Hengrui's net profit last year was 7.7 billion yuan, a 20% increase: striving for more than 30% growth in innovative drug revenue this year

“Heng Rui” Heng Rui Medicine expects double growth in revenue and net profit by 2025, and aims for over 30% growth in innovative drug sales revenue in 2026.

On March 25, Heng Rui Medicine (600276.SH; 1276.HK) released its annual report for 2025. In 2025, it achieved operating revenue of 31.629 billion yuan, a year-on-year increase of 13.02%; the net profit attributable to shareholders of the listed company was 7.711 billion yuan, a year-on-year increase of 21.69%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 7.413 billion yuan, a year-on-year increase of 20%.

Heng Rui Medicine’s performance in 2025

Heng Rui Medicine is a representative enterprise of innovation and transformation in the domestic pharmaceutical industry. From the performance in 2025, the company’s innovative drug sales revenue was 16.342 billion yuan, a year-on-year increase of 26.09%, accounting for 58.34% of total drug sales revenue. Among the innovative drug sales revenue, the revenue from anti-tumor products was 13.240 billion yuan, a year-on-year increase of 18.52%, accounting for 81.02% of the overall innovative drug sales revenue. Revenue from non-tumor products reached 3.102 billion yuan, a year-on-year increase of 73.36%, accounting for 18.98% of the overall innovative drug sales revenue.

It is noteworthy that Heng Rui Medicine set a goal in the business plan section of the annual report to strive for over 30% growth in innovative drug sales revenue in 2026.

In terms of research and development, Heng Rui Medicine’s total R&D investment for the year was 8.724 billion yuan, accounting for 27.58% of operating revenue, of which the capitalized R&D investment was 6.961 billion yuan. In terms of the pipeline, Heng Rui Medicine has currently obtained approval for 24 Class 1 innovative drugs and 5 Class 2 new drugs in China, with over 100 independent innovative products undergoing clinical development and more than 400 clinical trials being conducted domestically and internationally. During the reporting period, 15 listing applications were accepted by the NMPA, 28 clinical trials progressed to Phase III, 61 clinical trials progressed to Phase II, and 28 innovative products were advanced to clinical Phase I for the first time.

In terms of commercialized products, in 2025, Heng Rui Medicine had 7 Class 1 innovative drugs approved for market. Additionally, 20 products/indications were adjusted in the new version of the national medical insurance catalog, with 10 products entering medical insurance for the first time. The company expects about 53 innovative achievements to be approved for market from 2026 to 2028. In terms of new product launches, the GLP-1/GIP dual receptor agonist HRS9531, which has the potential to be best-in-class for overweight/obesity, is expected to be approved. Regarding new indications, the drug Ruikang trastuzumab is expected to be approved for several new indications, including first-line treatment for HER2-positive colorectal cancer and HER2-positive breast cancer.

In 2025, Heng Rui Medicine’s BD cooperation model continued to innovate, achieving 5 overseas business expansion transactions for innovative drugs. In terms of performance, licensing revenue reached 3.392 billion yuan, a year-on-year increase of 25.62%. Since 2023, the company has completed 12 overseas business expansion transactions, including licensing, NewCo, and strategic alliances, with a potential total transaction value exceeding $27 billion.

Heng Rui is also actively promoting overseas independent development and registration. During the reporting period, the company established a clinical research and collaboration center in Boston, USA. Currently, the company has set up 15 R&D centers in Asia, Europe, America, and Australia, with multiple innovative drugs initiating the first overseas clinical trials during the reporting period. In addition, during the reporting period, the HER2 ADC innovative drug Ruikang trastuzumab combined with Adebali and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma received orphan drug designation from the U.S. FDA. Currently, the company has 5 innovative drugs that have received orphan drug designation from the FDA, and 4 ADC products that have received FDA fast track designation.

In terms of company management, Heng Rui Medicine established a new biopharmaceutical division (BBU) in 2025, progressing alongside the existing oncology division. Heng Rui Medicine stated that its sales network covers over 25,000 hospitals and over 200,000 offline retail pharmacies nationwide. In addition, the company has established a broad grassroots market structure, upgrading the layout based on market potential and product attributes. As of now, the company’s community terminal coverage has surpassed 2,500, with academic activities reaching 20,000 doctors.

On March 25, Heng Rui Medicine’s A-shares closed at 54.1 yuan/share, up 0.86%, with a market value of 350.97 billion yuan; H-shares closed at 63.35 HKD/share, down 0.94%, with a market value of 420.47 billion HKD.