Hengrui Medicine A+H Listed Company Releases First Annual Report: Revenue and Net Profit Both Increase, International Expansion Continues to Advance

[Text by Wang Li, Edited by Zhou Yuanfang]

On March 25, Hengrui Medicine officially released its 2025 annual report. This is the company’s first full-year performance report since listing in both A-share and H-share markets, marking the successful realization of its global capital deployment and the completion of its first full operational year. As a leading innovative pharmaceutical company in China, Hengrui continued its core development path of “technological innovation + internationalization” during the reporting period. All key operational indicators showed growth, with revenue and net profit reaching record highs.

Specifically, in 2025, Hengrui Medicine achieved an operating revenue of 31.629 billion yuan, a 13.02% increase year-over-year; net profit attributable to shareholders of the listed company was 7.711 billion yuan, up 21.69%; net profit excluding non-recurring gains and losses was 7.413 billion yuan, up 20.00%. All three core profitability metrics grew in double digits. In terms of business structure, innovative drugs and licensing revenue performed notably, with innovative drug sales reaching 16.342 billion yuan, a 26.09% increase, accounting for 58.34% of drug sales; licensing income was 3.392 billion yuan, up 25.62%.

To support R&D innovation and global expansion, the company maintained high R&D investment throughout the year, totaling 8.724 billion yuan, accounting for 27.58% of operating revenue, with 6.961 billion yuan expensed as R&D costs. During the reporting period, the company completed multiple overseas BD collaborations, continuously expanding its global footprint. Business data across various segments showed steady progress, aligning with the development strategy after the A+H listing.

Total R&D expenditure for the year reached 8.724 billion yuan, driven by pipeline advancement

In 2025, the innovative drug segment accounted for over half of the company’s drug sales, becoming the core revenue driver. Sales in this segment totaled 16.342 billion yuan, a 26.09% increase, representing 58.34% of total drug sales. Within this segment, anti-tumor and non-tumor products showed different growth patterns. Anti-tumor products generated 13.24 billion yuan, up 18.52%, accounting for 81.02% of innovative drug sales. Revenue from innovative drugs like Rivoceranib and Dalcinil, which are included in the medical insurance catalog, continued to grow. Longer-listed innovative drugs such as Fluzoparib and Haitoupo increased revenue through new indications approved. Products not yet included in insurance, like Ilarituzumab Liposome and Rukotin, initially boosted sales via market access strategies. Non-tumor products earned 3.102 billion yuan, up 73.36%, making up 18.98% of innovative drug sales, with key contributors including Henggelijian and Remazolam. The company plans to achieve over 30% growth in innovative drug sales in 2026.

R&D investment in 2025 totaled 8.724 billion yuan, representing 27.58% of revenue, with 6.961 billion yuan expensed as R&D costs, maintaining a high level of investment. The Shanghai Innovation R&D Center was officially launched, further improving the R&D system. Platforms for ADCs, bispecific/multispecific antibodies, protein degraders, and small nucleic acid drugs continued to optimize, with a new molecular platform established and AI-driven drug discovery applied across the entire R&D process.

In 2025, multiple pipeline products made phased progress. Including subsidiaries, 7 Class 1 innovative drugs and 1 Class 2 innovative drug were approved for marketing. Six new indications for approved innovative drugs received regulatory approval, covering areas such as oncology, metabolism, cardiovascular, immunology, and neuroscience. The company submitted 15 product applications to NMPA, with 28 clinical trials advancing to Phase III, 61 to Phase II, and 28 new products entering Phase I for the first time. A total of 180 clinical approval documents were obtained, with 8 products recognized as Breakthrough Therapy by CDE and 2 as Priority Review. To promote clinical research, over 22,000 participants were recruited in 2025, supporting the advancement of the product regulatory review process through an independent clinical development system.

Patent strategy and insurance coverage work progressed simultaneously. By 2025, the company had obtained 76 patents in Greater China and 209 patents internationally. As of the end of the reporting period, it held 986 invention patents in Greater China and 1,021 patents in Europe, the US, Japan, and other regions. Regarding insurance catalog inclusion, 20 products/indications were added through the new national insurance catalog, with 10 products included for the first time. By the end of 2025, 24 Class 1 innovative drugs and 5 Class 2 new drugs had been approved in China, with over 100 products in clinical development and more than 400 clinical trials underway domestically and internationally. According to company disclosures, approximately 53 innovative products are expected to be approved between 2026 and 2028, including GLP-1/GIP dual receptor agonist HRS9531 and new indications for Rukotin, which will become key assets for future innovation.

International expansion in multiple dimensions, with capital and business synergy

2025 marked the first full operational year after Hengrui’s A+H listing. Following the completion of global capital deployment, overseas business expansion, R&D collaborations, and institutional building advanced in tandem. External licensing revenue reached 3.392 billion yuan, up 25.62%, becoming an important part of overall revenue. During the year, the company completed five overseas licensing deals for innovative drugs, involving strategic alliances, exclusive licensing, and NewCo models. Notably, a strategic alliance with GSK involved co-developing up to 12 innovative drugs, including PDE3/4 inhibitor HRS-9821, with an initial payment of $500 million and potential milestone and sales payments totaling approximately $12 billion. A licensing agreement with MSD for Lp(a) inhibitor HRS-5346 in Greater China provided an initial payment of $200 million and milestone payments up to $1.77 billion. The company also licensed overseas rights for oral GnRH antagonist SHR7280, myosin small molecule inhibitor HRS-1893, and Rukotin. Since 2023, 12 overseas deals have been completed, with a potential total value exceeding $27 billion.

Overseas R&D and product registration efforts continued. In 2025, the company established a new clinical R&D and collaboration center in Boston, USA. By the end of the reporting period, 15 R&D centers had been set up across Asia, Europe, the US, and Australia. Several innovative drugs initiated their first overseas clinical trials. Regarding international recognition, Rukotin, an HER2 ADC, received orphan drug designation from the US FDA for gastric and gastroesophageal cancers. To date, five innovative drugs have FDA orphan drug status, and four ADC products have fast-track designation. The company’s research achievements gained increased international academic recognition, with 381 key research results published in journals like CA, The Lancet, and JAMA, with a cumulative impact factor of 3,159. Eighteen of these were high-impact papers. In oncology, 72 and 46 studies were accepted at ASCO and ESMO conferences, respectively. Non-oncology research was also featured at major international meetings such as the American Diabetes Association and the American Academy of Dermatology.

On the capital front, Hengrui successfully listed on the Hong Kong Stock Exchange in 2025, raising HKD 11.374 billion—the largest IPO in the Hong Kong pharmaceutical sector in nearly five years. The funds will support overseas R&D, product registration, and commercialization. To align with its international strategy, the company adjusted its talent and organizational structure, hiring several senior managers with global pharmaceutical experience responsible for global strategy, early R&D, clinical development, and overseas commercialization. It also launched a “Global Elite Program” to attract external talent and implemented training initiatives for key internal personnel, building a global talent pipeline.

Organizationally, the company established a new biopharmaceutical division alongside the existing oncology division, creating a complementary operational system supporting product commercialization through functions like business excellence, marketing, medical affairs, and market access. Domestically, the sales network now covers over 25,000 hospitals and 200,000 retail pharmacies nationwide. In community markets, over 2,500 community outlets have been established, with academic activities reaching 20,000 doctors. The domestic commercialization experience provides valuable insights for overseas expansion.