Jacobson Pharma Corporation Limited (“Jacobson Pharma” or the “Company”; Stock Code: 2633), a leading company engaging in research, development, production, marketing and sale of generic drugs and proprietary medicines, today announced its unaudited interim results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 September 2019 (the “reporting period”).
During the reporting period, the Group maintained a steady growth with its revenue and gross profit increased by 6.8% and 12.5% to HK$871.7 million (1H2018: HK$816.3 million) and HK$358.5 million (1H2018: HK$318.7 million) respectively. Profit from operations rose by 18.3% to HK$187.7 million (1H2018: HK$158.6 million). Profit attributable to the shareholders of the Company leapt by 30.5% to HK$127.2 million (1H2018: HK$97.5 million). Basic and diluted earnings per share were HK6.32 cents (1H2018: HK5.28 cents).
The Group maintains a healthy financial position with cash and cash equivalents of HK$718.2 million at the end of the reporting period. The Board has declared payment of an interim dividend for the six months ended 30 September 2019 of HK2.0 cents per share (1H2018: HK1.5 cents).
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, comments, “Focusing on our strategic growth plan, we have achieved promising progress on the business development front in terms of enhancing our product offerings and establishing a competitive regional commercial platform. Riding on our established competences and growth momentum, we have further strengthened our position as an eminent market player and have been successfully forging strategic collaborations with multinational partners covering in-licensing, technology transfer and representation of both generic drugs and branded healthcare products in the Greater China and Asia Pacific region.”
Sustained Growth for Generic Drugs
The Group’s generic drugs business delivered a stable growth of 5.3% for a revenue at approximately HK$626.9 million during the reporting period which was mainly driven by the expanded product offerings of the Group along with the rising healthcare demands resulted from aging population and prevalence of chronic diseases. Nonetheless, growth in the private sector has been undermined to certain extent by weakened retail performance across Hong Kong in the past few months.
Emerging demand for generic drugs from private sector will be catalyzed by the evolving government programs aiming to integrate certain primary healthcare services with private practices in the attempt to alleviate strains in public healthcare system, such as the General Outpatient Clinic Public-Private Partnership Program which has now been participated by around 30,000 public hospital patients suffering from hypertension, diabetes mellitus or hyperlipidemia since its launched in 2014. The Glaucoma Public-Private Partnership Program was newly introduced in 2019 aiming to provide choice to patients for receiving private specialist services in the community.
Resilience of Proprietary Medicine Brands
Referring to the sales performance of the Group’s proprietary medicines business, a modest growth was maintained during the reporting period despite the continued turmoil to the local retail industry. With the incorporation of a newly acquired proprietary Chinese medicine business, the total revenue from this segment of the Group amounted to HK$130.3 million, up by 17.7%.
In particular, Po Chai Pills, the Group’s leading Chinese gastrointestinal medicine brand, delivered a decent growth of 11.0% in its Hong Kong and Macau business in terms of sales revenue during the reporting period. Ho Chai Kung, a widely recognized heritage brand in the analgesics category of the Group, also delivered a notable growth of 27.3% in Hong Kong and Macau. Shiling Oil, a medicated oil brand of the Group, has been delivering a strong growth momentum in overseas markets presenting a 28.8% increase in sales revenue during the reporting period.
Portfolio Enhancement for High Value-added Offerings
To supplement the R&D pipeline and broaden the portfolio of specialty drugs for tapping new potentials of the market, the Group has been actively forging collaborations with strategic partners in exploiting market opportunities in the Asia Pacific region. During the Reporting Period, the Group has signed exclusive in-license agreements for a total of 19 specialized drugs with reputable manufacturers in Greece, Spain, South Korea and Taiwan. Among them, 12 items are eligible for tender bidding in the coming years.
The Group has also had a head start for the launch of two medical nutrition products in Hong Kong, namely Aterinorm from Difass in Italy and Gynositol from Indigo in France, targeting the functional food and Food for Special Medical Purpose (FSMP) markets. While in the consumer nutrition arena, the Group has entered into an in-license agreement with Smartfish from Norway in a strategic collaboration to launch its clinically-tested health and sports nutrition drinks in Asia. In addition, the recently-formed joint venture alliance with Weisen-U and Flucur Nebuliser, as well as the exclusive distributorship for the highly recognized medicated nail and foot care brand Excilor, have also enhanced the Group’s portfolio and further strengthened its market position in capitalizing on the rising consumer demand for quality branded healthcare products in the burgeoning China and Asia markets.
Mr. Sum remarks “Looking ahead, we will continue to build momentum with the strategically-aligned growth plans driving us forward. We aspire to be an eminent player in essential medicines and consumer healthcare solutions in Asia. We remain well-positioned with a balanced portfolio, a strong R&D pipeline and a sound commercial platform which will facilitate the delivery of sustainable growth for our businesses over the long term.”