Terminal market demand declines: Kelun Pharmaceutical's net profit in 2025 is expected to decrease by over 40% year-on-year

DoNews April 3 news, according to Caixin (Cailianshe), on the evening of the 2nd, Kaanlon Pharmaceuticals released an announcement. Last year, the company achieved operating revenue of 18.513 billion yuan, down 15.13% year over year; net profit attributable to shareholders of listed companies was 1.702 billion yuan, down 42.03% year over year.

Regarding the reasons for the decline in performance, the company said that for infusion and non-infusion pharmaceutical products, the decline in end-market demand led to a reduction in product sales volume, and the impact of centralized procurement also caused the year-over-year decline in net profit.

In addition, the profits of both subsidiaries declined year over year. Among them, for Chuaning Bio, the price of its penicillin products fell, and sales volumes of some products decreased, while R&D of new products and trial production increased expenses. For Kaanlon BoTai Bio, while sales revenue from its innovative drug products increased significantly, profit decreased year over year due to a reduction in authorization and milestone income, as well as increased R&D expenses. Second, earnings from equity-accounted investees decreased, and investment income decreased year over year.

By business segment, due to the decline in the incidence of infectious diseases such as influenza and the impact of medical insurance cost controls, the company’s main business infusion products achieved sales volume of 3.986 billion bottles/bags, down 8.31% year over year; sales revenue was 7.484 billion yuan, down 16.02% year over year.

On the other hand, the company’s non-infusion drug sales revenue was 4.036 billion yuan, down 3.20% year over year. In addition, due to fluctuations in market demand for penicillin, the company’s antibiotic intermediates and APIs achieved operating revenue of 4.497 billion yuan, down 23.20% year over year.

In terms of overseas business, during the reporting period, Kaanlon Pharmaceuticals’ overseas revenue was 2.488 billion yuan, down 13.14% year over year. The main reason was that Kaanlon BoTai Bio’s overseas authorization revenue decreased.

Regarding the health and wellness business that the market generally pays attention to, Kaanlon Pharmaceuticals said that last year this business achieved its strategic targets of laying out, generating revenue, and achieving profitability within the same year. The sales team increased product penetration step by step through offline sales channels at physical locations in the source areas, as well as sales through mainstream online platforms in China.

On expenses, last year the company’s R&D investment was 2.2 billion yuan, roughly in line with 2024, and R&D expenses as a percentage of sales revenue were 11.91%. Currently, the company’s innovation R&D pipeline (clinical and pre-clinical) has more than 30 projects in total, mainly focused on oncology. Its subsidiary Kaanlon BoTai Bio has more than 10 ADC and novel conjugated drug pipeline programs.

During the reporting period, the company made some progress in R&D. Bodu tuzumab (Trastuzumab biosimilar) was approved in October 2025, becoming the first domestic HER2 ADC in China approved for 2L+HER2+BC. In addition, last January, the PD-L1 monoclonal antibody—Togoreluzumab—combined with cisplatin and gemcitabine for first-line treatment of relapsed or metastatic NPC patients was approved by the National Medical Products Administration and launched in China.