re: 1164.HK - Vital Biotech - HK listed - HK$0.64
2002-11-21 Specialist BRW.COM.AU
Vital leaps forwards
In an outer-eastern Melbourne suburb, two scientists are working on the next phase of an ambitious plan to commercialise Australian technology in China. Terry Au Yeung and Thomas Ko, executive directors of Vital BioTech Holdings, will open a research facility, employing 30 scientists, at Rowville in February next year. Vital was established this year as a holding company for companies set up by Au and Ko since they were Melbourne science students in the 1970s. The $11 million research facility is being funded by the proceeds of Vital's $HK130 million ($34 million) listing on Hong Kong's growth equities market (GEM) in February this year.
Au says: "We were the first Australian group to list on GEM and I'm hoping it might be a model for other Australian companies focused on China. We knew the Hong Kong market would understand our plans for China, and that paid off. We were 100% over-subscribed in a tough market." Vital's shares, issued at HK45¢, were trading at HK24.7¢ on November 15. Au and Ko may have started in Australia but the group now has a strong international flavor, the Vital group being registered in the West Indies' Cayman Islands.
Vital develops scientific products in Australia and then produces and sells them in China. It employs about 700 people in its manufacturing facilities at Chengdu (Sichuan province) and Wuhan (Hubei). Most of its products fall into two categories: skin drug delivery systems, such as spray-on bandages, and drugs that can be administered without injection, such as Opin, a vaginal suppository.
By making and marketing its own products, rather than licensing them to large pharmaceutical companies, Vital has become one of the few profitable Australian medical products companies. In the 12 months to December 31 last year, it reported a net profit of $HK39 million, up 160%, on revenue that increased 92.2%, to $HK123 million.
Au is not concerned about the company's share price decline. "Nobody has escaped the Hong Kong slump," he says, "but Hong Kong is a lively market and it will come back strongly."
Next year, Vital wants to set up a joint venture with an Australian science company to develop new products. Au says Vital might also consider listing on the Australian Stock Exchange. "To spin off an Australian listing is part of a long-term plan, maybe in the next three years," he says.
Platform Technology
Vital Biotech offers partners product protection and user-friendly drug delivery systems with its patented platform technologies:Protein Stabilisation and Delivery (PSD)· Stabilisation of biological proteins and live organisms· Increased production yield with reduced production time, lower cost and room temperature stability · Turbo micro-bioencapsulation · Micro distribution and release of actives in solid dose · Novel mucosal delivery systems· Micro oral dose with macro systemic response· By-pass hepatic first pass degradation Vital BioTech has developed a unique, patented platform technology for protein stabilization and non-injection delivery which can be applied to proteins, enzymes and probiotics. This novel process (known as micro-bioencapsulation) takes place within an air stream or nitrogen environment at 38-40°C. The biological material in the liquid formulation is instantaneously immobilised onto the seed particles being fluidised. The process can yield between 2 and 3000kg of free flowing product. The encapsulated products are biologically stable and can be administered in more convenient dose forms - sublingual or nasal presentations instead of parenteral or nebulised. Sublingual and nasal delivery of products provides therapeutic responses with reduced side effects or degradation. Room temperature storage time is substantially extended, avoiding the need for refrigeration and short product expiry. The micro-bioencapsulation process avoids the expensive freeze drying process, resulting in a faster, higher yield and a lower cost production process.Utilising the Vital BioTech protein stabilisation technology and delivery system overcomes significant issues associated with current therapeutic options.Existing technology platforms & dosage form Vital BioTech technology platform & delivery system
Active biological proteins administered via injection Sublingual, nasal, oral, vaginal or skin delivery options
Daily administration difficult with injections Simple and practical daily self administration
Refrigerated 4°C storage often required Room temperature stability
Market potential limited by cost and logistical requirements Larger market potential and geographical distribution
Examples of biological products in micro-bioencapsulated technology:Proteins· Interferon-α · Hyaluronic acid · Erythropoietin (EPO) · Lysozyme/Muramidase · Bromelain o Beta-galactosidase · Interleukin-1b peptide · Enzyme growth promotant:Protease, Amylase, Cellulase, Lipase · Porcine somatotropin (growth hormone) Bacteria· Lactobacilli · Bifidus Viruses (Avian)· Newcastle Disease (ND) · Infectious Bursal Disease (IBD) · Infectious Bronchitis (H120) Commercial example OpinVaccine Stabilisation An extension of the PSD technology applied to live viruses. This technology allows for the replacement of freeze drying of the vaccine, extend the product shelf life at room temperature and reduce the requirement for refrigerated logistic and storage conditions. Example of Viruses (Avian)· Newcastle Disease (ND) · Infectious Bursal Disease (IBD) · Infectious Bronchitis (H120)Skin Drug Delivery System (SDDS)· Polymer membrane technology for spray-on skin patch delivery system·Water proof· Flexible· Porous · Self disintegrating· Sustained release· Non-aerosol Commercial example Spray-On Bandage
　Business Strategies
Vital Biotech has many approaches to its business: Vital Biotech is well positioned to expedite the product development cycle and shorten lead times for launch of new products. This competitive advantage will be conducive to the pursuit of technological alliances with leading global pharmaceutical and biotechnology companies that require enhanced biopharmaceutical products or intend to enter into the PRC market.· 1. Development and distribution of own branded products　Utilises in-house R&D to develop new products to complement existing products　　 Opin　　 Osteoform　　 Spray-On Bandage　　 Product Pipeline · 2.Joint development and distribution arrangements　Partnership agreements with overseas pharmaceutical and biotechnology companies to enhance existing products with application of the PSD and SDDS technologies and /or product distribution in the PRC　Example of partnership arrangement · 3. Establishment of joint ventures　Joint ventures formed with business partners to develop, manufacture, market and distribute improved products　Provision of the platform technologies as capital assets · 4. Licensing and services arrangement　Licenses the platform technologies to third parties for limited non-exclusive use　Provision of technical solutions to production or product instability problemsVital Biotech is well positioned to expedite the product development cycle and shorten lead times for launch of new products. This competitive advantage will be conducive to the pursuit of technological alliances with leading global pharmaceutical and biotechnology companies that require enhanced biopharmaceutical products or intend to enter into the PRC market.
2003-9-23 11:23:00 a.m. HKT, AFX
HK's Vital BioTech to increase stake in Sichuan unit
HONG KONG (AFX-ASIA) - Vital BioTech Holdings Ltd (1164.HK) said it will acquire a 15 pct stake in Vital Pharmaceutical (Sichuan) Co Ltd for 47.17 mln hkd or about 50.00 mln yuan, making the latter a wholly-owned subsidiary. The vendor of the stake is Harvest Time (HK) Ltd.
The company said Vital Pharmaceutical has contributed to 93 pct and 64 pct of its turnover and net profit, respectively, for the six months to June. It said the transaction provides an opportunity to increase its consolidated profits and thus enhances its shareholder value.
(1 usd = 7.80 hkd, 8.30 yuan)
peter.chan@afxasia.com
ptc/skb
2003-09-01 Vital BioTech Holdings Limited (1164.HK)
VITAL BIOTECH ANNOUNCES 2003 INTERIM RESULTS
PROFITS SURGE 38% TO HK$25 MILLION
* * * * *
SATISFACTORY PROGRESS IN PRODUCT COMMERCIALIZATION &
PLATFORM TECHNOLOGIES DEVELOPMENT
BROADENS REVENUE SOURCE IN THE NEAR FUTURE
Financial Highlights
Turnover increased 93% to HK$125 million
Profit attributable to shareholders increased 38% to approximately HK$25 million
Basic earnings per share increased 28% to HK2.01 cents
Proposed interim dividend is HK1 cent per share
(Hong Kong, August 31, 2003) - Vital BioTech Holdings Limited ("Vital BioTech" / the "Group")(stock code: 1164), a leading research-based biopharmaceutical enterprise with strong Australian origins, announced its first interim results for the six months ended June 30, 2003. This is the first result release after the switch from the GEM to the Main Board of the Stock Exchange of Hong Kong Limited with effect from August 4, 2003.
During the period under review, the Group's turnover increased from HK$65 million to approximately HK$125 million, representing an increase of 93% as compared to the same period last year. Sales of 'Osteoform'1 remain encouraging with turnover growing by 120% from HK$52 million to HK$115 million. Profit attributable to shareholders increased 38% to reach approximately HK$25 million. Earnings per share were HK2.01 cents, an increase of 28% over the same period last year.
In view of the satisfactory results, the Board of Directors proposed to pay an interim dividend of HK1 cent per share with options for scrip share or partly in cash and partly in scrip share to its shareholders (2002: HK1 cent per share). Mr. Thomas Ko, Chairman and Executive Director of Vital BioTech said, "We are delighted to report our first interim results after switching from GEM to the Main Board. The success is attributable to all the dedicated staff, the support of our shareholders and business partners, and our high caliber products. Looking ahead, we are confident that our solid financial position will propel our business growth and will help to generate fruitful return to the shareholders."
1. A Compound Amino Acid Chelate Capsule - 'Osteoform'
Accounting for about 91% of the Group's turnover, 'Osteoform' continues to be the Group's core revenue source. In view of the well-established brand awareness, the Group has changed its promotion strategy. Mr. Terry Au Yeung, Vice Chairman and Executive Director of Vital BioTech said, "The promotion of 'Osteoform' has turned into a consumer education process based upon social activities in local communities. Sales in the 1st quarter were outstanding and the product was amongst the best sellers in the mineral and nutritional product category. In the 2nd quarter, local community activities were interrupted by the outbreak of SARS. We expect the promotional activities will return to normal in the 3rd quarter."
2. Opin – Interferon based product - interferon based vaginal suppository with indication for chronic viral cervicitis and viral vaginal infections
On the other hand, sales of 'Opin' was handicapped by the GMP compliant requirement which was introduced by the State Food and Drug Administration ("SFDA") as part of the modernization policy the whole PRC pharmaceutical industry. The sales of 'Opin' has decreased from about HK$12 million to HK$9 million. Nevertheless, the targets to obtain a GMP certificate for the new Wuhan factory before the 1st quarter of 2004 will be on track.
In addition, 'Opin' has been granted a new drug certificate by the SFDA in the PRC in March, 2003. This is a new extended indicated to cover viral vaginal infections. This officially widened the clinical indication for 'Opin'. A plan to launch a new packing design for 'Opin' is targeted for the 1st quarter of 2004. This will be based on a board advertising theme taking advantage of the new GMP certificate and the new clinical indication. Vital BioTech is confident that sales of 'Opin' will recover and generate lucrative income in the near future.
Platform Technologies
3. PSD - A platform technology that utilizes a micro bio-encapsulation process and allow protein pharmaceutical products to be room temperature stable and deliverable via a non-injection route
To broaden the income stream, Vital BioTech continued to place a strong emphasis on its R&D to enhance its technology platforms and to develop new products. During the period, several R&D projects on Protein Stabilization and Delivery System3 ("PSD") have reported encouraging progress.
4. EPO - A natural protein produced by our kidneys to stimulate the body to produce red blood cells
The Human recombinant Erythropoietin ("rHuEPO") oral sublingual tablet ("EPOTAB") project would appear to be one of the first biological products to be delivered orally. EPOTAB compliments the shortcomings of the injection form. This would widen EPO's indications and potentially widen the market. At the same time, the Group is seeking support from domestic and international Erythropoietin4 ("EPO") manufactures to access the EPO market.
5. Receptorase
For this compound, the Group has just finished an extensive field clinical trial. It is now finalizing the data for product registration for product launch in the PRC market. Armed with date from the encouraging preliminary animal testing, the Group is also actively seeking partnership with international veterinary companies in order to access the overseas market.
6. SDDS – Skin Drug delivery platform technology
Apart from the development of PSD technology, Vital BioTech also succeeded in cooperating with Qingdao Growful Pharmaceutical Group to form a cooperative joint venture in July 2003 to further develop its other Skin Drug Delivery System6 ("SDDS") platform technology.
Products in Pipelines
Mr. Au Yeung said, " 'Osteoform' and 'Opin' will continue to be the Group's major income sources for the year. More importantly, to enrich our product portfolio and broaden our income stream, we are committed to introduce new products and commercialize our PSD and SDDS platform technologies. A number of new products are in the pipeline with target launching date at about the 4th quarter of 2003 and the 1st quarter of 2004."
Mr. Ko concluded, "We will continue to expand our product line in the PRC, capitalizing on our well-established market network and using that as a platform to commercialize our proprietary biotechnology. We will further utilize all these as initiatives to expand into other regions around the world. The Group is actively seeking strategic alliances with leading biopharmaceutical enterprises in the PRC and overseas. With the solid foundations laid over the past years, we are optimistic in taking our business further in the coming future."
About Vital BioTech
Vital BioTech is a research-based biopharmaceutical company with Australian origins. The Group is a fully integrated international corporation principally engaged in the R&D, production and distribution of biopharmaceutical and conventional pharmaceutical products. Currently, the Group has a substantial market share in the PRC. It specializes in downstream biotechnology processing and drug delivery systems. These technologies can be applied internationally to enhance product values. With a well-established and extensive distribution network, the Group is focusing on the further development of the PRC market. The Group has R&D centers in Melbourne, Australia and Chengdu, PRC. Production plants are situated in Chengdu and Wuhan, PRC.
2002-11-08 VITAL BIOTECH ANNOUNCES 2002 THIRD QUARTER RESULTS
TURNOVER AND PROFITS SURGE 34% AND 8% RESPECTIVELY
(Hong Kong, November 8, 2002) --- Vital Biotech Holdings Limited (stock code: 8193), a leading research-based biopharmaceutical enterprise with strong Australian origins, today announced its third quarter results for the nine months ended September 30, 2002.
During the period under review, the Group's turnover increased from approximately HK$79 million to approximately HK$106 million, representing a substantial increase of 34% as compared to the same period in 2001. Profit attributable to shareholders increased 8% to approximately HK$24 million. This satisfactory growth was mainly attributable to the increasing sales of Osteoform which grew by 80%, reaching HK$ 90 million as result of the Group's effective marketing strategies.
Mr. Thomas Ko, Chairman and Executive Director of Vital Biotech, said, "We are very encouraged to have achieved such strong business growth during the period. This proves the success of our strategy to promote Osteoform which has captured such a significant share of the market. This success also demonstrates the huge market demand in the PRC as well as the confidence of our customers in our products."
During the period under review, 5 million bottles of Osteoform capsules were produced at Vital Biotech's production plant at Sichuan, the PRC, on its production line which became GMP compliant in early 2002. The product is distributed through the Group's extensive network with more than 40,000 points throughout the PRC.
Mr. Terry AuYeung, Executive Director of Vital Biotech continued, "Because we established Osteoform as the priority product for key promotion during the year, the sales of Opin temporarily slackened. Nevertheless, we have been able to maintain Opin's profits at HK$8 million, as the production process was modified to lower production costs. To grasp every business opportunity, a series of promotional campaigns will be launched in the late first half of 2003 when Opin will be granted its "Class 5 New Drug" certification."
Over the years, Vital Biotech has been fully committed to enhancing its R&D capabilities. In September 2002, the Group received the "World Class Research and Development Based Biotechnology Company Investing in China" award from the Australian Chamber of Commerce in Hong Kong. This honor demonstrates recognition from an official organization for Vital Biotech's R&D contribution. It also represents strong endorsement for all its committed award research specialists in Australia.
To further strengthen its R&D facilities, Vital Biotech will upgrade its R&D center in Melbourne, Australia. The re-development project has commenced with GLP/GMP certification targeted by September 2004. In addition, development of the Group's R&D Building in Sichuan, the PRC, is in progress with foundation work for all routes and pathways almost completed. The Group plans to implement GLP certification by June 2003.
Mr. Ko said, "Looking ahead, Osteoform and Opin will continue to be our major income sources. At the same time, we are committed to diversifying our business and revenue streams by developing more new drugs such as EPO, Depile, etc, and especially, to cash our development of two platform technologies, PSD and SDDS technologies. The Group believes that these will become significant business drivers in the medium and long terms."
Vital Biotech commenced a technology project with a Chinese animal vaccine manufacturer to produce animal vaccines using the Group's patented Protein Stabilization and Delivery System (PSD) technology. The Group has succeeded in fulfilling its objective to replace the traditional freeze-dried process after a series of experimental results. The next step is to prepare for in-house clinical field trials. This can be regarded as a breakthrough against traditional vaccine production techniques with potential significant cost savings. Meanwhile, the Group is endeavoring to develop a range of products using the Skin Drug Delivery System (SDDS) technology. The preliminary concept has been formulated and preparation work for clinical trials are in progress.
Mr. Ko concluded, "Leveraging on our strong R&D capability to develop quality biopharmaceutical products and technologies, with established presence and extensive distribution network in the PRC, we will further accelerate our business growth and continue to achieve better results in the years to come, finally and not least, generating promising returns for our shareholders." |
