Over 80% of revenue comes from single products. How YunDing New Glory supports its 15 billion revenue ambitions

Ask AI · How can Yunding Xinyayao mitigate the risk that one single product accounts for an excessively high share of revenue?

《Science and Technology Innovation Board Daily》March 27 (Reported by Xu Hong) Amid the wave in which innovative pharmaceutical companies are expanding overseas markets through License out, Yunding Xinyayao (01952.HK) is telling a different story.

So will the market truly buy into this differentiated path?

As a company that started with the License in model, Yunding Xinyayao has successfully advanced three acquired products to the commercialization stage: Naduifangkang® (budesonide enteric-coated capsules) for treating IgA nephropathy; Yijia® (elacycline) for treating complicated intra-abdominal infections; and Velsipity® (arginine etcurmod) — the first prescription in mainland China was issued just at the beginning of this month — (arginine etcurmod tablets, VELSIPITY®).

On March 26, Yunding Xinyayao disclosed its 2025 annual performance report. The data show that the company achieved total revenue of RMB 1.707 billion for the full year, up significantly by 142% year over year. More importantly, for the first time the company achieved profitability under non-IFRS (international financial reporting standards), recording profit of RMB 187 million; even when calculated under IFRS, the loss narrowed significantly by 71% year over year. At the same time, the company’s operating cash flow successfully turned positive.

Based on the improvement in performance and strengthened operating capabilities, Yunding Xinyayao previously released its five-year development blueprint. The target is to achieve revenue of more than RMB 15 billion by 2030. However, after examining its current product pipeline, at present only Naduifangkang® supports performance as the main driver. With investors focusing on the “trillion-yuan market capitalization” target, how far does Yunding Xinyayao still have to go?

▌ Naduifangkang® contributes more than 80% of revenue as a single product

In 2023, the year Yunding Xinyayao began commercialization, two core products were approved for marketing one after another. That year, Yijia® was approved by the Chinese National Medical Products Administration for March of the same year for treating adult complicated intra-abdominal infections; Naduifangkang® was approved in mainland China in November of the same year for treating primary IgA nephropathy with a risk of disease progression.

In 2025, Naduifangkang®’s sales performance has been particularly outstanding. Full-year sales revenue exceeded RMB 1.4 billion, up more than 300%, accounting for more than 80% of operating revenue. The financial report shows that in its first year on the market, Naduifangkang® gained reimbursement access through National Reimbursement negotiation; to date, it has been rolled out in 29 provinces and included in single-drug payment management.

By contrast, the expansion of the anti-infective drug Yijia® has been relatively slower. Although it achieved revenue of RMB 262 million in 2025 and its in-hospital sales value maintained 44% year-over-year growth, its overall scale remains limited.

This difference mainly stems from two real-world factors. On the one hand, anti-infective drugs will still face relatively strict clinical use restrictions, which to a certain extent affects their rapid uptake; on the other hand, Yijia® is currently still a high-value self-pay drug and has not yet entered the national reimbursement drug list; the relatively high patient out-of-pocket proportion restricts the broader application to wider patient populations.

Therefore, at a media briefing on March 26, Yunding Xinyayao’s CEO Luo Yongqing said that the company plans to push Yijia® to participate in this year’s National Reimbursement negotiation and, at the same time, accelerate the process of domestic manufacturing. It is expected that next year the company can supply domestically manufactured Yijia® to the market, thereby creating more room for the reimbursement negotiation.

In addition, Yunding Xinyayao has also introduced products such as Rocef® and Sitaning® from Haisun Biotech, which have synergistic effects in critical and severe conditions. In the future, the company hopes to introduce more new products in the ICU and critical care fields through BD, continuously improving its product matrix.

As Yunding Xinyayao’s current core single product, Naduifangkang®’s impressive performance fully demonstrates the company’s commercialization capability. Therefore, whether internally or in the external market, high expectations are placed on it, and Yunding Xinyayao has also set a high-growth target of achieving sales revenue of RMB 2.4–2.6 billion in 2026.

However, as its patents are set to expire in 2029, many generic drug companies are already gathering momentum for entry. Therefore, in the view of some, the market’s expected sales peak of RMB 5 billion still has a certain degree of uncertainty.

But Luo Yongqing remains highly confident. He said first that in the IgA nephropathy field, there are still a large number of unmet clinical needs.

At present, about 300,000–350,000 patients in China undergo kidney biopsy each year, of which about 30% have primary membranous nephropathy—meaning roughly 110,000–150,000 newly diagnosed patients each year. “And to achieve this year’s sales target of RMB 2.4 billion, it only needs to cover about 70,000 newly diagnosed patients, which is less than 50% of the total number of newly diagnosed patients for the whole year.”

Second, although more new drugs will enter this field in the future, according to the latest treatment guidelines, keeping the annual decline in eGFR within 1 mL/min/1.73m² and reducing urinary protein to below 0.3 grams per day are the core treatment goals for patients with chronic kidney disease (especially IgA nephropathy).

“But as of now, whether it is Naduifangkang® that is already on the market, or other single products about to be launched, none of them can independently achieve these goals; it must rely on combination treatment regimens. This also means that Naduifangkang will continue to occupy an important position in the future treatment landscape,” Luo Yongqing said.

▌ How can the revenue ambition of RMB 15 billion be supported?

Yunding Xinyayao previously experienced a surge in its stock price, but over the past more than half a year it has continued to fall. Regarding this, Wu Yifang, Chairwoman of Yunding Xinyayao’s board of directors, believes that the valuation premium given to a company by the secondary market essentially depends on how much value the company can create for shareholders. “Therefore, what enterprises should do most is to focus on fundamentals. As long as the fundamentals are solid, the stock price will ultimately reflect its value. Although we cannot control the overall market environment, we will always focus on ourselves and work hard to strengthen the company’s foundation.”

She also further pointed out that for Yunding Xinyayao to achieve the sales target of RMB 15 billion, it mainly relies on two major supports: first, building a ‘big single product,’ which depends on the company’s ability to judge the market and its forward-looking insight; second, building strong commercialization capabilities, meaning the company has built and verified the systematized platform of “access, medical, market, and sales” (A2MS).

“Our A2MS platform has clear advantages. Currently, the company’s overall selling expense ratio is about 40%, which is below the industry average; and the selling expense ratio of Naduifangkang® as a single product is even below 30%. This is attributable not only to Naduifangkang®’s own product strength, but also to our commitment to a professional academic promotion model,” he said.

Regarding the specific path to achieve RMB 15 billion in revenue by 2030, Wu Yifang also gave a clear outlook: “To set such a goal, there must be tangible product support. Yijia® and Velsipity® will both actively push forward National Reimbursement negotiations this year. In addition to Naduifangkang® already on the market, these three products alone, based on current capabilities, are expected to contribute revenue of RMB 6.5 billion to RMB 7.0 billion. In addition, related products from Haisun will bring about RMB 2.0 billion in revenue, meaning a scale of around RMB 8–9 to 10 billion is already taking shape. After that, multiple new products such as Xingbituo® and MT1013 will be launched one after another.”

“Therefore, we also place higher requirements on marketing—new products should basically reach their sales peak within three years. For example, for a product with a target of more than RMB 2 billion, in the third year after entering reimbursement, it should be close to that figure. If you can’t do it, you may likely miss the market dividend period. Because the Chinese market is highly competitive and iterations are rapid; once similar-target new drugs are launched, the product’s lifecycle value will be compressed,” he said.

For investors, after Naduifangkang® successfully commercializes, the next major single product of Yunding Xinyayao has become the focus of attention. And based on the current pipeline, Velsipity® and Xingbituo® are undoubtedly the most promising candidates, but both face different opportunities and challenges.

Velsipity® is a key product in the company’s layout in autoimmune diseases. It was approved domestically in February 2026 for treating adult patients with moderate-to-severe active ulcerative colitis (UC) whose response to conventional treatment or biologics is insufficient, has failed, or is intolerable. From a product-strength perspective, as a new-generation highly selective S1P receptor modulator, Velsipity® has good adherence with once-daily oral dosing, can take effect quickly and achieve deep mucosal healing, and has good safety.

However, further penetration of targeted drugs in China’s UC drug market still faces real-world challenges such as updates to treatment concepts and reimbursement payment realities, so its National Reimbursement negotiation outcome and subsequent sales performance deserve close attention.

Compared with Velsipity®, the Arqutoumoed nasal spray (proposed Chinese brand name: Xingbituo®) represents Yunding Xinyayao’s strategic extension into the cardiovascular field and innovation in treatment models. The product is introduced by Yunding Xinyayao from Jixing Pharmaceutical. Its New Drug Application has been accepted by the National Medical Products Administration, and it is expected to be approved in the third quarter of 2026.

In Luo Yongqing’s view, the core value of Xingbituo® lies in entering the large cardiovascular track and creating a new home-treatment scenario, which therefore offers greater room for imagination.

Luo Yongqing also said the company will continue to push forward external collaboration and independent R&D with “dual-engine driving” as the core. According to the plan, the company intends to introduce 3 to 5 major blockbuster products each year, striving to achieve approval and launch within 2 to 3 years, and to reach a BD collaboration target of more than RMB 2 billion in single-product peak sales within 5 to 6 years.

In independent R&D, fabinib (EVER001) has obtained positive results in Phase 1b/2a clinical trials for primary membranous nephropathy. The project is currently being advanced for late-stage clinical development and a basket trial for indication expansion. At the same time, relying on internationally leading mRNA tumor vaccine platforms and the In vivo CAR-T platform, Yunding Xinyayao is also developing tumor and other therapeutic mRNA drugs. Luo Yongqing said that in the future, the company does not rule out the possibility that self-developed products may be licensed out (License out).

(Science and Technology Innovation Board Daily reporter Xu Hong)