FAQs

In this section, you check the frequently asked questions that investors often ask for Uni-Bio Science Group.
Check our answer to solve all your curiosity.

Please give a brief introduction of the Group.

Uni-Bio Science Group is a leading Chinese biopharmaceutical healthcare company engaged in the research, development, production and commercialisation of biopharmaceuticals for the Chinese healthcare market. The Company is headquartered in Hong Kong and is listed on the main board of the Stock Exchange of Hong Kong Limited (HKEx stock code: 0690). Uni-Bio Science has developed a strong competitive portfolio of market-leading products in diabetes, ophthalmology and dermatology across China. Our products are manufactured at our state-of-the-art cGMP certified plants in Beijing and Shenzhen.
The Company is also committed to developing next-generation innovative therapies and have a growing pipeline of drug candidates that with “blockbuster” potential that are complementary to its existing portfolio.

What is the Company’s principal business?

Uni-Bio Science is a leading Chinese biopharmaceutical healthcare company engaged in the research, development, production and commercialisation of biopharmaceuticals for the Chinese healthcare market. We are committed to the research and development, commercialisation and manufacturing of innovative drugs to address the unmet medical needs in China.  We currently manufacture and commercialise three marketed drugs:

  1. GeneTime® (recombinant human epidermal growth factor liquid for external use), a dermatology drug, mainly used for burns and wound healing, and is one of the leading products in the China. The drug is on the national reimbursement drug list (NRDL);
  2. GeneSoft® (recombinant human epidermal growth factor derivative eye drops), an ophthalmology drug, mainly used for ophthalmic surgeries and ophthalmic wound healing. We are in the process of applying for NRDL listing; and
  3. Pinapu® (Voriconazole), an anti-infective drug, mainly used for treating fungal infection, which is also a national reimbursement drug.

GeneTime® and GeneSoft® are both biologics manufactured by Shenzhen Watsin, while Pinapu® is a chemical drug manufactured by Beijing Genetech.

In addition, Uni-Bio Science has a growing pipeline of drug candidates that with “blockbuster” potential that are complementary to its existing portfolio of marketed therapies.

The Company’s lead programmes in development include Uni-PTH (Recombinant Human Parathyroid Hormone 1-34) for the treatment of osteoporosis and Uni-E4 a next-generation drug for the treatment of Type 2 diabetes.

Uni-PTH is the only drug class which has been shown to increase bone mass density, reduce bone fracture and effectively manage ostealgia (bone pain). It has completed phase III clinical trials, and its New Drug Application was accepted by the China Food and Drug Administration (CFDA) in April 2015. It is expected to be registered by  mid-2017.

In clinical studies, Uni-E4 has been shown to be an effective treatment for Type-2 diabetes in addition to relieving obesity in overweight patients, lowering the risk of hypoglycemia and promoting β-cell regeneration.  It has completed phase III clinical trials and Uni-Bio Science expects to submit a New Drug Application through the accelerated “green channel” shortly and for the product to be registered by mid-2017.

Given the large number of patients suffering from osteoporosis and diabetes in China, the Company has full confidence in the potential of these two new drugs.

Which industry is the Company operating in?

According to the Stock Exchange Industry Classification System, the Company belongs to pharmaceutical sector under Health & Personal Care. Under Wind’s classification, the Company belongs to the biotechnology sector.

Could you please introduce the Company’s shareholder structure?

As at 31 December 2015, Mr. TONG Kit Shing, Chairman of the Board, holds approximately 21.14% (included issued ordinary shares and underlying shares) of the shares of the Company (calculation basis of 5,049,030,129 shares in issue as at the date) registered in the name of and beneficially owned by him or Automatic Result Limited; Mr. Kingsley LEUNG, Executive Director, holds approximately 21.03% (included issued ordinary shares and underlying shares) of the shares of the Company (same as above) registered in the name of and beneficially owned by him or Lord Profit Limited, and Overseas Capital Assets Limited, an institutional investor, holds approximately 15.19% (included issued ordinary shares and underlying shares) of the shares of the Company(same as above). The remaining shares of the Company are held by institutional and retail investors.

Is Overseas Capital Assets Limited a financial investor?

Overseas Capital Assets Limited is an investment company. Its stake in Uni-Bio Science is categorized as financial investment and is not involved in the daily operations of our business.

How many employees does the Company currently employ?

As of 31 December 2015, the Company employed 289 staff, including 37 staff in the PRC R&D centres, 53 staff in the PRC sales offices, 173 staff in the PRC production sites, 17 staff in PRC headquarter and 9 staff in Hong Kong. Apart from the full-time employees in the PRC sales offices, the Company also has 141 regional distributors.  

Please introduce the senior management of the Company.

The Board of directors of the Company (the “Board”) is comprised of two Executive Directors and three Independent Non-executive Directors.

Where are the Company’s drug products being sold? What is the split of domestic and international sales?

Uni-Bio Science currently commercialises its products in Mainland China.

What are the main focus of the Company’s research and development?

The Company focuses on the research and development of innovative treatments in diabetes (including other metabolic diseases), ophthalmology and dermatology , with priority in developing Class I & VII prescription drugs. Uni-Bio Science’s Class I prescription new drugs in development include Uni-E4 for treating of Type 2 diabetes and rhEPO-Fc (Recombinant Human Erythropoietin-Fc) for the treatment of anemia, and the Class VII prescription new drug includes Uni-PTH used for treating osteoporosis.

Please give a detailed introduction of the unique advantages of the Company’s drug products on sale?

GeneTime® (recombinant human epidermal growth factor, an external-use spray) can be applied for burn wounds (including superficial or deep second-degree burns), small residual wounds, different kinds of chronic ulcer wounds (including vascular, radiation, diabetes ulcers) and new skin donor site wounds etc. At present, it is the only epidermal growth factor spray in China. It is very convenient for doctors/patients to apply.

GeneSoft® (recombinant human epidermal growth factor derivative eye drop) is used for corneal epithelium defect caused by different reasons, including corneal mechanical injury, various corneal surgery treatments, mild dry eye with superficial punctate keratopathy, and minor chemical burns etc. Because of the additional three amino acids at the amino terminal in the epidermal growth factor derivative, the molecular stability has been substantially enhanced, and therefore can be stored at room temperature.

Pinapu® (Voriconazole), a broad-spectrum triazole anti-fungus drug used for treating: invasive aspergillosis, severe invasive infections caused by fluconazole-resistant yeasts (including candida krusei), and severe infections caused by scedosporium species and fusarium species. The drug should be used to treat ongoing and possibly life-threating infections among immunosuppressive patients.

 

Please introduce the Company’s current key R&D new drugs and their market prospect.

Uni-PTH, a Class VII prescription new drug used to treat osteoporosis, stimulate bond growth, improve bone density and lower fracture risk. The China osteoporosis drug market is estimated to reach RMB15.5 billion in 2015, approximately one fifth of the global market.

Uni-E4 for treating Type 2 diabetes. Apart from effectively controlling the blood glucose level, it is also effective for diabetes affiliated obesity to ease the patients’ overweight condition. According to IMS, it is estimated that 30% of the diabetes patients are overweight, and the domestic diabetes drug market will reach RMB20 billion in 2016. Currently, 11.6% of the Chinese adults suffer from diabetes, creating a tremendous strain on the country’s public health system and a pressing need for effective treatment solutions.

What is the Company’s distribution model?

The Company has its own sales team and engages more than 150 sales representatives. Our sales network covers 1,000 hospitals. We plan to expand our own sales team and seek opportunities to collaborate with major pharmaceutical companies to market our products, with the aim to expand our coverage to 3,000 hospitals. 

Apart from the drugs manufactured by the Company itself, is there any other commissioned drug you distribute?

Yes. Currently, Uni-Bio Science is working with two partners to commercialize their drug products. In 2015, Uni-Bio Science signed a partnership to acquire a new oral anti-diabetes drug called Mitiglinide from Jiangsu Hansoh. Mitiglinide has been approved by the CFDA to treat type 2 diabetes in a first- and second- line setting. Uni-Bio Science owns all rights to the product, and Jiangsu Hansoh will continue supplying drug to Uni-Bio Science till technology transfer is complete. In 2014, Uni-Bio Science signed a cooperative partnership agreement with a Korean company, Samil Pharmaceuticals, and has become an exclusive distributor for the company’s four drug products. The term of the agreement is 8 years. The agreement is renewable upon maturity for another 4 years . 

Please give an introduction of the cooperation with the Korean company and the four drugs you distribute?

1) Rhinex nasal spray: second generation anabolic steroids indicated for seasonal rhinitis and perennial rhinitis treatment
2) Ocucyclo: a drug indicated for mydriasis and cycloplegia
3) Lantanoprost: indicated for treating primary open angle glaucoma and ocular hypertension
4) Allenol eye drop: indicated for treating allergic conjunctivitis

What were the operating results of the Company in 2015?

For the twelve months ended 31 December 2015, the Company recorded consolidated turnover of approximately HK$123.4 million, representing an increase of 9.6% (normalized growth: 11.8%)  as compared with approximately HK$112.6 million recorded in the twelve months ended 31 December 2014. In particular, The sales of in-house chemical pharmaceutical product Pinapu® reached HK$41.4 million, representing a 29.6% (normalized growth: 32.3%) year-on-year growth. The sales of in-house biological pharmaceutical products increased by 1.7% (normalized growth: 3.8%) from last corresponding year to HK$82.0 million, representing approximately 66.5% of total consolidated sales. Gross profit margins remains constant at around 83%.

What is the research & development cost of the Company?

Total Research & Development costs charged for the year, included capitalization to intangible assets of HK$19.1 million was approximately HK$36.3 million representing a growth from 9.3% to 29.4% of total revenue of the corresponding year. Most of which was related to the final phase 3 clinical trial payments and industrialization cost before commercialization. As the Group develops new technology and its pipeline, R&D costs may fluctuate year-to-year due to the cost stage of the respective development project.

Why did the Company still report losses in 2015?

During the year, the Company’s losses narrowed from HK$60.7 million in the last corresponding year to HK$42.2 million , representing a decrease of 30.5% between both year. The magnitude of decreases is very significant, mainly attributed from the growth of sales and reduction of general and administrative expenses. The Group is still showing a loss from operations mostly due to depreciation on fixed assets and amortization of intangible assets and prepaid lease payment, totaling HK$32.6 million. The majority of these expenses relate to the Group’s heavy investment in plant and machinery to adhere to the new China Good Manufacturing Practice standards, and development in advance of the commercialization of its pipeline products (Uni-PTH and Uni-E4).

How’s the cash flow of the Company? Is there any financing need?

As of 31 December 2015, the Company’s bank balance and cash amounted to approximately HK$110.0 million. The Company’s financing need depends on the cooperation forms and progress of our projects. Specifically, we may cooperate with our partners in different ways. For example, we may consider acquiring the patents for self-operation, or otherwise adopting a profit-sharing model for certain products, the need for cash flow of which may vary from case to case. Overall, the Company enjoys sound operations at present and our financing need depends on future funding requirement. We will closely monitor the market conditions and explore the best alternative when needs arise.