Scinopharm: launches, China and injectables key in FY2014

Sinopharm expects customer drug launches and its recent investment in cancer injectables to drive revenue gains and margin growth in 2014.

The Taiwan-based active pharmaceutical ingredient (API) maker posted an 11% increase – to NT$5.1bn ($167.6m) – in revenue and a 9% hike in net profits for fiscal 2013 citing drug actives like irinotecan and exemestane as key growth drivers.

A spokeswoman told in-Pharmatechnologist.com “Irinotecan sales benefited from higher- than-expected order from our customers, which switched their suppliers to us. Exemestane doubled last year from a year earlier as a new dedicated and exclusive production line was launched.” 

The firm already has established supply deals with customers in the US and Europe and – during fiscal 2013 – signed several other supply agreements, that also helped drive the growth.

Scinopharm also reported that efforts to expand elsewhere helped it “grasp business opportunities.

This strategy is something the API maker plans to keep pursing according to the spokeswoman, who said “we will continue accelerating our pace in marketing efforts in the emerging markets, especially China.”

One recent business opportunity Scinopharm has grasped is its deal with Singapore-based drug firm Aslan, by which it was contracted to provide research services for a developmental cancer treatment due to enter Phase II trials.

Aslan is developing the drug in question - a small molecule inhibitor of the MET receptor for tyrosine kinase – in collaboration with US Big Pharma firm Bristol Myers Squibb (B-MS).

Outlook

The spokeswoman also said Scinopharm expects to continue the growth it saw in fiscal 2013 with a number of customer product launches likely to key.

We aim to post a mid-to-high-single digit percent growth for its revenue this year as seven generic drugs using our APIs are expected to hit the market. We also aim to keep our gross margin between 45 to 50% in the long-term.”

Additionaly, ScinoPharm is one of several contract manufacturing organisations (CMO) that has invested in capacity to produce injectable cancer drugs after noting the gap in the market created by quality problems at now defunct contractor Ben Venue.

The spokeswoman predicted that Scinopharm's recent investment in injectables – its new plant is expected to be complete for pilot run by the end of 2014 – will drive growth.

By expanding into the field of oncological injectable formulation, Scinopharm will be able to provide a vertically integrated, one-stop-shop service for our existing API customers.”