Jacobson Pharma Announces FY2022 Interim Results – Techspace Africa

Strong growth of 11.6% in the generic business amid the pandemic; Confidence in maintaining a strong growth momentum

Declare dividend on account of HK1.2 Cents per share; TO fifty% Growth Compared to Provisional Fiscal Year 2021

HONG KONG RAE – Media reach – November 26, 2021 – Jacobson Pharma Corporation Limited (“Jacobson Pharma” or the “Company”; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of essential drugs, specialty drugs and branded health products, today announced interim results for the Company and its subsidiaries (collectively the “Group”) for the six months ended September 30, 2021 (the “Reporting Period”).

Backed by the gradual recovery of the public and private sectors of its generic medicine business coupled with the stabilization of the COVID-19 pandemic in Hong Kong, the Group generated total revenue of approximately HK $ 750.4 million, representing a 7.9% growth during the reporting period. Profit from operations reached HK $ 116.9 million, while profit for the period was HK $ 82.9 million, both with considerable growth of approximately 28.5% and 46.2% respectively, compared to adjusted profit from operations * and adjusted profit for the period * ended September 30, 2020.

The Group maintains a healthy financial position supported by its strong cash flows, with adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of HK $ 203.9 million for the reporting period, such that The net leverage ratio decreased significantly from 38.4% as of March 31, 2021 to 27.7% at the end of the Reference Period. In addition, the Group has a strong cash position, with a cash balance of HK $ 537.1 million at the end of the Reporting Period. The Board has resolved to declare an interim dividend increased by 50% to 1.2 HK cents per share for the six months ended September 30, 2021 (Interim FY2021: 0.8 HK cents).

Generic Drug Business Resilience Performance

The Group’s generic drugs business posted revenues of HK $ 562.2 million (Interim FY2021: HK $ 503.8 million) in the Reporting Period, representing a steady growth of 11.6%. This was driven by stable and solid growth of 9.3% in its Public Sector, together with a notable recovery in its Private Sector with a growth of 13.8%.

Although there was a slowdown in the demand for medicines for the common cold and flu during the pandemic due to social distancing measures and the practice of wearing face masks, medicines for the aging population and patients with chronic diseases continue to exhibit a strong demand. For example, among the Group’s cardiovascular offerings, the class of angiotensin II antagonists and the class of lipid-lowering products recorded remarkable growth of 34.4% and 27.7% in sales, respectively, during the Reporting Period, generated by new insured businesses for Losartan Tablets and Rosuvastatin Tablets as well as the continuous increase in the consumption of antihypertensive drugs such as Perindopril Tablets in the Public Sector.

In addition, the therapeutic sectors of the Group of preparations for psoriasis and drugs for attention deficit hyperactivity disorder (ADHD) also showed strong growth of 328.1% and 88.8% respectively, due to the new public tenders awarded in the Public Sector. During the reporting period, the Group also won public tenders for the first time, which included Atosiban Injectable, Idarubicin Injection, Quetiapine Extended Release Tablet 200mg, as well as Haloperidol Tablets 5mg and 10mg. The Group’s antiulcer drugs and antihypertensive products also obtained strong growth of 24.2% and 88.0%, respectively, in the private sector.

As a continuous drive for portfolio improvement, the Group launched a number of new products during the reporting period, including antisob injection, indarubicin injection, acitretin capsule, atomoxetine capsule, finasteride tablet, eye drops. homatropine eye drops, ofloxacin eye drops and ear drops. In addition, the Group has obtained registration approvals for a group of new products such as Febuxostat Tablet, Brimonidine and Timolol Eye Drops, Olmesartan Tablet and Telmisartan and Hydrochlorothiazide Tablet for upcoming market launches.

In addition to its research and development (“R&D”) line, the Group also signed exclusive license agreements for 4 specialized central nervous system (CNS) drugs and immunomodulatory classes from Europe.

Stable performance of the branded healthcare business

The Group’s consumer branded healthcare subsidiary, JBM (Healthcare) Limited (Stock Code: 2161), posted revenue of HK $ 188.2 million during the reporting period, a slight decline from 1, 8%. The decline was primarily due to slow consumer demand in both the domestic market and certain foreign markets caused by the COVID-19 pandemic.

Distribution of the Fosun BioNTech Comirnaty vaccine in Hong Kong and Macao

The Group is the exclusive distributor of Fosun BioNTech Comirnaty Vaccine (the “Vaccine”) in Hong Kong and Macao. The vaccination program began in Hong Kong on March 10, 2021, and by the end of the reporting period, the Group had delivered a total of 6.9 million doses of the vaccine to the Department of Health and community centers. vaccination programs in Hong Kong, as well as the Macau government. Jacobson Pharma will continue to collaborate with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. in providing the third vaccination doses to the public if the health authorities deem the booster injection necessary.

Mr. Derek Sum, President and CEO from Jacobson Pharma, concluded: “The unprecedented impact of COVID-19 has hit the Hong Kong economy and has taken its toll since the beginning of 2020. Amid the challenging market environment, we were committed to maintaining stable business development. This was achieved in part by virtue of the Group’s diversified product portfolio, with generic drugs in particular showing continued resilient growth driven by the increasing prevalence of chronic diseases and an aging population in Hong Kong. Our persistent efforts to maximize business opportunities from our portfolio of offerings, strengthen our product portfolio through licensing and in-house R&D have helped us meet market challenges, as well as lay a solid foundation for healthy business development in the coming days.

We are confident that the challenges of the pandemic are largely behind us and that the growth momentum will continue into the second half of fiscal 2022, thus taking the Group’s business to the next level. We will continue to leverage our strengths in R&D capabilities, as well as in the sales and distribution network, to seize market opportunities and drive the stable business development of Jacobson Pharma. “

About Jacobson Pharma Corporation Limited (雅各 臣 科研 製藥 有限公司 ; Stock Code: 2633)

Jacobson Pharma is a leading Hong Kong vertically integrated pharmaceutical company with the research, development, production, sale and distribution of essential drugs and specialty drugs. As a major supplier of generic drugs in Hong Kong, the Group has one of the broadest sales and distribution coverage for the public and private market sectors in Hong Kong, with an expanding reach in strategically selected Asian markets. With a broad product portfolio and a pre-eminent market position in a number of therapeutic categories, the Group operates a series of 10 PIC / S GMP licensed production facilities for generic drugs in Hong Kong.

The Group’s objective is the continuous strategic enrichment of its generic drug portfolios by incorporating high value-added products. With its corporate headquarters in Hong Kong, the Group has also established its operating subsidiaries in China, Macao, Taiwan, Singapore and Cambodia, forming a regional business platform to tap into the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of the MSCI Hong Kong Micro Cap Index since June 1, 2017. For more details on Jacobson Pharma, visit the Group website: http://www.jacobsonpharma.com


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