Chinese (API) maker ScinoPharm said that it met its sales targets in 2010, despite rocketing raw materials prices, cutbacks in government healthcare spending in key markets and currency revaluation.
The company saw revenue grow 2.53 per cent over 2009 to NT$3.8bn thanks to growing demand for active pharmaceutical ingredients (APIs), particularly those for cancer drugs, from customers in a number of key international markets.
CEO Jo Shen said: “[ScinoPharm] has expanded export sales for over 13 products to international markets such as the United States, Canada, Europe and Japan, gaining international recognition.”
She added that this is based on the company’s investment in the development of highly potent oncology APIs, which includes the new research and development base it is building in the Changsu Economic Development Zone in Jiangsu.
Shen predicted that the first phase of the project will be completed by the end of the fourth quarter this year and forecast that full scale API production will begin before the end of 2012 which, she added, would drive further growth of the firm’s business.
“ScinoPharm’s new customers, aside from the well-established markets in US and Europe, will include Chinese pharmaceutical companies that seek to expand their foreign markets, and Chinese branches of globally renowned pharmaceutical corporations.
“The increased production capacity offered by the new facility will also decrease the overall production costs and expand product categories, creating forward momentum to boost the growth of the Company."
The investment only had a slight impact on ScinoPharm’s profits for 2010, which were down NT$1m on 2009 to $1.04bn.
Outlook for 2011
ScinoPharm also forecast more growth in the next 12 months, citing reform in its own home territory and a likely increase in demand from generic manufacturers for APIs as a significant opportunity.
“The onset of health care reforms in China and the United States and the upcoming peak of patented drug expiration signify strong market demand for generic drugs, and ScinoPharm is actively preparing to take advantage of this opportunity.”
The firm also reiterated the likely benefits of its position as the sole global supplier of Vilazodone Hydrochloride, the API of the novel CNS-based anti-depressant Viibryd, which had been approved by the United States Food and Drug Administration (FDA).