Fosun Pharma Net Profit down 45% in Q1 2022 as Value of Financial Assets Slumps

Healthcare, Financials Author: Jizhen Huang Editor: Tao NI Apr 27, 2022 10:55 PM (GMT+8)

Founded in 1994, Shanghai Fosun Pharma is a global pharmaceutical and health group rooted in China and driven by innovation. Its businesses include pharmaceuticals, medical devices and diagnosis, medical and health services. The group covers the pharmaceutical field through participation in Sinopharm Holdings.

Fosun Pharma

Fosun Pharma (复星医药, SH:600196, HK: 02196) released the first quarter report of 2022 on April 26. The company achieved an operating income of CNY 10.38 billion (USD 1.58 billion) with a year-on-year increase of 28.87%.

The net profit attributable to shareholders of the listed company was CNY 463 million, down 45.41% from the same period last year; The net profit for shareholders after deducting non-recurring gains and losses was CNY 801 million, 21.73% higher than the previous year.

The group stated that due to market fluctuations, the share price of its financial assets such as BioNTech (US: BNTX) shares at the end of the reporting period decreased compared with the end of 2021.

Due to changes in fair value of these financial assets, the group posted CNY - 338 million in non-recurring gains and losses during the reporting period, down from CNY 189 million from the same period last year, a year-on-year decrease of CNY 527 million.

Fosun Pharma enriches its innovative product pipeline through diversified and multi-level cooperation models such as independent R&D, strategic cooperation, license-in, and deep incubation.

Focusing on key disease areas such as oncology and immune regulation, metabolism and digestive system, and central nervous system, Fosun Pharma has built and formed technology platforms for small molecule innovative drugs, antibody drugs, and cell therapy, and actively explores RNA, oncolytic viruses, and gene therapy, targeted protein degradation and other cutting-edge technologies to enhance innovation capabilities.

In early 2020, Fosun closed a deal with BioNTech on the exclusive development and commercialization of its mRNA covid vaccine (Chinese: 复必泰) in mainland China, Hong Kong, Macao and Taiwan.

On April 26, 2022, according to open sources, the Omicron Variant Coronavirus Inactivated Vaccine by Sinopharm Holdings obtained approval for clinical trials from China’s National Medical Products Administration. Fosun Pharma is the second-largest shareholder of Sinopharm Industrial Investment.

As of today's trading, Fosun Pharma shares closed 5.72% lower to CNY 42.37 apiece on the A-share market. They slid 5.93% down to HKD 32.5 (USD 4.14) per share on Hong Kong Stock Exchange.