Nucleic acid drug sector welcomes a wave of BD enthusiasm. Yuekang Pharmaceutical leads value transformation through technological innovation.

How can AI and Yuyuan Pharmaceutical’s delivery system break through international technological monopolies?

As 2026 begins, the global nucleic acid drug sector is experiencing a dual surge in commercialization and a boom in BD transactions. Multinational pharmaceutical companies are intensively positioning themselves in the chronic disease field, while domestic innovative pharmaceutical companies are achieving record overseas licensing deals. Leading companies such as Frontier Bio and Heptagon Pharmaceuticals have successively reached multinational collaborations, marking that China’s nucleic acid drug R&D capabilities have gained high recognition in the international market. According to Frost & Sullivan, the global nucleic acid drug market is expected to reach $46.7 billion by 2033. With penetration into trillion-dollar chronic disease markets such as lipid-lowering and hypertension, the industry is entering a “golden decade.”

In this industry uptrend, Yuyuan Pharmaceutical (688658.SH) has, through early positioning and deep accumulation of technical advantages, achieved a leap from “following” to “leading.” Today, its nucleic acid drug R&D has entered a harvest period, and the core value of the enterprise has already shifted from a single product to the systematic release of value from technology platforms and pipeline assets. Full breakthroughs have been achieved in core areas such as delivery systems, key raw materials, and AI empowerment, making it a leader in nucleic acid drug innovation with both technological barriers and commercialization potential.

Dual-Driver Model: Balancing Current and Future Growth Structure

The acquisition of Hangzhou Tianlong Pharmaceutical in 2021 became a key turning point for Yuyuan Pharmaceutical’s transformation, not only acquiring the country’s first anti-liver cancer ASO drug CT102 and other core assets but also injecting the gene of nucleic acid drug R&D, thus establishing a dual-driver model of “robust basic plate + high-potential growth pole.”

On the robust basic plate side, traditional chemical drugs represented by ginkgo leaf extract injection and 75 types of medical insurance drugs continuously contribute stable cash flow, forming a virtuous cycle foundation of “using drugs to support research.”

On the high-potential growth pole side, the company focuses on cutting-edge fields such as nucleic acid drugs (siRNA, ASO, mRNA) and peptide drugs, constructing an innovative pipeline covering major diseases like cardiovascular, anti-tumor, and infectious diseases.

As of now, the company has 21 Class 1 new drugs under research, of which 16 nucleic acid innovative drug pipelines have formed a gradient layout: CT102 (anti-liver cancer ASO) has entered Phase II clinical trials, YKYY017 (broad-spectrum anti-COVID peptide) has advanced to Phase II/III and obtained clinical approval in the US, China, and Australia, and products with BIC potential such as YKYY015 (ultra-long-acting lipid-lowering siRNA) and YKYY029 (ultra-long-acting antihypertensive siRNA) have formed a seamless value realization path of “short, medium, and long term.”

Yuyuan Pharmaceutical’s transformation is not merely a simple pipeline expansion but rather the construction of an “uncopyable” competitive advantage through breakthroughs in underlying technology.

In the most critical delivery system field of nucleic acid drugs, the company has achieved a leap from “following” to “leading”: the independently developed ionizable cationic lipid YK-009 has become China’s first product with independent intellectual property rights and completed dual filings in China and the US. It possesses core advantages such as biodegradability and high delivery efficiency and has been mass-produced, winning patents in multiple countries including China, the US, Japan, and Israel.

Based on this, the company has constructed three major delivery technology platforms: LNP, GalNAc, and TLP, covering multidimensional targeting, liver targeting, and tumor targeting scenarios, and has accumulated 14 related patents, completely breaking free from dependence on overseas technology.

In the key raw materials field, the self-developed Cap1 new cap structure YK-CAP-110 has completed DMF filing with the US FDA, breaking through international monopolies and ensuring the self-control of mRNA technology.

At the same time, the company has deeply integrated AI technology into the entire R&D process. The AI original new drug YKYY018 inhalation aerosol, which started Phase I clinical trials in December 2025, is an important result of its AI-assisted target discovery and sequence design capabilities. This drug, as an international original membrane fusion inhibitor, is expected to fill the global gap in RSV infection treatment.

This platform layout of “delivery system + key raw materials + AI empowerment” not only reduces R&D costs and increases success rates but also possesses commercialization potential for technology licensing, opening up additional revenue space.

International Journey: From Product Export to Technology Output

Frost & Sullivan predicts that by 2033, the market size will reach $46.7 billion, with a CAGR of 26.1%. As the global nucleic acid drug market enters an explosive period, Yuyuan Pharmaceutical is accelerating its international layout, forming a dual strategy of “standard market breakthrough + emerging market deep cultivation.”

In standardized markets such as Europe, the US, and Japan, the company focuses on “dual filing in China and the US” as a core strategy, achieving significant results since 2025: YKYY013 (hepatitis B treatment siRNA), YKYY015 (ultra-long-acting lipid-lowering siRNA), YKYY018 (RSV inhalation aerosol), and YKYY029 (ultra-long-acting antihypertensive siRNA) have successively obtained clinical approvals from both countries. Among them, YKYY015 is the first and only FDA-approved PCSK9 siRNA drug in the clinical phase in China, with preclinical data showing its lipid-lowering effect superior to similar products, and its “one injection every six months” dosing frequency provides significant clinical advantages.

With the endorsement of FDA reviews, the company is expected to leverage the trillion-dollar chronic disease treatment market globally, achieving a transition from “pharmaceutical manufacturer” to “technology solution provider.”

In emerging markets, the company relies on over 70 product specifications sold to more than 50 countries and regions to deepen cooperation in Southeast Asia and Central Asia. In August-September 2025, medical delegations from Uzbekistan, Iraq, Thailand, and Cambodia visited intensively, promoting the company to accelerate the internationalization of traditional Chinese medicine through the “Belt and Road” initiative. This layout of “technological breakthroughs in standardized markets + product deep cultivation in emerging markets” has formed a differentiated international competitive edge.

By the end of 2025, Yuyuan Pharmaceutical officially launched the H-share listing process, marking the company’s entry into the “A+H” dual capital platform era. This move will not only alleviate the company’s funding pressure but more importantly, promote its valuation model from the traditional PE valuation of generic pharmaceutical companies to the DCF valuation of innovative pharmaceutical companies, and is expected to obtain a scarcity premium for platform-type technology.

From the industry background, several billion-dollar-level BD transactions have emerged in the global nucleic acid drug sector in recent years, with leading companies like Alnylam and Ionis continuously increasing in market value, and the market has highly recognized innovative pharmaceutical companies with core technologies and quality pipelines.

With its self-controllable delivery system technology, gradient heavy pipeline, and the internationalization progress of “dual filing in China and the US,” Yuyuan Pharmaceutical has core strengths to compete with global peers. With the H-share listing bringing in international investors, its technological value and pipeline potential will be more fully priced, and the valuation reassessment process is expected to accelerate.