Fosun Pharma Reports Q3 2024 Financial Results

In a recent announcement on October 29, 2024, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma") reported its performance metrics for the first three quarters of the year. Between January and September 2024, the company achieved a revenue of RMB30.91 billion, reflecting a 5.74% year-on-year increase, excluding COVID-related products. The net profit attributable to the company's owners was RMB1.84 billion, marking a 24.58% rise compared to the previous year.

Fosun Pharma has maintained its emphasis on innovative drugs and high-value medical devices, focusing on streamlining operations, enhancing efficiency, and optimizing its asset and financial structure. The company reported a net cash flow of RMB2.99 billion from operating activities, representing a 21.33% increase year-on-year. Additionally, management expenses decreased by around RMB300 million, excluding the impact of newly acquired companies.

In the realm of research and development, the company invested RMB3.92 billion in the first three quarters of 2024. This includes RMB2.65 billion directed towards independent R&D. Fosun Pharma has adopted an open R&D model, fostering innovation through various initiatives such as industrial funds. The company’s innovative drug portfolio primarily targets solid tumors, hematologic tumors, and immuno-inflammatory diseases. Fosun Pharma aims to enhance its technology platforms in areas such as antibody/ADCs, cellular therapy, and small molecules.

In September 2024, Fosun Pharma acquired the remaining 50% stake in Fosun Kite, now renamed Fosun Kairos, thereby wholly owning the entity. Fosun Kairos will serve as the core platform for the company's cell therapy efforts, particularly in tumor immunotherapy. The company plans to develop and commercialize existing licensed products, including Axi-Cel (Yi Kai Da) and Brexu-Cel (FKC889), across the Chinese mainland, Hong Kong SAR, and Macau SAR.

The third quarter of 2024 saw the announcement of multiple innovative products and clinical trial results at industry conferences and in journals. One notable development was the release of interim results from the Phase III study of Foritinib Succinate (SAF-189s), a treatment for advanced non-small cell lung cancer (NSCLC). The study showed promising results, with Foritinib Succinate improving progression-free survival (PFS) and reducing CNS progression risks compared to crizotinib treatment. Additionally, a real-world study on serplulimab-based immunochemotherapy for extensive-stage small cell lung cancer was presented at the 2024 World Conference on Lung Cancer, providing further evidence of its therapeutic value.

Moreover, the Committee for Medicinal Products for Human Use of the European Medicines Agency issued a positive opinion recommending the approval of Fosun Pharma’s serplulimab injection for ES-SCLC. The Phase 2 study results of HLX22, an anti-HER2 monoclonal antibody, combined with trastuzumab and chemotherapy for HER2-positive gastric cancer were also highlighted during the 2024 ESMO Gastrointestinal Cancers Congress.

In September 2024, Fosun Pharma's Biologics License Application for RT002 (DaxibotulinumtoxinA-lanm) was approved by the National Medical Products Administration for treating moderate to severe glabellar lines. The product demonstrated durable efficacy and high safety in clinical trials.

Fosun Pharma has also been actively engaging in share repurchases and increasing shareholdings, spending approximately RMB127 million and HKD66.9 million to repurchase around 5.68 million A shares and 5.47 million H shares, respectively. The controlling shareholder, Fosun High Tech, further enhanced its holdings with an additional RMB101 million.

Founded in 1994, Fosun Pharma has established itself as a global innovation-driven pharmaceutical and healthcare industry group, prioritizing innovation and addressing unmet clinical needs. The company has received significant recognition for its efforts in innovative R&D and ESG practices, ranking among the top in China's pharmaceutical industry and being listed in various prestigious indexes and rankings.

With a continued focus on innovation, internationalization, and integration, Fosun Pharma aims to lead the pharmaceutical and healthcare sectors globally, adhering to its philosophy of "Innovation for Good Health."