Annual performance report. In 2023, the company's total revenue increased 97% (102% at a fixed exchange rate) to $838 million, and consolidated revenue from the oncology/immunization business increased 223% (228% at a fixed exchange rate) to $528.6 million, close to the financial guidance limit, including confirmation of $280 million in down payments received from Takeda. The net revenue attributable to Chu Wong Pharmaceuticals reached US$100.8 million. The cash balance as of the end of 2023 was $886.3 million.
The 2024 financial guidance for the comprehensive revenue of the oncology/immunology business is between US$30 billion and US$40 million, thanks to a target increase of 30% to 50% in sales and royalties of marketed oncology products.
The market share of core products continues to increase, and sales revenue is growing steadily.
Comprehensive revenue from the oncology/immunization business increased 223% (228% at a fixed exchange rate) to US$528.6 million: 1) Elite? Market share continued to grow, and revenue increased 19% (26% at a fixed exchange rate) to $83.2 million.
2) FRUZAQLA? Revenue of $7.2 million reflects its US listing in early November 2023, including production revenue and royalties. 3) Suteida? Revenue increased 36% (43% at a fixed exchange rate) to $43.9 million due to continued marketing campaigns, increased patient coverage, and longer patient survival from treatment. 4) Warisha? Revenue increased 30% (37% at a fixed exchange rate) to US$28.9 million after being included in the national medical insurance drug catalogue in March 2023. 5) Davico? Revenue after further sales in the Hainan Pioneer Zone was $1 million. 6) The partnership's revenue was $312 million, including the $280 million portion confirmed from Takeda's $400 million down payment and the $32 million portion confirmed from Takeda's $35 million milestone payment. 7) Revenue from other R&D services was $52.4 million, mainly related to the costs of AstraZeneca, Eli Lilly, and Takeda managed development and regulatory activities.
Comprehensive revenue from other businesses increased 18% (24% at a fixed exchange rate) to $309.4 million, mainly due to increased sales of prescription drugs. This revenue does not include Shanghai Hehuang Pharmaceutical's non-consolidated revenue, which grew 4% (10% at a fixed exchange rate) to US$385.5 million.
The company's future catalytic events will be intense, and the innovation pipeline will usher in a harvest period. 1) Fruquintinib for 3L colorectal cancer was accepted by the European Union in June 23, Japan submitted a marketing application in September, and is expected to be approved in 24 years. 2) Fruquintinib's domestic 2L gastric cancer indication was accepted by the NMPA in April 23 and is expected to be approved in 24, bringing new sales growth momentum. 3) Sevotinib (c-Met inhibitor) US NSCLC indications for second-line MET amplifying EGFRTKI resistance are expected to be submitted by the end of 24, and the two domestic first-line SANOVO and second-line SACHI studies are expected to complete patient recruitment by the end of 24. 4) Solepinib (SYK inhibitor) was NDA accepted for 2L ITP in January '24 and is expected to be approved this year, and dose exploration studies are planned to be initiated in the US/Europe in the middle of the year. 5) Tazepastat (EZH2 inhibitor) is scheduled to submit a marketing application for a new Chinese drug for third-line treatment of recurrent or refractory follicular lymphoma in mid-2024.
Risk warning: risk of clinical development failure, risk of deteriorating competitive landscape, risk of sales falling short of expectations, industry policies, etc.