The nuclear medicine sector surged by 105%, and GRANDPHARMA's revenue reached a new high

On August 19, GRANDPHARMA (0512.HK) announced its mid-term results for 2025. During the reporting period, the company recorded revenue of approximately HKD 6.11 billion, a year-on-year increase of about 1.0%. The company's net profit for the period was approximately HKD 1.17 billion, with recurring profit slightly declining by 5.9%.

These figures may seem unremarkable at first glance, but a deeper analysis reveals two key indicators that highlight profound changes occurring within the company.

First, the revenue share of innovative and high-barrier products reached 51.0%. In the same period last year, this figure was 36.1%. Within a year, this proportion has increased by 14.9 percentage points. This indicates that the share of high-value-added products in the company's revenue composition is on the rise.

Second, after excluding the fair value changes and disposal gains related to the investment in Telix Pharmaceuticals, the company's normalized profit was approximately HKD 1.017 billion, a year-on-year decline of about 5.9%. The financial report explains that the profit decline was mainly influenced by two factors: first, the pressure from price reductions due to centralized procurement, and second, the increase in marketing expenses resulting from the accelerated launch of new products.

When considering the changes in revenue structure alongside profit fluctuations, the revenue growth driven by high-margin innovative product matrices is effectively offsetting the price erosion of traditional products due to centralized procurement, becoming the "ballast" for the company's performance. Meanwhile, the slight decline in profit is partly due to the increased marketing expenses from the accelerated launch of new products. This is not a sign of uncontrolled costs, but rather a strategic investment in future growth.

It is worth mentioning that GRANDPHARMA's most impressive nuclear medicine segment achieved a year-on-year growth rate of 105.5% in the first half of the year.

In the first half of the year, the company achieved 38 significant milestone advancements, including 16 innovative products, and successfully launched the world's first fully integrated nuclear medicine R&D and production base, with both product and industry sides poised for growth. During the same period, one of the key products in the company's pipeline, the global innovative drug STC3141 for the treatment of sepsis, announced successful completion of its Phase II clinical study in China.

This mid-term report from GRANDPHARMA not only presents operational performance but also provides a snapshot for observing its business structure and strategic execution.

Innovative Drug Layout: FIC Pipeline and Overseas Validation

GRANDPHARMA's innovative pipeline layout is entering the commercialization and late clinical stages.

In the first half of the year, the global innovative drug STC3141 in the field of severe treatment made new progress. This drug for sepsis successfully achieved its primary clinical endpoint in the Phase II clinical study conducted in China.

Sepsis, caused by infection, can lead to organ dysfunction and is one of the leading causes of death among patients in intensive care units (ICUs) worldwide. According to statistics, over 11 million people die from sepsis each year, accounting for about 20% of total global deaths. Currently, there is a lack of effective therapeutic drugs targeting its core causes in clinical practice. Market data shows that the global market size for sepsis treatment drugs was USD 12.54 billion in 2024, and it is expected to grow to USD 19.37 billion by 2032.

The mechanism of action of STC3141 is to neutralize extracellular free histones and neutrophil extracellular traps, reversing the body's excessive immune response, thereby protecting organ function. This represents a treatment approach centered on "reconstructing immune homeostasis," with the potential to become a First-in-Class (FIC) drug GRANDPHARMA owns the global intellectual property rights for STC3141.

In addition to STC3141, the commercialization of the company's innovative products in fields such as otolaryngology shows the characteristic of "overseas market first verification."

The world's first nasal spray for the treatment of dry eye syndrome—ociperidone nasal spray (OC-01)—achieved commercial prescription launch in mainland China in July 2025. This product has been launched in the United States, with sales revenue of approximately USD 42 million in 2023.

Another globally innovative ophthalmic drug, GPN01768 (TP-03), used for the treatment of demodex blepharitis, has performed even better in overseas markets. In the first half of 2025, the revenue of this product in overseas markets exceeded USD 100 million, a year-on-year increase of nearly 152%. Currently, this product has been approved for marketing in Macau, China, and its New Drug Application (NDA) has also been accepted by the National Medical Products Administration of China.

From the independent research and development of STC3141 to the domestic launch of ophthalmic products supported by overseas commercialization data, GRANDPHARMA's innovation pipeline is gradually realizing its value.

Behind these R&D activities is continuous financial investment. In the first half of 2025, the company's total investment in R&D work and projects was approximately HKD 1.022 billion.

Nuclear Medicine Sector: Building a Global Business Foundation

The nuclear medicine oncology diagnosis and treatment sector is currently the fastest-growing business department of GRANDPHARMA.

In the first half of 2025, this sector recorded revenue of approximately HKD 422 million. In RMB terms, this represents a year-on-year increase of approximately 105.5%.

The growth is primarily driven by the sales volume of the core product Yigantai® (yttrium microsphere injection). In the Chinese market, its commercialization process is continuously advancing, having completed radionuclide transfer procedures in over 70 hospitals, with surgical coverage across 22 provinces and cities nationwide.

In the international market, Yigantai® received formal approval from the U.S. Food and Drug Administration (FDA) in July 2025, adding an indication for the treatment of unresectable hepatocellular carcinoma (HCC). This makes it the world's first and only selective internal radiation therapy (SIRT) product approved by the FDA for both unresectable HCC and colorectal cancer liver metastases.

GRANDPHARMA's nuclear medicine strategy revolves around building an integrated platform for "diagnosis + treatment." The company is one of only four pharmaceutical companies globally to have successfully achieved the global commercialization of nuclear medicine, with multiple products at different stages of research and development.

The following is the status of some core products under research in the company's nuclear medicine field:

Among them, TLX591-CDx, used for diagnosing prostate cancer, has completed patient enrollment for its Phase III clinical study in China and plans to submit a marketing application within the year. This product has been approved for marketing in several major markets worldwide, achieving nearly USD 517 million in sales in 2024.

At the same time, the company's independently developed global innovative RDC drug GPN02006 for diagnosing hepatocellular carcinoma has achieved positive results in investigator-initiated clinical research (IIT), with relevant data presented at the annual meeting of the Society of Nuclear Medicine and Molecular Imaging (SNMMI) in North America This product targets the GPC-3 target and can form a combination of "precise diagnosis + targeted therapy" with Yigan Tai® in the field of liver cancer in the future.

Overseas Platform: Infrastructure and Global Network

GRANDPHARMA's globalization strategy is supported by self-built industrial infrastructure.

In June 2025, the radioactive drug R&D and production base of GRANDPHARMA located in Wenjiang, Chengdu officially commenced operations.

This base is defined as the world's first closed-loop platform for the entire nuclear medicine industry chain, covering the entire chain from "isotope preparation - nuclear drug R&D - production - clinical - commercialization."

Its functions are reflected in two aspects:

First, it achieves 100% independent production of key radionuclides, solving the problem of dependence on imports of some upstream raw materials and ensuring the stability of the supply chain.

Second, this base has 14 high-standard GMP production lines and is one of the most comprehensive in terms of radionuclide varieties and highest automation levels in the international arena. Its production capacity and quality standards can support supply to the global market.

With the Chengdu base as the core, GRANDPHARMA has established a global operational network. The company has set up eight major R&D platforms in the three major mainstream markets (the United States, Europe, and Australia), with over 320 overseas employees and a sales network covering more than 50 countries and regions worldwide.

The company clearly stated in its financial report that it holds global rights to products such as Yigan Tai® and STC3141, and has the capability to independently operate international multi-center clinical trials. The company is building its own global pharmaceutical brand with the "Go Global" overseas model.

Conclusion

GRANDPHARMA's mid-term financial report for 2025 presents changes in the company's business structure.

The financial report data shows that the revenue share of innovative and high-barrier products has exceeded half, and its growth is offsetting some of the procurement pressure faced by traditional businesses.

In terms of the pipeline, FIC drugs represented by STC3141 have entered late-stage clinical trials, and a product tier of integrated diagnosis and treatment platforms represented by nuclear medicine has formed and begun to contribute significant revenue growth. In terms of operations, the global production and R&D infrastructure represented by the Chengdu nuclear medicine base has been put into use, providing an industrial foundation for the execution of the company's "Go Global" strategy.

These changes together constitute the current development picture of GRANDPHARMA