ScinoPharm Taiwan (stock code 1789), a company specializing in the development and manufacture of active pharmaceutical ingredients (APIs) and injectable formulations, announced that its 2018 consolidated annual revenue was NTD 3.524 billion, consolidated after-tax net profit was NTD 443 million, and after-tax earnings per share was NTD 0.56. The revenue and profitability have increased slightly from the previous year.
In recent years, due to changes in the pharmaceutical ecosystem, the boundary between generic drug manufacturers and brand drug manufacturers has been broken. In order to meet the changing needs of customers and provide customers with a wider portfolio of services, ScinoPharm not only expanded its business from the development and manufacture of APIs to the field of injectable formulations, but also extended further to the early development of the APIs of new drugs and generic drugs. By doing so, the company aims to meet the needs of customers at various stages from early development to commercial mass production, and establish a close symbiotic collaboration and trust relationship with customers. Looking at ScinoPharm’s performance throughout last year, the APIs of generic drugs still accounts for more than 60% of the overall business performance. The continuous shipment demand of customers for the APIs of drugs for colorectal cancer and the increased demand for the APIs of certain anti-cancer drugs, have offset the impact of reduced demand for paclitaxel products. The importance of the Japanese market has been increased steadily, slowing the sales pressure brought by other markets. The performance of operations such as contract development of new drugs and contract manufacturing of new drugs has been positive, and the overall performance increased to more than 30% of the total revenue, which helped to stabilize the overall sales performance.
Important international collaboration projects are still ongoing. The injectable formulation of the generic drug for leukemia developed through a partnership with Sagent Pharmaceuticals, a major American company, has obtained the drug license at the beginning of last year and is officially sold in the United States, becoming the first injectable formulation product that brought a share of the profits. Fondaparinux Sodium, another self-developed anticoagulant formulation with highly advanced synthesis technology, has officially obtained the license for exportation to the United States after the signing of a sales authorization agreement with an Indian international pharmaceutical company. ScinoPharm is not only selling Fondaparinux Sodium in the United States, but also has its eye on emerging markets of the pharmaceutical industry: South America, the Middle East and the ASEAN countries for the expansion of its existing business and sales territories, and demonstration of significant results achieved by ScinoPharm in the field of injectable formulations after years of investment. The self-developed injection business adopts a quality-oriented and diversified production method. The production of the registration batch will be completed and the self-manufactured ANDA injection products will be sent out to facilitate the site inspection conducted by the Food and Drug Administration, opening the door for a revenue boost.
Tony Su, General Manager of ScinoPharm Taiwan, said that in the face of uncertainties in the pharmaceutical industry, ScinoPharm is responding through a number of measures: Internally, it is making good used of its wide range of API product lines in the development of injectable formulations and reasonably accelerating the process of product development through optimizing processes, controlling costs, and improving management efficiency. Externally, it is actively collaborating with global strategic partners to accelerate its transformation into a manufacturer of drugs with special dosage forms, and continually expanding the business of contract development and manufacturing of new drugs, to improve its capacity utilization rate and implement an integrated service model, from APIs to injectable formulations. At the same time, for ScinoPharm Changshu whose development has been relatively slower, ScinoPharm is actively searching for an international strategic partner that would enable the combination of the competitive strengths of both parties, so as to seek more diversified business opportunities for its contract development and manufacturing services. It is also actively eliminating the uncertain factors in the development process of ScinoPharm Changshu, in order to gradually achieve the goals for the various stages that are in line with the company’s expectations, and to accelerate its operation and development.
About ScinoPharm Taiwan
ScinoPharm Taiwan is engaged in the production and development of APIs and injection products required for the contract research and development of generic drugs and new drugs. It provides customers with a one-stop shopping service of the vertical integration of APIs to injectable formulations. It has more than 300 customers worldwide, including many of the world’s top ten manufacturers of patented drugs and major manufacturers of generic drugs. Currently, the API products that have been developed by ScinoPharm Taiwan include anti-cancer drugs, drugs for the central nervous system, hormonal drugs, anti-virus drugs, etc. In addition, the company has completed the registration of Drug Master Files for its products in all major markets in the world, with more than 805 Drug Master Files registered globally, including 60 in the United States. For more information, please visit the company’s website at http://www.scinopharm.com.