Analysis of R&D Investment and Nucleic Acid Drug Transformation of Youcare Pharmaceutical Group

Based on the public data I collected,

, and actual data shows that its R&D investment intensity is quite considerable. The following is a detailed analysis:

• 2023: R&D expenses
  436 million yuan
  , accounting for
  10.38%
  of operating revenue [1][2]
• 2024: R&D expenses
  374 million yuan
  , accounting for
  9.9%
  of operating revenue [3]
• Full year 2024: R&D investment accounted for
  11.16%
  of operating revenue [4]
• First half of 2025: R&D investment
  209.0436 million yuan
  , accounting for
  17.91%
  of operating revenue, an increase of 7.54 percentage points compared with the same period last year [5]

Youcare Pharmaceutical Group is indeed actively transforming into the nucleic acid drug field:

• Acquired Hangzhou Tianlong Pharmaceutical for 21 million yuan in 2021, obtaining the
  GalNAc delivery technology
  with independent intellectual property rights [6]
• Established
  11 core technology platforms
  covering nucleic acid drugs, peptide drugs, cell and gene therapy drugs, etc. [1][2]
• Established an international R&D team of
  more than 500 people
  [1][2]

• Laid out
  more than 20 Class 1 innovative drug R&D pipelines
  , covering multiple therapeutic areas such as cardiovascular and cerebrovascular, respiratory system, anti-infection, and anti-tumor [1][2]
• Key project YKYY015 Injection
  is the only pipeline among domestic PCSK9 siRNA clinical-stage drugs approved for US IND [3]
• Key project CT102 for Injection is China’s first independently developed antisense oligonucleotide (ASO) drug for the treatment of primary liver cancer [1]

1. Pressure on traditional business
   : The core product Ginkgo Leaf Extract Injection saw its price halved and sales system collapsed due to compliance issues, leading to the company’s first loss since listing in 2024 [6]
2. Pipeline progress
   : Although it has more than 10 small nucleic acid drug pipelines in reserve, most are still in the early clinical stage [6]
3. Performance pressure
   : In 2024, operating revenue reached 3.781 billion yuan, a year-on-year decrease of 10%, and net profit attributable to parent company was 124 million yuan, a year-on-year decrease of 33% [3]

1. Policy support
   : In July 2024, the State Council passed the “Implementation Plan for Full-Chain Support for Innovative Drug Development”, and in January 2025, the “Opinions on Comprehensively Deepening the Supervision Reform of Drugs and Medical Devices to Promote High-Quality Development of the Pharmaceutical Industry” provided policy guarantees for the development of innovative drugs [4]
2. Market prospects
   : Global small nucleic acid drugs have entered the industrialization stage. Novartis’ siRNA lipid-lowering injection Inclisiran had global sales of 754 million US dollars in 2024, and it is expected to exceed 1 billion US dollars this year [6]
3. Financing plan
   : The company plans to list in Hong Kong, which is expected to open a new financing channel [6]

Based on the above analysis, it is suggested that Youcare Pharmaceutical Group break through from the following aspects:

1. Continue to increase R&D investment
   : The 17.91% R&D investment ratio in the first half of 2025 is a good start, and it should continue to maintain and optimize capital allocation
2. Accelerate pipeline advancement
   : Concentrate resources to promote the clinical progress of key projects such as core pipeline YKYY015
3. Leverage platform advantages
   : Make full use of the established full-chain R&D system for nucleic acid drugs to improve efficiency from target discovery to commercialization
4. Capital market communication
   : Solve financing needs through listing in Hong Kong, while strengthening communication with institutional investors to clearly convey transformation value

: Youcare Pharmaceutical Group’s R&D investment ratio is actually at a relatively high level in the pharmaceutical industry (above 10%), and its transformation strategy direction to nucleic acid drugs is correct. The key lies in accelerating the progress of core pipelines and achieving commercial breakthroughs.

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:
[1] Youcare Pharmaceutical Group Official Website - New Quality Productivity for Pharmaceutical Enterprise Development (https://youcareyk.com/content/details24_574682.html)
[2] Youcare Pharmaceutical Group Official Website - Company Development History (https://youcareyk.com/content/details24_574672.html)
[3] Huayuan Securities - Small Nucleic Acid Industry Special Report (https://pdf.dfcfw.com/pdf/H3_AP202511161782580546_1.pdf)
[4] Youcare Pharmaceutical Group 2024 Annual Report Summary (https://file.finance.qq.com/finance/hs/pdf/2025/03/15/1222807864.PDF)
[5] Youcare Pharmaceutical Group 2025 “Improve Quality, Increase Efficiency, and Prioritize Returns” Action Plan Half-Year Evaluation Report (https://file.finance.qq.com/finance/hs/pdf/2025/08/29/1224610084.PDF)
[6] Sina Finance - The Dividend of Traditional Chinese Medicine Injections Recedes, Youcare Pharmaceutical Group Transforms into a Small Nucleic Acid Innovative Drug Company (https://cj.sina.com.cn/articles/view/6192937794/17120bb4202002msgq)