Hengrui Medicine ( 01276.HK ): Net profit reaching 7.71B yuan in 2025, a significant increase of 21.7% year-on-year

Gelonghui March 26 | Hengrui Medicine (01276.HK) announced its 2025 annual results, with the company’s total annual revenue reaching RMB 31.63B, a year-on-year increase of 13.0%; net profit attributable to shareholders of the listed company reached RMB 7.71B, a significant increase of 21.7% year-on-year. The improvement in key financial indicators fully demonstrates the effectiveness of the company’s innovation-driven transformation and the continuous enhancement of operational quality. A final dividend of RMB 2.0 per 10 shares (including tax) is proposed to be distributed to all shareholders. The company continues to increase its innovation efforts, maintaining high R&D investment. During the reporting period, the company’s cumulative R&D expenditure was RMB 8.72B, of which RMB 6.96B was expensed.

In 2025, sales revenue from innovative drugs reached RMB 16.34B, a year-on-year increase of 26.1%, accounting for 58.3% of the total drug sales. Among the innovative drug sales, anti-tumor products generated RMB 13.24B, an increase of 18.5%, accounting for 81.0% of total innovative drug sales. The targeted clinical needs unmet by second-generation AR antagonists (Rivolumab) and CDK4/6 inhibitors (Dalcibazole) have been validated through excellent clinical data in practice, and sales continue to grow strongly. Early-listed innovative drugs such as PARP inhibitor (Fuzuloparib) and TPO receptor agonist (Haituo Papat), with ongoing approvals for new indications or post-market research evidence accumulation, continue to provide stable incremental growth for the company’s sales revenue. Products like liposomal (Irinotecan TOP1) and HER2 ADC (Rucaptuzumab), although in the early commercialization stage and not yet included in the medical insurance during the reporting period, have driven rapid initial volume due to clear efficacy advantages for specific patient groups, supported by efficient pre-market preparation and market access strategies.

Non-tumor product revenue reached RMB 3.1B, a year-on-year increase of 73.4%, accounting for 19.0% of total innovative drug sales. Insured products such as (SGLT-2 inhibitor) (Hengrui Gliclazide) and (Remazolam) (GABAa receptor agonist) have delivered clinical advantages effectively, with value gradually realized, achieving rapid growth during the reporting period. Additionally, several innovative products with shorter market presence and not yet included in the insurance during the reporting period have yet to fully realize their sales potential. The company will adhere to a medical and market-driven approach, promote the adoption of new products, accelerate commercialization of high-quality innovations, and aim to contribute stronger growth momentum in the future.

External licensing of innovative drugs, as a routine business for the company, generated revenue of RMB 3.39B during the reporting period, becoming an important part of the company’s operating income. During this period, the company received upfront payments for external licensing from (MSD) of USD 200 million, IDEAYA Biosciences of USD 75 million, and Merck KGaA of EUR 15 million, which have been recognized as revenue; (Braveheart Bio) received an upfront payment and equity of USD 65 million, recognized as revenue; and (GSK) received an upfront payment of USD 500 million, with approximately USD 100 million recognized as revenue based on the progress of fulfilling contractual obligations, further driving growth in operating performance indicators.