Revenue 37.7 billion, net profit 2.6 billion, East China medicine 'double increase' era

On the evening of April 13, East China Pharmaceutical (000963.SZ) disclosed the 2022 annual report, the company's annual revenue of 37.715 billion yuan, a year-on-year growth of 9.12%; Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 2.598 billion yuan, up 13.24% year on year. From the perspective of shareholder structure, Glen's China-Europe Healthcare hybrid Securities Investment Fund continues to invest heavily in East China Pharmaceutical, becoming the fourth largest shareholder.

Liraglutide first indication for diabetes approved
Deepen the layout of the global ADC research and development ecosystem

Pharmaceutical industry sector, in 2022, Central America and East China achieved sales revenue (including CSO business) of 11.244 billion yuan, a year-on-year growth of 10.88%, realized non-net profit of 2.093 billion yuan, a year-on-year growth of 4.71%, return on equity (ROE) of 24.54%.

Pharmaceutical industry R&D investment of 2.681 billion yuan, up 44.8% year on year, including direct R&D expenditure of 1.196 billion yuan, up 24.2% year on year, product introduction and R&D equity investment of 1.484 billion yuan. By the time the annual report is released in 2022, East China Pharmaceutical is researching 52 innovative drugs and biosimilar drugs, among which 5 products are in the phase III clinical stage and 3 products are in the phase II clinical stage, covering the fields of tumor, endocrinology and autoimmunity, and the clinical promotion and marketing development of innovative products are in good condition.

in the three core therapeutic areas of anti-tumor, endocrinology and autoimmunity, East China Pharmaceutical has been the world's first in-class new drug layout, and the commercialization of related products at home and abroad will also mark a number of important milestones in 2023.

In the field of cancer ADC drugs, ELAHERE™, an ADC drug for platinum-resistant ovarian cancer developed by East China Pharmaceutical in cooperation with ImmunoGen of the United States, achieved a major milestone. In November 2022, Elahere ™ was approved by the US FDA for accelerated marketing, becoming the only innovative ADC drug approved by the FDA in 2022. It is reported that its domestic clinical work is progressing smoothly, and it plans to submit the BLA application within this year. It has developed equity investment and product cooperation with HeidelbergPharma, a global emerging technology company in the ADC field, and become its second largest shareholder. At present, East China Pharmaceutical has set up an independent ADC research and development center, and plans to develop no less than 10 innovative ADC products within three years and actively promote registered clinical research.

Cell therapy track, East China Pharmaceutical announced in January 2023 that it had reached commercial cooperation with Keji Pharmaceutical on its BCMACAR-T cell product Zewaukee Oronse injection in mainland China. Its marketing authorization application was accepted by the State Medical Products Administration in October 2022, and has been included in the priority review and approval procedure. Currently, no similar products have been approved in China.

Endocrine field, GLP-1 target drugs become a hot upstart in the field of hypoglycemia and weight loss. In March 2023, East China Pharmaceutical self-developed drug Liraglutide injection Lirupine ® was approved by NMPA for adult type 2 diabetes, becoming the first domestic Liraglutide injection approved for market. The marketing authorization application for the weight loss indication of Liraglutide injection has also been accepted in July 2022, and is expected to be approved within this year, making the application approval progress the fastest in China. HDM1002, a small molecule GLP-1 receptor agonist independently developed by East China Pharmaceutical, has completed the IND double report.

In the field of autoimmunity, East China Pharmaceutical is increasing global cooperation and expanding product pipeline in 2022. ARCALYST® (Rilonacept), the new drug introduced in China, has been listed in the list of clinically urgent overseas new drugs in China. It is also the first and only drug approved by the United States FDA for the treatment of recurrent pericarditis for people aged 12 and above. It is reported that East China Medicine will formally submit an application for BLA in China in 2023.

The total revenue of medical beauty is nearly 2 billion yuan
Record highs at home and abroad

Medical beauty business is East China medicine growth most bright plate. In 2022, the medical and beauty business of East China Pharmaceutical achieved a total operating revenue of 1.915 billion yuan (excluding internal offset factors), with a year-on-year growth of 91.11% according to the comparable standard (excluding Ningbo, East China), and the medical and beauty business revenue at home and abroad reached a new high. According to the announcement, at present, East China Pharmaceutical has 36 high-end products in the field of "non-invasive + minimally invasive" medical beauty worldwide, of which 24 products have been listed at home and abroad, and 12 global innovative products are under research. It owns STAT™ patented microspheres preparation technology, OXIFREE™ patented manufacturing technology, Cryomodulation ice rate technology, CORE™ multi-frequency radio frequency technology, RotateRF, Multi-CORE™, SVC™, PCR™ and other cutting-edge technologies in the field of global medical beauty.

In the international market, Sinclair achieved consolidated operating revenue of 134.57 million pounds (approximately 1.144 billion yuan) during the reporting period, up 76.90% year-on-year, and EbitDA of 23.04 million pounds, up 245.95% year-on-year. In the domestic market, as the operation center of medical beauty business in the Chinese market of East China Pharmaceutical, the wholly-owned subsidiary Xinke Beauty Aesthetics has achieved an operating revenue of 626 million yuan in 2022, among which the core product Ellanse ® Iyanshi ® has sold more than 800 million yuan since its launch, maintaining rapid volume.

In the high-end medical beauty market, East China Pharmaceutical currently has 11 medical beauty products in domestic registration and clinical trials, making it one of the enterprises with the most clinical product pipelines in China. On December 26, 2022, Sinclair approved Lanluma®V and X for use in the Boao Leccheng International Medical Tourism Pilot Zone in Hainan to increase the volume of depressed areas on the face and body, especially for the treatment of skin depressions.

conclusion

In the past four years, East China Pharmaceutical has successfully achieved rapid transformation, precise layout of frontier fields, and remarkable achievements, especially in ADC and medical beauty track. In the field of industrial microbiology, East China Pharmaceutical rapidly seized the market by integrating traditional API business and expanding new businesses such as innovative pharmaceutical raw materials and major health product raw materials in 2022, with a total sales revenue of 510 million yuan, up 22% year-on-year.