Tiger Pharma will achieve revenue of 2.8 billion yuan in 2019

the evening of April 16, Tiger Pharma released its 2019 annual report. While handing over an eye-catching transcript, it said it could not reasonably estimate the impact of the outbreak on Tig Pharmaceuticals' performance.The report shows that both Tiger Pharmaceuticals' revenue and net profit will continue to grow steadily in 2019. During the reporting period, Tiger Pharma achieved operating income of nearly RMB2,803 million, an increase of 21.85 percent over the same period last year, and net profit attributable to shareholders of listed companies was RMB841 million, an increase of 78.24 percent over the same period last year.However, from the income side, in the past five years, tagged pharmaceutical revenue growth is not stable. It has been going back to the same level since it began to experience some growth in 2016. During the reporting period, Tiger Pharma's revenue grew by 21.85 percent, down from 36.37 percent in 2018 and 43.63 percent in 2017. Tiger Pharma said this was related to the impact of divestitures of companies such as Shanghai Yantong, which, excluding the impact of divestitures, projected revenue growth of nearly 30% in 2019.From the profit side, Tagg Pharmaceuticals' non-attributed net profit growth rate is significantly higher than the revenue growth rate, mainly benefiting from the company's continued improvement in profitability. Under the background of divesting the low gross margin of Shanghai Yantong, the decrease of the proportion of over-the-top fees and the improvement of operating efficiency, the gross margin level of Tag Pharmaceuticals in 2019 increased by 3.4% YoY.To help 7 new drug research and development approved, in hand orders abundantas a new drug research and development to provide clinical trials of the whole process of professional services (CRO), Tag Pharmaceuticals mainly for domestic and foreign pharmaceutical and medical device innovation enterprises to provide innovative drugs, medical devices and biotechnology-related products clinical research professional services.According to the annual report, Tiger Pharma has plenty of orders in hand. Its new contract value in 2019 was 4.23 billion yuan, up 27.9% YoY. As of December 31, 2019, Tiger Pharma's total pending contract value was 5.01 billion yuan, up 36.1% YoY.Among them, in the clinical trial technical services business, Tiger Pharmaceuticals achieved revenue of 1.346 billion yuan, an increase of 22.05 percent over the same period last year, while clinical trial-related services and laboratory services grew steadily during the reporting period, achieving revenue of 1.446 billion yuan, an increase of 21.08 percent over the same period last year.During the reporting period, its domestic business revenue was 1.6 billion yuan, or 57.08 percent, up 29.63 percent from a year earlier, while its overseas business revenue was 1.203 billion yuan, or 42.92 percent, up 12.84 percent from a year earlier. Tiger Pharma said the increase in revenue from its domestic business during the reporting period was mainly due to an increase in the proportion of in-country innovative pharmaceutical clinical trials.At a time when China's innovative pharmaceutical industry is still in its infancy, Tiger Pharma is doing the service of "selling water by the gold mine" - to help new drug research and development. In the past three years, Tiger Pharma has continued to increase its investment in research and development. During the reporting period, research and development investment in 2019 amounted to 124 million yuan, accounting for 4.43% of operating income, an increase of 15.6% over the same period last year.Continued investment in research and development has made Tiger Pharma a big gain last year. Of the 13 new Class 1 drugs approved in China in 2019, seven were developed by Tiger Pharma or its subsidiaries. At the same time, Tiger Pharma is also involved in overseas innovative pharmaceutical projects.Among them, GlaxoSmithKline's long-acting triple inhalation agent for COPD stabilization treatment, Trelegy Ellipta, is a full-process SMO service provided by Tyger Pharmaceuticals subsidiary Smer Pharmaceuticals, which has been approved by China's State Drug Administration and became the first daily three-in-one inhaler approved in China.In this new crown outbreak, Tag pharma as the domestic CRO laboratory line of the front-row soldiers are also involved. Two Phase III clinical research projects on Redsivir's resistance to new coronavirus pneumonia, previously conducted in Wuhan, are responsible for Tagg Pharma and Dean Diagnostics in conjunction with a third-party laboratory, View Medicine.Actively layout foreign markets, the impact of the outbreak is uncertain Nowadays, more and more biopharmaceutical and medical device companies are accelerating the pace of research and development, accompanied by increasing research and development challenges and risks Many companies have come to realize that CRO will help them reduce costs and clinical research and development risks, so CRO with the expertise and experience to provide comprehensive and diversified services to customers will seize industry development opportunities.Tiger Pharma is following this trend. Throughout the world, the world's leading CRO enterprises are in the process of growth and development, and constantly seek overseas expansion. In line with the development strategy of "deep-ploughing China, excellent global", Tiger Pharmaceuticals is also actively layout the global market to help innovative pharmaceutical companies to carry out multi-center clinical trials.In 2019, a new generation of oral small molecule reversible skin growth factor subjects (EGFR) tyrosine kinase inhibitors (TKI) - AZD3759 International Multi-Center Phase II/III clinical studies developed by Jiangsu Chentai Pharmaceutical Technology Co., Ltd. successfully completed the first group entry and dosing in Singapore. The clinical study was carried out with the help of Tiger Pharma, the first international multi-centre clinical trial conducted by Tiger Pharma in Singapore and the first subject in the Singapore group.As of the date of disclosure of this report, Tiger Pharma has 123 domestic service outlets (including Hong Kong, China, Taiwan), covering more than 800 drug clinical trial institutions nationwide, and has established overseas subsidiaries in 10 countries in Asia Pacific, North America, Europe and other regions. Globally, North America and Europe are the most important markets for most innovative drug research and development, said Cao Xiaochun, president of Tagg Pharmaceuticals. She said that Tagg is actively promoting the internationalization strategy, in South Korea, Japan, Australia, Southeast Asia, India and other Asia-Pacific region has completed the layout of the service system. In North America and Europe, Tiger has also established its own clinical research services team. However, the global spread of the new crown pneumonia epidemic has also had an impact on CRO enterprises. According to the annual report, Tyger Pharmaceuticals' performance may be affected by the new crown pneumonia outbreak. There are currently no projects cancelled due to the new coronary pneumonia outbreak, but hospitals have invested significant medical resources in patients infected with the new coronary pneumonia outbreak, resulting in fewer resources for clinical trials. At the same time, patients are reluctant to participate in clinical trials during the new coronary pneumonia outbreak due to concerns about potential infections, which pose a challenge to patient recruitment. As the new crown pneumonia outbreak continues to evolve and affect the world, it is difficult for Tiger Pharma to determine whether it will experience a reduction in customer orders or loss of customers in the future, and whether existing and future projects will be subject to material disruption or delays as a result. In fact, Tiger Pharma has been actively taking measures since the beginning of the outbreak to reduce the potential for the new crown pneumonia outbreak to continue to adversely affect Tiger Pharma's business, prospects and operating performance. Cao Xiaochun introduced, from the beginning of the outbreak, Tagg Pharma launched a business continuity plan, in order to respond to the outbreak made full preparations, together with the bid to carry out a large number of detailed arrangements for various research projects, will be affected by the outbreak to a minimum. For example, patients can not go to the hospital follow-up, then arrange online follow-up, subjects can not go to the hospital for administration, then in advance arrangements for the mailing of experimental drugs. In addition, Tiger Pharmaceuticals also has a lot of business done online, such as data management, statistical analysis, etc. , these work is largely unseeded by the outbreak. The impact of the outbreak is now under control, according to the overall assessment. (Euro health) is