(China Securities Journal Report by Fu Suying) On August 23, Sino Biopharm released its 2022 half-year performance report. In the first half of this year, the company's revenue was 15.19 billion yuan, an increase of 5.9% year-on-year; excluding the share of earnings of associates/joint ventures and the effect of adjustment of non-recurring gains and losses, the net profit attributable to the mother company reached 1.66 billion yuan, an increase of 4.5%.

The report shows that in recent years, Sino Biopharm has continued to accelerate innovation and transformation, with R&D investment of 2.19 billion yuan in the first half of the year, up 16.5% year-on-year and accounting for a record high of 14.4%. Innovative drugs have become more prominent in driving performance, with revenue totaling 3.49 billion yuan, accounting for 22.9% of revenue, up 14.2% year-on-year. The half-yearly report also disclosed that the revenue share of innovative drugs will reach 24% for this year, and the revenue of innovative drugs may exceed the 10 billion yuan mark in 2023.

With the normalization of centralized procurement and fierce competition in innovation homogeneity, the medical industry is facing reshuffling. As a leading domestic pharmaceutical company, Sino Biopharm has laid out the innovation transformation early, and new products, innovative drugs and oncology drugs have become the second growth curve of the company. Data show that the company's R&D investment and proportion have been increasing year by year in the past five years, with strong development potential. In the first half of this year, among the 2.19 billion yuan invested in R&D, the R&D investment in the field of anti-tumor reached 69.4%, and the amount invested increased by 21.6% year-on-year; the R&D investment in innovative drugs and biological drugs accounted for more than 73.7%, and the amount invested increased by 51.4% year-on-year.

Sino Biopharm has built an international patent layout model, with global patent layout in more than 60 countries and regions. In the TOP 100 list of global biopharmaceutical invention patents recently released by incoPat, CTTQ, the core member company of Sino Biopharm, ranked 2nd among Chinese pharmaceutical companies and 23rd among global pharmaceutical companies with 132 patent applications.

Driven by huge investment in R&D, the company has achieved considerable R&D results in the first half of the year, with a total of 17 market approvals and 24 clinical approvals, 17 of which are Class I innovative drug research projects, involving 8 Class I innovative products. Up to now, the company's R&D stock is very substantial, with 418 products under research, including 29 liver drugs, 230 anti-tumor drugs, 31 respiratory drugs, 9 endocrine drugs, 16 cardiovascular drugs, 3 surgical drugs, 4 analgesic drugs, and 96 other drugs.

The company's R&D capabilities have also gained attention and recognition from the academic community. At this year's American Society of Clinical Oncology Annual Meeting, Anlotinib, Penpulimab and TQB2450 made breakthroughs in 19 tumor types, including non-small cell lung cancer, small cell lung cancer and cervical cancer, and a total of 49 related studies were selected for the poster and abstract special session, demonstrating the hardcore strength of the original research.

Starting from 2020, Sino Biopharm has been improving the innovation-led upgrade changes of BD integration, systematization and internationalization, and expanding its own innovation ecosystem through three strategic modules. In the core pipeline strategy, the company introduces innovative drugs of great significance such as first-in-class/best-in-class drugs; in the business derivation strategy, the company introduces products that complement and link with the existing pipeline; in the frontier technology platform strategy, the company continues to enrich the layout of the pipeline and expand the international market. The comprehensive quality upgrade of BD has enabled the company to gain many outstanding innovative projects.

On June 23, 2012, Sino Biopharm announced its proposed acquisition of NASDAQ-listed F-star, a Cambridge, UK-based company that not only has the world's most advanced tetravalent bispecific antibody platform, but also has worked with a number of multinational pharmaceutical companies, including Merck and AstraZeneca, with potential milestone revenues of over $2.2 billion, for $161 million. If the deal is finalized, it will provide Sino Biopharm with cutting-edge bispecific antibody platform technology and a strong international clinical development team.

Miss Tse, Theresa Y Y, Chairwoman of the Board of Directors of Sino Biopharm, said that Sino Biopharm has always adhered to a two-pronged development model of "endogenous" and "outgrowth". While strengthening outgrowth mergers and acquisitions, laying out first-target drugs of the same kind and innovative technology platforms, the Group insists on internal investment in innovation and research and development to provide a new growth engine for the Company's goal of becoming a "top 30 global pharmaceutical company".