According to the Futu Securities app, on August 27, Fosun Pharma (600196.SH; 02196.HK) released its mid-year performance for 2024. Guolian Securities issued a research report review, maintaining a 'buy' rating due to the improvement of the company's pharmaceutical, medical services, and medical device businesses in 2024.

According to the research report from Guolian Securities, the pharmaceutical, medical device, diagnostic, and medical service businesses of Fosun Pharma improved as the company further focused on its online business, optimized expenses, and benefited from centralized procurement of drugs and medical devices.

The financial report shows that Fosun Pharma achieved operating revenue of 20.463 billion yuan in the first half of the year, excluding revenue from COVID-19-related products, with a year-on-year growth of 5.31%. The net income attributable to the parent company after deducting non-recurring items was 1.254 billion yuan, of which the net income in the second quarter of 2024 was 0.646 billion yuan, an increase of 0.037 billion yuan compared to the previous quarter.

According to the research report from Guolian Securities, the pharmaceutical, medical device, diagnostic, and medical service businesses of Fosun Pharma improved. In the first half of 2024, the pharmaceutical business of Fosun Pharma achieved revenue of 14.677 billion yuan, with innovative drugs contributing over 3.7 billion yuan in revenue and maintaining steady growth. Excluding revenue from COVID-19 products, the pharmaceutical business revenue increased by 1.89% compared to the same period last year.

According to the research report, Fosun Pharma's pharmaceutical business saw multiple updates during the reporting period. Avatrombopag was approved for new indications. The pricing of Capella and Toripalimab through medical insurance took effect in January 2024. The biosimilar of Trastuzumab was approved for marketing in the United States. The consignment of Hanschuer reached overseas markets in January 2024, and the bridging trial initiated in the United States is progressing smoothly. In the first half of 2024, the medical device business of the company reached 24 installations of Da Vinci robots in China and Macau. Sisram Med launched a multi-functional flagship device led by photorejuvenation, and its agent hyaluronic acid sodium complex landed in Hainan in April 2024. We believe that the company's pharmaceutical and medical device businesses have good growth prospects.

In the first half of the year, Fosun Pharma further focused on innovative drugs and high-value medical devices. The innovative drug business made breakthrough progress in core treatment areas such as solid tumors, hematologic malignancies, and immune inflammation, and achieved multiple innovative results in the field of tumors such as hematologic malignancies, breast cancer, and lung cancer. During the reporting period, Fosun Pharma obtained approvals for 9 indications for 4 innovative drugs/biosimilars developed independently or licensed domestically and internationally, and obtained approvals for 38 generic drugs domestically and internationally.

In H1 2024, fosun pharma has 9 indications of 4 innovative drugs/biosimilars independently developed, co-developed, and licensed for marketing approval/key clinical stages. The pharmaceutical sector has filed 124 patent applications, including 2 US patent applications, 8 PCT applications, and obtained 37 invention patent authorizations.

During the same period, fosun pharma invested 2.737 billion yuan in research and development; of which, R&D expenses were 1.862 billion yuan. The pharmaceutical business invested 2.406 billion yuan in research and development, accounting for 16.39% of pharmaceutical business revenue; of which, R&D expenses were 1.572 billion yuan, accounting for 10.71% of pharmaceutical business revenue.