Hengrui Medicine Achieves Record High Performance in 2025: Innovation Breakthroughs and Accelerated Globalization Journey

On March 25, Heng Rui Medicine released its annual report for 2025. During the reporting period, the company adhered to the “technology innovation + internationalization” dual-drive strategy, achieving continuous performance growth, with both revenue and net profit reaching new highs. The company achieved an annual operating income 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 20.00%. The sales revenue of innovative drugs reached 16.342 billion yuan, a year-on-year increase of 26.09%, accounting for 58.34% of drug sales revenue; the income from external licensing was 3.392 billion yuan, a year-on-year increase of 25.62%.

While achieving continuous growth, the company maintained high-intensity R&D investment, with a total R&D investment of 8.724 billion yuan for the year, accounting for 27.58% of operating income, of which the capitalized R&D investment was 6.961 billion yuan, laying a solid foundation for innovation development.

The efficient empowerment of innovation results, innovative drug sales lead performance growth.

Among the sales revenue of innovative drugs, 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 total innovative drug sales revenue. The innovative drugs covered by medical insurance, such as Rivolumab (second-generation AR antagonist) and Darsylib (CDK4/6 inhibitor), precisely address unmet clinical needs, and the excellent clinical data have been widely validated in clinical practice, with sales revenue continuing to maintain strong growth. Early-market innovative drugs such as Fluoroparib (PARP inhibitor) and Aplaviroc (TPO receptor agonist), with the continuous approval of new indications or the gradual accumulation of evidence from post-marketing studies, continue to inject stable increments into the company’s sales revenue. Products like Liposomal Irinotecan (TOP1) and Rucaparib (HER2 ADC), although in the early stages of commercialization and not yet included in medical insurance during the reporting period, have driven rapid preliminary sales through clear efficacy advantages for specific patients and effective pre-market preparation and market access strategies.

Among the sales revenue of innovative drugs, non-tumor products achieved revenue of 3.102 billion yuan, a year-on-year increase of 73.36%, accounting for 18.98% of the total innovative drug sales revenue. Medical insurance-covered products like Ertugliflozin (SGLT2 inhibitor) and Remimazolam (GABAa receptor agonist) achieved rapid growth through effective communication of clinical advantages.

It is noteworthy that the company’s operational plan in the annual report proposed a target of over 30% growth in innovative drug sales revenue by 2026. As mentioned above, the innovative drug sales revenue of Heng Rui Medicine has achieved a growth of 26.09% in 2025, fully demonstrating that the company has continuously strengthened its capabilities in innovation pipeline realization and commercialization, accelerating the release of growth momentum. On this basis, the company has set a higher growth target, reflecting its firm confidence in future development.

New drugs and new indications continue to be approved, with about 53 innovative results set to emerge within three years.

In 2025, the company continued to increase its innovation efforts. During the reporting period, the Shanghai Innovation R&D Center was officially put into use, further improving the company’s R&D system.

The company continues to build an industry-leading new technology platform to strengthen source innovation. During the reporting period, the company continuously improved established and mature platforms for ADC, bi-/multispecific antibodies, protein degraders, small nucleic acid drugs, oral peptides, PROTAC/molecular glue/RIPTAC, and initially established a new molecular model platform. At the same time, Heng Rui is vigorously developing artificial intelligence drug discovery (AIDD), fully empowering drug R&D innovation and iteration.

The company has formed an industry-leading and highly differentiated innovative product matrix. Currently, the company has been approved for the listing of 24 Class 1 innovative drugs and 5 Class 2 new drugs in China, with more than 100 self-developed innovative products undergoing clinical development and over 400 clinical trials being conducted domestically and internationally.

In 2025, the company (including consolidated subsidiaries) received approvals for 7 Class 1 innovative drugs, including Injection Regorafenib, Aemaciclib Tablets, Dapagliflozin Metformin Tablets (I)(II), Injection Trastuzumab Deruxtecan, Famitinib Capsules, Injection Luraglutide Palonosetron, and Zemeton Tablets; 1 Class 2 innovative drug was approved for listing, and 6 newly approved indications for already approved innovative drugs were granted, covering disease areas such as tumors, metabolic disorders, cardiovascular diseases, immunology, and neuroscience. During the reporting period, the company’s R&D pipeline made significant progress, with 15 listing applications accepted by NMPA, 28 clinical trials advancing to Phase III, 61 advancing to Phase II, and 28 innovative products advancing to clinical Phase I for the first time. In 2025, the company obtained 180 drug clinical approval documents; received 8 designations for breakthrough therapy by CDE and 2 for priority review. In addition, in 2025, the company recruited over 22,000 participants for clinical research, and its own clinical development capabilities enable the company to efficiently advance the regulatory review progress of its products.

Patent application and maintenance work were carried out smoothly. During the reporting period, 76 patents were authorized in the Greater China region, and 209 patents were authorized abroad. By the end of the reporting period, the company held 986 authorized invention patents in Greater China and 1,021 authorized patents in Europe, America, Japan, and other countries.

In 2025, Heng Rui Medicine had a total of 20 products/indications adjusted through the new national medical insurance catalog, with 10 products entering medical insurance for the first time, continuously improving the accessibility and affordability of high-quality drugs, which also helps accelerate product growth and increase market share, further consolidating the company’s leading position in the innovative drug field.

In terms of future growth potential, the company’s growth potential is expected to be further released. According to the announcement, approximately 53 innovative results are expected to be approved for listing from 2026 to 2028. Among them, the GLP-1/GIP dual receptor agonist HRS9531, which has the potential to be best in class, is expected to be approved for overweight/obesity. In terms of new indication approvals, Rucaparib is expected to be approved for multiple new indications, including HER2-positive colorectal cancer and first-line treatment for HER2-positive breast cancer.

Accelerating internationalization, BD becomes a new engine for performance growth.

The strong innovative R&D capabilities provide a solid foundation for the company’s high-level international cooperation. In 2025, Heng Rui Medicine continued to innovate its BD cooperation model and achieved 5 overseas business expansion transactions for innovative drugs. Notably, a strategic alliance was reached with GSK: the two parties will jointly develop up to 12 innovative drugs, including PDE3/4 inhibitor HRS-9821, with Heng Rui receiving a $500 million upfront payment, potential total amounts of approximately $12 billion for option exercise fees, milestone payments, and corresponding sales commissions, highlighting deep recognition of Heng Rui’s innovative platform and R&D capabilities. An exclusive license agreement was reached with MSD for the Lp(a) inhibitor HRS-5346 outside Greater China, with a $200 million upfront payment and up to $1.77 billion in milestone payments, further validating global competitiveness. In addition, the commercialization rights for oral GnRH antagonist SHR7280 were authorized to Merck in Germany, the Myosin small molecule inhibitor HRS-1893 was authorized to Braveheart Bio in a NewCo model, and part of the international market rights for Rucaparib were authorized to Glenmark. Since 2023, the company has completed 12 overseas business expansion transactions, including various models such as external licensing, NewCo, and strategic alliances, with a total potential transaction value exceeding $27 billion. This series of active BD transactions is accelerating the global value realization of Heng Rui’s innovative drugs.

At the same time, Heng Rui is actively promoting overseas independent development and registration. During the reporting period, the company opened a clinical R&D and collaboration center in Boston, USA. Currently, the company has established 15 R&D centers across Asia, Europe, America, and Australia, and multiple innovative drugs have initiated their first overseas clinical trials during the reporting period. In addition, during the reporting period, the HER2 ADC innovative drug Rucaparib combined with Atezolizumab and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma received orphan drug designation from the US FDA. Currently, the company has 5 innovative drugs with orphan drug designation from the FDA, and 4 ADC products with FDA fast track designation.

Moreover, during the reporting period, the company successfully listed on the Hong Kong Stock Exchange, achieving an “A+H” listing and raising 11.374 billion HKD, marking the largest IPO in the Hong Kong pharmaceutical sector in nearly five years, moving towards a new milestone in internationalization.

In 2025, the company actively explored innovative treatment solutions, showcasing the clinical value of “Chinese medicine” to the world. During the reporting period, 381 significant research outcomes related to the company’s products received international recognition. They were published in top global journals such as CA (Clinical Cancer Research), The Lancet, JAMA (Journal of the American Medical Association), with a cumulative impact factor of 3,159, including 18 high-impact research papers (international journals in the oncology field with an impact factor ≥30, and non-oncology field with an impact factor ≥20). The company’s participation in the global academic arena has also reached new heights. In the oncology field, 72 papers were selected for the ASCO annual meeting, and 46 papers were selected for the ESMO annual meeting, with a first-time exhibition at ESMO; in the non-oncology field, several achievements were accepted for oral presentations at international conferences such as the American Diabetes Association (ADA) annual meeting, the American Academy of Dermatology (AAD), and the European Renal Association (ERA) conference.

Building a global talent pipeline, comprehensive upgrades in operational management.

The deepening of the internationalization strategy relies on the support of global organizational capabilities. In 2025, the company deepened talent recruitment and cultivated a global talent pipeline. Ms. Feng Ji was invited to join and serve as the company’s president, enhancing global strategic leadership; Mr. Zhu Guoxin was appointed as the company’s senior vice president and global early research leader, strengthening the forward planning and source innovation of the pipeline; Mr. Yin Hang was appointed as the company’s vice president and general manager of the oncology division, continuously enhancing competitiveness in the oncology field; Mr. Yu Liu was appointed as the international chief medical officer, responsible for promoting clinical development outside the United States and China; Ms. Karen Atkin was appointed as the head of international business and portfolio strategy, further strengthening overseas business expansion. At the same time, the “Global Elite Program” widely attracts outstanding students and young scholars from top global universities and research institutions to join.

In terms of internal training, for key talents at different levels, systematic training programs such as the “400 Development Project for High-Potential Middle and Senior Managers,” “New Manager Training Camp,” and “Heng Rui Leadership Summit” are implemented to fully build a professional, young, and international first-class talent team.

The company continues to strengthen the alignment of strategies and organizations. In 2025, a new biopharmaceutical division (BBU) was established, progressing alongside the original oncology division (OBU), enhancing leading commercialization capabilities through organizational upgrades. The company has formed a complementary functional system of commercial excellence, market marketing, medical affairs, central and provincial sales management, and central and provincial market access to empower professional sales teams. The company has established a wide-ranging and deep all-channel coverage network. Currently, the company’s sales network covers over 25,000 hospitals and more than 200,000 offline retail pharmacies nationwide. In addition, the company has established a broad grassroots market structure, upgrading the layout of broad markets based on market potential and product attributes. As of now, the community terminal coverage has exceeded 2,500, with cumulative academic activities covering 20,000 doctors, significantly enhancing brand influence at the grassroots level.

Deepening the integration of government, industry, academia, and research, practicing sustainable commitments.

To further strengthen the company’s foundational research capabilities in the biopharmaceutical field, the company actively promotes the linkage of government, industry, academia, and research, jointly establishing the “National Natural Science Foundation Private Enterprise Innovation Development Joint Fund” with the National Natural Science Foundation of China, totaling 132 million yuan, focusing on basic or applied basic research in areas such as tumors and metabolic diseases. In addition, a strategic cooperation memorandum was signed with the China Science and Technology Development Foundation, committing to invest 100 million yuan to fund projects in seven major areas, including technological innovation, resource empowerment, talent cultivation, and international exchange, to jointly promote the deep integration of technological innovation and industrial innovation.

At the same time, as a leading enterprise in China’s pharmaceutical innovation, Heng Rui Medicine always emphasizes fulfilling social responsibilities and deeply practices the concept of sustainable development.

In November 2025, a severe fire occurred at Hongfu Garden in Tai Po, Hong Kong, which raised deep concerns from various sectors of society. Heng Rui Medicine announced an emergency donation of 10 million HKD for emergency rescue and post-disaster reconstruction efforts.

With excellent performance in pharmaceutical innovation, compliant operations, green development, and social responsibility, Heng Rui Medicine was upgraded to “AA” in the international authoritative index agency MSCI’s ESG rating, ranking among the top in the global pharmaceutical industry.

With the results of high-quality development through innovation and internationalization, Heng Rui Medicine has repeatedly received authoritative recognition both domestically and internationally. It has been listed in the TOP 50 global pharmaceutical companies announced by Pharmaceutical Executive magazine for seven consecutive years; according to the pipeline scale ranking released by Citeline in 2025, the company’s self-developed pipeline ranks second globally; it successfully entered the “Fortune” 2025 list of China’s top 500 companies released by Fortune China; the patent for Aplaviroc (Hengqu®) won the China Patent Gold Award; Heng Rui Medicine has also been certified as a “Top Employer in China” for five consecutive years, further affirming its achievements in human resource management.

In the future, Heng Rui Medicine will continue to adhere to the “technology innovation + internationalization” dual-drive strategy, focusing on unmet clinical needs and creating differentiated innovative products; it will maintain a balance between independent R&D and open cooperation, bringing more and better treatment options to global patients.