Mengke Pharmaceuticals (688373) 2025 Annual Report Released: Significant Results in Cost Reduction and Losses, Progress in Commercialization and R&D

Recently, Shanghai Mengke Pharmaceutical Co., Ltd. (688373) released its 2025 annual report. During the reporting period, the company focused deeply on the core track of anti-infective innovative drugs. Through refined operations, it achieved sustained revenue growth. The results of reducing costs and narrowing losses were outstanding. The commercial layout for its core products continued to be further deepened. Several in-development products made milestone progress, and both its global academic influence and innovation competitiveness improved in parallel, laying a solid foundation for the company’s high-quality development.

In 2025, the company generated operating revenue of RMB 142 million, a year-on-year increase of 8.83%. Against the backdrop that only one product, Contezolid Acetate Tablets, had been commercialized, it achieved ongoing growth by optimizing its market expansion model. At the same time, the company’s success in reducing costs and narrowing losses was significant. Net profit attributable to shareholders of the listed company decreased the loss by RMB 199 million year over year; profit from non-recurring items decreased the loss by RMB 209 million; and basic earnings per share was -0.37 yuan/share. This performance was driven by the company’s refined, full-dimension management: by optimizing its organizational structure and improving the efficiency of resource utilization. Selling, R&D, and finance expenses fell year on year by 18.27%, 41.96%, and 47.66%, respectively. Net cash outflow from operating activities decreased by RMB 237 million compared with the previous year, and operating efficiency improved significantly. In 2025, the company’s gross margin reached 84.8%, up 2.0 percentage points year over year. While steadily expanding product market coverage, it achieved continuous improvement in profitability quality, highlighting the stable development trend of its core business.

The market penetration and clinical value excavation of the core product Contezolid Acetate Tablets achieved dual breakthroughs. This is the first domestically developed new-generation oxazolidinone-class antibacterial drug. It has covered 703 hospitals nationwide, with 220 hospitals having completed formal inclusion for reimbursement and bulk centralized procurement. Sales through hospital channels accounted for 76%. In December 2025, it successfully renewed the National Reimbursement Drug List at the original price. After launch, in the medical research segment, during the reporting period, the researchers who initiated clinical research projects for Contezolid Acetate Tablets totaled 15 projects, covering multiple fields including drug-resistant tuberculosis, bloodstream infections with Gram-positive bacteria in patients with febrile neutropenia, tuberculosis of the central nervous system, Gram-positive bacterial infections complicated with acute pancreatitis, infection prevention during artificial hip and knee replacement surgeries, and adult pneumonia; 46 additional achievements in medical evidence-based practice and academic development were added, and 4 authoritative clinical guidelines/consensus documents included it in their recommendations, further strengthening the product’s clinical value and academic recognition.

R&D innovation serves as the core competitive strength. In 2025, the company’s pipeline achieved comprehensive breakthroughs, with multiple core in-development products making key progress. The application for MRX-4 (Contezolid Water-Soluble Prodrug), indicated for complicated skin and soft tissue infections, was accepted for review by the National Medical Products Administration. The international multi-center Phase III clinical trial for its treatment of diabetic foot infection has been conducted in more than 20 countries, with 541 patients enrolled. MRX-5 (a novel anti–non-tuberculosis mycobacteria drug): the company’s Phase I clinical trial in China has completed studies in healthy participants. In January 2026, it obtained approval from the U.S. FDA for a clinical trial. In the future, it will initiate Phase IIa research in the United States. Meanwhile, the company accelerated its layout in non-infectious areas such as oncology and inflammatory diseases. Its first ADC candidate drug, MRX-23, entered preclinical development, and kidney disease targeted and anti-inflammatory-related pipelines were advanced steadily. During the year, the company added 11 invention patent applications and obtained 5 authorizations, bringing the cumulative number of authorized invention patents to 34.

The commercial and global development plan has been further deepened, injecting new momentum into growth. The company has built a “dual-engine” commercial model driven by both an in-house academic promotion team and third-party teams, and it established a nationwide distribution channel network to ensure efficient product reach. On the international stage, the company showcased its core products at top academic conferences such as ESCMID Global2025 and IDWeek2025. A total of 15 research results were presented, and 7 were selected to report at the IDWeek conference. Its global academic influence increased significantly, and multiple international qualifications provided acceleration support for market entry worldwide.

Looking ahead to 2026, the company will continue to focus on differentiated innovation in infectious diseases, accelerate the approval and launch of MRX-4, continuously expand the clinical indications of Contezolid Acetate Tablets, and steadily advance R&D of core pipelines such as MRX-5. On the commercial side, it will further improve product market coverage and sales, while deepening its global development plan by strengthening international cooperation and academic promotion. In the future, Mengke Pharmaceutical will focus on independent innovation, consolidate its leading advantages in the anti-infective field, steadily expand its layout in non-infectious areas, and strive to become an innovative drug company with global independent intellectual property rights and international competitiveness, providing safer and more effective treatment options for patients worldwide.