Northeast Pharmaceutical recently stated in an interview with China Securities Journal that in recent years, the company has focused on innovation-driven strategies and deepening its core business, achieving significant results in R&D breakthroughs and business quality improvement. This has established a synergistic development pattern characterized by "breaking new ground in R&D innovation, stabilizing profitability in core business, and enhancing efficiency in asset operations." Particularly against the backdrop of accelerating innovation and transformation in the pharmaceutical industry, the company has adopted a differentiated strategy of "consolidating the fundamental business through traditional operations while creating new growth drivers through innovative drug development." This approach has not only safeguarded its profit baseline but also unlocked new growth potential. Recently, the company's subsidiary, Dingcheng Peiyuan, received the "Drug Clinical Trial Approval Notice" issued by the National Medical Products Administration (NMPA) for its self-developed DCTY0801 Injection. Looking ahead, as the innovative drug pipeline advances and the traditional business structure continues to upgrade, the company is poised to further unleash its momentum for high-quality development, enabling it to continuously break through in the highly competitive market.

Breakthrough in Innovative Drug Business

As a National Enterprise Technology Center and a national-level technological innovation platform, Northeast Pharmaceutical has, in recent years, adopted a dual-engine strategy of "Innovative Drugs + Generic Drugs." This has enabled the company to build a product matrix covering multiple therapeutic areas including the nervous system, digestive system, endocrine and metabolic systems, oncology, and autoimmune diseases, continuously enhancing its development potential.
In the frontier field of innovative drugs, Northeast Pharmaceutical is accelerating its strategic layout, with R&D investment increasing significantly this year, targeting the hotspot of tumor immunotherapy within the pharmaceutical industry. In the first three quarters of this year, the company's R&D expenses surged by 95% compared to the same period last year.
This high-intensity R&D investment is rapidly translating into tangible progress. Recently, the company's subsidiary, Dingcheng Peiyuan, received the "Drug Clinical Trial Approval Notice" issued by the National Medical Products Administration (NMPA) for its self-developed DCTY0801 Injection. The company will conduct clinical trials targeting EGFRvIII-positive recurrent or progressive high-grade glioma.
As a common malignant tumor of the central nervous system, glioma presents an urgent unmet clinical need. The aforementioned representative of Northeast Pharmaceutical stated that the approval for clinical trials of DCTY0801 Injection represents a significant milestone in the company's strategic layout within the innovative drug sector. This move not only fills a gap in the company's oncology pipeline but also allows it to gain a first-mover advantage in the specific segment of glioma treatment. It marks a crucial leap for the company's innovative drug R&D from sustained investment to tangible output, laying a solid foundation for opening up new performance growth curves and strengthening the core competitiveness of its innovative drug pipeline.
Currently, Northeast Pharmaceutical has established an in-house R&D system covering cutting-edge technologies such as TCR-T and CAR-T, and has developed several tumor-targeting cell immunotherapy products for diseases including pancreatic cancer, colorectal cancer, gastric cancer, liver cancer, and glioma. The company's cell immunotherapy products hold broad commercial prospects.
"Innovative drugs are increasingly targeting frontier medical fields. Treating complex and difficult diseases requires more innovative drugs, which represents a blue ocean market in the pharmaceutical sector," the company representative said. He added that through strategic focus and precise investment, the company will continue to promote the commercialization of innovative achievements, continuously accumulate development momentum, further enhance endogenous drivers and long-term development potential, and accelerate its transformation and upgrading.

Steady Growth in Core Business

In recent years, Northeast Pharmaceutical's core business has maintained a steady development trajectory. In the third quarter of this year, the company's non-GAAP net profit attributable to shareholders increased by 27.54% year-on-year. "This is attributable to the company's continuous refinement and deepening in its traditional areas of strength and the steadily improving competitiveness of its products," the representative said.
As a significant domestic pharmaceutical production and export base, Northeast Pharmaceutical holds a globally important position in several market segments. It is a major global supplier of Vitamin C active pharmaceutical ingredients (APIs), a core supplier of Levocarnitine series products, the world's largest producer of Fosfomycin series products, and a major global supplier of Chloramphenicol. Concurrently, it operates the world's largest fully synthetic Berberine production line and the world's largest intelligent production line for Piracetam API.
Years of deep market cultivation have led to the continuous improvement of the company's product structure and a further enhancement of its market competitiveness. Currently, the company's product portfolio encompasses a range of high-quality products including vitamins, anti-infectives, reproductive system drugs and sex hormones, nervous system drugs, anti-HIV drugs, gastrointestinal drugs, narcotic and psychotropic substances and related series, other generic medicines, in-vitro (biological) diagnostic reagents, and products in the health and wellness sector.
"Leveraging the production capacity scale and quality advantages of our core products, our API exports cover numerous countries and regions worldwide. In the domestic market, we are deepening our presence in primary care and other fields through channel expansion and academic promotion, fostering synergistic development between domestic and international operations and continuously strengthening our market risk resilience," the representative stated.
The development of the core business has effectively supported the continuous optimization of Northeast Pharmaceutical's operational structure, sustained improvement in financial stability, and a further enhancement of operational quality. In recent years, the company has effectively improved the efficiency of its procurement settlement processes, accelerated its capital turnover rate, and built more ample capital reserves, providing strong support for subsequent R&D investment and production operations. The ongoing optimization of the asset structure has effectively reduced operational risks and solidified the foundation for long-term development.
"The company will continue to take concrete measures, focusing persistently on production organization, technical challenges, process optimization, and cost reduction and efficiency enhancement. We will fully leverage our advantages in institutional mechanisms, technological R&D, and brand resources, utilizing advanced digital tools and abundant R&D resources to continuously improve management efficiency and operational quality. This will provide crucial support for the commercialization of more scientific research achievements and for further expanding our competitive edge," the representative added.
The representative emphasized that the company's in-depth layout in areas such as product structure and R&D pipeline has continuously strengthened its sustainable development capabilities and its ability to adapt to industry trends and cope with intense market competition. The company will focus on technological innovation and management upgrading, continuously enhance its technical capabilities, optimize its product and asset structures, continually expand business depth, and further strengthen its development momentum.