On December 4, the Science and Technology Innovation Board Daily (Reporter Zheng Bingxun) reported that after entering 2024, jiangsu aidea pharmaceutical (688488.SH) continued to decline year-on-year in the first quarter and the first half of the year, but suddenly achieved a significant growth in the third quarter, with a total quarterly revenue of 0.118 billion yuan, a year-on-year increase of 87.54%.

At the earnings conference for the third quarter of 2024 held today, director, president, and CEO of jiangsu aidea pharmaceutical, Zhang Jie, stated that the revenue growth is mainly due to an increase of approximately 38.825 million yuan in revenue from the HIV new drug business compared to the same period last year, as well as the inclusion of revenue from Nanda Pharmaceutical since September 2024.

Reporters from the Science and Technology Innovation Board Daily found that the inclusion of revenue from Nanda Pharmaceutical may be the most significant driver of jiangsu aidea pharmaceutical's quarterly revenue growth.

In the first quarter and first half of this year, jiangsu aidea pharmaceutical's HIV new drug business grew by 15.4809 million yuan and 48.8073 million yuan year-on-year respectively. However, the decline of 38.2141 million yuan and 98.2978 million yuan in revenue from human-derived protein crude business led to a decrease in revenue of 17.52% and 24.16% for the first quarter and first half of the year respectively.

In terms of business, jiangsu aidea pharmaceutical mainly focuses on the HIV field and the human-derived protein field. In the HIV field, it has two HIV new drugs on the market, Ainoeflin tablets (Aibandy) and Ainomet tablets (Fubandy), and in the human-derived protein field, it mainly produces and sells human-derived protein crude products.

Human-derived protein products have always been the core source of revenue for jiangsu aidea pharmaceutical, with a proportion that has always been higher than that of HIV new drugs and other products. From 2021 to 2023, revenue from human-derived protein products was 0.193 billion yuan, 0.143 billion yuan, and 0.26 billion yuan respectively, accounting for 75.61%, 58.73%, and 63.14% of the total revenue.

Against the backdrop of declining revenue from human-derived protein products, jiangsu aidea pharmaceutical prepared to acquire Nanda Pharmaceutical this year, ultimately obtaining a 51.13% stake in Nanda Pharmaceutical. The operating performance of Nanda Pharmaceutical in September this year was also included in jiangsu aidea pharmaceutical's third-quarter consolidated income statement.

Jiangsu Aidea Pharmaceutical previously revealed that Nan Da Pharmaceutical simultaneously holds production approvals for urinary kinase active pharmaceutical ingredients and injectable urinary kinase preparations. According to the Drug Rongyun database statistics, from 2020 to 2023, the injectable urinary kinase preparations produced by Nan Da Pharmaceutical accounted for the largest market share of urinary kinase finished preparations in China.

After the acquisition is completed, Jiangsu Aidea Pharmaceutical will have an integrated business model of the urinary kinase industrial value chain, achieving a "human-sourced protein raw material - formulation integration" layout from the supply of crude products, production of active pharmaceutical ingredients to the production of urinary kinase preparations. Jiangsu Aidea Pharmaceutical stated that this move will substantially promote the company's deep layout of the human-sourced protein business and create the company's second growth curve.

During the earnings conference, a reporter from 'Star Daily' asked Zhang Jie how much revenue Nan Da Pharmaceutical currently contributes to Jiangsu Aidea Pharmaceutical, but the other party did not respond.

It is also worth noting that previously Jiangsu Aidea Pharmaceutical conducted a head-to-head phase III clinical trial with the imported original enzyme inhibitor, Ecaenopravir, for Enovidol tablets used in the treatment of virus-suppressed HIV-infected patients, and applied for new indications for Enovir tablets and Enovidol tablets based on the results of this clinical trial.

However, in September this year, Jiangsu Aidea Pharmaceutical withdrew the market application for the new indication of Enovir tablets. 'Star Daily' asked Zhang Jie about the research and development investment in the new indication of Enovir tablets and the new arrangements after the withdrawal.

Zhang Jie replied that the new indication of Enovir tablets did not undergo a separate phase III clinical trial, so corresponding clinical research costs were not incurred. While withdrawing the market approval application for the new indication of Enovir tablets, the market approval application for the compound preparation Enovidol tablets for the new indication was approved at the same time.

"The market approval for the new indication of Enovidol tablets will help expand the coverage of medical insurance payment for both insured and self-paying population. Patients can have more treatment options in the company's HIV drug combination, which will help further promote the sales and market promotion of anti-HIV drugs, and is of great significance for the company's operations and development." Zhang Jie said.