According to the pair transformation theory on mechanism derivation, the internal bevel gear meshing pair of nutation drive is replaced by rolling elements. In this manner, gear teeth are eliminated and the problem of manufacturing the interval bevel gear is solved completely. The method to generate new tooth profiles of nutation drive is put forward. Using this method, a novel nutation drive is presented. This system is made with a minimum number of parts, and can remain constant transmission ratio. In this paper, the problems such as tooth profile synthesis and kinematic analysis of the mechanism are studied. The formulae for calculating transmission ratio of the reducer are developed and theoretical profile equations of the stator and the rotor are obtained.