Since the beginning of 2026, the Hong Kong stock market's healthcare sector has experienced continuous volatility due to multiple external factors. Unlike the 2025 biotech bull market, which was driven by expectations around specific innovative targets and pipeline business development, investors in the current market are more willing to pay a premium for clear value realization following a series of external disruptions. The logic of "accelerated innovation - global monetization - valuation uplift" is increasingly becoming the key framework for assessing the "investment certainty" of innovative biopharmaceutical companies. Against this backdrop, GRAND PHARMA (00512), guided by its strategy of "global operational layout and dual-circulation development," is steadily realizing its global commercial achievements by leveraging its systematic advantages in innovative R&D, a diversified pipeline, and commercial execution. The company's counter-cyclical growth momentum and resilience align with the current investment sentiment in the secondary market and serve as the starting point for analyzing its newly released 2025 annual results.
On March 26, GRAND PHARMA announced its 2025 annual results. The report showed that the company recorded revenue of approximately HK$12.28 billion, representing growth of about 15% compared to the previous year when excluding the impact of volume-based procurement. For the period, after adjusting for the fair value change impact of the Telix investment on profits, the company's adjusted operating net profit attributable to owners was approximately HK$1.49 billion. The phased impact of VBP price reductions has been fully absorbed, and benefiting from the successive realization of technological innovations, GRAND PHARMA maintained high-quality development with strong resilience. Based on its robust performance, the company plans to maintain a high dividend payout, proposing a dividend of approximately HK$600 million, fully demonstrating its solid profit realization capability and commitment to shareholder returns, while also conveying confidence in its long-term development to the market.
The nuclear medicine oncology business recorded substantial growth, with its full-industry-chain layout leading the global field. Looking back at 2025, GRAND PHARMA's growth trajectory was clear and powerful. As an innovative pharmaceutical company with strategic vision and long-term planning, it has continuously consolidated its leading industry position through sustained leadership in core businesses, a rich product matrix layout, and incubation driven by organic growth, injecting strong momentum for long-term expansion. In this process, the rapid growth of the nuclear medicine segment, a key breakthrough with the globally first-in-class drug STC3141, and the synergistic efforts across multiple business units have率先 opened the door for a significant value leap.
Through forward-looking strategic planning, GRAND PHARMA has established a full life-cycle closed loop in the nuclear medicine field, encompassing "technology R&D - clinical translation - independent production - commercial deployment." Its commercial footprint covers more than 50 countries and regions worldwide, and it has built a globally competitive nuclear medicine system supported by interconnected technology, production capacity, and channels, making it the undisputed leader in the domestic nuclear medicine track. In terms of product R&D and pipeline reserves, the company has built a diversified product matrix centered on its integrated cancer diagnosis and treatment strategy. It has a pipeline of 16 innovative products in the R&D and registration stages, involving five radioactive nuclides including 68Ga, 177Lu, 131I, 90Y, and 89Zr, and covering seven high-incidence cancer types such as liver cancer, prostate cancer, and brain cancer. The product types include both diagnostic and therapeutic radiopharmaceuticals, providing multi-indication, multi-method integrated diagnostic and therapeutic solutions for cancer patients.
Notably, within its nuclear medicine R&D pipeline, six innovative radioligand therapies have been approved for registrational clinical studies, with four already in Phase III clinical stages. This makes GRAND PHARMA the company with the largest number of diagnostic and therapeutic RLT innovative drugs in Phase III clinical development domestically, and also one of the innovative pharmaceutical companies globally with the richest product pipeline and the most comprehensive integrated diagnosis and treatment layout in the nuclear medicine oncology field.
Regarding the commercialization of core products and the advancement of pipeline candidates, GRAND PHARMA's nuclear medicine business demonstrates a positive trend of "commercialized products scaling up and pipeline products making breakthroughs." On one hand, market sales of core products like the Y-90 Glass Microspheres injection continue to grow, forming an important pillar for business revenue. In 2025, the nuclear medicine segment achieved sales revenue of approximately HK$950 million, representing nearly 15-fold growth over four years. The treatment regimen involving Y-90 Glass Microspheres has been recommended by treatment guidelines from multiple international authoritative institutions and included in several authoritative Chinese clinical practice guidelines. On the other hand, the R&D of several innovative nuclear drugs is progressing steadily. Among them, the diagnostic nuclear medicine TLX591-CDx for prostate cancer successfully completed its Phase III clinical study in China in 2025, meeting the study endpoints, and entered the New Drug Application stage in early 2026, poised to become the next major commercial product for the company's nuclear medicine division. This product's performance in overseas markets has already validated its commercial value, with full-year 2025 overseas revenue of approximately $600 million, a year-on-year increase of over 20%. It has gained wide recognition from global clinicians due to its highly specific clinical efficacy, and is expected to replicate the rapid sales growth trend overseas upon its domestic launch.
The therapeutic nuclear medicine TLX591, which forms an integrated diagnosis and treatment pair with this diagnostic product, was also approved in 2025 to initiate an international multi-center Phase III clinical study. Furthermore, the first part of its international multi-center Phase III clinical trial, focusing on safety and dosimetry guidance, recently successfully met its primary objectives, demonstrating the product's safety and tolerability with no new adverse reactions observed. The synergistic development of these two products will fully tap into the potential of the nearly RMB 50 billion domestic prostate cancer treatment market.
Additionally, the company's international R&D capabilities in nuclear medicine achieved a significant breakthrough. Its self-developed, globally innovative small-molecule RLT drug GPN01530, which targets FAP, successfully obtained FDA approval to initiate Phase I/II clinical studies for solid tumor diagnosis, becoming GRAND PHARMA's first self-developed RLT product to receive FDA approval for clinical studies. This product demonstrated "best-in-class" potential in preclinical studies and may potentially become a standard for next-generation cancer imaging in the future. Furthermore, the GPC-3 targeting product GPN02006 is expected to submit an IND application to the FDA within the year. The "going global" of these two nuclear medicine products not only testifies to GRAND PHARMA's innovative R&D capabilities but also marks a milestone in the company's "Go Global" strategy, fully validating the robust strength of its nuclear medicine technology platform in preclinical development and international registration capabilities.
From a market size perspective, driven by both policy tailwinds and market demand, China's nuclear medicine market is entering a period of rapid expansion. Statistics indicate that the Chinese nuclear medicine market reached a scale of tens of billions of RMB in 2025 and is expected to maintain growth rates exceeding the global average over the next decade. GRAND PHARMA's precise positioning in three high-value segments positions it to capture first-mover advantages in this multi-billion RMB market.
Regarding its full-industry-chain layout, the company's nuclear medicine R&D and production base in Chengdu, as the world's first fully integrated closed-loop platform for nuclear medicine, achieves complete coverage from independent isotope preparation to final product delivery. This vertically integrated model not only addresses the long-standing challenge of reliance on imported isotopes but also significantly reduces production costs through synergistic coordination across the entire chain. The base's operation signifies that the company has established a dual moat in the nuclear medicine arena: on one hand, it secures主动权 over upstream isotope supply, and on the other, it enhances market response speed through scaled production, laying a solid production capacity foundation for its expansion in the global radiopharmaceutical market.
Currently, GRAND PHARMA has built sustainable growth drivers through continuous technological innovation. Compared to other domestic nuclear medicine companies, GRAND PHARMA is the only one with comprehensive capabilities spanning "global licensing-in + self-directed R&D + full-industry-chain production + commercial deployment," firmly placing it in the global nuclear medicine first tier. The combination of blockbuster product potential and pipeline depth, synergistic with its full-chain, broad-coverage global capabilities and high-output, FIC/BIC quality innovation, suggests the emerging profile of a nuclear medicine multinational corporation, poised to become a significant force driving global nuclear medicine innovation. The resonance of both scarcity and certainty means the value of this segment warrants a reassessment.
Innovative products continue to achieve breakthroughs, with a diversified matrix collectively building a moat. Driven by the logic of translating technological advantages into market advantages, GRAND PHARMA has achieved sustained and verifiable growth in recent years. As the pharmaceutical sector enters a phase of differentiation, its long-term value can be re-examined from the following perspectives.
Behind GRAND PHARMA's complex business spanning multiple industrial chains lies highly forward-looking strategic vision. The company boasts extensive business coverage and a rich, diverse product portfolio. More notably, its布局 remains at the industry forefront, whether in nuclear medicine, other high-value segments like respiratory & critical care and innovative ophthalmology, or in full-industry-chain technology reserves. The breakthrough with the First-in-Class drug STC3141 is another concrete manifestation of GRAND PHARMA's innovative R&D.
In 2025, the Phase II clinical study of STC3141 for sepsis treatment in China successfully met its pre-specified clinical endpoints. With its unique mechanism focused on modulating the body's immune status as a core causal treatment approach, it has the potential to become the world's first sepsis treatment centered on重建 immune homeostasis. Clinical data showed that STC3141 demonstrated positive signals in efficacy indicators such as helping patients get off ventilators, discontinue vasopressors, and shorten ICU stays, with good safety, tolerability, and expected pharmacokinetics. These excellent clinical results bring new hope for global sepsis treatment.
The core value of STC3141 lies in the vast patient needs underlying sepsis, the leading cause of death in intensive care units worldwide, for which there are currently no specific therapeutic drugs. The incidence of sepsis in ICUs in China is as high as 20.6%-50.8%, and sepsis causes approximately 11 million deaths globally each year. Despite high mortality rates, treatment costs remain elevated. Furthermore, according to a Huaxi Securities research report, the global sepsis drug market size reached $11.88 billion in 2023, $12.54 billion in 2024, and is projected to climb to $19.37 billion by 2032, representing a CAGR of nearly 5.58%. It is particularly worth mentioning that beyond sepsis, GRAND PHARMA is also exploring the potential of STC3141 in treating other critical conditions like ARDS, with related clinical studies steadily advancing.
Currently, STC3141 has obtained seven clinical approvals across five countries: China, Australia, Belgium, the UK, and Poland. All four completed clinical studies successfully met their endpoints. GRAND PHARMA is actively communicating with international regulatory authorities like the FDA to optimize the clinical protocol and is全面推进 preparatory work for international multi-center clinical trials. If successfully launched in the future, STC3141 would not only break the long-standing treatment dilemma of lacking targeted drugs for this disease but also potentially fill the market gap for causal treatment of sepsis,颠覆 the landscape of critical care treatment, and potentially usher in a new era for重症治疗. Given this revolutionary therapeutic value, STC3141 clearly possesses immense market potential and is expected to become a heavyweight engine for GRAND PHARMA's performance growth.
Even more noteworthy is that GRAND PHARMA's core competitive barriers in the biopharmaceutical field stem not only from its systematic industrial布局 centered on underlying technologies but also rely on long-term, significant investment in hardcore innovation. These two aspects form a synergistic支撑, building a differentiated competitive advantage in the industry.
From an industrial layout perspective, the company's pharmaceutical technology segment has established a diversified product matrix covering respiratory & critical care, cardiocerebrovascular emergency,五官科, and mRNA technology platforms. Despite its vast business landscape, all of GRAND PHARMA's布局 are anchored by a clear logical thread – grounded in technological innovation and leveraging deep experience accumulated across the full industry chain to build a systematic industrial system.
Throughout the year, GRAND PHARMA continued to focus on cutting-edge areas, expanding its diversified matrix of innovative drugs. Several global innovative drugs in its五官科 segment made significant progress and are approaching the commercial harvest period. The pipeline ranges from globally first-in-class innovative products already approved domestically, such as the varenicline tartrate nasal spray (OC-01) for dry eye disease, the compound nasal spray for allergic鼻炎, and the epinephrine nasal spray for Type I allergic reactions, to the globally unique treatment for Demodex blepharitis, GPN01768, approved in 2026. This rich product pipeline, possessing both breadth and depth, constitutes the core advantage of GRAND PHARMA's innovative development.
It is worth highlighting that OC-01 is the world's first and only preservative-free, multi-dose, sterile-packaged nasal spray approved for treating mild, moderate, and severe dry eye disease. It works by activating the trigeminal parasympathetic pathway to increase natural tear production, treating the root cause of dry eye. Since its approval in the US in October 2021, OC-01 quickly became a star drug in the dry eye treatment field. It is expected to capture a significant position in the dry eye drug market, estimated to be as large as RMB 18 billion, offering hundreds of millions of Chinese dry eye patients a more effective and convenient treatment experience.
The company's recently approved, globally first-in-class treatment for Demodex blepharitis, TP-03, is the first drug approved by the FDA and currently the only one globally specifically for this condition, filling a gap in domestic clinical treatment. Since its launch in the US in 2023, the product's sales revenue experienced explosive growth, reaching approximately $450 million in the US in 2025, a substantial increase of over 150% year-on-year, with its global sales peak expectation exceeding $2 billion. This product has already validated its commercial value as an ophthalmology blockbuster through actual performance. Given the unmet needs of over 50 million patients domestically, its future market potential is highly promising.
Furthermore, China's large population of allergic鼻炎 patients endows the compound nasal spray with clear clinical value. As a highly prevalent chronic respiratory disease in China, the prevalence of allergic鼻炎 had already reached 20.9% in 2019, with a prevalence of 18.46% among children and adolescents, totaling nearly 250 million people. The prevalence continues to rise, and the domestic patient population is projected to grow significantly by 2033. As the first compound nasal spray for treating allergic鼻炎 in China, it provides a new treatment option for patients, greatly alleviating the clinical demand for compound formulation products. It is also expected to disrupt the current market dominance by foreign products in this领域 and achieve rapid sales scaling.
Multiple innovative products have created significant differentiated advantages for GRAND PHARMA across several therapeutic areas, fully reflecting the company's精准 strategic布局眼光 and strong product development and execution capabilities. All of this will gradually be reflected in the company's future growth trajectory. In terms of medium-to-long-term development, this strategy of tackling superior technologies, creating high-quality products, and participating in core competition within the global biopharmaceutical market also gives GRAND PHARMA显著差异化特质 among many investment targets.
In conclusion, from the current vantage point, GRAND PHARMA has charted a competitive path characterized by a clear growth trajectory and strengthening leading effects through industrial focus, economies of scale, business model optimization, and continuous innovation. Technological leadership, industrial synergy, and R&D capabilities complement each other, with each business unit forming clear development directions that collectively drive the group's rapid scaling. Judging by product pipeline depth, technology platform completeness, and commercial progress, particularly in nuclear medicine, GRAND PHARMA has developed industrial strength and innovation capabilities with international competitiveness.
However, there currently exists a significant perception gap and valuation dislocation in the capital market's pricing of GRAND PHARMA. For the company, even though its stock price accumulated an increase of over 70% during 2025, there remains substantial upside potential relative to the巨大潜力 of its robust innovative pipeline. As of March 24, 2026, GRAND PHARMA's total market capitalization was approximately HK$23.217 billion. This valuation level essentially only reflects the cash flow value of its traditional pharmaceutical business and its already commercialized nuclear medicine products. Its vast innovative drug pipeline, which is entering a密集兑现期, remains largely unvalued. This is especially true for pipeline assets capable of rivaling international giants like Novartis in nuclear medicine and globally first-in-class products with blockbuster potential.
From a risk-reward perspective, GRAND PHARMA offers a strong downside cushion and high upside elasticity. Against the backdrop of fully absorbed VBP impacts, coupled with the continuous sales scaling of innovative products across segments like nuclear medicine, the stability of its traditional business and the strong cash flow from launched nuclear medicine products have构筑 a solid valuation floor. As the innovative pipeline continues to deliver, the company is at a critical juncture for valuation re-rating, transitioning from a "traditional pharmaceutical company" to an "innovative international MNC." The key to capturing this "expectation gap" lies in the market's尚未充分认知 of the scarcity of its nuclear medicine landscape and the earnings爆发力 driven by the密集商业化 of innovative drugs.
Simultaneously, based on these increasingly deep "moats," GRAND PHARMA will attract growing attention and recognition from top-tier domestic and international investment institutions. With its vast growth space and continuously demonstrated profitability, the company is not only advancing its "Go Global" strategic international expansion but also demonstrating to the capital market the immense想象空间 created by its systematic competitive advantages.
Comments