Dragon Pharmaceuticals Inc.
Dragon Pharmaceuticals Inc. (OTC-BB: Drug) is an international biotech company headquartered in Vancouver, Canada, with production and R&D facilities in Nanjing, China and 160 employees worldwide.
The Company develops and commercializes human proteins for therapeutic use. Using superior and proprietary DNA vector technology, Dragon is able to produce high yields of quality protein drugs at low costs and high margins. Dragon is one of the world’s largest producers of Epoetin Alfa, or EPO, a therapeutic protein used to treat anemia related to kidney failure, chemotherapy, and surgery. Dragon’s EPO is approved and being marketed for use in chronic renal failure in China, Egypt, India and Peru. Additional regulatory submissions are in progress throughout Central and Eastern Europe, Southeast Asia, Latin America and the Middle East.
DRAGON PHARMACEUTICALS INC. CORPORATE DATA
Founded: Sepetember 1998
Listed: TSX:DDD and OTC BB
Shares Outstanding: 20,331,000
Head Office: Vancouver, Canada
Manufacturing Facility: Nanjing, China
Number of employees: 160
Sales Revenue: US$3.1 million
Approved Product: Erythropoietin(EPO) for use in patients with renal failure
Product in Development: Slow-Release EPO, GTCSF, Human Lusulin, TPO
Clinical Trials in Progress:
- Clinical trials & market approval submission for EPO in surgery patients
- Pivotal Phase II/III studies for EPO in cancer patients to be completed during 2002
Dragon Pharmaceuticals Growth Strategy
Dragon’s business strategy seeks to balance the high-risk and long-term nature of novel drug development with the lower-risk and shorter time-to-revenue potential offered by generic drugs. Our business strategy, outlined below, provide the Company with a distinct competitive advantage.
INITIAL FOCUS ON GENERIC DRUGS
- To establish a strong financial foundation without the high degree of risk typically associated with early stage biotech companies, Dragon is initially focusing on the development and commercialization of large market generic biotechnology drugs, which are technically difficult to produce. With funds generated from our generic products, we will shift our focus to the development of our R&D projects into patented drugs with tremendous revenue potential.
HIGH YIELD, LOW COST PRODUCTION TECHNOLOGY
- Dragon’s proprietary DNA vector technology platform can be used to develop and produce a wide range of therapeutic protein cell lines. Our vectors incorporate numerous distinguishing features that translate into cell lines capable of producing premium quality proteins at significantly higher yields – and therefore lower production costs – than our competitors.
LOW COST DEVELOPMENT AND INFRASTRUCTURE
- In combination with our ability to produce quality generics at a fraction of the cost of our competitors, we minimize the cost of operations by conducting product development, clinical trials to support Chinese SDA approval, and production in China.
INITIAL ENTRY INTO NON-PATENTED MARKETS
- We capitalize on the clinical trial and regulatory review efficiencies which China’s SDA has incorporated into its drug approval system by seeking our initial product approvals in China.
- Following SDA approval, our international licensees – pharmaceutical companies experienced in dealing with their respective regulatory authorities – are responsible for obtaining international product approvals.
- Dragon’s strategy of first accessing China and other non-patented countries allows it to generate very substantial revenues from the developing world prior to patent expiries in – and our subsequent access to – North American, the European Union, and Japanese markets.
Dragon Pharmaceuticals Key Achievements
PROVED TECHNOLOGY PLATFORM
- Developed high-yield EPO cell line based on proprietary DNA vector technology platform
- Established bioreactor-based, commercial scale production of EPO
ESTABLISHED COMMERCIAL PRODUCTION OF EPO
- Acquired and upgraded production facility
- Awarded Good Manufacturing Practices (GMP) certification
- Produced 3.3 million doses (2000 IU equivalents) in 2001
CAPTURED 30% OF EPO MARKET SHARE IN CHINA
- Expanded distribution network to 75% of kidney dialysis facilities
- Endorsed by Chinese Medical Association for superior quality EPO
EXPANDED EPO SALES INTERNATIONALLY
- Signed 11 licensing agreements covering 90 developing world countries
- Filed international regulatory submissions
- Received marketing approvals and initiated sales in Egypt, India, and Peru
DEVELOPED ADDITONAL APPLICATIONS FOR EPO
- Completed pivotal Phase II/III clinical trial and submitted SDA application for use of EPO in surgery-related anemia
- Initiated pivotal Phase II/III clinical trial for use of EPO in anemia related to chemotherapy
ACQUIRED 4-PRODUCT PIPELINE
- Acquired ownership of TPO, G-CSF and Human Insulin projects
- Acquired exclusive worldwide manufacturing and Asian marketing rights to Slow-Release EPO
GENERATED SALES REVENUES
- Generated revenues from EPO sales to China and international markets totaling $7.24 million
ATTRACTED SIGNIFICANT FINANCING
- Raised $25 million in private placement financings
OBTAINED LISTING ON TSX
- Listed on Toronto Stock Exchange (TSX) on May 9, 2002