Fosun Pharma Announces 2023 Third Quarterly Financial Results Continuous Increase in R&D Investment and Steady Growth in Revenue from Innovative Products

(Shanghai China) On October 30, 2023, Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* (“Fosun Pharma” or “the Group”, Stock Code: 600196.SH; 02196.HK), announced its operating performance for the first three quarters of 2023.

In the first three quarters of 2023, Fosun Pharma achieved operating revenue of RMB30.7 billion. The Group’s operating revenue (excluding anti-epidemic products) increased by approximately 11% period-on-period, and the revenue from new products and sub-new products of the pharmaceuticals business grew by over 30% period-on-period.

Fosun Pharma’s innovative products mainly cover core therapeutic areas such as tumors (solid tumors and hematologic tumors), immunology, central nervous system, and chronic diseases (liver disease/metabolism/kidney disease). It focuses on strengthening small molecules, antibodies/ADC, cell therapy and RNA core technology platforms, to build an open and global innovative research and development system. Fosun Pharma actively explores the layout of cutting-edge technologies such as nucleic acid drugs, tumor vaccines, and AI drug development, to continuously enhance core R&D capabilities and pipeline value, in order to promote the research and commercialization of more First-in-class (FIC) and Best-in-class (BIC) products.

In the first three quarters of 2023, Fosun Pharma continued to increase its expenditures in R&D expenditure, with a total R&D expenditure of RMB4,291 million, representing a period-on-period growth of 13.67%, among which, the R&D expenses amounted to RMB3,155 million, with a period-on-period growth of RMB292 million or 10.22%.

Focusing on clinical needs and strengthening independent R&D

In 2023, under the background of the deepening reform of China’s pharmaceutical industry, Fosun Pharma continued to promote clinical needs-oriented innovative research and development, accelerate product transformation, and continuously implement innovative achievements. Among them, Fosun Pharma’s first self-developed biopharmaceutical innovative drug, Han Si Zhuang (Serplulimab Injection), has been continuously bringing good news. Since its first indication was launched in March 2022, it has benefited over 40,000 patients in China. By the end of the third quarter in 2023, it had been approved for four indications, including the treatment of Microsatellite Instability-high (MSI-H) solid tumors, Squamous Non-small Cell Lung cancer (NSCLC), Extensive-Stage Small Cell Lung Cancer (ES-SCLC), and Esophageal Squamous Cell Carcinoma (ESCC). Fosun Pharma continues to deepen the differentiation and multidimensional layout of Han Si Zhuang (Serplulimab Injection) in the fields of lung cancer and gastrointestinal tumors, aiming to benefit more patients.

Since 2023, Fosun Pharma’s several self-developed products and license-in products entered key clinical and approval stages. These include: the phase III clinical research of FCN-159 for the treatment of neurofibromatosis type I in adults has commenced in the Chinese mainland, and its another indication (treatment for adult patients with NF1 (neurofibromatosis type I) related plexiform neurofibroma who are unable to undergo surgery or encounter postoperative residual/recurrence) has been included in the breakthrough therapy drug program. FCN-338, for the treatment of myeloid malignancies in combination with Azacitidine or chemotherapy, started phase II clinical research in the Chinese mainland. ET-26 (methoxyetomidate hydrochloride for injection) for the induction of general anesthesia in adults started Phase III clinical trials in October 2023 in the Chinese mainland.

In addition, the new drug applications of medical indication (treatment for cervical dystonia in adults) of DaxibotulinumtoxinA botulinum toxin (project code: RT002), and tenapanor hydrochloride tablets (project code: Tenapanor) proposed for controlling hyperphosphatemia in adult patients receiving hemodialysis treatment for chronic kidney disease (CKD) were accepted by the National Medical Products Administration.

In the field of professional medical devices, Fosun Pharma is accelerating aggregation and integration, combining introduction, incubation, and Chinese Wisdom Made to speed up localization. In August 2023, the joint venture company Intuitive Fosun obtained the “Medical Device Production License” for homemade surgical robots. In October 2023, the first home-made Da Vinci Xi system (i.e., thoracoabdominal endoscopic surgery control system) officially rolled off the production line, marking the localization of the world-leading Da Vinci surgical robot. This system belongs to the fourth generation of Da Vinci surgical systems and can be used in laparoscopic surgery in urology, general surgery, obstetrics and gynecology, thoracic surgery, and other fields. The localization of the Da Vinci surgical system will further enhance the series of product’s accessibility and benefit more Chinese patients.

Open innovation and steady advancement of global operational capabilities

Fosun Pharma implements an internationalization strategy in innovative R&D, license-in and license-out, production & operation, and commercialization. It also deepens cooperation with renowned enterprises worldwide. In September 2023, Fosun Pharma’s subsidiary, Shanghai Henlius,a subsidiary of Fosun Pharma reached an agreement with KGbio on the licensing of serplulimab injection (PD-1 inhibitor). The scope of cooperation between the two parties was expanded to include 12 additional countries in the Middle East and North African (MENA) countries, on the basis of the previous 10 Southeast Asian countries.

In October 2023, Shanghai Henlius also reached a license agreement with Intas. Pursuant to which, Shanghai Henlius granted exclusive rights to commercialize serplulimab injection (PD-1 inhibitor) in the agreed Europe and India to Intas, aiming to enhance the product’s accessibility and recognition in the international market.

In the future, Fosun Pharma is committed to following the 4IN strategy, which involves focusing on Innovation, Internationalization, Intelligentization, and Integration. In line with this, the Group will adopt a development pattern that prioritizes “Innovation and Transformation, Integrated Operation, and Steady Growth,” with a strong emphasis on creating value for shareholders. To advance the objectives, the Group will enhance its independent R&D capabilities, while also expanding external collaborations. At the same time, Fosun Pharma will also aim to enrich product pipelines and bolster its global presence.