"Star Daily" October 8th news (Reporter Zheng Bingxun) Following the disclosure of the first A-share biopharmaceutical semi-annual performance forecast earlier this year, NuoTai Biomedical (688076.SH) has become the first STAR market enterprise to disclose the performance forecast for the third quarter of 2024.

According to the performance forecast, NuoTai Biomedical is expected to achieve a net income attributable to the mother of 0.1 billion yuan to 0.14 billion yuan in Q3 2024, an increase of 50.1397 million yuan to 90.1397 million yuan, expecting a year-on-year growth of 100.56% to 180.78%. In the same period last year, NuoTai Biomedical's net income attributable to the mother was 49.8603 million yuan.

In the first half of this year, NuoTai Biomedical had previously forecasted a net income attributable to the mother of 0.18 billion yuan to 0.25 billion yuan for the first half of the year, with a year-on-year growth of 330.08% to 497.34%. The actual disclosed semi-annual report showed a net income attributable to the mother of 0.227 billion yuan, a year-on-year growth of 442.77%, with growth falling at the upper end of the forecast range.

In response to the increased net income forecast for the third quarter, NuoTai Biomedical stated that the significant year-on-year increase in sales revenue of polypeptide active pharmaceutical ingredients and other products drove the performance growth.

As a pharmaceutical company specializing in independent research and development and customized research and development production of polypeptide drugs and small-molecule drugs, NuoTai Biomedical's current revenue mainly comes from the "Independent Choice Products" and "Customized Products and Technical Services" sectors.

Wind data shows that in recent years, NuoTai Biomedical's revenue from independent choice products has grown rapidly, surpassing revenue from customized business in 2023, becoming the company's main source of income.

Specifically, from 2021 to 2023, the self-selected products achieved revenues of 13.1 billion yuan, 25.6 billion yuan, and 62.9 billion yuan respectively, accounting for 20.34%, 39.33%, and 60.84% of the total income. During the same period, the customized business segments generated revenues of 51.1 billion yuan, 39.2 billion yuan, and 40.4 billion yuan, accounting for 79.32%, 60.17%, and 39.08% of the total income.

In the first half of 2024, the revenue gap between the two major business sectors of Notai Biomedical further widened. The revenue from self-selected products reached 54.5 billion yuan, accounting for 65.53% of the total, while the revenue from customized business was 28.6 billion yuan, accounting for 34.53% of the total.

It is reported that in the aspect of self-selected products, Notai Biomedical mainly focuses on polypeptide drugs, supplemented by small molecule drugs, and conducts research, development, and sales around the treatment directions of diabetes, cardiovascular diseases, tumors, and other diseases. Currently, Notai Biomedical has built a pipeline covering various types including Semaglutide, Liraglutide, Tirzepatide, and Oseltamivir phosphate.

Reporters from 'Star Market Daily' found that Notai Biomedical has achieved sales growth in polypeptide active pharmaceutical ingredients, perhaps due to continuous breakthroughs in related technologies.

Firstly, in 2023, Notai Biomedical obtained the FDA DMF First Adequate Letter (FA Letter) for polypeptide active pharmaceutical ingredients such as Liraglutide and Semaglutide, indicating that the quality of related polypeptide active pharmaceutical ingredients has been recognized by the FDA. Secondly, in February this year, Notai Biomedical's Tirzepatide active pharmaceutical ingredient obtained the world's first U.S. FDA DMF (Drug Master File).

At a recent investor conference, Notai Biomedical mentioned that after obtaining the FA Letters for products like Semaglutide, the accumulation of related technologies and experiences can also be applied to other polypeptide varieties. They explicitly stated, 'Overseas customers have a very high regard for FA Letters, which can significantly boost our business expansion with official certification and double the results with half the effort.'

Furthermore, in the face of the current high demand and tight production capacity for GLP-1, Notai Biomedical is expanding the 601 and 602 polypeptide workshops for production layout. The 601 workshop is expected to complete installation and commissioning by the end of 2024, while the 602 workshop is scheduled to complete construction, installation, and commissioning in the first half of 2025, with a total increase in polypeptide production capacity of 10 tons per year.

However, Notai Biomedical also warns that as polypeptide products enter the commercialization stage and with the quantity increasing exponentially, prices are expected to decrease. Nevertheless, Notai Biomedical stated, 'The company can reduce production costs through various cost-reduction and efficiency-improvement measures, achieving economies of scale and higher gross profits.'