the US FDA, products from this plant can be exported to the United States, allowing increased global visibility for ScinoPharm in both China and the global market. In the meantime, we are expanding our contract research and manufacturing services business by acquiring projects from many different and varied pharmaceutical developers worldwide in order to create greater business potential. We believe that these efforts will further maximize our long-term success.
Last year, ScinoPharm continued its market share dominance with its three major products, including Irinotecan for colorectal cancer with a 50% global market share, Paclitaxel for ovarian, lung and breast cancer supplying one-third of the global market, and Docetaxel for non-small cell lung and breast cancer with a market share of 25%. This affirms our position as a leader in the supply of oncology products. As of the end of last year, we have acquired 733 drug master files (DMFs) worldwide, including 55 in the United States. Of the 55 US DMFs, 29 are for oncology products. This is an unparalleled number of total DMFs among the independent global providers of APIs and proof of the company's persistent efforts in oncology products.
In accordance with our long term business strategy, ScinoPharm keeps pursuing strategic alliances in order to enhance its position as a developer and manufacturer of innovative products with high added value. This, combined with our abundant API production and injectable capacity, allows ScinoPharm to successfully create a niche for generic sterile formulations. The first injectable oncology product entering the US market is expected to be launched at the end of this year and is the result of our joint venture with SAGENT, a pharmaceutical company focused on special injectable products. In addition, in August 2015, Fondaparinux, an anti-coagulant product, became ScinoPharm's first independently filed Abbreviated New Drug Application (ANDA) product. The company is one of only a few that can provide all technical aspects of the complicated processes from API to formulation of ANDA products. ScinoPharm is discussing the exclusive marketing rights for this product in the European and US markets with international partners, demonstrating the company's excellent capabilities in the development of specialty generic drugs and capturing increased value via downstream integration and offerings.
ScinoPharm has now developed over 80 products, including 27 that are marketed. In 2016, six ScinoPharm APIs are expected to be launched in the US, Canada and Australia, with indications for cancer, hepatitis B, anti-hypnotic, prostate hypertrophy and polyuria.
ScinoPharm Taiwan, Ltd. is a leading process R&D and API manufacturing service provider to the global pharmaceutical industry. With research and manufacturing facilities in both Taiwan and China, ScinoPharm offers a wide portfolio of services ranging from custom synthesis for early phase pharmaceutical activities for brand companies as well as APIs for the generic industry. The Company also is aggressively pursuing a vertically integrated, one-stop-shopping service for drug product customers by expanding into the field of sterile oncological injectable formulations. For more information, please visit the Company's website at http://www.scinopharm.com
SOURCE ScinoPharm Taiwan, Ltd.
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