Annual Report 2021

MANAGEMENT DISCUSSION AND ANALYSIS 10 The United Laboratories International Holdings Limited Annual Report 2021 Finished Products During the Year, the finished products recorded sales revenue of approximately RMB4,034.5 million, representing a year-on-year increase of 8.4%. Diabetes series recorded a sales revenue of RMB1,433.6 million, representing a year-to-year increase of 16.1%. Among that, sales revenue of recombinant human insulin injections amounted to RMB868.8 million, sales volume increased by 4.6% as compared with last year. Sales revenue of insulin glargine injections amounted to RMB552.6 million, and sales volume increased by 37.5% as compared with last year. The insulin aspart injection and insulin aspart 30 injection which has been approved for listing during the year recorded sales revenue of RMB12.2 million. For other finished products, antibiotic products recorded a sales revenue of RMB2,305.2 million for the year, representing a year-on-year increase of 10.2%. In particular, Piperacillin Sodium and Tazobactam Sodium for Injection recorded a sales revenue of RMB611.2 million, representing a year-on-year increase of 16.1%. Amoxicillin capsules recorded a sales revenue of RMB504.5 million, representing a year-on-year increase of 1.9%. In addition, veterinary drugs recorded a sales revenue of RMB386.7 million, representing a year-on-year increase of 76.3%. During the Year, the bid for Sixth Batch of National Centralized Procurement of Pharmaceuticals (specializing in insulin) was opened, and all six groups of insulin products of the Group won the bidding, involving human insulin and insulin analogues in mealtime, basal and premixed groups. The centralized procurement is the first expansion of national drug centralized procurement into the field of biological products. The Group will take advantage of the opportunity of the national centralized drug procurement to expand the sales of insulin products, increase the market share of products, enhance the brand influence, benefit the vast number of diabetic patients, and accelerate the domestic substitution process in the field of diabetes. Research and Development In 2021, the expenditure on R&D of the Group amounted to RMB465.2 million, representing a year-on-year increase of 37.0%. The Group currently has 23 new products under development, among which 9 are class I new drug projects. Each of the pharmaceutical R&D projects is progressing smoothly. The Group focuses on the development of diabetes drugs, with projects covering insulin analogues such as insulin degludec injection, insulin degludec-insulin aspart mixed injection, and GLP-1 receptor agonists such as liraglutide injection and Semaglutide injection. At the same time, the Group has laid out a number of innovative drug products in the fields of internal secretion, autoimmune disease and ophthalmology. In particular, semaglutide injection has been issued a notification of acceptance of clinical registration application in June.