Jacobson Pharma Announces FY2025 Interim Results

KEY HIGHLIGHTS

- First-half revenue up by 13.3% to HK$810.0 million
- Profit from continuing operations increased by 44.2% to HK$140.3 million
- Net gearing ratio significantly down to 5.6% from 12.2%
- Interim Dividend of HK3.5 cents per share, up by 40.0% year-on-year
- Continued enrichment of pipeline through R&D and strategic in-licensing
- Enhanced production capacity and leverage boost operational efficiency

HONG KONG, Nov 22, 2024 - (ACN Newswire) - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Company"; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of essential medicines and specialty drugs, today announced the interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 September 2024 (the "Reporting Period").

During the Reporting Period, the Group achieved 13.3% growth in total revenue compared to FY2024 Interim, totaling HK$810.0 million. The profit for the period from continuing operations amounted to HK$140.3 million, reflecting an increase of 44.2%. Increased profit from continuing operations was mainly due to strong performance in the generic drug business in Public and Private Sectors, revenue from new products, and improved operational efficiency through cost-control measures and enhanced production leverage.

Solid business performance and disciplined cost management contributed to a healthy financial position, yielding a strong adjusted EBITDA of HK$272.2 million throughout the Reporting Period. The net gearing ratio significantly improved to 5.6%, down from 12.2% at the close of FY2024, while the Group's cash reserves demonstrated resilience, with a balance of HK$515.9 million. These financial metrics highlight the Group's operational discipline and ability to adapt to market dynamics, positioning the business for continued growth and development.

The Board has declared the payment of an interim dividend of HK3.5 cents per share, up by 40.0% year-on-year.

Robust Portfolio and Supply to Meet Rising Demand

The Group's extensive portfolio and efficient supply chain have enabled it to address the rising demand for essential and specialty medications effectively.

From mid-January to late July 2024, Hong Kong experienced a prolonged flu season, significantly boosting demand for cold and flu treatments. Beyond seasonal flu, factors such as an aging population with chronic conditions, increased health awareness, and rising mental health concerns have driven high healthcare visits and medication usage. These trends contributed to strong sales momentum in the Group's Public and Private Sector businesses in the first half of FY2025.

These factors align with the strong growth of the Group's products in relevant therapeutic categories. For example, the Group's cardiovascular offerings - ACE inhibitors, beta-blockers, and diuretics - saw significant sales growth during the Reporting Period.

Strong R&D Pipeline Strengthens New Product Launch

Throughout the Reporting Period, Jacobson Pharma steadily advanced its R&D pipeline to enhance and diversify its product portfolio. As of 30 September 2024, the Group's pipeline grew to 193 products. Of these, 65 products have received registration approval, 14 are awaiting approval, and 58 have progressed to the stability preparation or study phase. Furthermore, 19 products are in the formulation or pre-formulation research stage. This strong pipeline underscores the Group's commitment to sustainable growth and its readiness to meet market demands with a broad range of high-quality treatments.

Furthermore, the Group also bolstered its portfolio through strategic in-licensing agreements, focusing on cardiovascular health, diabetes management, and allergy treatment. Highlights include acquiring an anticoagulant therapy for cardiovascular care, an ophthalmic product for allergies, and exclusive distribution rights for a vital antibiotic from the U.K., addressing targeted healthcare needs in Hong Kong and Macau.

Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, stated, "We remain confident in the long-term growth of the generic drugs and healthcare sectors, propelled by increased government healthcare investments, generics substitution policies, an aging population with complex health needs, along with the increased prevalence in chronic conditions.

To seize these opportunities, we are committed to enhancing our business's adaptability and agility in this dynamic environment. Through a focused growth strategy, we aim to solidify our position as a leading pharmaceutical provider in Hong Kong. Our efforts center on optimizing our product range, expanding our pipeline through strategic in-licensing and targeted R&D, enhancing commercial and regulatory capabilities, and forging key partnerships. This approach positions us to capitalize on emerging markets and deliver essential and specialized medications to a broader patient demographic."

About Jacobson Pharma Corporation Limited (Stock Code: 2633)

Jacobson Pharma is a leading pharmaceutical company in Hong Kong vertically integrated and engaged in the research, development, production, sale and distribution of essential medicines and specialty drugs. As a major provider of generic drugs in Hong Kong, the Group has one of the most extensive sales and distribution coverage for both the private and public sectors in Hong Kong, with an expanding reach into strategically selected Asian markets. Carrying a broad product portfolio and taking a pre-eminent market position in a number of therapeutic categories, the Group operates a host of 9 PIC/S GMP licensed production facilities for generic drugs in Hong Kong.

The Group is commited to strategically enhancing its portfolios by introducing high-value-added specialty products. With its corporate headquarters based in Hong Kong, the Group has also established its operating subsidiaries in China, Macau, Taiwan and Cambodia, forming a regional commercial platform to tap the market potential in the Asia Pacific and Greater China region. Jacobson Pharma has been a constituent stock of MSCI Hong Kong Micro Cap Index since 1 June 2017. For more details about Jacobson Pharma, please visit the Group's website: http://www.jacobsonpharma.com

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