
Pharmaceutical Research, Production, and Sales


ICNS 2024 The 4th In-Depth Focus Forum on Central Nervous System DrugsWill be grandly held on August 29-30, 2024!ICNS 2024 Aims to Deepen Basic Research,Increase the success rate of drug development, break through technical bottlenecks, and explore new therapiesThe frontier progress. Over80 CNS Experts and Over 2,000 Industry ElitesWill gather together to discuss the road of new drug development, and jointly promote the vigorous development of China's CNS industry!
Conference Name:ICNS 2024 The 4th In-Depth Focus Forum on Central Nervous System Drugs
Conference Time:August 29-30, 2024
Venue:Nanjing

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On July 22, Hansoh Pharma's innovative drug Fulaimei® published its first clinical evidence for the treatment of diabetic nephropathy.。Hansoh Pharma's Original Innovative Drug Fralipep® (Polyethylene Glycol Lozinatide Injection) Randomized Clinical Study Results in Treating Diabetic Kidney Disease (DKD) Patients Published in Frontiers in Endocrinology. Data Shows Fralipep® Efficacy Comparable to Dapagliflozin with Superior Lipid Level Improvement.
July 23,The official website of the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA) announced,HaoHansoh Pharma's Two Clinical Applications for the New Class 1 Drug HS-10380 Approved,Proposed TreatmentBipolarType I Disorder Manic Episode。Bipolar I Disorder Manic Episode isBipolar Disorder (also known asManic Depression)One of the manifestation types。HS-10380 is aMulti-target Agonist,Currently also being carried out forSchizophreniaClinical research.
When it went public on the Hong Kong Stock Exchange in 2019, Hansoh Pharma set itself the goal of becoming "an innovation-driven pharmaceutical company."Hansoh Pharma, which has been making frequent moves in innovative drug development this year, seems to have fully delivered on its promise from back then.
At that time, Hansoh Pharma only had one innovative drug that could generate cash flow — the anti-infective drug Milex. Now, its innovative drug pipeline has expanded to eight products, covering multiple fields such as oncology, autoimmune diseases, chronic illnesses, and anti-infectives. In 2023, Hansoh Pharma achieved a revenue of 10.104 billion yuan, with its innovative drug business contributing 6.865 billion yuan in revenue, accounting for 67.9% of total revenue.
Figure: An overview of Hansoh Pharma's marketed innovative drugs, Source: Jinduan Research InstituteHansoh PharmaHansoh Pharma is regarded by many investors as a typical example of "innovative transformation" in traditional pharmaceutical enterprises. From a major generic drug manufacturer to a pioneer in innovative drugs, Hansoh Pharma took five years.
Hansoh Pharma was founded in 2015 and listed on the Hong Kong Stock Exchange in 2019. The company's chairman and chief executive officer is Zhong Huishan. As of the end of 2023, Zhong Huishan and her daughter Sun Yuan collectively hold 65.73% of the company's shares.
In addition to being the actual controller of Hansoh Pharma, Zhong Huijuan also holds another key identity—she is the wife of Sun Piaoyang, the actual controller of A-share listed company Hengrui Medicine. With their equity in the listed companies, Sun Piaoyang and Zhong Huijuan frequently appear on wealth rankings. The Hurun Global Rich List released in March 2024 showed that Sun Piaoyang and Zhong Huijuan ranked 291st and 370th on the list with fortunes of 61 billion yuan and 53 billion yuan, respectively.
In 1995, Sun Piaoyang and a Hong Kong investor, Cen Junda, co-founded Hansoh Pharma (the operating entity of Hansoh Pharmaceutical Group Company Limited). However, since Sun Piaoyang was still working at Lianyungang Pharmaceutical Factory (the predecessor of Hengrui Medicine) and had too much on his plate, his wife, Zhong Hujuan, joined Hansohn Pharma in 1996 to assist him with management.
Mr. Lü Aifeng has over twenty years of technical and management experience in research and development as well as product quality control systems in the pharmaceutical industry.
The company's overall senior management team structure is stable, with extensive relevant experience.

At its inception, Hansoh Pharma mainly adopted a "fast-follow" strategy, which involved imitating overseas drugs and quickly launching generic versions after the original product patents expired. With this strategy, Hansoh Pharma rapidly grew into one of the leading generic drug manufacturers in China. For instance, in 2013, the company launched "Xinwei," a generic version of the leukemia treatment drug Gleevec, which gained attention due to the movie"Dying to Survive"And has drawn widespread market attention.
However, due to factors such as the impact of centralized procurement and intensified competition in the generic drug sector, Hansoh Pharma is also planning a transformation and has begun to expand into the innovative drug business. In 2014, the company's first innovative drug, Metronidazole and Sodium Chloride Injection (brand name "Mailingda"), was successfully launched. In 2019, the company’s innovative drug business experienced a "boom."
In 2019, Hansoh Pharma had two innovative drugs launched on the market, including the GLP-1 class drug Pegloprazole Injection (brand name "Fu Laimei") and the second-generation BCR-ABL inhibitor Haosen Xinfu. Subsequently, Amelotinib, the oral anti-hepatitis B virus drug Tenofovir Amibufenamide Tablets (brand name "Hengmu"),XPO1 InhibitorSelinexor (trade name "Xpovio") and other products have been successively launched.

Currently, Hansoh Pharma has a comprehensive pipeline layout. Years of innovative drug development and clinical translation have enabled the company to possess multiple competitive products in the fields of oncology, central nervous system, anti-infectives, and metabolism.Among them, there are eight marketed products (including collaborative products), covering the aforementioned disease areas, and laying a solid foundation for the company's innovative R&D.

As the number of innovative drug products continues to grow, the revenue generated by Hansoh Pharma from these innovative drugs has also risen significantly. From 2019 to 2023, the company's operating income increased from 8.696 billion yuan to 10.105 billion yuan, and net profit rose from 2.557 billion yuan to 3.278 billion yuan. During the same period, the proportion of revenue from innovative drugs in Hansoh Pharma’s total revenue increased from 6.1% to 67.9%.
Hansoh Pharma, after several years of "silence," has finally come out on top. Barring any unforeseen circumstances, it is set to return to double-digit growth starting this year.
In 2023, the revenue from Hansoh Pharma's innovative drugs and collaboration products reached approximately RMB 6.865 billion, increasing by about 37.1% year-on-year. The proportion of such revenue to the total income rose to 67.9%. It can be said that,Hansoh has completely transformed into an innovation-driven enterprise.。
As shown in the table below, from 2019H1 to 2023H1, Hansoh Pharma's performance appears to have remained largely unchanged, showing little fluctuation. Whether it is revenue or net profit, there seems to be no significant difference between 2023H1 and 2019H1—time seems to have stood still for the company.

But in fact, the internal structure has undergone earth-shaking changes.
In 2020, innovative drugs accounted for only 18% of Hansoh Pharma's revenue structure, but by the first half of 2023 (2023H1), this figure had soared to 61.8%. In other words, over the years, Hansoh has been relying on the growth of innovative drugs to offset the shortfall caused by generic drugs. By 2023H1, this gap has largely been filled. Barring any unforeseen circumstances, its performance is expected to "take off at any time" in the future.
Sure enough, by the second half of 2023 (H2),Hansoh PharmaThe performance suddenly accelerated, driving the company to achieve annual revenue of 10.104 billion yuan, a year-on-year increase of 7.69%; net profit was approximately 3.278 billion yuan, an increase of about 26.9% compared to the same period last year. Looking at the chart below, by the time of the 2023 annual report, Hansoh Pharma clearly ended the situation of "treading water" that had persisted for several years.

In 2023, Hansoh Pharma's revenue broke through the 10 billion yuan mark for the first time. Anti-tumor drugs accounted for the largest share, generating 6.169 billion yuan in revenue, representing 61.0% of total revenue; the anti-infective field brought in 1.269 billion yuan, accounting for 12.6% of total revenue; the central nervous system disease area earned 1.367 billion yuan, making up 13.5% of total revenue; and the metabolism and other fields contributed 1.299 billion yuan, comprising 12.9% of total revenue. Innovative drug products have been launched and sold across all therapeutic areas.
Revenue from innovative drug business continues to rise, and Hansoh Pharma's R&D capabilities have also gained recognition from multinational pharmaceutical companies. In October and December 2023, Hansoh Pharma...ADC DrugsThe overseas exclusive license rights for HS-20089 and HS-20093 have been granted to GlaxoSmithKline (GSK), with an upfront payment totaling 270 million US dollars under the agreement.
Hansoh Pharma once became a leading player in China's generic drug market through its "fast-follow" strategy. However,Notably, Hansoh Pharma's sales expenses are much higher than its R&D expenses.In 2023, the company's R&D expenses were 2.097 billion yuan, and its sales expenses (sales and distribution expenditures) were 3.53 billion yuan. In other words, Hansoh Pharma's sales expenses were nearly...1.7Times.
Meanwhile, the company's gross profit margin was as high as 89.80%, but the net profit margin was only 32.44%, which means that,High sales expenses devour most of the company's profits.。
As for the main drug, Hansoh Pharma's single product Almonertinib is fading.In 2023, Hansoh Pharma's revenue reached 10.14 billion yuan, of which innovative drugs and related cooperation income amounted to 6.865 billion yuan. However, the revenue from a single drug, Almonertinib, accounted for nearly half, approximately 3 billion yuan.
The third-generation EGRF inhibitor approved in China after Ameitinib is Furmonertinib by Allis. In March 2021, Allis's third-generation EGFR inhibitor Furmonertinib was approved, significantly squeezing the market share of Ameitinib. By mid-2023, Furmonertinib's sales had reached 1.978 billion yuan, and Allis's stock price surged due to the increase in Furmonertinib's market share.
Flumatinib Mesylate Tablets also face market pressure from third-generation and even fourth-generation BCR-ABL inhibitors. Following Hansoh's second-generation BCR-ABL inhibitor, the launch of Ascentage Pharma's third-generation BCR-ABL inhibitor, Olverembatinib, in 2021 has gradually dimmed the innovative shine of Flumatinib Mesylate Tablets.
The same story also applies to Inebilizumab Injection and Amibetinovir Tablets, whether due to the market itself being too small or the relentless competition, currently...All eight innovative drugs that Hansoh Pharma has brought to market are either currently facing or will soon face the impact of commercialization.
Pemotecan Injection. As the first domestically produced long-acting peptide-class EPO receptor agonist to be launched in China, it offers significantly better patient compliance compared to competitors. A single dose of Pemotecan can sustain an increase in hemoglobin levels for nearly 30 days. However, Pemotecan was only approved for marketing in June 2023, and there is currently insufficient commercial information disclosed. With the advantage of a longer half-life,The future battle situation remains to be further verified by the market.。
As a member of the "large group" transitioning to innovative drugs, Hansoh Pharma has already taken the lead in transforming into an innovative pharmaceutical company, butStill requires a longer period of continuous accumulation andPower Up, Accelerate into the Fast Lane of Innovative Drugs.
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