Aurisco Pharmaceutical's Formulation Success Drives Soaring Profits

In recent years, Aurisco Pharmaceutical has achieved remarkable success in its focus on formulation products. Since 2023, the company's net profit growth rate has surpassed its revenue growth rate, primarily due to the increase in high-margin formulation business. In the first quarter of 2024, the net profit growth rate soared 79.79% year-over-year, far outpacing the 11.08% revenue growth, demonstrating the company's robust growth momentum.

Though the formulation business accounts for only around 7% of the company's total revenue, it contributes over 11% of the profits, with a gross profit margin as high as 87.74%, significantly exceeding the 56% of the active pharmaceutical ingredient (API) business. This is largely attributed to Aurisco Pharmaceutical's successful integration of formulation, particularly its levonorgestrel tablet product, which is the global first-to-market generic formulation with industry-leading API-scale manufacturing capabilities.

The levonorgestrel tablet market holds immense potential, with the global API consumption growing at a compound annual rate of 9.1%, and the sales in China reaching nearly 1.8 billion yuan in 2022. Since its launch in 2023, Aurisco Pharmaceutical's levonorgestrel tablet has generated sales revenue of around 48 million yuan in the first quarter, with projected sales of 360 million and 550 million yuan in 2024 and 2025, respectively.

Facing intensifying market competition, Aurisco Pharmaceutical plans to launch 3 to 5 new formulation products annually, with the goal of increasing the formulation business revenue contribution to 50%, further strengthening its profitability.