In the context of the deepening adjustment of policies in the pharmaceutical industry and the intensification of market competition, Yuekang Pharmaceutical Group (stock code: 688658) takes innovation as the core driving force, relies on the synergistic advantages of the whole industry chain and forward-looking strategic layout, and delivers an answer sheet demonstrating resilience, potential and responsibility in 2024. The company has laid a solid foundation for long-term high-quality development by continuously increasing R&D investment, optimizing business strategies, and deepening digital transformation, demonstrating the strategic determination and innovation vitality of industry leaders.

R&D and innovation have achieved fruitful results, and the technological moat continues to be broadened

As a national high-tech enterprise, Yuekang Pharmaceutical has always regarded innovation as a lifeline. In 2024, the company's R&D investment will reach 422 million yuan, accounting for 11.16% of operating income, ranking among the top in the industry.

In 2024, the company made breakthroughs in the research and development of a number of innovative drugs. Three new drugs of traditional Chinese medicine, namely hydroxysafflower yellow pigment A for injection (for the treatment of acute ischemic stroke), Tongluo Jiannao Tablets and Zihua Wenlung Zhicough Granules, are all in the NDA review stage, among which hydroxysafflower yellow pigment A for injection is expected to fill the treatment gap in this field; The company's self-developed first small interfering nucleic acid drug YKYY015 injection is currently in the clinical stage of the same kind of PCSK9 siRNA project in the United States is the only global potential Best-in-class ultra-long-acting siRNA lipid-lowering drug approved by IND in the United States, the company enjoys the exclusive rights and interests in the world, the project was approved for clinical trials in the United States and China in July 2024 and October 2024 respectively, and the domestic phase I clinical trial is underway; The broad-spectrum anti-coronavirus peptide drug YKYY017 a class 1 innovative drug of chemical drugs has been authorized by the State Intellectual Property Office for invention patents, and the PCT international application has been completed simultaneously, and the company enjoys exclusive rights and interests in the world. The company's self-developed mRNA vaccine YKYY025 injection and YKYY026 injection core sequence patents have been authorized by the State Intellectual Property Office for invention patents, and the international patent application has been completed simultaneously. Up to now, Yuekang Pharmaceutical has become one of the few companies at home and abroad that has the ability to develop mRNA vaccines, small nucleic acid drugs, peptide drugs, cell and gene therapy drugs.

As of December 31, 2024, the company has a total of 42 R&D projects, including 21 innovative drugs under development, 21 generic drugs and consistency evaluation projects under development, and the company has obtained a total of 317 patents, 76 new patents and 63 new patents in 2024.

In terms of AI drug development, Yuekang Pharmaceutical has deeply integrated AI technology with the company's R&D projects and platform technologies to create a full-chain one-stop AI drug R&D platform, and has built a number of AI deep learning models, which can be used in the whole chain of drug R&D links such as target discovery, drug design, drug screening, chemical synthesis, process development and parameter optimization. The company submitted 14 AI drug algorithm invention patents to the State Intellectual Property Office, and successfully authorized 10 of them. At the same time, he has published two papers on AI drug algorithm SCI in internationally renowned journals.

In addition, in 2024, the company's R&D and pilot production platform for small nucleic acid drugs and mRNA vaccines has been put into use and is operating efficiently. At present, the company has built a leading target discovery platform, a high-throughput screening platform, a leading process development and large-scale preparation platform, and a complete analysis and quality control platform based on nucleic acid drugs, and has carried out a systematic and in-depth layout in the underlying technologies of nucleic acid drugs such as AI target discovery, sequence optimization design, LNP delivery, GalNAc delivery, extrahepatic targeted delivery, nucleoside monomer modification, and co-capping, and further strengthened the target screening and confirmation, sequence design, antigen design, efficacy evaluation, and CMC R&D capabilities for the whole chain of small-scale and pilot-scale, clinical trials to registration and application.

Digital transformation is accelerating, and cross-border cooperation is empowering and upgrading

Yu Weishi, chairman of Yuekang Pharmaceutical Group, once said that in the face of multiple factors such as global technological innovation, changes in the policy environment, intensified market competition and upgrading of patient needs, digital transformation has become the only way for pharmaceutical companies to enhance their core competitiveness.

Yuekang Pharmaceutical took the lead in carrying out digital and intelligent technological transformation in the domestic pharmaceutical industry, and was awarded the title of "National Intelligent Manufacturing Pilot Demonstration Enterprise" by the Ministry of Industry and Information Technology of the People's Republic of China. In March 2024, Yuekang Pharmaceutical and Huawei joined hands to carry out a comprehensive cooperation on digital transformation. The company will rely on Huawei's digital methodology, management system, and digital intelligence technology to deepen institutional innovation, management innovation, and technological innovation, accelerate technological revolution and industrial upgrading, comprehensively improve R&D efficiency, optimize production management, strengthen supply chain collaboration, and achieve precision marketing and personalized customer service.

As the first biopharmaceutical company in China to carry out digital transformation with Huawei, Yuekang Pharmaceutical has set a benchmark for innovation and exploration in the industry. At present, the cooperation between the two sides has entered a new stage of deepening and landing, and will gradually usher in more achievements transformation. With Huawei's in-depth empowerment, Yuekang Pharmaceutical's digital construction in the fields of innovative R&D, smart factory, digital marketing, quality management, and data platform is accelerating, which is expected to provide more effective, safer, and cutting-edge Chinese solutions for patients around the world, and continue to write a digital chapter in China's pharmaceutical innovation.

Practice social responsibility and set a benchmark for green and intelligent manufacturing

Yuekang Pharmaceutical adheres to the concept of sustainable development and adheres to the sustainable development path of green, low-carbon, energy-saving and emission reduction. The company closely focuses on the concept of green development, adheres to the green development path of safety, reliability, efficiency and environmental protection, actively organizes the creation of green factories, continuously improves the green manufacturing system, vigorously promotes structural energy saving, technical energy conservation and management energy saving, carries out various gas recovery and reuse projects, and accelerates the transformation of production and development mode to green and low-carbon.

While committed to its own development, the company actively fulfills its social responsibilities. As a pharmaceutical company, the company has always adhered to the strict concept of "drug quality is only 100 points, 99 points is equal to zero", insisted on making good drugs that people can afford, and provided patients with safe and effective medicines; Adhere to the customer-centric, establish the service concept of customer first, effectively ensure product delivery, and strive to improve product quality and service quality; Effectively protect the rights and interests of employees and career development; And actively give back to the society through public welfare donations.

Looking forward to 2025: anchoring the internationalization of innovation and opening a new cycle of growth

2024 is a key year for Yuekang Pharmaceutical to lay a solid foundation in challenges and plan a layout in innovation. With the synergy ability of the whole industry chain, cutting-edge technology reserves and forward-looking strategies, the company is steadily moving towards the goal of "innovation-driven international pharmaceutical enterprise". In 2025, Yuekang Pharmaceutical will focus on three strategic directions:

The first is to build an innovation-led biomedical enterprise. Yuekang Pharmaceutical will focus on the unmet clinical needs in the fields of cardiovascular and cerebrovascular, anti-tumor, infectious diseases and other diseases, give full play to the company's rich product portfolio and channel advantages, and lay out differentiated R&D pipelines through independent research and development, cooperative development and rights authorization, so as to strengthen its core competitive advantages. Focusing on the technical routes of nucleic acids, peptides, small molecule chemical drugs and characteristic traditional Chinese medicine preparations, on the basis of the existing mature small molecule chemical drugs and characteristic traditional Chinese medicine preparations, we will actively deploy biological drugs and create a systematic and in-depth layout of nucleic acid drugs and peptide drug research and development platforms. By solving a series of key platform technologies, we will build a series of technology platforms and incubate a series of R&D projects based on technology platforms. Relying on the core technology platform to develop improved new drugs, with the support of the existing sustained-release core technology and high-end pharmaceutical excipients, focusing on the new use of old drugs, developing new routes of administration, new indications, and promoting the innovative research and development of improved new drugs.

The second is to deepen the integrated production system of the whole industry chain of raw materials, excipients and preparations, and build a leading enterprise in the whole industry chain. The company will rely on the existing API and excipient subsidiaries to fully integrate resources, establish API bases, excipient bases, and integrated production systems for raw materials, excipients and preparations, so as to minimize production costs.

The third is to unswervingly take the international route and practice the strategy of going overseas. The company will increase the efforts of both China and the United States for innovative drugs, and make a comprehensive layout for innovative drugs to go overseas; Further improve the level of production technology, and pass overseas multi-country certification; Increase the efforts of existing products to go overseas and increase the proportion of overseas sales revenue.

In the future, Yuekang Pharmaceutical will continue to contribute scientific and technological strength to the construction of a healthy China with more breakthrough achievements, and create long-term value for shareholders and society.