Caifinance News, October 22 (Reporter He Fan) In the first three quarters of this year, gan & lee pharmaceuticals (603087.SH) saw an increase in both domestic and international income year-on-year. The company's products won the bid in the insulin special procurement, and the price increase of the winning products made a positive contribution to the increase in domestic sales revenue of gan & lee pharmaceuticals, with the growth effect beginning to be reflected in Q3. In addition, gan & lee pharmaceuticals is also trying to sell insulin products overseas, and the increase in milestone revenue is also one of the factors contributing to the company's performance growth.

Tonight, gan & lee pharmaceuticals released the third quarter report for 2024, announcing that the company achieved revenue of 2.245 billion yuan in the first three quarters of this year, an increase of 17.81% year-on-year; the net income attributable to the mother was 0.507 billion yuan, an increase of 90.36% year-on-year.

Looking at it by region, in the first three quarters, gan & lee pharmaceuticals' domestic sales revenue was 1.868 billion yuan, a year-on-year increase of 14.64%, of which domestic formulated drug sales revenue was 1.802 billion yuan, an increase of 0.221 billion yuan from the same period last year. International sales revenue was 0.242 billion yuan, an increase of 37.63% year-on-year, and international franchising service revenue was 0.135 billion yuan, an increase of 34.49% year-on-year.

Regarding the reasons for the performance growth, gan & lee pharmaceuticals mentioned that it benefited from the steady growth in domestic income. Looking at individual quarters, due to the price increase of formulated products, the company achieved revenue of 0.93 billion yuan in Q3, a 37.61% year-on-year increase, with a net income attributable to the mother of 0.208 billion yuan, a 57.47% year-on-year increase. In Q2, the company won the bid in the insulin centralized procurement, and the revenue growth effect from the price increase of products began to be partially reflected in the third quarter.

As reported by Caifinance News, on April 23, after the expiration of the national medical insurance bureau's insulin centralized procurement agreement, the renewal procurement was opened in Shanghai, and gan & lee pharmaceuticals' 6 products and related specifications were all selected in this round of procurement. In this centralized procurement, all 6 products were selected while raising prices across the board. The core product, G-Insulin (30R), was selected at a price of 65.30 yuan/vial, with an increase of 34.1% in Group A; Winter Monomix (30R), Winter Mealtime, and Second Generation Monomix, 3 products were selected in Group A with individual price increases of 5.5%, 29.6%, and 44.8% respectively.

At the same time, the company revealed that it obtained a first-year agreement volume of 46.86 million vials in the new round of insulin centralized procurement, representing a growth of 32.6% from the previous procurement.

Furthermore, the expansion of international market share has also brought positive impacts to the company's performance. As mentioned by gan & lee pharmaceuticals, international sales orders increased in the first three quarters of this year, with Q3 sales revenue growing by 72.10% year-on-year.

In July this year, the locally filled production of recombinant insulin injection prefilled pens and insulin lispro injection prefilled pens obtained the registration approval from the Algerian medical regulatory agency. Subsequently, the orders exported to Algeria have been shipped in the third quarter, marking the first localized project of the company in the African market.

In addition, progress has been made in the cooperation and development in the European and American markets, leading to a year-on-year increase in international franchise service revenue due to the increase in milestone revenue recognized by Gan & Lee Pharmaceuticals as stipulated in the agreement.