Hengrui Medicine's 2025 revenue reached 31.629 billion yuan, up 13% year-on-year, with innovative drug income hitting 16.342 billion yuan | Earnings report highlights

March 25, domestic innovative pharma leader Hengrui Medicine disclosed its 2025 annual results report, with revenue and profit achieving double-digit growth and stellar performance in its core innovation business. The annual report shows the company achieved total revenue of RMB 31.629 billion for the year, up 13.02% year-on-year; net profit attributable to shareholders reached RMB 7.711 billion, up 21.69% year-on-year. The most notable highlight in the financial report lies in the accelerated realization of the innovation strategy. In 2025, sales revenue from innovative drugs reached RMB 16.342 billion, up 26.09% year-on-year, raising its share of pharmaceutical sales to 58.34%, making it the company’s main growth engine. Meanwhile, income contributed by external licensing of innovative drugs was RMB 3.392 billion, forming another important driver for performance growth after independent sales. Key financial data are as follows: - 2025 Revenue: RMB 31.629 billion, up 13.02% year-on-year - Total profit: RMB 8.708 billion, up 21.45% year-on-year - Net profit attributable to shareholders: RMB 7.711 billion, up 21.69% year-on-year - Net profit excluding non-recurring gains and losses: RMB 7.413 billion, up 20.00% year-on-year - Net cash flow from operating activities: RMB 11.235 billion, up 51.36% year-on-year - Net assets attributable to shareholders: RMB 61.272 billion, up 34.61% year-on-year Innovative Drugs Lead Growth, External Licensing Brings Significant Increment During the reporting period, revenue from the company’s anti-tumor innovative drugs reached RMB 13.24 billion, up 18.52% year-on-year, mainly driven by products incorporated into medical insurance such as abiraterone (prostate cancer) and dalpiciclib (breast cancer). Non-oncology innovative drugs performed even more outstandingly, with revenue of RMB 3.102 billion, a substantial increase of 73.36% year-on-year, showing that the company’s commercialization capabilities in chronic disease areas like metabolism, anesthesia, sedation, and autoimmunity are rapidly being released. In 2025, Hengrui achieved remarkable results internationally in the innovation drug sector. The company's licensing collaborations with multinational pharma companies such as Merck (MSD), GlaxoSmithKline (GSK), IDEAYA, etc., began to contribute substantial income, with initial payments and milestone payments confirmed for the year totaling about RMB 3.392 billion. This not only generated considerable cash flow for the company but also further validated its R&D pipeline’s international competitiveness and commercial value. Affected by ongoing policies, the company’s generic drug business saw a slight decrease in income. However, the launch of new domestic products such as bupivacaine liposome and the approval of generic paclitaxel (albumin-bound) in the US provided additional overseas increments, effectively offsetting the pressure from declining incumbent products and demonstrating the gradually strengthening risk resistance of the company’s business structure. R&D Engine: Rapid Pipeline Advancement and Deepening International Deployment Driving Hengrui’s high performance growth is an ongoing cycle of high-intensity R&D investment and efficient output. In 2025, the company’s total R&D investment reached RMB 8.724 billion, with expensed R&D at RMB 6.961 billion. The R&D-to-revenue ratio remained above 27%, providing a solid foundation for dense innovation achievements. During the reporting period, the company saw a "bumper harvest" in R&D achievements, with seven Class I innovative drugs and one Class II innovative drug approved for market, as well as six already marketed products gaining new indications. This includes high-profile products like HER2 ADC drug ruikang trastuzumab, PCSK9 monoclonal antibody ruikaxi monoclonal, JAK1 inhibitor emamixitinib and other blockbuster products, further enriching the product matrix. By the end of the reporting period, the company had a total of 24 Class I innovative drugs approved for marketing in China, firmly occupying a leading position in the industry. At the R&D pipeline level, the company also demonstrated strong momentum. During the period, 15 new drug applications (NDA) were accepted, 28 clinical trials progressed to Phase III, 61 entered Phase II, and 28 new molecules entered the clinical stage for the first time, with the R&D team closely connected. The company expects around 53 innovative products and new indications to be approved and marketed between 2026 and 2028, providing solid assurance for continued growth. Meanwhile, Hengrui’s international R&D efforts are accelerating. The company established a new clinical R&D center in Boston, USA, and launched overseas clinical trials for multiple innovative drugs. Key product camrelizumab in combination with apatinib for first-line liver cancer treatment has resubmitted its BLA application in the US and was accepted; ruikang trastuzumab for gastric cancer indication has also been granted US FDA orphan drug designation. In 2025 the company successfully achieved dual "A+H" listings, raising about HK$11.374 billion to support its internationalization strategy. Commercialization and Operations: System Optimization Empowerment and Academic Brand Upgrades To support rapid growth of innovative products, Hengrui Medicine deeply optimized its commercialization system in 2025. On the channel side, the company established a commercial network covering over 25,000 hospitals and 200,000 offline pharmacies nationwide, set up specialized teams targeting DTP pharmacies, retail markets, and vast primary-level markets, launched “channel-building” projects in county communities, and further expanded market breadth and depth. In brand building, the company strengthened a “dual-driven” mechanism led by medical affairs and marketing departments, accumulating evidence through numerous post-marketing clinical studies. During the reporting period, 381 research achievements related to company products gained international recognition, with 18 high-impact papers published in top journals such as The Lancet and Nature Medicine, significantly enhancing the brand’s professional influence and academic status. In operations and compliance, the company continuously improved operational efficiency through organizational structure optimization, sales efficiency projects, and digital management measures. The company successfully passed GB/T 35770-2022 and ISO 37301:2021 compliance management system certifications, becoming one of the listed companies in the pharmaceutical industry with full-chain authoritative certification, laying a foundation for sustainable development. Risk Warning and Disclaimer There are risks in the market, and investment should be carried out cautiously. This article does not constitute individual investment advice, nor does it consider the particular investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions given herein fit their specific circumstances. Investing based on this, responsibility is borne at your own risk.