Tigermed Reports 2024 Interim Results

Rhea-AI Summary

Hangzhou Tigermed Consulting Co., (300347.SZ / 3347.HK), a leading clinical research solutions provider, reported its 2024 interim results. The company saw a clear quarter-on-quarter improvement in Q2 2024, with total revenue reaching 1,698 million RMB (2.3% increase), gross profit at 705 million RMB (12.2% increase), and net profit attributable to shareholders after deducting extraordinary gain or loss at 337 million RMB (11.3% increase).

For the first half of 2024, Tigermed achieved total revenue of 3,358 million RMB and gross profit of 1,333 million RMB. The company maintained its leading position in China's clinical service market with a 12.8% market share and expanded its global presence across 37 countries. Tigermed's clinical operations in North America, Asia-Pacific, and EMEA regions showed significant growth, with the company handling over 133 multi-region clinical trials.

Positive

• Clear quarter-on-quarter improvement in Q2 2024 with increases in revenue, gross profit, and net profit
• Maintained leading position in China's clinical service market with 12.8% market share
• Expanded global presence across 37 countries with 9,348 employees
• Rapid growth in North American clinical operations, managing over 45 ongoing clinical trials
• Strengthened capabilities in Asia-Pacific region through acquisition of Japanese CRO company Medical Edge
• Conducted over 100 Phase I-IV clinical trials in EMEA region
• Assisted in the approval of 11 new drugs in China, the U.S., and Japan
• Acquired China division of NAMSA and signed strategic cooperation agreement for global collaboration
• Expanded preclinical DMPK and bioanalytical laboratory capabilities in Europe through Frontage Holdings

Negative

• Total revenue for the first half of 2024 (3,358 million RMB) not compared to previous year, potentially indicating slower growth
• Gross profit for the first half of 2024 (1,333 million RMB) not compared to previous year, possibly suggesting margin pressure

HANGZHOU, China, Aug. 28, 2024 /PRNewswire/ -- Hangzhou Tigermed Consulting Co., Ltd. ("Tigermed" or the "company") (Stock code: 300347.SZ / 3347.HK), a leading provider of clinical research solutions across full lifecycle of global biopharmaceutical and medical device products, announced its interim results for the first half of 2024, ended June 30, 2024 (the "Reporting Period").

This press release is for information purposes only and is not intended to provide any representation, in whole or in part, of the relevant matters. Please refer to the 2024 interim results announcement and other relevant announcements published on the websites of the Shenzhen Stock Exchange (www.szse.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk) for further information. 

All financials disclosed in this press release are presented in accordance with China Accounting Standards for Business Enterprises ("CASBE") except for those specifically noted otherwise.

Clear QoQ Improvement Seen from Q2 2024 Performance

• Total revenue achieved 1,698 million RMB, a quarter-on-quarter increase of 2.3%
• Gross Profit reached 705 million RMB, a quarter-on-quarter increase of 12.2%
• Net profit attributable to shareholders of the Company after deducting extraordinary gain or loss^※ reached 337 million RMB, a quarter-on-quarter increase of 11.3%.

First Half of 2024 Financial Performance

• During the reporting period, total revenue achieved 3,358 million RMB
• During the reporting period, gross profit achieved 1,333 million RMB
• During the reporting period, net profit attributable to shareholders of the Company after deducting extraordinary gain or loss⁽¹⁾ achieved 640 million RMB
• Segment revenue generated from Clinical Trial Solutions reached 1,637 million RMB
• Segment revenue generated from Clinical-related and Lab Services reached RMB 1,721 million.

※Non-recurring gains and losses refer to the transactions and occasions that are not directly related to the normal operation of the Company. It is indirectly related to the normal operation of business, but due to its special and occasional nature, it affects people's ability to make normal judgments on the Company's operating performance and profitability.

Business Highlight:

Tigermed has maintained its leading position in China's clinical service market, holding a 12.8% market share in 2023. Notably, it was the only Chinese CRO to rank among the global top 10 that year, with a global market share of 1.4%⁽¹⁾_. As of June 30, 2024, Tigermed had a total of 9,348 employees across 37 countries. During the reporting period, Tigermed accumulated experience in handling over 133 multi-region clinical trials (MRCTs) and is currently executing 55 MRCT projects.

On a global scale, Tigermed's clinical operations and new orders in North America continued to grow rapidly. The U.S. clinical operations team expanded to nearly 100 employees and managed over 45 ongoing clinical trials, including more than 25 MRCTs. In the Asia-Pacific region, Tigermed strengthened its capabilities by acquiring the Japanese CRO company Medical Edge and enhancing its data management, statistical analysis, and clinical data information system services in Japan and the broader Asia-Pacific region. In the Europe/Middle East/Africa (EMEA) region, Tigermed conducted over 100 Phase I-IV clinical trials, with MRCT experience covering 19 European countries.

In the clinical trial solutions field, as of June 30, 2024, Tigermed had accumulated experience in 1,121 Regulatory Affairs projects, added 21 new U.S. Food and Drug Administration IND (FDA IND) projects, and assisted in the approval of 2 products in China. Additionally, the pharmacovigilance team signed 80 new projects and gained 106 new customers in the first half of 2024, establishing a local PV team in the U.S. for the first time. The Medical Translation team added 34 new customers, serving over 630 customers as of June 30, 2024. The Tigermed E-Site Program (Clinical Trial Sites of Excellence) expanded to 273 E-Site centers, and 88 green channel centers, and completed agreements with 77 strategic cooperation centers.

As of June 30, 2024, Tigermed assisted in the successful launch of 2 innovative medical device products. Additionally, Tigermed acquired the China division of the renowned medical device CRO NAMSA (Nengsheng (Shanghai) Medical Device Technology Consulting Co., Ltd) and signed a strategic cooperation agreement with NAMSA, establishing exclusive cooperation in the China region and global collaboration.

In the clinical-related and lab services field, as of June 30, 2024, Tigermed Data Management & Statistical Analysis ("DMSA") had 824 ongoing DMSA projects and assisted in the approval of 11 new drugs in China, the U.S., and Japan. In the Site Management ("SMO") services, Tigermed provided support for 9 approved Class 1 innovative drugs in China and had 2,110 ongoing site management projects. Additionally, the Independent Central Imaging team added more than 10 new clients and contributed to the approval of 3 new drugs in the first half of 2024.

As of June 30, 2024, Tigermed subsidiary --- Frontage Holdings, acquired a preclinical DMPK and bioanalytical laboratory in Nerviano (Italy), expanding its pharmacological and analytical business in Europe. In addition, A subsidiary of Frontage Holdings, Frontage Pharmaceuticals, established an integrated process and services platform for drug R&D, clinical trial drug/placebo production, and clinical supply of drugs.

Tigermed accelerates the expansion of the application of new technologies in clinical trials, leading the new trends in the development of clinical research. As of June 30, 2024, Tigermed assisted an American MNC pharmaceutical company in obtaining approval in China for a new generation of CGRP receptor antagonists for the treatment of migraines. Besides, Tigermed completed the implementation of the ESDR (Electronic Source Data Repository) deployment and in-hospital data integration for 3 hospitals using the E2E (eSource to EDC) model. As of June 30, 2024, the Company completed 63 Phase I projects (including BE projects) based on the E2E model.

To drive sustained business growth, the company implemented a series of targeted business development strategies in the first half of 2024. Firstly, the company established special business units focused on three therapeutic areas: Cell and Gene Therapy (CGT), GLP1 Receptors, and Radiopharmaceuticals. By integrating resources and expertise, these units offer clients customized R&D strategy consulting and clinical development services. Additionally, the company formed the Clinical Operations Strategy Committee to consolidate resources and experts, enhance the depth of clinical strategies, and effectively increase the success rate of RFPs to promote order conversion.

Moreover, the company set up a Solutions Business Unit dedicated to developing long-term strategic cooperation with MNCs and providing one-stop solutions for MNCs' China projects. Lastly, the company will continue to increase its investment in overseas markets (US, Australia, Europe, etc.) to establish independent overseas business capabilities and brand presence, and further expand into global projects for foreign customers.

Management Comments

"In the first half of 2024, despite the complexities of the international landscape and economic environment, China's innovative drug research continued to thrive," said Dr. Xiaoping Ye, Co-Founder and Chairman of Tigermed. "The enhancement of supportive policies and a strong industry ecosystem in China continue to drive the growth of China's innovative pharmaceutical sector. As Tigermed celebrates its 20th anniversary, this milestone offers an opportunity to reflect on our achievements and set our sights on the future. We will continue to embrace industry trends, navigate market shifts, and promote the advancement and internationalization of the Chinese pharmaceutical industry."

"Over the past two decades, our team has remained dedicated to delivering high-quality services and innovative solutions to clients worldwide, earning widespread recognition in international markets," said Ms. Xiaochun Cao, Co-Founder, Executive Director, and President of Tigermed. "We are actively expanding into key regions such as the United States, Asia-Pacific, and Europe, where our business is experiencing steady growth, and we are providing strong support for multiple innovative drug development projects. Looking ahead, we will continue to collaborate with global partners and provide better treatment options for patients worldwide."

Mr. Hao Wu, Executive Director and Co-President of Tigermed added: "As a leading provider of integrated biopharmaceutical R&D services, Tigermed will continue to enhance the quality and efficiency of our services. We will fully leverage our integrated platform's strengths, strengthen collaboration with the entire industry, accelerate the drug development process, and work together to advance the entire pharmaceutical R&D service industry, making a greater contribution to global health initiatives."

(1) Source: Frost & Sullivan

Forward-Looking Statements

The information communicated herein may contain certain "forward-looking statements", which are not historical facts but instead include predictions about future events based on our beliefs and information currently made available to us. Although we believe that these predictions are reasonable on the date hereof, future events are inherently uncertain and these forward-looking statements may turn out to be incorrect. Forward-looking statements involve risk and uncertainty by nature because they relate to events and will depend on circumstances that will occur in the future relating to, inter alia, our ability to compete effectively, our ability to develop and market new service offerings, our ability to expand into new markets, the risks associated with listed subsidiaries of the Company, unforeseeable international tensions, regulatory or governmental scrutiny in certain countries, the impact of emergencies and other force majeure events. We undertake no obligations to update forward-looking statements or to adapt them to future events or developments except as required by applicable laws or listing rules. Any investment in any securities issued by the Company or its subsidiaries will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, you should not rely on these forward-looking statements.

About Tigermed

Tigermed (Stock code: 300347.SZ/3347.HK) is a leading global provider of integrated research and development solutions for biopharmaceutical and medical device industry. With a broad portfolio of services and a promise of quality, from preclinical development to clinical trial to commercialization, we are collaborating with over 3,000 customers and committed to moving their development journey efficiently and cost-effectively. Tigermed currently represents a worldwide network of more than 180 locations with over 10,000 employees across Asia Pacific, Europe, North America, Latin America and Africa. We are devoted to building an integrated platform that enables the boundless possibilities for the healthcare industry, embracing challenges to fulfill our commitment to serving unmet patients' needs, and ultimately saving lives.

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SOURCE Tigermed

FAQ

What was Tigermed's total revenue for Q2 2024?

Tigermed's total revenue for Q2 2024 was 1,698 million RMB, representing a quarter-on-quarter increase of 2.3%.

How many employees does Tigermed (HNGZY) have as of June 30, 2024?

As of June 30, 2024, Tigermed had a total of 9,348 employees across 37 countries.

What was Tigermed's market share in China's clinical service market in 2023?

Tigermed held a 12.8% market share in China's clinical service market in 2023.

How many multi-region clinical trials (MRCTs) is Tigermed (HNGZY) currently executing?

As of the reporting period, Tigermed is currently executing 55 MRCT projects.

How many new U.S. FDA IND projects did Tigermed add in the first half of 2024?

Tigermed added 21 new U.S. Food and Drug Administration IND (FDA IND) projects in the first half of 2024.