FAST NEWS: InnoCare Pharma Granted Production Approval for Guangzhou Facility
The latest: InnoCare Pharma Ltd. (9969.HK) announced Monday its Guangzhou manufacturing facility has been approved by the China National Medical Products Administration (NMPA) to start the production of commercial supply of its self-developed Bruton’s tyrosine kinase inhibitor, Orelabrutinib, from June 30.
Looking up: With the approval of the Guangzhou facility for commercial production, the company’s production capacity will be increased, which should bring in more sales revenue.
Take Note: Although Orelabrutinib has been commercialized, most of the company’s products are still in the research and development stage, which will put pressure on its research and development expenses as a large number of drugs in the pipeline entering clinical trials.
Digging Deeper: Founded in 2015 and listed in Hong Kong in 2020, InnoCare’s flagship product, Orelabrutinib used to treat lymphoma and autoimmune diseases, recorded revenue of 214 million yuan ($32 million) last year after receiving approval from NMPA in December 2020. The company also received 827 million yuan from licensing fees and other collaborations for the drug, boosting its total revenue to 1.04 billion yuan from just 1.4 million yuan in 2020. In December last year, the drug was included on the “National Reimbursement Drug List,” which means patients can be reimbursed for use of the drug, so hospitals will be more inclined to choose the drug as well. That should help the company continue to increase sales this year.
Market Reaction: InnoCare’s share price fluctuated slightly on Tuesday, closing up 2.5% to $13.86 at the midday break. The stock now trades at the lower end of its 52-week price range.
Translation by Jony Ho
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