Tigermed Reports 2020 Annual Results with Solid Growth
Hangzhou, March 29, 2021 – Hangzhou Tigermed Consulting Co., Ltd. (stock code: 300347.SZ / 3347.HK), a leading provider of innovative clinical research solutions for biopharmaceutical and medical device industry, reports its annual results for the year ended December 31, 2020 (the “Reporting Period”).
This press release is for information and summary only and is not intended to provide any representation, in whole or in part, of the relevant matters. For further information, please refer to the 2020 annual report and relevant announcements published on the websites of the Shenzhen Stock Exchange (www.szse.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk).
All financials disclosed in this press release are prepared based on International Financial Reporting Standards (IFRS) except for those specifically noted otherwise.
Full Year 2020 Financial Highlights
- Total revenue achieved 13.9% year-over-year growth to RMB 3,192.3 million
- Clinical Trial Solutions realized revenue of RMB 1,519.2 million during the Reporting Period, representing a year-over-year growth of 12.8%. The increase was primarily due to the increased revenue from our clinical operation and other services including medical registration, medical translations, and pharmacovigilance, etc.
- Clinical-related and Laboratory Services realized revenue of RMB 1,673.1 million during the Reporting Period, representing a year-over-year growth of 14.9%. The increase was primarily driven by the gradual recovery of demand of our laboratory, site management and patient recruitment and DMSA services.
- Revenue generated in the PRC increased by 19.2% year-over-year to RMB 1,906.7 million
- Revenue generated overseas increased by 6.8% year-over-year to RMB 1,285.6 million
- Net profit achieved 108.3% YoY growth to RMB 2,030.6 million. Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company achieved 36.9% YoY growth to RMB 987.2 million.
Full Year 2020 Business Highlights
In China, with the effective control of the COVID-19 pandemic, we had resumed normal operations for most of our business during the second half of 2020. We were able to initiate more clinical trials and recruit more patients compared with first half of 2020, and actively engaged in discussions with our customers, research institutions, and scientists on clinical trial projects for COVID-19 therapies and vaccines. We had a total of RMB 7,260.3 million Backlog as of December 31, 2020, representing a 44.9% YoY Growth.
We expanded our clinical operation and project management teams in the United States, Europe, and Australia, and strategically and selectively expanded into certain new markets in South Asia, Latin America, and Africa regions.
As of December 31, 2020, we had over 20 MRCT (Multi-region Clinical Trial) projects in 21 countries across North America, Asia Pacific, Europe and Latin America, covered 13 therapeutic areas including but not limited to oncology, rare diseases and vaccines.
During the Reporting Period, we completed a number of bolt-on acquisitions to further expand our services offerings. In January 2020, we acquired Shanghai Mosim Medical Technology Co., Ltd. (“Mosim”) with an aim to provide more comprehensive early clinical development services to our clients. Frontage acquired US-based Biotranex, LLC (“Biotranex”) in March 2020 to further expand its Drug metabolism and Pharmacokinetics (“DMPK”) capabilities into transporter analysis, and acquired Acme Bioscience, Inc. (“ACME”) in July 2020 to enter into drug discovery and early development space.
During the Reporting Period, we set up a dedicated Real-world Study (“RWS”) team offering real world retrospective and prospective studies, real world safety monitoring, and real world patient management services in collaboration with our clinical operation, project management and site management teams. We entered into a collaboration agreement with Hainan Boao Lecheng Pilot Zone of International Medical Tourism to jointly explore RWS opportunities.
We initiated the Excellence for Clinical Trial Sites (“E-Site”) Program in 2020, which aims to optimize clinical research resources, improve the infrastructure and technical expertise at hospitals and sites, and increase the efficiency of patient recruitment and follow-ups among collaborating hospitals and sites.
As of December 31, 2020, we had 389 ongoing drug clinical research projects, up from 287 as of December 31, 2019. During the Reporting Period, we expanded our medical device clinical research services into IVD development and risk-based monitoring services. Our medical translation team further expanded its capacity to more than 300 people. We added more than 20,000 sq.m. lab space in Suzhou, China for potential expansion in DMPK, Safety and Toxicology business.
In 2020, we contributed to the successful launch of a number of drugs and medical devices, including Ameile (EGFR-TKI), Optune (TTFields), Folotyn (Pralatrexate), and ASCLEVIR (NS5A). Our total employees reached 6,032 as of December 31, 2020 from 5,312 as of June 30, 2020, and 4,959 as of December 31, 2019.
“2020 was an extraordinary year to remember for the world and for those of us in the healthcare industry. Despite challenges posed by the COVID-19, we have continued to strengthen our team, broaden services offerings, expand geographical reach and execute on our growth strategy in 2020.” said Ms. Xiaochun Cao, President of Tigermed. “As a leader in China’s clinical CRO, we are committed to staying true to our mission of serving healthcare partners through innovation and advancing human health through excellence while continuing to proactively adapting to changes in regulations and customer needs, and delivering the highest standard of services to our customers and bring innovative therapies to patients globally. I would like to express my heartfelt gratitude to our customers and shareholders. But most of all, I want to thank all of employees for their selfless contributions in this unprecedented period. I look forward to continue our strategy and commitment to customers and patients across the globe with our talented employees.”
The information communicated herein contains certain statements that are or may be forward looking, including predictions about future events based on beliefs of the Company and information currently available to the management of the Company. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future relating to, inter alia, the ability of the Company to compete effectively, the ability of the Company to develop new and market new services, the risks associated with listed subsidiaries of the Company, unforeseeable international tension, regulatory or governmental scrutiny in certain countries, the impact of emergencies and other force majeure events. Any investment in any securities issued by the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, you should not rely on these forward-looking statements. The Company undertakes no obligation to update forward-looking statements or to adapt them to future events or developments.
To supplement our financial information which are presented in accordance with IFRS, we use adjusted net profit attributable to owners of the Company as an additional financial measure, which is not required by, or presented in accordance with IFRS. We define adjusted net profit attributable to owners of the Company as profit for the year attributable to owners of the Company before certain expenses and amortization. We define adjusted net profit attributable to owners of the Company as profit attributable to owners of the Company adjusted for (1) share-based compensation expense, (2) net foreign exchange loss/(gain), (3) amortization of intangible assets arising from acquisitions, (4) listing expenses incurred by our Group, and (5) increase in fair value of financial assets at FVTPL. Adjusted net profit attributable to owners of the Company is not an alternative to (i) profit before tax, profit for the year or profit for the year attributable to owners of the Company (as determined in accordance with IFRS) as a measure of our operating performance, (ii) cash flows from operating, investing and financing activities as a measure of our ability to meet our cash needs, or (iii) any other measures of performance or liquidity. We believe that this non-IFRS measure is useful for understanding and assessing underlying business performance and operating trends, and that the owners of the company and we may benefit from referring to this non-IFRS measure in assessing our financial performance by eliminating the impact of certain unusual, non-recurring, non-cash and/or non-operating items that we do not consider indicative of the performance of our business. However, the presentation of this non-IFRS measure is not intended to, and should not, be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with the IFRS. You should not view the non-IFRS measure on a stand-alone basis or as a substitute for results under the IFRS, or as being comparable to results or a similarly titled financial measure reported or forecasted by other companies.
Tigermed (Stock code: 300347.SZ/3347.HK) is a leading provider of innovative clinical research solutions across the full life cycle of biopharmaceutical and medical device products globally. With a broad portfolio of services and a promise of quality, from clinical development to commercialization, we are committed to moving our customers and patients through their development journey efficiently and cost-effectively. Tigermed currently represents a worldwide network of more than 60 subsidiaries and 150 offices and sites, with over 6,400 employees across 38 countries in Asia Pacific, Europe, North & South America and Africa. We are devoted to building an integrated platform that enables boundless possibility for the healthcare industry, embracing challenges to fulfill our commitment to serve unmet patients’ needs, and eventually saving lives.