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S.C.P.C — Interim / Quarterly Report 2022
Nov 16, 2022
51900_rns_2022-11-16_febda782-b271-408f-8740-262411242a31.pdf
Interim / Quarterly Report
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Standard Chem & Pharm Co., Ltd. Stock Symbol : 1720 2022 Investor Conference 11/17/2022
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免責聲明 Safe Harbor Notice
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本次簡報與討論包含特定預測性的說明,而其內容有關於營運結果、財務狀況,以及對未來事 件的預期。因為此等前瞻性說明是有關於未來事件,而且取決於未來發生時的環境因素,所以必 然含有風險與不確定性。
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本公司將不負擔公開更新或修改這些預測性的說明之義務,無論是出現新資訊、未來發生任何
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事件,或其他情況。實際結果可能與此等預測性說明推測的內容有重大差異。
In these presentations and discussions, there are certain forward looking statements regarding the results of operation, financial condition and current expectation about future events. As forward-looking statements relate to events and depend on circumstances in the future, they involve risk and uncertainty.
We do not undertake any obligation to publicly revise or update any forward looking statements for availability of new information, future events or otherwise. Real result probably differ substantially from those expected in these forward-looking statements.
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© 2022 SCP, Ltd
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Agenda
Introduction of Standard Group
2022 Q1-Q3 Operating Results
Future Operation Strategy Corporate Social Responsibility (CSR)
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© 2022 SCP, Ltd
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Agenda
- Introduction of Standard Group
2022 Q1-Q3 Operating Results Future Operation Strategy Corporate Social Responsibility (CSR)
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SCP and Related/Affiliated Companies
Upstream Manufacture Downstream
Syn-Tech (1982; 2005 SCP(1967;
Taiwan Biosim(2017)
Over-The-Counter (OTC)) 1995 listed stock)
Western
medicine
Your Chance
Syngen(1999; 2016 OTC) Souriree(1997) (Invested in 2013;
2022 Pioneer Stock Board (PSB))
Multipower
Syngen(1999)
Healthcare (Invested in 2012)
nutrition
Sun-you(1994) Advpharma (1999)
Medical-
Syngen (1999)
devices
Q
Ho Yao Biopharm
Gene chip Advpharma (1999) (2021)
Inforight(2000)
Software/Hardware 4
service support
© 2022 SCP, Ltd
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International Accreditation
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1998 2000 2008 2009 2010 2017 2021
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The first TW pharmaceutical company to be ISO9001 certified
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The first TW company to pass US FDA inspection in 2000
Subsequent US FDA GMP inspections : no 483 Last Inspection : 2022/10/31
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SCP received JP PMDA’s FDF Plant and API Plant passed “Certificate of Foreign Drug PMDA GMP Audit in 2018 Manufacturer” in 2008
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2009
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SCP’s API plant passed AU TGA inspection
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2010 SCP passed TW PIC/S GMP inspection 2012 SCP is certified GDP by the T-FDA
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2012 SCP passed K-FDA inspection
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© 2022 SCP, Ltd
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Agenda
Introduction of Standard Group
2022 Q1-Q3 Operating Results Future Operation Strategy Corporate Social Responsibility (CSR)
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55 Years of Continuous Profitability
| 0.30 0.30 0.70 1.20 1.50 1.25 1.20 1.60 0.50 1.00 1.20 2.50 1.00 1.50 1.50 1.60 1.50 1.50 1.80 2.50 2.092.15 1.771.81 1.88 1.351.47 1.61 1.73 2.09 1.95 1.90 2.03 2.09 2.11 2.93 3.95 3.58 |
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© 2022 SCP, Ltd
| Consolidated Income Statement | Consolidated Income Statement | Consolidated Income Statement | ||||||
|---|---|---|---|---|---|---|---|---|
| Items (Unless otherwise specified, expressed in thousands of New Taiwan Dollars) |
2022 Q1-Q3 | 2021 Q1-Q3 | Diff. | Annual changes (%) |
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| Operatingrevenue | 4,268,103 | 3,371,013 | 897,090 | 26.6% | ||||
| Grossprofit | 1,805,887 | 1,526,457 | 279,430 | 18.3% | ||||
| Grossprofit margin | 42.31% | 45.28% | -2.97pct | |||||
| Operatingexpenses | 991,207 | 892,428 | 98,779 | 11.1% | ||||
| Operating profit | 814,680 | 634,029 | 180,651 | 28.5% | ||||
| Non-operating income and expenses |
317,843 | 113,148 | 204,695 | 180.9% | ||||
| Profit before income tax | 1,132,523 | 747,177 | 385,346 | 51.6% | ||||
| Profit for theyear | 927,154 | 625,114 | 302,040 | 48.3% | ||||
| Profit attributable to Shareholders of the parent |
640,506 | 533,781 | 106,725 | 20.0% | Q | |||
| EPS(NTD) | 3.58 | 2.99 | 0.59 | 19.7% | ||||
| Note 1: SYN-TECH CHEM. & PHARM. Co., Ltd. is | consolidated into the financial report since | 2021.12.08. | ||||||
| Note 2: Consolidated profit margin decreased in | 8 comparison with last year due to the consolidation of SYN-TECH's profit margin of 35.60%. |
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| © | 2022 SCP, Ltd |
Comparison of Quarterly Revenue of Past 5 Years (Consolidated)
| 0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
0 500,000 1,000,000 1,500,000 2,000,000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 18 19 20 21 22 18 19 20 21 22 18 19 20 21 18 19 20 21 22 Expressed in thousands of NTD |
|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Total | Growth(%) | |
| 2018 | 763,261 | 897,693 | 913,353 | 998,786 | 3,573,093 | -7.2% |
| 2019 | 846,177 | 1,010,837 | 1,048,886 | 1,031,229 | 3,937,129 | +10.2% |
| 2020 | 1,034,417 | 1,108,059 | 1,045,351 | 1,117,573 | 4,305,400 | +9.4% |
| 2021 | 1,101,113 | 1,149,060 | 1,120,840 | 1,233,069 | 4,604,082 | +6.9% |
| 2022 | 1,237,170 | 1,481,061 | 1,549,872 | 4,268,103 | +26.6% | |
| 2 SCP, Ltd Note: SYN-TECH CHEM. & PHARM. Co., Ltd. is consolidated into the financial report since 2021.12.08 |
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Note: SYN-TECH CHEM. & PHARM. Co., Ltd. is consolidated into the financial report since 2021.12.08 © 2022 SCP, Ltd
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Consolidated Balance Sheet
| Items | 2022/9/30 | 2022/9/30 | 2021/9/30 | 2021/9/30 | Diff. | Annual changes(%) |
|---|---|---|---|---|---|---|
| (Expressed in thousands of NTD) | Amount | % | Amount | % | ||
| Cash and cash equivalents | 2,454,867 | 22.0% | 1,325,452 | 17.9% | 1,129,415 | 85.2% |
| Accounts receivable | 1,424,976 | 12.8% | 1,073,774 | 14.5% | 351,202 | 32.7% |
| Inventories | 1,322,473 | 11.8% | 968,244 | 13.1% | 354,229 | 36.6% |
| Investments | 999,506 | 8.9% | 1,173,217 | 15.8% | (173,711) | (14.8%) |
| Property,plant and equipment | 3,529,686 | 31.6% | 2,074,708 | 28.0% | 1,454,978 | 70.1% |
| Others | 1,436,662 | 12.9% | 795,380 | 10.7% | 641,282 | 80.6% |
| Total Assets | 11,168,170 | 100.0% | 7,410,775 | 100.0% | 3,757,395 | 50.7% |
| Current Liabilities | 3,306,926 | 29.6% | 1,740,975 | 23.5% | 1,565,951 | 89.9% |
| Non-current Liabilities | 700,316 | 6.3% | 526,817 | 7.1% | 173,499 | 32.9% |
| Total liabilities | 4,007,242 | 35.9% | 2,267,792 | 30.6% | 1,739,450 | 76.7% |
| Total shareholder’s equity | 7,160,928 | 64.1% | 5,142,983 | 69.4% | 2,017,945 | 39.2% |
| Debt Ratio(Liabilities/Assets) | 35.9% | 30.6% | ||||
| 022 SCP, Ltd Note: SYN-TECH CHEM. & PHARM. Co., Ltd. is consolidated into the financial report since 2021.12.08 |
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Note: SYN-TECH CHEM. & PHARM. Co., Ltd. is consolidated into the financial report since 2021.12.08 © 2022 SCP, Ltd
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Consolidated Cash Flows
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| Consolidated Cash Flows | ||
|---|---|---|
| Items | 2022 Q1-Q3 | 2021 Q1-Q3 |
| (Expressed in thousands of NTD) | ||
| Cash at beginning ofyear | 2,564,395 | 1,036,183 |
| Cash flows from operatingactivities | 962,804 | 557,366 |
| Acquisition ofproperty, plant and equipment | (1,010,569) | (165,908) |
| Cash dividends | (446,740) | (321,653) |
| Short-term borrowings | 567,183 | 151,496 |
| Investment and others | (182,206) | 67,968 |
| Cash at end ofyear | 2,454,867 | 1,325,452 |
| Free cash flow (Cash flows from operatingactivities-Acquisition ofproperty,plant and equipment) |
(47,765) | 391,458 |
Note: SYN-TECH CHEM. & PHARM. Co., Ltd. is consolidated into the financial report since 2021.12.08
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© 2022 SCP, Ltd
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© 2022 SCP, Ltd
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Agenda
Introduction of Standard Group 2022 Q1-Q3 Operating Results Future Operation Strategy Corporate Social Responsibility (CSR)
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Future Milestone
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From Taiwan to International
From Generics to Better than Generics (BTG)
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SCP – Major International Businesses of the Past 2 Years
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Taiwan China Japan
•
• • Bronchiolitis drug, non-
Sales performance growth Continues export of antibiotic
steroid anti-inflammatory
during COVID-19 due to injection.
well-managed production • drugs are delivered
Application for Generic
and sales coordination. persistently.
Quality Consistency
•
• CDMO/CMO products in
The cumulative profit of Evaluation(GQCE) and drugs
SCP, Syn-Tech, and BE studies in process. process.
Syngen 2022 hit a new
high record in the first
three quarters of 2022.
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© 2022 SCP, Ltd
Revenue Growth Strate -Taiwan gy
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- The EPS of 3 companies of SCP group hit record hi h in the first three uarters of 2022 g q
SCP (1720) 3.58 Syn-Tech (1777) 6.10 Syngen (8279) 9.31
- Outstanding Operation
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4 major business field
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Western medicine, APIs, health food, and drugstore chain channels
© 2022 SCP, Ltd
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Excellent operation team: SCP, Syn-Tech, Syngen, and Your Chance
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July 2022, API department was split-off from SCP and transferred to Syn-Tech
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October 2022, Your Chance registered for Pioneer Stock Board (6929)
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China Market Trends: Current
- China’s Drug Market continues to grow due to strengthening its medical and health system.
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- Market declined in 2020 due to epidemic, but the sales growth rate picked up in 2021, and it is expected to grow in the future.
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China Drug Market Scale
16,000 50.0%
14,000 40.2% 40.0%
14,063
13,782
13,313
12,000 12,931
12,436 30.0%
11,467
10,000
20.0%
8,000
8,180 12.4%
10.0%
6,000 7,277 8.5% 5.6% 6.6% 6,832
7.1%
0.0% 0.0%
4,000 Q
-8.0%
-10.0%
2,000
0 -20.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022H Source: 16
Year www.menet.com.cn
Sales Growth Rate China CMH (second-level and public hospital)
Sales (CNY100Million)
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© 2022 SCP, Ltd
China Market Trends: Report to the 20th National Con ress—Advancin the Health China Initiatives g g y
Population development strategy
3 Healthcare systems at once
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China's children's drug market has tripled in 13 years since 2007
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Actively develop medical insurance
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Improve insurance and medical assistance system
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Future focus on children's medicines (e.g. dosage forms, rare disease treatments, etc.)
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Implement the settlement of medical treatment in different places and establish a long-term care insurance system
Preservation & innovation of traditional Chinese medicine
Proactive response to population aging
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The proportion of chronic medical diseases in the country will increase to 68%
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Establish a traditional Chinese medicine evaluation system suitable for its unique laws, and optimize traditional Chinese medicine with ancient classic prescriptions
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Strengthen the comprehensive prevention and control of chronic diseases by promoting the use of medicines
© 2022 SCP, Ltd
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Revenue Growth Strate - China gy
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Competitiveness
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Bio- Equivalence Execution
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SCP has successful experience with U.S. and Japan regulatory dossiers
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One completed
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Expertise in Fasting & Fed BE design and execution
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Medium-term targets
NMPA Consistency Evaluation
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Self-developed products submission
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6 ongoing cases, 4 of which were submitted for evaluation
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Enhance profit sharing revenue
Cooperation
Strategy
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Tech-transfer
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Emphasize export and tech transfer simultaneously
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Accelerate license acquisition, import MAH
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License cooperation
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Co-development
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Profit-sharing Partnerships
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- Self-owned medicine certificate and establishment of channel
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© 2022 SCP, Ltd
Ja an Market Trend p
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Sales quantity of generic drugs accounted for 71% of the total market, and sales amount accounted for 41% of the market.
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The generic drug market is affected by rising prices and the depreciation of the yen. The cost accounts for 60 to 80% of the drug price. Total of 696 items (94 companies) in deficit according to MOHW’s survey. Scholars called on the Japanese government to implement short-term countermeasures
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Sales Quantity Sales Amount
100% 100%
90% 90%
34% 31% 30% 29%
80% 41% 38% 80%
45%
70% 70% 59%
72% 70% 68% 65% 64% 63%
60% 60%
50% 50%
40% 40%
66% 69% 70% 71%
30% 59% 62% 30%
55%
20% 20% 28% 30% 32% 35% 36% 37% 41%
10% 10%
0% 0%
2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
學名藥 Generic Drug 原廠藥 Brand Drug 學名藥 Generic Drug 原廠藥 Brand Drug
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Revenue Growth Strategy - Japan
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Collaboration Model
Strategy
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Agent for brand drugs.
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CDMO
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Collaboration with local company in different market.
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Japan marketing partner
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Strategic alliance with API manufacturer.
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API Vertical Integration with Syn-Tech. On Going
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License Holder
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Current State
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Ongoing export of Montelukast (Asthma) and Celecoxib (Antiinflammatory)
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CDMO/CMO
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Common items for China/ Southeast Asia/ Japan are under discussion
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Obtained agency for gout new drug. Clinical trials in process, and it is expected to be launched in 2025
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| US Market Trend | US Market Trend | ||||
|---|---|---|---|---|---|
| • | Executive order was signed on Sep.12, 2022 to invest more than $2 billion to | ||||
| support the domestic biotechnology industry. | |||||
| • | More than 80% of the APIs in the US are imported, and more than half of the APIs | ||||
| come from China and India. | |||||
| • | Ensuring the localized supply of APIs. | ||||
| • | Outsourced production needs have become an important | business source for | |||
| Taiwan biotechnology industry. | |||||
| Item Content |
Investment | ||||
| Strengthen Investment in APIs, antibiotics, and |
$310 million in 5 | ||||
| supplychains infectious disease drugs |
years | ||||
| Expand US investment in biotechnology industry |
$1.7 billion in 5 | ||||
| production infrastructure Expend Investment in biofuels and chemicals |
years $170 million |
Q | |||
| domestic market | |||||
| Innovation Provide innovation funds |
over $200 million | 21 | |||
| © | 2022 SCP, Ltd support |
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Revenue Growth Strate – U.S.A. gy
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U.S.A. Market
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Largest Rx Market, with large proportion of generic drugs.
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Drug certificate application is characterized by its complexity, lengthy review process, and its cost
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Current Status
Strategy
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Co-develop new
-
Export of diabetic and amyotrophic lateral sclerosis(ALS) drugs.
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products with pharmaceutical
- 2 drugs was P4 approved (drugs could be lunched during 2023 and 2024)
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companies and dealers.
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API Vertical Integration with Syn-Tech.
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© 2022 SCP, Ltd
SCP’s Alliance with EASYWELL BIOMEDICALS
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EASYWELL’s US production base: Tulex Pharmaceuticals
-
Located in New Jersey
-
Obtained order from US department of Defense
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© 2021 SCP, Ltd
Future Operation Strategy
Future From Taiwan to International From Generics to BTG
2023 2022 China USA、Japan
Core techniques and Increasing oversea professional Global marketing Marketing revenue 增加海 核心技術 skills to expend & 專業 海外市場操作 practices global sales turnover 借力使力 Enhance oversea sales’ 外比例 • Mature R&D techniques Foundation improvement resources to create turnover To speed up turnover • Hire international talents Plan and operate the Explore and learn different market with foreign market rules companies Seeking medium to long-term partnership
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Agenda
Introduction of Standard Group 2022 Q1-Q3 Operating Results Future Operation Strategy Corporate Social Responsibility (CSR)
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Fan Dao Nan Foundation
Fan Dao Nan Foundation
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Established in 1987
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Endowment Fund: NT$196 Million
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Annual Budget: NT$12 Million
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Principal Activities
- Non-profit education
Cultural and educational
Children’s education and
development activities
- Scholarships and Talent Cultivation happiness
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Rewards and Honors Received
2011: Special Recognition Award – Ministry of Education
2012: Tainan City Govt. Grant for Scholarship Program
2013: National Special Selection Award for After-School Program – Dept. of Education
- 2022: Group Award on Social Education Contribution by Ministry Of Education
© 2022 SCP, Ltd
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| ~~©~~ | 27 List of Group Award-MOE Social Education Contribution Q ~~2022 SCP, Ltd~~ Y2021 Y2022 Taoyuan City LOHAS Pilot Education Society ROC Foundation for Autistic Children and Adults in Taiwan Yuanta Cultural and Educational Foundation Sin-Guang Visually Impaired Education Foundation TSMC Education & Culture Foundation ESUN Education & Culture Foundation Maconix Education Foundation Chun Yi Foundation AAEON Foundation First Commercial Bank Edu. & Cul. Foundation ASUS Foundation Doandelin Hope Foundation Buddha’s Light International Association ROC Feng-Nian Elementary School, Xinzhuang Dist., New Taipei City Juhu Elementary School Mei Nong Ph.D. Scholar Association Soil and Water Conservation Bureau Council of Agriculture, Hualien Branch Chang Gung Health and Culture Village Water Source Education & Culture Foundation Taiwan Reading Culture Foundation Huiguang Yuanton Puxian Culture and Education Foundation Fan Dao Nan Foundation Taisun Cultural Foundation Chang Yung-Fa Foundation Chen Qingbo Culture and Education Foundation UMC Education & Culture Foundation NOVATEK Education Foundation National Library of Public Information New Taipei City Banqiao Community University Family Education Center of Tainan City |
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Corporate Social Responsibility: Jan~ Oct 2022
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Scholarships Hope After-school Class Sunflower Wednesdays
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University (related fields): 4universities/5 students •Weekday afternoons •Every Wednesday afternoons
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High school :5 schools, totaled 93 students Middle school:57schools, totaled 726 students •31 schools,2,545students •8 Schools,460 students Elementary school :208schools,totaled 2,465 students
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Total scholarship NTD 5.79 MM Total scholarship NTD 1.71MM Total scholarship NTD 400 KK Other Sponsorships Meal-Assistance Charity
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Sponsorship to 12 non-for Provided 6,775 meals to SCP Children’s Drawing
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profit organization for students during winter and Competition
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cultural and educational advancement summer vacation. SCP National Table Tennis Q Competition*
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Assisted Total- NTD 540KK
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Grant Total- NTD 530 KK Suspended due to Covid-19 28
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Senior Gym in Taiwan – Athletic Training and Health Center
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Jan. to Oct. 2022,
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The number of users is accumulated 54,998 user times.
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16 health lectures were conducted regarding body healthcare and fitness
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Communit Landsca in Ado tion y p g p
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Cor orate Volunteer Fireman p
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Q & A
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