Tag Archives: MTC
Shanghai Pharmaceuticals Achieves Double-Digit Growth of Revenue and Profit for 1H2014
HONG KONG, Aug. 30, 2014 /PRNewswire/ — Shanghai Pharmaceuticals Holding Co., Ltd. (“Shanghai Pharmaceuticals” or the “Company” and, together with its subsidiaries, the “Group; stock code: 601607.SH; 2607.HK), the integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets, today announced its interim results for the first half of 2014. During the Reporting Period, the Company’s operating revenue was RMB44.013 billion, up by 13.68% as compared with the corresponding period of last year. Net profit attributable to the equity holders of the listed Company was RMB1.318 billion, representing an increase of 10.79% as compared with the corresponding period of last year. The operating profit margin after deducting sales and administration expenses was 4.11%, up by 0.08 percentage point from the corresponding period of last year. Basic earnings per share amounted to RMB0.4902, which laid solid foundation to ensure that the objectives for operating budget are achieved throughout the year.
In the first half of 2014, based on the overall arrangements for the new round of the three year development plan for 2013-2015 and the budgetary arrangements made at the beginning of 2014, and guided by the core values which were “innovation, integrity, cooperation, inclusiveness and responsibility”, the Company proactively built a V-shaped collaborative team, started to optimize the marketing and research and development (“R&D”) systems, continued to carry out Lean Six Sigma management projects, comprehensively optimized the organizational structure, deepened the integration of internal resources and proactively promote the external merge and acquisition to effectively control operational risks.
Optimize the R&D system, and enhance the innovation capability
In the first half of 2014, the Company established the science and technology innovation council of the Group to participate in the material decision making process in respect of the R&D, and formulated a program for controlling and assessing the Group’ R&D system with Central Research Institute as the core. In addition to the six branches, the Company set up the No.1 Biochemical Branch under the Central Research Institute, which built a solid foundation for the efficient R&D system. During the Reporting Period, the Company’s R&D expenses amounted to a total of RMB208.9 million , accounting for 3.67% of the Company’s manufacturing sales revenue.
In the first half of 2014, sales revenue from the Company’s new products launched in recent years through R&D amounted to RMB556 million, representing 9.78% of the Company’s manufacturing sales revenue. The proportion of new products has been further increased.
In respect of the R&D of the antibody drugs, the application for pharmaceutical clinical trial on “Recombinant humanized anti-CD20 monoclonal antibody injection” has been accepted by China Food and Drug Administration on May 2014, and passed the registration test and quality standards review by the National Institutes for Food and Drug Control of China. “Recombinant fusion protein of human tumor necrosis factor receptor mutant and Fc fragment injection”, a medicine co-developed with Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd., has been granted a pharmaceutical clinical approval on May 2014, to enter the clinical trial stage. In addition, the Company launched the plan for the construction of the Group’s antibody industrialisation base.
In respect of the R&D of Chinese medicine, since its establishment, the Chinese Medicine Research Institute under the Shanghai Pharmaceuticals Central Research Institute has launched the two projects of secondary development for Chinese medicine products, i.e. Babaodan and Wanbi Tablets. The company also cooperated with the Eastern Hepatobiliary Surgery Hospital subordinated to The People’s Liberation Army Second Military Medical University of China (“Second Military Medical University”) and Shanghai Institutes for Biological Sciences under Chinese Academy of Sciences (“CAS”).
In respect of the R&D of bio-chemical drugs, on April 2014, the approvals were granted to the LLTD-8, a new drug under class 1.1, for the extended clinical trial of phase I, and it was permitted to enter into the extended clinical research of phase I. The Company also developed the plan for the construction of the Group’s industrialization base for chemical active pharmaceutical ingredients (API).
Besides, the Company confirmed 13 innovation co-operation projects under the cooperation of “Translational Medicine Alliance” with the Second Military Medical University.
Main business improved steadily
In the first half of 2014, the Company’s sales revenue from the pharmaceutical business was RMB5.687 billion, representing a growth of 3.27% as compared with the corresponding period of last year; its gross profit margin was 47.79%, increased by 0.63 percentage point as compared with the corresponding period of last year. The Company realized sales revenue of RMB3.347 billion from its 64 key products, an increase of 3.92% as compared to the corresponding period of last year and accounting for 58.85% of the revenue from manufacturing sales with an average gross profit margin of 62.82%, and the average growth rate of the top five products with the highest growth rate amounted to 68.08%. In the first half of 2014, 22 products achieved sales revenue of more than RMB50 million, and the sales revenue of these products amounted to RMB2,565 million, accounting for 45.10% of the manufacturing sales.
Shanghai Pharmaceuticals’ marketing centres have set up a work operating mechanism and defined the principle of dividing various marketing departments by products and devised basic workflows since establishment. In the future, marketing centres will continue to increase its capability in making academic promotion by hospital distribution points, conducting depth distribution, and engaging in investment promotion and agency for products, will focus on 64 key products, and to formulate and define marketing target and strategy of key products and to track its implementation, in order to meet progress target.
Recently, 300 products of the Company were listed on List of Low-price Drugs Among the Pricing Range Set by the National Development and Reform Commission. 10 exclusive products or exclusive dosage forms of the Company, including Weifuchun tablets were on the list, which is expected to have positive impact on the operation results of the Company.
In the pharmaceutical distribution business, Shanghai Pharmaceutical achieved sales revenue of RMB38.51 billion in the first half of this year, an increase of 15.17% year on year; gross profit margin 6.02%, dropped 0.09 percentage points compared with the same period last year. In response to the pressure on gross margin of distribution industry, the Company continued to optimize its product structure to maintain a reasonable proportion of direct sales and promote Lean Six Sigma projects to strengthen cost control. After deducting the SG&A expenses, operating margin rose 0.25 percentage points over the same period last year to 2.78 %, operational efficiency has gradually been improved by expanding the distribution scale.
Through mergers and acquisitions, the Company has begun a nationwide distribution network, focusing on covering the east, north and south of the three key regions with strong competitiveness. The sales in East China regional accounted for 66.81%, North China regional sales accounted for 24.32%, South China regional sales accounted for 6.11%. Meanwhile, Shanghai Pharmaceutical’s active and innovative business models committed to providing customers with quality terminal network and value-added services. The Company service of innovative supply chain and high-end direct-to-patients (DTP) was currently used by a total number of 60 hospital pharmacies. Besides, it continued to maintain rapid growth in vaccines and other high-value consumables business and thus achieved sales of RMB2.77 billion in the first half of year, an increase of 41.46%.
Deepened internal integration, promoted external acquisitions
In the first half of this year, Shanghai Pharmaceutical continued to strengthen internal integration and sharing of resources, improve capital efficiency and reduce financial costs, promote internal manufacturing and distribution synergies, establish market access platform, unify and coordinate throughout tendering and resource allocation. In addition, the Company continued to promote centralized procurement of bulk herbs, packing materials and stationary, and develop Lean Six Sigma management actively so that cost efficiency and profitability are improved.
To further expand the pharmaceutical distribution network, the Company acquired 50% equity interest in Beijing Xin Hai Feng Yuan Biopharma Technology Development Co., Ltd., 85% equity interest in Shaanxi Huaxin Pharmaceutical Co., Ltd. and a 100% equity interest in Ordos Yili Pharmaceutical Co., Ltd. To further expand the pharmaceutical distribution network in Shandong, it acquired 75% equity interest in Shandong SPH Pharmaceutical Co., Ltd., and increased its holding in Shandong SPH Shanglian Pharmaceutical Co., Ltd. to 35% equity interest. To strengthen international cooperation in research and development of innovative drugs, enhance the quality of pharmacodynamics studies on new drugs, the Company made an equity investment by establishing Sichuan Green Tech Biotechnology Co., Ltd. In order to focus on its principle business, Shanghai Medical Devices Co., Ltd. under the Company transferred its 75% stake of Shanghai Shengli Medical Instruments Co., Ltd.
Subsequent progress of Babaodan
During the Reporting Period, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (hereinafter referred as “Pientzehuang”) filed to the Intermediate People’s Court of Zhangzhou City a lawsuit (hereinafter referred as the “lawsuit”), in relation to an unfair competition dispute, against Xiamen Traditional Chinese Medicine Co., Ltd. (hereinafter referred as “Xiamen Traditional Chinese Medicine”), Xiamen Evening News Media Development Co., Ltd. and Xiamen Daily Press. On 13 March 2014, Xiamen Traditional Chinese Medicine submitted its objection to the jurisdiction to the Intermediate People’s Court of Zhangzhou City. On 18 June, Xiamen Traditional Chinese Medicine Co., Ltd. submitted its objection to the Trademark Office of The State Administration For Industry & Commerce of the People’s Republic of China (hereinafter referred as “Trademark Office of The State Administration For Industry & Commerce”) with respect to the trademarks of “Babaodan Pien Tze Huang” (application number: 11683990) and “Pien Tze Huang Babaodan” (application number: 11683929), registered by Zhangzhou Pientzehuang
Pharmaceutical Co., Ltd on 1 Nov 2012 under the Class 5 of “Chinese Medicine”, requiring the Trademark Office of The State Administration For Industry & Commerce to revoke the registration of the two aforesaid trademarks. Until now, the case is still under investigation procedure. On 23 June 2014, Xiamen Traditional Chinese Medicine received the civil judgment ((2014) Min Min Zhong Zi No. 660), and the Higher People’s Court of Fujian Province finally judged that the lawsuit shall be transferred to the jurisdiction of Xiamen Intermediate People’s Court. On 18 August 2014, the Xiamen Traditional Chinese Medicine received the Notice (2014) Xia Min Zi Di No. 937 issued by the Intermediate Court of Xiamen City, Fujian Province, pursuant to which the case in question was designated by the Higher People’s Court of Fujian Province to be in the jurisdiction of the Intermediate Court of Fuzhou City.
About Shanghai Pharmaceuticals Holding Co., Ltd.
Shanghai Pharmaceuticals is the only integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets with top-three scale in China, providing solutions in pharmaceutical manufacturing, distribution, logistics storage and retail. The Group currently offers more than 800 pharmaceutical products to more than 11,000 hospitals and medical institutions in China. The Group also operates approximately more than 1,700 self-operated and franchise stores nationwide.
For further information, please contact:
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Porda Havas International Finance Communications Group |
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Kelly Fung |
+852 3150 6763 |
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Angie An |
+852 3150 6736 |
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Kit Ng |
+852 3150 6705 |
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Victoria Huang |
+852 3150 6731 |
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Fax: +852 3150 6728 |
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Philips Spotlights New Cardiology Solutions and Unveils Ultrasound Technology at European Society of Cardiology Congress 2014
— Innovative cardiology solutions help deliver better care for more patients, respond to biggest challenges facing cardiologists
ANDOVER, Mass., Aug. 29, 2014 /PRNewswire/ – Royal Philips (NYSE: PHG AEX: PHIA) today announced its presence at the European Society of Cardiology (ESC) Congress 2014, where the company is highlighting the full range of its cardiology solutions serving clinicians and patients across the care continuum from prevention and diagnosis, to treatment, recovery and wellness. Visitors to the Philips booth (#F500) will experience Philips’ new Cardiology Solutions approach, enabling clinicians and health systems to deliver better cardiovascular care for more patients, at lower a cost, in the treatment of coronary artery disease, structural heart disease, and heart failure.
Photo – http://photos.prnewswire.com/prnh/20140828/141270
Photo – http://photos.prnewswire.com/prnh/20140828/141271
Photo – http://photos.prnewswire.com/prnh/20140828/141269
Photo – http://photos.prnewswire.com/prnh/20140828/141268
Photo – http://photos.prnewswire.com/prnh/20140122/NE50581LOGO
Philips Cardiology Solutions meet the needs of clinicians who are at the center of the cardiovascular care. Philips’ breadth of diagnostic and treatment solutions offer real-time tools to connect patient information with clinician knowledge, resulting in more personalized care, while innovations for recovery and wellness provide a safer transition from hospital to home.
“Interventional cardiology is continuously innovating new procedures to improve the lives of patients around the world,” said Gene Saragnese, CEO of Imaging Systems for Philips Healthcare. “Our cardiology solutions approach unlocks the data and insights necessary to improve efficiency in interventional cardiology, and together with our global customers and partners, we’re creating care delivery to optimally support clinicians and patients.”
One of the leading global conferences on cardiovascular care, the ESC Congress 2014 will showcase the industry’s most promising research and leading innovations. Throughout the event, Philips and physician partners will be participating in several symposia and presentations on topics including big data in cardiology and anatomical intelligence.
On Saturday, August 30th, Philips’ newest ultrasound system will make its worldwide debut, with an unveiling at the Philips Booth (#F500) at 4 p.m. CET. Beginning August 30th and running through September 3rd at the ESC Congress 2014, Philips will also offer demonstrations of its advanced imaging and ultrasound solutions designed for every step of the patient journey, including:
Screening and Diagnosis
- ST80i ECG Stress Testing System – Manages patient information from start to finish through bi-directional network connectivity and turns stress ECG data into actionable insights.
- Philips IntelliSpace ECG – A multi-modality, multi-vendor, scalable ECG management system, providing access to patient data for review of time-sensitive ECGs on a smartphone, to help improve patient care through comprehensive and flexible workflow management.
- Xcelera Image Management System – Integrated, multi-modality image management system for cardiovascular information offering access to multiple applications within a single flexible workspace for use in multiple locations and across multi-sites.
- IntelliSpace Portal with TAVI package – Quickly assesses the aortic root anatomy for pre-TAVI planning and obtains crucial information about eligibility, proper device size, and a recommendation for C-arm angle for device deployment.
- EPIQ Ultrasound – Philips’ most powerful architecture ever applied to ultrasound imaging.
Treatment
- Allura Clarity with ClarityIQ – Industry-leading interventional X-ray system offering high image quality at a low [X-ray] dose.
- EchoNavigator R2 with Image Fusion – Fuses live X-ray and live echo for intuitive, live image guidance during structural heart disease procedures.
- Hybrid OR – Provides the ability to seamlessly perform a wide range of open and minimally invasive procedures in a single room.
- Heart Navigator – Supports structural heart disease procedures by simplifying planning, device and projection angle selection and providing live image guidance to support device positioning.
Recovery and Care Management
- Q-Station, with anatomical intelligence tools – Streamlines ultrasound data management and performs advanced visualization, analysis and quantification of Philips echo data.
- Motiva mobile – A content rich and interactive telehealth platform that is part of the Chronic Ambulatory Care program (eCAC), specifically designed to help empower chronically ill patients to effectively manage their disease state.
For more information on Philips presence at the ESC Congress 2014, please visit http://www.philips.com/esc, follow the #ESCcongress conversation @PhilipsHealth and continue the conversation via the Philips LinkedIn Innovations in Cardiology Group.
For more information, please contact:
Kathy O’Reilly
Philips Healthcare
Tel: +1 978-659-2638
Mobile: +1 978-221-8919
Email: kathy.oreilly@philips.com
Twitter: @kathyoreilly
About Royal Philips:
Royal Philips (NYSE: PHG, AEX: PHIA) is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2013 sales of EUR 23.3 billion and employs approximately 113,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare. News from Philips is located at www.philips.com/newscenter.
China Cord Blood Corporation Reports First Quarter Fiscal 2015 Financial Results
1Q15 Added 15,548 New Subscribers
1Q15 Revenue Up 19.1% YOY to RMB153.3 Million ($24.7 Million)
1Q15 Operating Income Up 31.1%YOY to RMB60.2 Million ($9.7 Million)
Conference Call to be Held August 29, 2014 at 8:00 a.m. ET
HONG KONG, Aug. 29, 2014 /PRNewswire/ — China Cord Blood Corporation (NYSE: CO) (“CCBC” or the “Company”), China’s leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services, today announced its preliminary unaudited financial results for the first quarter of fiscal year 2015 ended June 30, 2014.
First Quarter of Fiscal 2015 Highlights
- Revenues for the first quarter of fiscal 2015 increased to RMB153.3 million ($24.7 million) from RMB128.7 million in the prior year period.
- 15,548 new subscribers were added, resulting in an accumulated subscriber base of 392,171.
- Gross profit increased to RMB123.6 million ($19.9 million) from RMB104.2 million in the prior year period.
- Gross margin was 80.6%, compared to 81.0% in the prior year period.
- Operating income increased to RMB60.2 million ($9.7 million), from RMB45.9 million in the prior year period, despite an RMB2.8 million increase in depreciation expense.
- Interest expense increased to RMB24.9 million ($4.0 million), compared to RMB14.8 million in the prior year period, due to less interest expense capitalization.
- Net income attributable to the Company’s shareholders was RMB29.7 million ($4.8 million), compared to RMB32.9 million in the prior year period.
- Operating cash flow for the quarter was RMB124.6 million ($20.1 million).
“We began fiscal 2015 with another solid quarter, adding 15,548 new subscribers which represented a modest year-over-year increase,” stated Ms. Ting Zheng, Chief Executive Officer of CCBC. “Through the implementation of sound marketing strategies that focus on service quality and premium branding, we continued to seize opportunities in the high-end segment of the market. As the majority of our new subscribers selected the one-time upfront payment option, our cash-flow generation remained robust and consistent.”
Ms. Zheng further commented, “With our new facilities in Guangdong and Zhejiang largely completed, we are working through the final stages of their development to ensure they are fully operational as soon as possible. The new processing and storage capacity will effectively resolve our processing bottleneck in Zhejiang and allow us to gradually scale up our operations in this under-penetrated region. The additional capacity will also allow us to further develop and penetrate the Guangdong market, the area in which the majority of our new subscribers in the first quarter are located.”
Summary – First Quarter Ended June 30, 2013 and 2014
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Three Months Ended |
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2013 |
2014 |
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(in thousands) |
RMB |
RMB |
US$ |
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Revenues |
128,721 |
153,331 |
24,716 |
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Gross Profit |
104,229 |
123,555 |
19,916 |
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Operating Income |
45,880 |
60,167 |
9,698 |
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Net Income Attributable to the Company’s Shareholders |
32,906 |
29,736 |
4,793 |
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Earnings per Ordinary Shares – Basic[1] and Diluted (RMB/US$) |
0.40 |
0.37 |
0.06 |
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Revenue Breakdown (%) |
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Processing Fees |
69.5% |
69.2% |
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Storage Fees |
30.5% |
30.8% |
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New Subscribers (persons) |
15,260 |
15,548 |
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Total Accumulated Subscribers (persons) |
327,242 |
392,171 |
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[1] The terms of the convertible notes issued to KKR China Healthcare Investment Limited (“KKR”) and Golden Meditech Holdings Limited (“Golden Meditech”) provide each party with the ability to participate in any excess cash dividend. Therefore, the calculation of basic EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the three months ended June 30, 2014. |
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Summary – Selected Cash Flow Statement Items
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Three Months Ended June 30, 2014 |
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(in thousands) |
RMB |
US$ |
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Net cash provided by operating activities |
124,643 |
20,091 |
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Net cash used in investing activities |
(18,397) |
(2,965) |
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Net cash used in financing activities |
– |
– |
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First Quarter of Fiscal 2015 Financial Results
REVENUES. Revenues increased by 19.1% to RMB153.3 million ($24.7 million) in the first quarter of fiscal 2015 from RMB128.7 million in the prior year period. The increase in revenues resulted from solid growth in both processing and storage revenue.
Revenues generated from storage fees increased by 20.1% to RMB47.2 million ($7.6 million), from RMB39.3 million in the prior year period. The increase was mainly due to the steady growth of the Company’s accumulated subscriber base, which has expanded to 392,171 as of the end of June 2014. Revenues generated from storage fees as a percentage of total revenues edged up to approximately 30.8%, from 30.5% in the prior year period.
The difference in processing fees between the first quarter of fiscal 2015 and 2014, combined with the year-over-year growth in subscriber number, contributed to the increase in revenues generated from processing fees to RMB106.1 million ($17.1 million) from RMB89.4 million in the prior year period. As a percentage of total revenues, revenues from processing fees accounted for 69.2%, compared to 69.5% in the prior year period.
GROSS PROFIT. Gross profit for the first quarter of fiscal 2015 increased by 18.5% to RMB123.6 million ($19.9 million). Gross margin decreased slightly to 80.6% from 81.0% in the prior year period primarily due to increased material costs.
OPERATING INCOME. Operating income for the first quarter of fiscal 2015 increased to RMB60.2 million ($9.7 million), resulting in an operating margin of 39.2%, which is a 3.6% improvement from 35.6% in the prior year period. Depreciation and amortization expenses for the first quarter were RMB11.4 million ($1.8 million), compared to RMB8.6 million in the prior year period.
Research and Development Expenses. Research and development expenses remained stable at RMB2.5 million ($0.4 million).
Sales and Marketing Expenses. During the quarter, the Company’s sales and marketing expenses increased to RMB31.7 million ($5.1 million) from RMB28.4 million in the prior year period. However, as a percentage of revenues, sales and marketing expenses decreased to 20.7% from 22.1%. The improvement is a result of the Company’s focus on resource allocation and sales efficiency while further penetrating markets across the Company’s operating regions. While the new facilities in Zhejiang are expected to be operational in the near future, management continues to carefully plan and execute its marketing strategy and ensure that expenses are kept in check in that region.
General and Administrative Expenses. General and administrative expenses increased to RMB29.1 million ($4.7 million) from RMB27.4 million in the prior year period. This increase was primarily due to increased depreciation expenses and administrative overhead stemming from preparation for the full commercial launch of the Company’s new facilities. However as a percentage of revenues, G&A expenses decreased to 19.0% from 21.3%, as the overall increase in revenues exceeded the rise in depreciation and administrative expenses.
OTHER INCOME AND EXPENSES
Interest Expense. Interest expense incurred in the three months ended June 30, 2014 amounted to RMB24.9 million ($4.0 million), which primarily relates to the Company’s outstanding convertible notes. For the prior year period, interest expense was RMB14.8 million due to the RMB8.5 million capitalization of interest expense for the construction of the Company’s new facilities in Zhejiang and Guangdong.
Other. For the first quarter of fiscal 2015, the Company recorded dividend income of RMB1.2 million ($0.2 million), which was derived from the Company’s equity investment in Cordlife Group Limited (“Cordlife”). During the first quarter of fiscal 2014, the Company received dividend income of RMB8.7 million from its equity investments in both the Shandong Cord Blood Bank and Cordlife.
NET INCOME ATTRIBUTABLE TO THE COMPANY’S SHAREHOLDERS. Profit before tax for the first quarter of fiscal 2015 decreased by 6.5% to RMB41.5 million ($6.7 million). The Company’s improved operating income was offset by the increase in interest expense and decrease in dividend income. As a result, net income attributable to the Company’s shareholders for the first quarter of fiscal 2015 decreased by 9.6% to RMB29.7 million ($4.8 million).
EARNINGS PER SHARE. The terms of the convertible notes issued to KKR and Golden Meditech provide each party with the ability to participate in any Excess Cash Dividend[2]. Therefore, the calculation of basic and diluted EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the first quarter of fiscal 2015. Basic and diluted earnings per ordinary share for the first quarter of fiscal 2015 were RMB0.37 ($0.06).
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[2] “Excess Cash Dividend” means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% in such financial year divided by the number of shares into which the note is convertible at the conversion price then in effect on the relevant record date. |
LIQUIDITY. As of June 30, 2014, the Company had cash and cash equivalents of RMB1,989.5 million ($320.7 million) compared to RMB1,882.9 million as of March 31, 2014. The Company had total debt of RMB848.0 million ($136.7 million) as of June 30, 2014. Operating cash inflow for the first quarter of fiscal 2015 amounted to RMB124.6 million ($20.1 million).
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Friday, August 29, 2014 to discuss its financial performance and give a brief overview of recent developments, followed by a question and answer session. Interested parties may access the audio webcast through the Company’s IR website at http://ir.chinacordbloodcorp.com. A replay of the webcast will be accessible two hours after the presentation and available for three weeks at the same URL link above. Listeners may also access the call by dialing 1-631-514-2526 or 1-855-298-3404 for US callers or +852-5808-3202 for Hong Kong callers, access code: 1856118.
About China Cord Blood Corporation
China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit our website at http://www.chinacordbloodcorp.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates”, “believes”, “expects”, “can”, “continue”, “could”, “estimates”, “intends”, “may”, “plans”, “potential”, “predict”, “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.
The forward-looking statements included in this press release are subject to risks, uncertainties and assumptions about the Company’s businesses and business environments. These statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance. Actual results of the Company’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations regarding cord blood banking in the People’s Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments (including revisions to China’s One Child Policy) in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company’s different pricing and payment options and reaction to the introduction of the Company’s premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company’s revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of industry developments affecting issuers that have pursued a “reverse merger” with an operating company based in China, as well as general economic conditions; compliance with restrictive debt covenants under our senior convertible notes; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.
This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the periods ending June 30, 2014 were made at the noon buying rate of RMB6.2036 to $1.00 on June 30, 2014 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.Zima@icrinc.com
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EXHIBIT 1 |
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CHINA CORD BLOOD CORPORATION |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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As of March 31 and June 30, 2014 |
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March 31, |
June 30, |
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2014 |
2014 |
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RMB |
RMB |
US$ |
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(in thousands except share data) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
1,882,901 |
1,989,506 |
320,702 |
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Accounts receivable, less allowance for doubtful accounts (March 31, 2014: RMB20,322; June 30, 2014: RMB22,145) |
95,273 |
101,900 |
16,426 |
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Inventories |
31,583 |
29,008 |
4,677 |
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Prepaid expenses and other receivables |
37,010 |
27,339 |
4,407 |
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Debt issuance costs |
3,616 |
3,615 |
583 |
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Deferred tax assets |
7,664 |
7,948 |
1,281 |
||
|
Total current assets |
2,058,047 |
2,159,316 |
348,076 |
||
|
Property, plant and equipment, net |
626,632 |
618,553 |
99,709 |
||
|
Non-current prepayments |
208,894 |
214,825 |
34,629 |
||
|
Non-current accounts receivable, less allowance for doubtful |
225,496 |
220,924 |
35,612 |
||
|
Inventories |
48,385 |
51,256 |
8,262 |
||
|
Intangible assets, net |
120,549 |
119,394 |
19,246 |
||
|
Available-for-sale equity securities |
144,247 |
148,711 |
23,972 |
||
|
Other investment |
189,129 |
189,129 |
30,487 |
||
|
Debt issuance costs |
7,854 |
6,951 |
1,120 |
||
|
Deferred tax assets |
1,789 |
1,893 |
305 |
||
|
Total assets |
3,631,022 |
3,730,952 |
601,418 |
||
|
LIABILITIES |
|||||
|
Current liabilities |
|||||
|
Bank loan |
60,000 |
60,000 |
9,672 |
||
|
Accounts payable |
10,422 |
14,957 |
2,411 |
||
|
Accrued expenses and other payables |
102,559 |
68,567 |
11,053 |
||
|
Deferred revenue |
196,432 |
198,717 |
32,033 |
||
|
Amounts due to related parties |
21,453 |
16,820 |
2,711 |
||
|
Income tax payable |
2,571 |
1,525 |
246 |
||
|
Deferred tax liabilities |
3,900 |
5,200 |
838 |
||
|
Total current liabilities |
397,337 |
365,786 |
58,964 |
||
|
Convertible notes |
777,753 |
787,988 |
127,021 |
||
|
Non-current deferred revenue |
823,921 |
897,363 |
144,652 |
||
|
Other non-current liabilities |
164,077 |
177,551 |
28,621 |
||
|
Deferred tax liabilities |
27,938 |
27,639 |
4,455 |
||
|
Total liabilities |
2,191,026 |
2,256,327 |
363,713 |
||
|
EQUITY |
|||||
|
Shareholders’ equity of China Cord Blood Corporation |
|||||
|
Ordinary shares |
|||||
|
– US$0.0001 par value, 250,000,000 shares authorized, 73,140,147 |
50 |
50 |
8 |
||
|
Additional paid-in capital |
798,221 |
798,221 |
128,671 |
||
|
Treasury stock, at cost (March 31 and June 30, 2014: 136,899 shares, |
(2,815) |
(2,815) |
(454) |
||
|
Accumulated other comprehensive income |
84,263 |
89,298 |
14,395 |
||
|
Retained earnings |
555,323 |
585,059 |
94,309 |
||
|
Total equity attributable to China Cord Blood Corporation |
1,435,042 |
1,469,813 |
236,929 |
||
|
Non–controlling interests |
4,954 |
4,812 |
776 |
||
|
Total equity |
1,439,996 |
1,474,625 |
237,705 |
||
|
Total liabilities and equity |
3,631,022 |
3,730,952 |
601,418 |
||
|
EXHIBIT 2 |
|||||||||||
|
CHINA CORD BLOOD CORPORATION |
|||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||
|
For the Three Months ended June 30, 2013 and 2014 |
|||||||||||
|
Three months ended June 30, |
|||||||||||
|
2013 |
2014 |
||||||||||
|
RMB |
RMB |
US$ |
|||||||||
|
(in thousands except share data) |
|||||||||||
|
Revenues |
128,721 |
153,331 |
24,716 |
||||||||
|
Direct costs |
(24,492) |
(29,776) |
(4,800) |
||||||||
|
Gross profit |
104,229 |
123,555 |
19,916 |
||||||||
|
Operating expenses |
|||||||||||
|
Research and development |
(2,523) |
(2,499) |
(403) |
||||||||
|
Sales and marketing |
(28,424) |
(31,743) |
(5,117) |
||||||||
|
General and administrative |
(27,402) |
(29,146) |
(4,698) |
||||||||
|
Total operating expenses |
(58,349) |
(63,388) |
(10,218) |
||||||||
|
Operating income |
45,880 |
60,167 |
9,698 |
||||||||
|
Other expense, net |
|||||||||||
|
Interest income |
4,182 |
4,266 |
688 |
||||||||
|
Interest expense |
(14,758) |
(24,895) |
(4,013) |
||||||||
|
Exchange (loss)/gain |
(124) |
180 |
29 |
||||||||
|
Dividend income |
8,722 |
1,196 |
193 |
||||||||
|
Others |
530 |
617 |
99 |
||||||||
|
Total other expense, net |
(1,448) |
(18,636) |
(3,004) |
||||||||
|
Income before income tax |
44,432 |
41,531 |
6,694 |
||||||||
|
Income tax expense |
(11,373) |
(11,937) |
(1,924) |
||||||||
|
Net income |
33,059 |
29,594 |
4,770 |
||||||||
|
Net income attributable to non-controlling interests |
(153) |
142 |
23 |
||||||||
|
Net income attributable to China Cord Blood |
32,906 |
29,736 |
4,793 |
||||||||
|
Net income per share: |
|||||||||||
|
Attributable to ordinary shares |
|||||||||||
|
– Basic |
0.40 |
0.37 |
0.06 |
||||||||
|
– Diluted |
0.40 |
0.37 |
0.06 |
||||||||
|
Other comprehensive income |
|||||||||||
|
– Net effect of foreign currency translation, net of nil tax |
6,805 |
529 |
85 |
||||||||
|
– Net unrealized gain in available-for-sale equity |
24,338 |
4,506 |
726 |
||||||||
|
Comprehensive income |
64,202 |
34,629 |
5,581 |
||||||||
|
Comprehensive income attributable to non-controlling |
(153) |
142 |
23 |
||||||||
|
Comprehensive income attributable to China Cord |
64,049 |
34,771 |
5,604 |
||||||||
Takeda Announces Completion of the Post-Marketing Commitment to Submit Data to the FDA, the EMA and the PMDA for Pioglitazone Containing Medicines Including ACTOS
— No overall statistically significant increased risk of bladder cancer in patients ever exposed to pioglitazone in a completed 10-year epidemiological study
OSAKA, Japan, Aug. 29, 2014 /PRNewswire/ — Takeda Pharmaceutical Company Limited (“Takeda”) today announced the completion of the post-marketing commitment and submissions of data from a 10-year epidemiology study to regulatory authorities including the United States (U.S.) Food and Drug Administration (FDA), the European Medicines Agency (EMA) and the Japanese Ministry of Health, Labour, and Welfare (MHLW) / the Japanese Pharmaceuticals and Medical Devices Agency (PMDA) for pioglitazone containing medicines, including ACTOS (pioglitazone HCl).1,2 This study was a 10-year epidemiology study, conducted by the University of Pennsylvania and Division of Research at Kaiser Permanente Northern California (KPNC), and was designed to investigate whether patients exposed to pioglitazone were at an increased risk of bladder cancer.1 Findings demonstrate that there is no statistically significant increased risk of bladder cancer among patients ever exposed to pioglitazone.2
The primary analysis found no association between the use of pioglitazone and the risk of bladder cancer.2 Additionally, no association was found between the risk of bladder cancer and the duration of pioglitazone use, increased cumulative dose of pioglitazone or the time since initiating pioglitazone.
In the five-year interim analysis published in Diabetes Care, a statistically significant increased risk among patients who used pioglitazone for two or more years was observed.1 However, the 10-year final analysis did not show any statistically significant findings of increased risk of bladder cancer with long term use of pioglitazone.2 The data will be shared with additional regulatory authorities in accordance with local requirements around the world, and final results will be submitted for publication in 2014.
“The completion of this long-term study is a milestone in the history of pioglitazone,” said Tom Harris, head, global regulatory affairs, Takeda. “The results of the study provide reassurance with regard to the use of pioglitazone and the risk of bladder cancer and further support the positive benefit risk profile of the product.”
About Pioglitazone
Pioglitazone is approved as an agent to treat patients with Type 2 diabetes mellitus in more than 100 countries world-wide. More than 27,000 subjects have been included in clinical trials, and globally the total patient-years of exposure since first launch (1999) is estimated to be in excess of more than 29 million. Pioglitazone as a treatment of Type 2 diabetes mellitus at the recommended doses provides a valuable treatment option, and has a well established safety profile. The benefits of good glycemic control associated with Type 2 diabetes mellitus outweigh the risks associated with therapy which are appropriately communicated and managed by the current product labelling.
Pioglitazone is a thiazolidinedione for the treatment of Type 2 diabetes in adults as an adjunct to diet and exercise.
Unlike many oral antidiabetic drugs, pioglitazone is not an insulin secretagogue. Pioglitazone is an agonist for peroxisome proliferator-activated receptor-gamma (PPARγ). PPAR receptors are found in tissues important for insulin action such as adipose tissue, skeletal muscle, and liver. Activation of PPARγ nuclear receptors modulates the transcription of a number of insulin responsive genes involved in the control of glucose and lipid metabolism. Therefore, pioglitazone is a medication that depends on the presence of insulin for its mechanism of action, and it decreases insulin resistance in muscle and the liver, resulting in increased insulin-dependent glucose disposal as well as decreased hepatic glucose output.
Clinical studies demonstrate that pioglitazone improves insulin sensitivity in insulin-resistant patients. Pioglitazone enhances cellular responsiveness to insulin, increases insulin-dependent glucose disposal and improves hepatic sensitivity to insulin. In patients with Type 2 diabetes, the decreased insulin resistance produced by pioglitazone results in lower plasma glucose concentrations, lower plasma insulin concentrations, and lower HbA1c values. In controlled clinical trials, pioglitazone had an additive effect on glycemic control when used in combination with sulfonylurea, metformin, or insulin.
Important Safety Information
Contraindications
Initiation of ACTOS is contraindicated in patients with NYHA Class III or IV heart failure.
ACTOS is contraindicated in patients with known hypersensitivity to pioglitazone or any of its excipients so as to avoid inducing a potentially serious hypersensitivity reaction.
Warnings and Precautions
Fluid retention and cardiac failure: Thiazolidinediones, including ACTOS, can cause dose-dependent fluid retention, which may exacerbate or precipitate heart failure. After initiation of ACTOS, and after dose increases, monitor patients carefully for signs and symptoms of heart failure (e.g., excessive, rapid weight gain, dyspnea, and/or edema). If heart failure develops, discontinuation of ACTOS must be considered. ACTOS should be used with caution in patients with cardiac dysfunction whose physical activity is markedly limited. Combination use with insulin may increase risk.
Hepatic effects: Post-marketing reports of hepatitis and hepatic dysfunction have been received. Very rarely these reports have involved hepatic failure, with and without a fatal outcome, although causality has not been established. Obtain liver tests before starting ACTOS and periodically thereafter. Pioglitazone therapy should not be initiated in patients with increased liver enzyme levels (ALT> 2.5x upper limit of normal) or with any other evidence of liver disease. Existing pioglitazone therapy should be discontinued if ALT levels are persistently higher than 3x the upper limit of normal, and symptoms suggesting hepatic dysfunction should cause the liver enzymes to be checked. Pending the results of laboratory investigations, the decision as to whether pioglitazone therapy should continue must be based on clinical judgment; in the presence of jaundice, drug therapy should be discontinued.
Weight gain: Weight gain was observed in clinical trials and has been seen in post-marketing experience with pioglitazone, so patient weight should be closely monitored.
Fractures: An increased incidence of bone fracture has been noted in female patients.
Bladder cancer: Some data suggest there may be an increased risk of bladder cancer in ACTOS users and also that the risk increases with duration of use. Do not use ACTOS in patients with active bladder cancer. Use caution when using in patients with a prior history of bladder cancer. Tell patients to promptly report any sign of hematuria or other symptoms such as dysuria or urinary urgency as these may be due to bladder cancer.
Hypoglycemia: When ACTOS is used with insulin, a sulfonylurea or other oral hypoglycemic agents, hypoglycemia may occur.
Ovulation: Ovulation in premenopausal anovulatory women or women with polycystic ovarian syndrome may occur with ACTOS.
Macular edema: Post-marketing reports of new-onset or worsening diabetic macular edema with decreased visual acuity have been reported with thiazolidinediones, including pioglitazone. Physicians should consider the possibility of macular edema if a patient reports decreased visual activity.
Drug interactions: Use of ACTOS with CYP2C8 inducers or strong inhibitors may require dose adjustment.
Please refer to the Summary of Product Characteristics (SmPC) for ACTOS before prescribing.
ACTOS should be used according to the indication, posology and method of administration described in the SmPC.
Please consult with your local regulatory agency for approved labeling in your country.
About Type 2 diabetes
- In 2013, 382 million people worldwide were living with Type 2 diabetes. By 2035 this number is expected to rise to 592 million.3
- In 2013, the number of people with diabetes in Europe was estimated to be 56 million.4
- The number of Type 2 diabetes patients is increasing in every country.3
- In 2013, one in 10 deaths in adults in Europe was attributed to diabetes, representing over 600,000 people.3
- Estimates indicate that more than EUR 108 billion* was spent on healthcare due to diabetes in the European region in 2013, accounting for over one-quarter of global healthcare expenditures due to diabetes.3
- Because of the increasingly complex nature of this disease, all patients require treatment to be individualized to their needs.5 Each patient responds differently to medications, and healthcare providers often must combine multiple treatment options to help patients manage their disease.
*Based on conversion of USD 147 billion,3 where 1 EUR = 1.36035 USD as of 21 July 2014.
About Takeda’s Diabetes Business
Takeda’s heritage in diabetes globally includes significant contributions towards scientific discovery and exchange, starting with the discovery of the thiazolidinedione (TZD) pioglitazone, and developments of other fixed-dose combinations. The company’s strong, diverse diabetes portfolio and available medications mark important milestones in Takeda’s ongoing commitment to advancing patient care and helping to meet the individual needs of this growing patient population.
About Takeda Pharmaceutical Company Limited
Located in Osaka, Japan, Takeda is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders of the industry, Takeda is committed to strive towards better health for people worldwide through leading innovation in medicine.
Additional information about Takeda is available through its corporate website, www.takeda.com.
Contact:
Elissa J. Johnsen
+1-224-554-3185
elissa.johnsen@takeda.com
References
[1] Lewis, JD., Ferrara, A., Peng, T., et al. The Risk of Bladder Cancer Among Diabetic Patients Treated with Pioglitazone: Interim Report of a Longitudinal Cohort Study. Diabetes Care 24, April 2011 34:4 923-929.
[2] Takeda Data on File. 2014.
[3] International Diabetes Federation. IDF Atlas, sixth edition. Last accessed July 10, 2014. Available at: http://www.idf.org/diabetesatlas.
[4] International Diabetes Federation. Diabetes: Facts and figures. Last accessed July 10, 2014. Available at: http://www.idf.org/worlddiabetesday/toolkit/gp/facts-figures.
[5] Inzucchi SE, Bergenstal RM et al. Management of Hyperglycaemia in Type 2 Diabetes: A Patient-Centred Approach. Diabetes Care. 2012:35: (6):1364-1379.
CAIDE Looks into the Future: New App from Merz Pharmaceuticals Assesses the Risk of Getting Dementia Within the Next 20 Years
FRANKFURT AM MAIN, Germany, Aug. 29, 2014 /PRNewswire/ — The CAIDE Dementia Risk App from Merz Pharmaceuticals is available free of charge for people from 40 to 65 to calculate their individual risk for getting dementia within the next two decades. Using a traffic light color scheme, the App can also help physicians discuss preventive measures with patients at risk.
The new “CAIDE Dementia Risk App (Cardiovascular risk factors, Aging and Incidence of DEmentia) has been developed in collaboration with Karolinska Institutet in Stockholm and is available in the App Store for a free download. The CAIDE App may be used on an iPhone or iPad and comes in two versions: one for physicians and one for individuals. It is available in five languages: German, French, Spanish, Russian, and English as default.
CAIDE supports prevention of dementia
After entering gender, date of birth, height and weight, cholesterol level, blood pressure, physical activity and years of education the App calculates the risk of getting dementia within the next 20 years. If the risk is in the normal range an orange bar appears. The bar is green if the risk is lower and red if it is higher than average. Then the physician should discuss preventive lifestyle interventions.
Professor Miia Kivipelto who has done the research (1,2) on which the App is based says: “The biggest risk factor for developing dementia is advanced age. Large epidemiological studies have demonstrated that what is good for the heart is good for the brain – in other words, a healthy lifestyle with physical activity, low blood cholesterol levels, not being obese, and having normal blood pressure at midlife protects not only against cardiac disease, but also against dementia.”
More information about Merz on http://www.merz.com.
- Kivipelto M et al.; Lancet Neurol 2006;5:735-41
- Sindi et al. Poster presented at the 13th Geneva /Springfield Symposium, March 2014
Pressekontakt:
Merz Pharmaceuticals GmbH
Dr. Elisabeth Calov
Tel: +49-(0)69-1503-8428
E-mail: elisabeth.calov@merz.de
