Jacobson Pharma Announces FY2019 Annual Results

June, 25/2019 - 13:15
Jacobson Pharma Announces FY2019 Annual Results

Profit Attributable to Shareholders Increased by 23.9% to a Record High of HK$250.6 Million; Total Dividend Up 18.4% to HK4.5 Cents per Share

 

HONG KONG, CHINA - MediaOutReach - 25 June 2019 -Jacobson Pharma Corporation Limited("Jacobson Pharma" or the "Company"; Stock Code: 2633), a leading companyengaged in the research, development, production, marketing and sale of genericdrugs and proprietary medicines, today announced its annual results of theCompany and its subsidiaries (collectively the "Group") for the year ended 31 March2019 (the "FY2019").

 

Financial Review

During the reporting period, the Group's revenue increased by 10.1% to HK$1,704.6million (FY2018: HK$1,548.7 million). Profit attributableto the shareholders of the Company rose by 23.9% to HK$250.6million (FY2018: HK$202.3 million). Profit from operations was reported at HK$376.6million (FY2018: HK$297.2 million), up by 26.7%on a year-on-year basis. The growth was mainly attributed to consistent sales performancealong with operating leverages and financial savings derived from cost controlmeasures.  

 

The Board recommendsa payment of a final dividend of HK3.0 cents per share for the year ended 31 March 2019(FY2018: HK2.9 cents per share). Together with theinterim dividend of HK1.5 cents per share, thetotal dividend for FY2019 amounts to HK4.5 cents pershare, representing an increase of 18.4%. The Group maintains astrong financial position with cash and cash equivalents of HK$629.8 million atthe end of FY2019.

 

The Grouphas cemented its predominant position in the generic drugs market in Hong Kongwith a steady growth momentum boosted by an expanded product portfolio and a broadened market coverage. Witha host of consumer-preferred heritage brands in its portfolio, the Group's proprietary medicines businessalso delivered a notable growth driven by its persistent brand management efforts.

 

Mr. Derek Sum, Chairman and Chief ExecutiveOfficer ofJacobson Pharma, said, "It was a productive year for execution of our growth strategiesand realisation of our operational excellence. I am delighted that Jacobson Pharma continued to deliver a sound performance,thanks to the team's concerted efforts in implementing the growth strategies across our core and new businesses. And we arepleased to share such promising results with our shareholders through the declaration of a steady dividend payout."


Generic Drugs

For the reporting period ended 31 March2019, the Generic Drugs business of the Group registered a growth of 6.3% insales revenue, accounting for HK$1,253.0 million (FY2018: HK$1,178.8 million). Thegrowth in therapeutic class products remained robust due to the rising healthcaredemands from an aging population and increased prevalence of chronic diseases.Besides, the Group has launched a number of new products during the reportingperiod, including Celecoxib Capsule, Etoricoxib Tablet, Valsartan Tablet,Irbesartan Tablet, and Levocetirizine Tablet. The Group has also securedregistration approvals for a handful of new products which are ready to be launched into the market adding strength to its portfolio.

 

In view of the government's attempt to alleviate the strains in publichealthcare system by integratingcertain primary healthcare services with private practices,the demand from the private sector for cost-effective generic drugs is likely to be enhanced. As a major providerof generic drugs in Hong Kong, the Group is well-positioned to exploit the emerging market trends andopportunities.

 

Proprietary Medicines

The sales performance of the Group'sproprietary medicines business during the reporting period witnessed anencouraging uptrend. Total revenue of the propriety medicines segment of theGroup presented a strong growth of 17.1% over last year, amounting to HK$225.1million(FY2018: HK$192.2 million).

 

Po Chai Pills, the most recognised householdbrand for Chinese gastro-intestinal medicine in Hong Kong with a strongpresence in overseas markets, achieved a notable growth of 15.6% in total salesover the same period of last year, underpinned by the Group's persistent and effectiveefforts in marketing, brand building and promotional activities across thetrade, retail and chain store channels. Ho Chai Kung contributed a sales growth of 8.3%during the reporting period.

 

The business of medicated oils of the Groupalso showed remarkable growth during the reporting period. Sales revenue ofFlying Eagle Woodlok Oil and Shiling Oil both delivered significant growth as aresult of coordinated sales and distribution strategies and a revival of salescoverage in certain markets.

 

Tapping New Market Potentials

The Group has successfully forged a numberof strategic collaborations with multinational partners including leadingpharmaceutical manufacturers in Spain, Korea, Taiwan and other countries. Ithas signed agreements for the in-licensing of a total of 52 high-performingspecialised drugs in the cardiovascular, central nervous system,anti-infective, oncology, gastrointestinal and other therapeutic areas duringthe reporting period, among which a number of items are eligible for tenderbidding in the coming year including some injectable generic drugs.

 

Backed by itsunderlying market expertise, the Group will continue to enrich its portfoliothrough in-house development or in-licensing of high value-added productscovering sterile injections, oncology products, combination drugs, specialty medicines, as well as orphandrugs and biosimilars. In this way the Group ispoised tostrengthen its resilient position to seize the emerging marketopportunitiesin Asia.

 

Making Good Headway on Regional Expansion

In line withits growthstrategy, the Group has continued to orchestrate its advance into strategicallyselected markets in Asia. The expansion plan has gained traction, currently operating five businessoffices established in China, Macau, Taiwan, Singapore and Cambodia. TheGroup has thereby built a regional market platform with strong commercialcapabilities to collaborate strategically with reputable partners globally through in-licensing, technology transfer orproduct representation to tap the high growing market potential in the AsiaPacific and Greater China regions.

 

Further Business Cooperation with Yunnan BaiyaoGroup

JacobsonPharma has previously entered into a letter of intent with Baiyao Holdings for conducting feasibility studies on possiblebusiness cooperation and other collaborations. Subsequent to Baiyao Holdings beingmerged into Yunnan Baiyao Group, 200,000,000 shares of Jacobson Pharma, representingapproximately 9.92% of the total number of the Group's issued shares, are to beheld by Yunnan Baiyao Group as the merged entity. In the future, the Group willaccelerate exploring potential business cooperation and further possibilities of strategic collaboration with BaiyaoHoldings to broaden and deepen its market coverage in China and Asia Pacific inforging a competitive regional commercial platform.

 

Mr. Sum remarked, "As we continue to build momentum on the accomplishmentsthat we achieved in 2018, we will safeguard the unique balance of ourexpertise, ingenuity and deliberation. 2019 is off to a good start and I amoptimistic about the year ahead. We have in place a clear andstrategically-aligned growth plan and will contemplate a refinement of our strategies toensure that we can withstand the competitive pressure with a fortified position to deliver sustainablegrowth over the long term."

 

"Weremain well-positioned with a balanced product portfolio, and an array of established core competences as well as a robust financial profile. These propositions enable us to be more agilein seizing new opportunities and maximising returnsto our shareholders"

About Jacobson Pharma Corporation Limited (雅各臣科研製藥有限公司;Stock Code: 2633)

Jacobson Pharma is the largest generic drug company inHong Kong with over 30% share of the total generic drug market for each yearsince 2012. The Group's proprietary medicines, notably being Po Chai Pills (「保濟丸」), Tong Tai ChungWoodlok Oil (「唐太宗活絡油」), Ho Chai Kung Tji Thung San(「何濟公止痛退熱散」), Contractubex Scar Gel(「秀碧除疤膏」) Doan's Ointment (「兜安氏藥膏」), Flying Eagle WoodlokOil (「飛鷹活絡油」), Saplingtan (「十靈丹」), Shiling Oil (「十靈油」) and Col-gan Tablet (「傷風克」) have been widelyrecognised by the market. Jacobson Pharma has been a constituentstock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more detailsabout Jacobson Pharma, please visit the Group's website: https://www.jacobsonpharma.com

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