Baiair Medical Reports First Post-IPO Financial Results: H1 Revenue Reaches RMB 3.346 Billion, Up 37.79% Year-on-Year

On August 27, 2021, Baiyang Pharma (301015.SZ), a commercialization platform for health brands, released its 2021 semi-annual performance report, delivering an impressive set of results since its listing. The interim report showed that in the first half of 2021, Baiyang Pharma achieved operating revenue of RMB 3.346 billion, a year-on-year increase of 37.79%; net profit attributable to shareholders of the parent company amounted to RMB 188 million, representing a year-on-year growth of 68.16%.

Baiyang Pharmaceutical listed on the ChiNext board of the Shenzhen Stock Exchange in June 2021. As a professional health brand commercialization platform in the CXO (pharmaceutical outsourcing) sector, it provides comprehensive marketing solutions for pharmaceutical manufacturers, striving to become a “brand highway” that enables pharmaceutical and consumer health products to reach consumers rapidly.

Baiyang Pharmaceutical’s primary business is to provide integrated marketing services to pharmaceutical manufacturers, encompassing brand operations, wholesale distribution, and retail activities, with brand operations serving as its core business. The interim report shows that Baiyang Pharmaceutical’s core business maintained a trend of rapid growth. In the first half of 2021, revenue from brand operations reached RMB 1.295 billion, representing a year-on-year increase of 43.17%; gross profit amounted to RMB 633 million, accounting for 78.13% of the total gross profit.

Behind the robust growth of core business operations lies the expansion of key brands managed under Baiyang Pharmaceutical’s efficient operational capabilities. The company’s currently managed major brands and products include the Caltrate series, Biet series, Harnal series, Takeda series, Nutrasuma, and Fuzheng Huayu. During the reporting period, the Caltrate series, Takeda series, and Harnal series generated revenues of RMB 630 million, RMB 53 million, and RMB 188 million, respectively, representing year-on-year increases of 42.67%, 40.52%, and 19.57%.

While achieving rapid growth for its core operating brands, Baiyang Pharmaceutical has continuously expanded its collaborations with mainstream pharmaceutical companies, thereby enriching its brand portfolio. In the first half of 2021, Baiyang Pharmaceutical added several new products to its operational lineup, including Pfizer’s Zithromax, Astellas’ Vesicare, CSL Behring’s Albuminar, and Roche’s Xeloda and Tarceva. Building on the successful incubation of flagship products such as Dicale and Bite, Baiyang Pharmaceutical has continuously explored various pharmaceutical categories, gradually forming three major strategic tracks: OTC and general health products, OTX prescription drugs, and medications for major diseases such as cancer. This “Brand Expressway” is now operating with high efficiency.

Unlike traditional commercial enterprises, Baiyang Pharmaceutical is a “commercialization” company with brand operation capabilities, targeting the health brand market characterized by longer product life cycles. In addition to providing consumers with more convenient purchasing channels, Baiyang Pharmaceutical offers brand operation and promotion services, stimulating consumer demand and driving purchase behavior.

In its interim report, Baiyang Pharmaceutical highlighted that its core competencies are primarily reflected in category insight and brand operation capabilities, customer management via an all-data platform, and the capacity to support long-term operational mechanisms. With over a decade of deep engagement in the industry, Baiyang Pharmaceutical has cultivated robust capabilities in category insight and brand operations. Building on this foundation, the company has established a professional pathway for brand commercialization, enabling it to formulate tailored operational strategies for products at different lifecycle stages and provide commercialization support services for various products from upstream enterprises.

As of the end of the reporting period, Baiyang Pharmaceutical covered 360,000 retail terminals and 14,000 mainstream hospitals across China. The full-data platform, which encompasses information on retail terminals and mainstream hospitals nationwide, serves as a key strategic asset for Baiyang Pharmaceutical. Functioning as a precision-guided market map to direct the allocation of market resources, Baiyang Pharmaceutical’s full-data platform enables deep connectivity among medical institutions, retail enterprises, and industrial manufacturers, thereby helping various products accurately identify target terminals and enhancing marketing efficiency and compliance.

In recent years, with the rapid development of health brand commercialization platforms, Baiyang Pharmaceutical’s brand portfolio has continued to expand, and its industrial scale has gradually grown. The value of its “third-party commercialization platform” has been widely recognized by many mainstream multinational pharmaceutical companies and leading domestic enterprises. Its partners include not only globally renowned pharmaceutical companies such as Roche, Takeda, Astellas, and CSL Behring, but also innovative biopharmaceutical firms like 3SBio Inc. and Ningbo Ruilin.

Notably, while deepening its commitment to the commercialization platform for health brands, Baiyang Pharmaceutical has extended its reach into the lucrative sector of functional cosmetics, achieving synergistic business development.

Leveraging over a decade of expertise in brand operation and a robust pharmacy network, Baiyang Pharmaceutical’s functional cosmetics commercialization platform currently manages brands equipped with core patented technologies, including Coressol dissolving microneedles, Tripollar radiofrequency devices, Comfy recombinant human-like collagen, and Ezenna basement membrane repair products.

The new retail brand “Mengtuo YAO Cosmetics” has signed strategic cooperation agreements with multiple mainstream pharmacy chains, including Yixintang, Yikang, Dashenlin, Guoda, Changsheng Pharmacy, and Yanxitang. By adopting a “shop-in-shop” model to establish a presence in professional pharmacies, the brand offers not only a wide range of functional cosmetics but also light medical aesthetic experience services.

As the pharmaceutical industry undergoes in-depth reforms, it is gradually maturing, with increasingly clear specialization. Baiyang Pharmaceutical’s steady performance improvement and expanding client base in recent years have demonstrated its value and strategic positioning as a third-party commercialization platform in the CXO sector. Currently, Baiyang Pharmaceutical has established an innovative platform architecture characterized by “One Core, Two Wings.” As business initiatives continue to be implemented, the core advantages of its health brand commercialization platform are becoming increasingly prominent, while its strategic layouts in functional cosmetics and online prescription drug sales will serve as the two wings propelling Baiyang Pharmaceutical’s rapid growth.