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Dear colleagues,
Happy New Year! With 2022 now upon us and a heart full of gratitude for last year, I would like to give my warmest thanks and best wishes to all the hardworking people at Luye around the world for your outstanding efforts in 2021. Also, sincerest thanks to all of our clients for their continued support!
Perseverance and Opportunities
Over the past year we have witnessed some of the greatest ever challenges for China’s pharmaceutical industry, amidst unprecedented changes. A combination of supply-side pharmaceutical industry reform, healthcare policy adjustments, and the COVID-19 pandemic overlapping from last year caused massive ripple effects across the whole industry. At the macro level, China’s economic development has faced pressure from reduced demand, supply shocks and weaker forecasts, while the global economy has also remained sluggish. Other factors such as the international environment, economic cycle, industrial structure, and the ongoing pandemic have made the future uncertain. With the competition so fierce, I know that all of us in the industry are feeling the same anxieties and pressures.
"Innovation" and "internationalization" are unanimously regarded as the most powerful weapons for addressing intense competition, however they are also the most difficult to wield. Fortunately, Luye has always firmly believed in the strength of these strategies, with both in implementation since the early days of the company. To grow into an innovative pharmaceutical company with global influence, we must venture beyond China, adapt to international markets and serve global patients. "Innovation" is the basis of "internationalization”, which in turn helps maximize the value of this "innovation.” Our core strengths lie in these two long-standing strategies. They are invaluable assets that empower us to embrace the future with confidence.
The unusual transitional period we are in has made us more acutely aware that the core strategies we have committed ourselves to over so many years have indeed made our business resilient and sustainable. In an industry experiencing such a sea change, the only way for us to better grow the company and serve patients is to maintain a heightened sense of urgency and forge our abilities for the future. We must be more focused than ever before on the strategic goals of the company, centralizing resources on business with the greatest value to better provide patient-centric, clinically beneficial offerings.
The year 2021 was a fruitful year for our pharmaceutical business, with three new products approved for launch and the New Drug Application (NDA) submitted for a number of others. To accelerate the transformation of innovation to value, we worked closely with global business partners, leveraging our resources and advantages in the international market to increase accessibility to our core products in local markets. In addition, we made strides with our “biopharmaceutical business strategy” in 2021, delivering fruitful results through in-house innovation and external collaboration.
Our healthcare service business has adjusted its priorities to stay closely aligned with patient needs. Mindfront Health, our mental health service brand, opened multiple medical facilities in China with the introduction of its leading integrated mental health service systems from Australia. Furthermore, our healthcare facilities in Australia and Singapore explored digital health and telehealth service models, and our project in Shanghai New Hongqiao International Medical Center joined hands with an esteemed local public hospital to explore new opportunities.
Other business segments under Luye Life Sciences Group also made breakthroughs: Patronus Biotech set up a pioneering Recombinant Protein VLP Platform, achieving milestone results in human and veterinary vaccine development with its new technology approach. The diagnostics unit worked on a new generation of assays and helped improve the precision of HIV antiviral therapy. Together, all business segments enhanced coordination to create greater value.
The above hard-won achievements, which were only possible thanks to our perseverance in implementing these strategies, have created new opportunities for us.
A Turning Point and Harvest
The year 2022 will be a turning point, when we will harvest the fruit of our perseverance.
Aligned with "innovation" and "internationalization", Luye Pharma has been accelerating clinical studies of key pipeline projects for early product launch and systematically building global commercial infrastructure. After years of efforts, we are now equipped with competitive abilities in international R&D, registration and clinical research, supply chain, and product commercialization. As international operations become more mature and efficient, future products will receive stronger support upon global commercialization. Luye Pharma will launch more innovative drugs in 2022, and we will see the gradual return on our investments into innovation in China and international markets.
The healthcare service business will enter a period of strategic integration to further align with patient needs and focus on core therapeutic areas. The business sector will build and strengthen its unique value-based clinical service system centered on clinical benefits, and optimize current service models by actively embracing internet health and digital health tools. This effort will enable us to create a better service experience for patients and thus generate greater business value.
Being patient-centric is not only the business principle underpinning our pharmaceutical and healthcare service sectors, but also the starting point and end goal of all entities under Luye Life Sciences Group. Our business sectors, including pharmaceutical, healthcare services, vaccines, and molecular diagnostics, are all closely situated along the value chain of patient service, and pursue the company mission of “advanced technologies for better quality of life”. It is the cornerstone of our effort to serve patients, help employees achieve more at work, and generate value for shareholders.
When the times dictate the need for fundamental changes and industry upgrades, other opportunities present themselves, and new historical chapters are written. There will still be infinite space for innovation and development in the pharmaceutical industry after major reshuffles. To best fit in to the future landscape, we will orient our strategies and business plans more closely toward high quality innovation, and adopt a down-to-earth approach to enhancing our competitiveness.
Starting out as a domestic-facing Chinese pharmaceutical company, Luye Life Sciences has gradually grown to become a life sciences group with a global business presence. Its growth has been a step-by-step process. Nothing is smooth sailing. There have been ups and downs in this process. Over the past 27 years, we have risen to various challenges and achieved splendid outcomes thanks to the steadfast perseverance of thousands of Luye staff members, day after day, year after year. Each of us contributed a ray of light, and together we outshone the sun. In the future, the biggest test will still be whether we can stick to our core values, keep pursuing our mission, and keep implementing our strategies.
Working with all of you makes me believe we have a bright future ahead of us. I have great confidence in and great hopes for everyone at Luye! Lastly, I want to say thank you again to all our colleagues around the world for their effort and dedication. I wish you and your loved ones health and happiness in 2022!
Liu Dianbo
Chairman of the Board, Luye Life Sciences Group