Zhaoke Ophthalmology expects three drugs to be launched within the year; in the second half of the year, it can transition into a commercialization company.

Zhaoke Ophthalmology (06622) Chairperson, Executive Director, and CEO Li Xiaoyi said that the company’s three core drugs are expected to be approved and launched in China this year. In other words, the business will fully transition to a commercialization model in the second half of the year. Preparations for the launch of products currently underway, including deploying multiple different sales channels in advance and expanding the size of the sales team, are expected to enable the company to quickly increase sales volume once the products are approved. Products expected to be approved and launched this year include atropine sulfate ophthalmic solutions 0.01% and 0.02% for controlling the progression of myopia in adolescents, as well as cyclosporine ophthalmic gel for the treatment of dry eye disease, and bevacizumab intravitreal injection.

Citing peers’ track records of generating about RMB 2 billion (with RMB as the unit; same below) in annual revenue from atropine and cyclosporine, Li Xiaoyi said he has high expectations for the performance after the new drugs are launched. In addition, market demand is strong, and there remains significant room for development. He also believes that, compared with products on the market, its atropine has lower irritation; its cyclosporine ophthalmic gel works faster; and its product pricing is also competitive. Combined with channel expansion, the company can still scale up sales quickly.

To support the launch of new products, Li Xiaoyi estimates that marketing expenses will increase significantly, and the company also plans to expand the sales team from the current 50 people to about 100 people within the year. He also disclosed that the group has established a legally compliant internet hospital in Nansha, Guangzhou, mainly for patient management, which will help complement other sales channels and expand market coverage.

After completing R&D for its core products, the company’s strategy will shift toward being more selective and innovative. Li Xiaoyi said that over the next two years, R&D will focus on the innovative drug PAN-90806 for treating wet age-related macular degeneration (wAMD), and the clinical trial of BRIMOCHOL PF for treating presbyopia. The company’s R&D investment is expected to be relatively lower than in prior years.

Zhaoke Ophthalmology previously announced its full-year results. Last year’s loss narrowed to RMB 209 million. Revenue fell by half to RMB 31.974 million. Even after deducting a one-off product license income of RMB 33.523 million in January 2024, core drug and product sales still declined slightly year over year.

Chief Financial Officer and company secretary Qiu Shuxin explained that this was mainly due to adjustments in the selling prices of certain older products, and that the company last year carried out reforms to its sales network and regional layout. In addition, Li Xiaoyi mentioned that Zhaoke Ophthalmology hopes to expand its international network to Latin America this year, and is currently actively looking for opportunities in Brazil.