TYK MEDICINES-B (02410) has reported its interim results for the 2026 fiscal year, revealing a substantial improvement in its financial performance. Research and development costs reached RMB 94.943 million, marking a 7% increase year-over-year, while administrative expenses climbed to RMB 62.554 million, up 61.3% from the prior year. The loss attributable to parent company shareholders narrowed considerably to RMB 24.897 million, representing a sharp 77.81% reduction compared to the same period last year.
Looking ahead, the company remains committed to aligning its operations with market demand while concentrating on independent research and development of cutting-edge innovative drugs, coupled with breakthroughs in core technologies. Leveraging its competitive edge in AI-model-driven drug discovery, the company is intensifying collaborative efforts between its in-house core R&D teams in China and high-caliber overseas scientific resources, aiming to accelerate the entire process of discovering, screening, and developing new molecular entities.
While reinforcing its internal R&D capabilities, the company is proactively engaging with leading AI-powered drug development platforms in the industry to forge deep partnerships. These collaborations are focused on tackling critical bottlenecks in drug research, with the goal of achieving landmark breakthroughs. By enhancing the efficiency of its R&D pipeline conversion and elevating its core technological barriers, the company aims to build a solid foundation for continuous business iteration and expansion, steadily advancing its long-term, sustainable, high-quality development strategy.
The "New Solid Dosage Form Manufacturing Plant Project" stands as the company's key industrialization initiative, adding new production lines for both tablets and capsules. Upon completion, the facility will provide an annual production capacity of up to 150 million tablets or capsules, capable of supporting both clinical trial supplies and partial commercial production of the TY-9591 product. Phase one of the project passed its civil construction completion inspection on June 30, 2024, with GMP compliance certification for the phase one production lines anticipated by Q1 2027, at which point the facility will be ready for manufacturing operations.
The company believes that the completion of this project will provide critical production support for commercializing a broader range of pipeline products. In addition, the company obtained its "Drug Manufacturing License" from the Zhejiang Provincial Drug Administration in January 2026. This license is expected to deliver long-term positive effects on capacity expansion and market development, laying the groundwork for subsequent commercial-scale production.
On the commercialization front, the company has adopted a phased strategy that combines "external collaboration with independent development." In the early stages, the company will selectively partner with high-quality external collaborators who possess mature market operations, comprehensive channel networks, and ample industrial resources. By drawing on their proven commercial systems, established promotional tactics, and extensive channel access, the company aims to quickly close gaps in market expansion, brand building, and terminal sales execution, achieving complementary resources and synergistic value to efficiently unlock product market potential.
Building on the practical experience gained through these external partnerships, the company is simultaneously working to consolidate, review, and internalize commercial operational capabilities and market know-how. This gradual approach enables the company to establish an independent, professional, and fully integrated marketing and sales system, while continuously strengthening its core capabilities in terminal operations and brand promotion. In the medium to long term, the company's commercialization model will progressively shift toward a primary focus on independent operations, supplemented by external partnerships, allowing it to leverage its own marketing infrastructure for market development and business growth while accelerating the overall commercialization strategy to support sustainable, high-quality development.
In parallel, the company is strategically coordinating diverse critical resources, including capital, specialized talent, and core technologies, to drive its commercialization strategy through a dual-engine approach. This involves continuously optimizing the overall functional layout of its clinical R&D platform while simultaneously accelerating the planning and construction of its industrialization production base, ensuring that both software and hardware efforts work in concert to efficiently execute the commercialization strategy.
On July 21, 2026, following the trading session, the company entered into a license and cooperation agreement along with supply and commercialization agreements with Qilu Pharmaceutical (Hainan) Co., Ltd. (Qilu) or its designated affiliates. These agreements cover the collaborative development and production of the active pharmaceutical ingredient (API) for TY-9591 in China, as well as the commercialization of TY-9591, with the objective of advancing the development, manufacturing, and commercialization of innovative drugs. The strategic collaboration contemplated under the license and cooperation agreement is expected to generate long-term benefits and enhanced capital efficiency for the company's R&D investments.
The license and cooperation agreement, together with the supply and commercialization agreements, will help the company establish a stable, long-term relationship with a reputable pharmaceutical company in China, facilitating the commercialization of its products within the designated territory. This move represents a significant step for the company in achieving its commercialization milestones by leveraging Qilu's expertise and network.
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