On August 14, 2020 Lee’s Pharmaceutical Holdings Limited ("Lee’s Pharm" or the "Group", Stock Code: 950), an integrated research-driven and market-oriented pharmaceutical group in China, reported that it is anticipated that the Group’s will record a significant increase in its net profit attributable to the Shareholders for the six months ended 30 June 2020 (Press release, Lee’s Pharmaceutical, AUG 14, 2020, View Source [SID1234563670]).
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The Board of directors of the Company based on the preliminary assessment of the Group’s unaudited financial information currently available, it is anticipated that the unaudited net profit attributable to the Shareholders for the six months ended 30 June 2020 will increase by about 150%, as compared to that of for the six months ended 30 June 2019.
The Board considers that the improvement of the Group’s interim results was mainly attributable to an one-off compensation income recognised by the Company upon the early termination of the product license of Zanidip during the period under review; and the absence of considerable intangible assets impairment during the period under review, as compared to the non-recurring loss of approximately HK$108 million incurred in the same period last year by China Oncology Focus Limited, a 65%-owned subsidiary of the Group, which arose from the impairment of its intangible asset after the discontinuation of a Phase 3 clinical trial of Pexa-Vec for advanced liver cancer.
In recent years, the Group has made it a strategy to enhance in-house development capability and control over its assets, evidenced by the approval of generic Treprostinil in March 2020 to replace original product Remodulin for sales and marketing in China in which the switch has proved to be beneficial to both pulmonary arterial hypertension (PAH) patients in China and the Group. Given the availability of several generic lercanidipines in China, the Group believes that divesture of this product at this juncture not only brings short term financial benefit but also paves the way for the Group to launch its generic version in the near future for long term prosperity.
Dr. Benjamin Li, Executive Director and Chief Executive Officer of the Group, said, "As mentioned earlier this year, the volatile and complicated macroeconomic and geopolitical environment has already brought up inflationary, foreign currency and other issues and such tension may not be eased in the near future. Together with the COVID-19 pandemic which could remain for a longer period of time, the Group foresees the challenging environment will be persisted throughout this year. Nevertheless, the Group will stay focus on its new drug development, sales organisation reform and expansion, and cost containment, and firmly believes that all these works to be done will eventually drive growth therefor and will eventually create more value for the shareholders."