Nucleic Acid Drug Track Welcomes BD Boom: Yue康Pharma Leads Value Leap Through Technological Innovation

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

At the beginning of 2026, the global nucleic acid drug sector is experiencing a dual boom of commercialization and M&A transactions. Multinational pharmaceutical companies are intensively expanding into chronic disease areas, domestic innovative drug companies are setting new records in overseas licensing deals, and companies like Frontier Bio and HeBo Medicine are continuously forming cross-border collaborations. This marks that China’s nucleic acid drug R&D capabilities have been highly recognized by 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 markets such as lipid-lowering, blood pressure reduction, and hepatitis B, the industry is entering its “golden decade.”

Under this industry trend, Yuekang Pharmaceutical (688658.SH) has leveraged early deployment and deep technical accumulation to achieve a leap from “following” to “leading.” Now, its nucleic acid drug R&D has entered a harvest period. The company’s core value has shifted from a single product focus to systematic value release of technology platforms and pipelines. It has made comprehensive breakthroughs in delivery systems, key raw materials, and AI empowerment, becoming a leading innovator in nucleic acid drugs with both technological barriers and commercial potential.

Dual-Drive Model: Balancing Current and Future Growth

The acquisition of Hangzhou Tianlong Pharmaceutical in 2021 was a key turning point for Yuekang’s transformation. It not only gained core assets like the first domestic anti-hepatocellular carcinoma ASO drug CT102 but also infused the gene of nucleic acid drug R&D, establishing a “robust foundation + high-potential growth engine” dual-drive model.

On the stable foundation, traditional chemical drugs represented by Ginkgo biloba extract injections and 75 medical insurance-listed drugs continue to contribute steady cash flow, forming a virtuous cycle of “funding research through drugs.”

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

As of now, the company has 21 Class 1 new drugs in development, including 16 nucleic acid innovation pipelines with a gradient layout: CT102 (anti-hepatocellular carcinoma ASO) in Phase II, YKYY017 (broad-spectrum anti-COVID peptide) progressing to Phase II/III with clinical approvals in China, the US, and Australia, and other blockbuster candidates like YKYY015 (ultra-long-acting lipid-lowering siRNA) and YKYY029 (ultra-long-acting antihypertensive siRNA), forming a seamless value realization pathway from near-term to long-term.

Yuekang’s transformation is not just pipeline expansion but built on fundamental technological breakthroughs creating an “unreplicable” competitive advantage.

In the critical delivery system field for nucleic acid drugs, the company has made a leap from “following” to “leading”: its自主研发的可电离阳离子脂质YK-009 (ionizable cationic lipid YK-009) has become China’s first product with自主知识产权 (independent intellectual property rights) and dual registration in China and the US. It features biodegradability and high delivery efficiency, has achieved mass production, and holds patents in China, the US, Japan, Israel, and other countries.

Building on this, the company has established three major delivery platforms: LNP, GalNAc, and TLP, covering multi-dimensional targeting, liver targeting, and tumor targeting scenarios, with a total of 14 related patents,彻底摆脱对海外技术的依赖 (completely freeing itself from reliance on overseas technology).

In the key raw materials area, its自主研发的Cap1新型帽子结构YK-CAP-110 (new cap structure YK-CAP-110) has completed DMF filing with the US FDA, breaking international monopolies and ensuring自主可控 (independent control) of mRNA technology.

Meanwhile, the company deeply integrates AI into the entire R&D process. The AI-based novel drug YKYY018 (inhalation aerosol) initiated Phase I clinical trials in December 2025, showcasing its AI-assisted target discovery and sequence design capabilities. As an internationally original membrane fusion inhibitor, it is expected to fill a 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 has commercial potential for external licensing, opening additional revenue streams.

Internationalization Journey: From Product Export to Technology Output

Frost & Sullivan predicts the market will reach $46.7 billion by 2033, with a CAGR of 26.1%. As the global nucleic acid drug market enters an explosive growth phase, Yuekang is accelerating its international expansion with a dual strategy of “market regulation breakthroughs + deepening emerging markets.”

In developed markets like Europe, the US, and Japan, the company focuses on “dual reporting in China and the US,” achieving significant results since 2025: YKYY013 (hepatitis B siRNA), YKYY015 (ultra-long-acting lipid-lowering siRNA), YKYY018 (RSV inhalation), and YKYY029 (ultra-long-acting antihypertensive siRNA) have obtained clinical approvals in both China and the US. Notably, YKYY015 is the first and only PCSK9 siRNA drug approved by the FDA at the clinical stage domestically, with preclinical data showing superior lipid-lowering effects and a dosing frequency of “twice a year,” offering significant clinical advantages.

With FDA approval, the company is poised to tap into the trillion-dollar global chronic disease treatment market, transitioning from a “drug manufacturer” to a “technology solution provider.”

In emerging markets, based on over 70 product specifications sold to more than 50 countries and regions, the company is deepening cooperation in Southeast Asia and Central Asia. In August-September 2025, medical delegations from Uzbekistan, Iraq, Thailand, and Cambodia visited intensively, promoting the internationalization of traditional Chinese medicine under the Belt and Road Initiative. This “technological breakthrough + market deepening” approach creates a differentiated international competitive edge.

By the end of 2025, Yuekang officially initiated H-share listing, marking its entry into the “A+H” dual-capital platform era. This not only alleviates funding pressure but also shifts its valuation model from traditional PE (price-to-earnings) of generic drug companies to DCF (discounted cash flow) of innovative pharmaceutical companies, with potential for a platform-based technology premium.

From industry background, recent years have seen multiple billion-dollar M&A deals in the global nucleic acid drug field, with leading companies like Alnylam and Ionis seeing their market caps rise steadily. The market highly recognizes innovative companies with core technology and high-quality pipelines.

With自主可控的递送系统技术,梯度化的重磅管线, and the progress of “dual reporting in China and the US,” Yuekang has developed core competitiveness to compete globally. The H-share listing will further incorporate international investors’ valuation, potentially accelerating its valuation re-rating.