Core Viewpoint - The approval of Ryaltris (GSP301NS) by the National Medical Products Administration marks a significant milestone for the company, introducing a new treatment option for allergic rhinitis in China and leading the way into a new era of combination therapies in the market [1][11]. Market Opportunity - Allergic rhinitis is a chronic condition affecting approximately 10% to 20% of the global population, with China having a notably high prevalence rate of about 17.6%, translating to nearly 250 million affected individuals [2][5]. - The market for allergic rhinitis medications in China is projected to grow from 43.275 billion RMB in 2024 to 50.090 billion RMB in 2028, with a compound annual growth rate (CAGR) of approximately 3.72% [5]. Product Details - Ryaltris is a novel combination nasal spray that combines an antihistamine and a corticosteroid, designed for the symptomatic treatment of moderate to severe seasonal allergic rhinitis in adults and children aged 6 and above, as well as perennial allergic rhinitis in adults and children aged 12 and above [6]. - Clinical data from Phase III trials indicate that Ryaltris outperformed two existing single-agent nasal sprays, demonstrating superior efficacy and safety profiles [6]. Competitive Landscape - The approval of Ryaltris fills a significant gap in the Chinese market, which has been dominated by foreign single-agent nasal sprays, and is expected to enhance the treatment options available for patients suffering from allergic rhinitis [5][6]. - The company has also developed multiple high-potential products in the allergic rhinitis space, including two first-generic products that have already been launched, indicating a strong pipeline and market presence [7]. Strategic Focus - The respiratory and critical care segment is a core strategic area for the company, which has established a comprehensive product portfolio addressing various respiratory conditions [8]. - The company aims to continue its focus on innovation and global expansion, developing a range of products for chronic airway diseases and critical care, thereby solidifying its position in the industry [11].

Core Viewpoint - The company has achieved significant innovation progress and robust financial performance in 2025, driven by high R&D investment and strategic policy support [1][2][27]. Financial Performance - In the first half of 2025, the company reported a record revenue of approximately HKD 61.1 billion, with net profit around HKD 11.7 billion [1]. - R&D investment reached about HKD 10.2 billion, leading to 38 major R&D milestones, including 16 innovative products [1]. Innovation and Product Development - The company’s Yttrium-90 microsphere injection received FDA approval for primary liver cancer, achieving a 98.5% objective response rate [2][7]. - The company has successfully integrated multiple innovative products into the commercial insurance directory, enhancing its market presence [2][3]. - The nuclear medicine segment has become a core revenue driver, with approximately HKD 4.2 billion in revenue, reflecting over 100% growth [4]. Market Potential and Strategy - The global liver cancer treatment market is projected to reach USD 9.81 billion by 2030, indicating significant growth potential for the company's innovative therapies [6]. - The company is positioned to leverage its comprehensive clinical and commercialization network across Europe, the US, and Japan to enhance product penetration [2][9]. Regulatory and Policy Support - Recent policy measures from the National Healthcare Security Administration have established a stable pricing mechanism for innovative drugs, further empowering the company's growth [1][27]. - The establishment of a zero-radiation smart nuclear medicine factory in Chengdu represents a strategic investment in advanced manufacturing capabilities [15][16]. Competitive Landscape - The company is one of only four globally to commercialize innovative nuclear medicines, positioning it as a leader in the field [3][9]. - The market for radiopharmaceuticals is rapidly expanding, with significant transactions involving major multinational corporations [9][10]. Product Pipeline and Future Outlook - The company has a robust pipeline with 15 innovative products targeting various cancers, including prostate and kidney cancers, with several in Phase III clinical trials [10][12]. - The innovative eye drug OC-01 for dry eye syndrome has shown promising clinical results and is expected to capture a significant market share in China [25][26]. Investment Sentiment - The company's strategic value has been recognized by the capital market, with multiple institutions raising their ratings and target prices significantly [27].

Summary of the Conference Call for Yuan Da Pharmaceutical Company Overview - Yuan Da Pharmaceutical's core business includes three main segments: nuclear medicine for oncology and cardiovascular precision treatment, pharmaceutical technology, and biotechnology [2][5] - The company reported a revenue of HKD 11.6 billion last year, with a net profit of HKD 1.76 billion after excluding investment income, achieving a gross margin of nearly 60% and a net margin of approximately 20% [2][6] Key Points and Arguments Business Growth and Development - The E90 product has shown significant growth, contributing to the pharmaceutical technology segment's recovery post-collective procurement [2][3] - The STC3,141 product for sepsis has a domestic market potential of over HKD 10 billion and an overseas potential exceeding USD 10 billion, currently in Phase II clinical trials [2][8] - The company plans to launch multiple collaborative and self-developed products by 2030-2031, with four self-developed products already in clinical research [2][9] Financial Performance - The company maintained a double-digit revenue growth last year, with a projected similar performance for the current year [6] - The total dividend for 2024 is expected to be HKD 900 million, resulting in a dividend yield of 5% [6] Product Development - E90 is designed for treating unresectable colorectal cancer liver metastases and advanced primary liver cancer, with a focus on improving accessibility through insurance coverage [7] - The STC3,141 product is positioned as a major player in the sepsis market, with significant potential despite some uncertainties [8] Strategic Initiatives - The company is expanding its domestic production capacity to control costs and enhance its competitive edge in the synthetic drug sector [10][11] - In the pharmaceutical technology segment, the company has passed the peak of collective procurement and anticipates the launch of several ophthalmic and agricultural products in the coming years [12] Innovations in Specific Fields - In the field of otolaryngology, the company is focusing on traditional Chinese medicine and OTC innovative drugs, addressing unmet medical needs [14] - The cardiovascular emergency segment is adapting to the aging population, with new products mitigating the impact of collective procurement on short-term performance [15] - The biotechnology segment has a strong market presence with amino acids and taurine, planning to enhance high-value terminal products for future profit growth [16] Overall Market Position - The company’s overall market capitalization is estimated between HKD 55 billion to HKD 60 billion, with current market value below HKD 30 billion, indicating significant upside potential [3] Additional Important Insights - The company has a comprehensive layout in the synthetic drug field, with a first-class production base and international-level R&D platform [10] - The company is actively involved in clinical trials for sepsis and related conditions, with a focus on immune regulation [13] - The heart and brain vascular intervention segment is developing a range of innovative devices, with 27 products already in the pipeline [17] This summary encapsulates the key aspects of Yuan Da Pharmaceutical's conference call, highlighting its business segments, financial performance, product development, strategic initiatives, and overall market position.