Core Insights - The 2025 International Cooperation and Exchange Conference on Industrial and Supply Chains was held in Wuxi, focusing on the theme "Gathering New Quality Productive Forces, Open Cooperation for a Win-Win Future" [1] - The establishment of the Jiangsu Province Biopharmaceutical Full Industry Chain Open Innovation Alliance and the signing of several foreign-funded R&D center projects mark a significant acceleration for Wuxi's life and health industry [1] Industry Growth - Wuxi's biopharmaceutical industry has shown robust growth, reaching a total scale of 200 billion yuan by the end of 2023, with an average growth rate exceeding 13% over the past five years [2] - The Wuxi High-tech Zone (Xinwu District) accounts for over 1 billion yuan of this growth, representing a significant portion of the city's biopharmaceutical industry [2] - GE Healthcare's Wuxi base has evolved from an ultrasound equipment assembly plant to the largest global production base for ultrasound and life care devices, serving over 100 countries [2] Innovation in Medical Devices - GE Healthcare's Carevance patient monitor, developed in Wuxi, features a "mobile brain" design that simplifies clinical operations and ensures continuous monitoring of vital signs [4] - Wuxi has released a list of innovative biopharmaceutical products, including advanced ultrasound diagnostic systems, showcasing the city's strong innovation capabilities [6] Breakthroughs in Pharmaceuticals - Local pharmaceutical company Nuoyu Pharmaceutical has made significant progress with its cancer diagnostic radiopharmaceuticals, with plans to submit for market approval next year [5] - The approval of two innovative drugs by Dize Pharmaceutical marks a breakthrough for original drug approvals in Wuxi [5] Supportive Ecosystem - The Jiangsu provincial government has implemented policies to optimize the regulatory environment for the biopharmaceutical industry, facilitating its development [9] - Financial support measures have been introduced to enhance investment in the biopharmaceutical sector, creating a collaborative ecosystem [11] - Wuxi has established a matrix of life and health industry carriers, focusing on various sectors such as synthetic biology and gene therapy [11] Future Prospects - The establishment of the Jiangsu Province Biopharmaceutical Full Industry Chain Open Innovation Alliance positions Wuxi as a new hub for innovation in the life and health industry [12]

Summary of the Conference Call for YuanDa Pharmaceutical Industry Overview - The global nuclear medicine market is projected to reach $21 billion by 2029, with a compound annual growth rate (CAGR) of 16.4% [5][6] - The Chinese market is expected to expand to 26 billion RMB by 2030, with a CAGR of 9% [5] - Nuclear medicine offers unique advantages over traditional cancer treatments, including visualization, precise targeting, and integrated diagnosis and therapy [5] Company Performance - YuanDa Pharmaceutical's nuclear medicine business is experiencing rapid growth, with core product E90 (for liver cancer treatment) expected to generate 500 million HKD in domestic revenue in 2024, a 140% year-on-year increase [2][4] - The traditional pharmaceutical segment remains stable, achieving 6.11 billion HKD in revenue and 1.17 billion HKD in net profit in the first half of 2025, with pharmaceutical technology accounting for 60% of revenue [2][7] - The company maintains a stable expense ratio, with a sales expense ratio of 31% and gross and net profit margins recovering to 58.9% and 19.2%, respectively [2][8] Key Products and Innovations - E90 has treated over 2,000 patients and is the first nuclear medicine product for liver cancer in China [4] - The innovative drug 3,141, targeting sepsis, shows promising clinical data and aims to address the global lack of effective treatments for this condition [2][16] - The PSMA-targeted radiotherapy product, Lu-177 PSMA, significantly extends survival for prostate cancer patients, with overall survival (OS) increasing from 11.3 months to 15.3 months and progression-free survival (PFS) from 3.4 months to 8.7 months [12] Competitive Landscape - Major global players in the nuclear medicine market include Novartis and Bayer, with some products already launched in Europe and the U.S. [6] - YuanDa Pharmaceutical faces competition from both domestic and international companies in the nuclear medicine sector [2][5] Financial Policies - The company has a stable dividend policy, with a total dividend of 910 million RMB in 2024 and a dividend payout ratio of 37% [3][11] - The company emphasizes shareholder returns but future sustainability of the dividend policy remains a concern [3] Research and Development - YuanDa has established a comprehensive pipeline in nuclear medicine, with 12 clinical candidates, four of which are in Phase III trials [4] - The company collaborates with Shandong University to enhance its nuclear medicine production and research capabilities [4] Market Potential - The liver cancer treatment market remains significant, with E90's revenue growth indicating strong market demand [13][14] - The innovative drug 3,141 addresses a critical gap in sepsis treatment, highlighting the potential for substantial market impact [16] Conclusion - YuanDa Pharmaceutical is well-positioned in the growing nuclear medicine market, with strong product performance and a stable financial foundation, but must navigate increasing competition and ensure the sustainability of its dividend policy.

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.