China Medical System Reports 2024 Results, Innovation Drives Growth Amid Challenges

China Medical System Holdings (CMS) has released its 2024 annual results, reporting a turnover of RMB 7,469 million, a 6.8% decrease year-on-year. The company attributed the decline primarily to the implementation of national volume-based procurement (VBP) policies, which led to a 28.8% decrease in turnover for original drugs not selected for the program.

Despite the overall performance dip, CMS characterized 2024 as a "year of restructuring" and "breakthroughs." The company saw significant growth in its exclusive and innovative products segment, which increased by 4.1% year-on-year to RMB 4,551 million, representing 52.8% of total turnover. Five innovative drugs entered the commercialization stage during the year, though they are in the early market introduction phase.

In 2024, CMS submitted new drug applications for two novel drugs in China, including ruxolitinib cream for vitiligo treatment. The company maintains a robust pipeline with nearly 40 innovative products in various development stages. Furthermore, CMS is expanding into Southeast Asia, preparing to launch pharmaceutical contract development and manufacturing (CDMO) and sales promotion businesses in Singapore.

The company emphasizes product competitiveness as central to its innovation growth engine. CMS focuses on selecting first-in-class (FIC) and best-in-class (BIC) innovative drugs based on market demand and specific screening criteria. Marketed innovative drugs like VELPHORO (Sucroferric Oxyhydroxide Chewable Tablets), a phosphorus binder for chronic kidney disease patients, are highlighted for their clear differentiation and ability to fill market gaps.