Prolo Pharmaceutical: 2025 Revenue of 9.784 Billion Yuan, CDMO Business Performance Excels

China Securities Journal, China Securities Network News (Reporter Jing Jing) — On the evening of March 19, Prolong Pharmaceuticals disclosed its 2025 annual report. Facing macroeconomic and industry cycle challenges, the company achieved operating revenue of 9.784 billion yuan in 2025, a decrease of 18.62% year-on-year; net profit attributable to shareholders of the listed company was 891 million yuan, down 13.62% year-on-year; net profit after deducting non-recurring gains and losses was 769 million yuan, down 21.86% year-on-year.

Deepening Strategic Transformation

In 2025, Prolong Pharmaceuticals unwaveringly implemented its development strategy of “refining raw materials, strengthening CDMO, improving pharmaceuticals, and expanding aesthetic medicine.” Amid a complex and volatile operating environment, the company continued to solidify core competitiveness and accelerate business transformation and upgrading. During the reporting period, the company’s three main business segments showed differentiation, with ongoing optimization of the business structure.

Specifically, innovative drug R&D and manufacturing services (CDMO) became the core driver of growth. During the period, this segment achieved revenue of 2.198 billion yuan, a 16.66% increase; gross profit was 994 million yuan, up 28.54%, with gross margin rising by 4.18 percentage points to 45.24%. The company’s CDMO project “funnel” effect was significant, with 1,311 ongoing projects, a 32% increase; among these, 913 were in the R&D stage, up 42%. The total number of raw material drug (API) projects reached 152, a 31% increase. By the end of the reporting period, the company’s on-hand commercial orders to be delivered within three years exceeded 6 billion yuan.

Compared to the impressive performance of the CDMO business, the API intermediate business faced considerable pressure. Due to industry cycles, weak demand, and fierce competition, this segment achieved sales of 6.165 billion yuan, down 28.74%; gross profit margin was 13.53%, down 1.44 percentage points. The pharmaceutical business achieved revenue of 1.15 billion yuan, down 8.42%, but gross margin increased by 0.74 percentage points to 61.55%.

To support long-term development, the company continued to increase capacity construction and digital transformation during the period. The CDMO manufacturing base and Boston laboratory in the U.S. became operational; biorefining extraction pilot workshops and peptide GMP pilot production lines were completed and put into operation, injecting new growth points. Meanwhile, the company vigorously promoted “continuous, automated, digital, and intelligent” development, with its AIGC platform officially launched in April 2025, having developed 412 knowledge bases and 316 agents, effectively improving operational efficiency. During the period, net cash flow from operating activities was 1.22 billion yuan, well aligned with net profit.

Continued Increase in R&D Investment

“Innovation-driven development” is a core philosophy of Prolong Pharmaceuticals. In 2025, the company continued to increase R&D investment, strengthening technological platform construction, with innovation results gradually entering the harvest phase. During the period, R&D expenditure totaled 659 million yuan, a 2.79% increase, accounting for 6.74% of operating revenue.

By the end of the reporting period, the company had 1,326 R&D personnel, accounting for 19.54% of total employees, including 55 PhDs and 559 master’s degree holders. The company established R&D centers in Hengdian, Shanghai, and Boston, USA, and systematically built multiple cutting-edge technology platforms such as fluid chemistry, crystallization and powder, synthetic biology and enzyme catalysis, peptides, and broad-spectrum conjugation, providing strong support for various business segments.

During the period, the company’s R&D registration capabilities significantly improved. Four API varieties received domestic and international approval, including donafenib tosylate and cefovecin sodium, with donafenib tosylate being part of a CDMO collaboration project, marking the company’s accelerated transition toward a high-end custom R&D and manufacturing service platform. Additionally, eight domestic formulation products and one U.S. FDA-approved formulation product were approved for market launch. The highly anticipated Simopeg injection (for weight loss and blood sugar reduction) completed all Phase III clinical enrollment. By the end of the period, the company held 155 valid patents, including 144 invention patents.

Looking ahead to 2026, Prolong Pharmaceuticals stated it will continue to firmly practice the corporate mission of “technology creating health,” further increase R&D investment, and actively develop new production capabilities. The company will further implement excellence performance management, improve operational efficiency, accelerate talent recruitment and organizational capacity building, and promote deep internationalization development.

【Source: China Securities Journal · China Securities Network】