Proportion of innovative drug revenue exceeds 60% for the first time, Hengrui Pharma reports Q1 revenue of 8.1 billion yuan, net profit up 22% year-on-year｜Financial Report News

April 22, Hengrui Medicine released its quarterly report. During the reporting period, the company achieved operating income of 8.141 billion RMB, an increase of 12.98% year-on-year; net profit attributable to shareholders of 2.282 billion RMB, a year-on-year increase of 21.78%, with profit growing faster than revenue; net cash flow from operating activities reached 786 million RMB, an increase of 41.66% year-on-year. Innovative drug business has become the core growth engine. In the first quarter, innovative drug sales revenue reached 4.526 billion RMB, up 25.75% year-on-year, with the proportion of innovative drug sales surpassing 60% for the first time, rising to 61.69%. The company stated it strives for a full-year innovative drug sales growth of more than 30%. Meanwhile, milestone income from external licensing with GSK continued to materialize, with 787 million RMB recognized in a single quarter, further solidifying the revenue base. In terms of R&D, a total of 2.224 billion RMB was invested in the first quarter, with 1.651 billion RMB expensed for R&D. During the period, three innovative achievements were approved for marketing or new indications, eight new drug marketing applications were accepted, six products received CDE breakthrough therapy designation, and the pace of innovation pipeline advancement accelerated notably. Cash flow and asset-liability structure remained stable. Net cash flow from operating activities grew by 41.66% year-on-year, and currency funds at the end of the period exceeded 40.5 billion RMB, providing ample financial flexibility for the company’s R&D investment and commercial expansion. Innovative drugs accelerate, non-oncology products show remarkable growth In the innovative drug revenue structure, oncology products remain the core pillar, with first-quarter revenue of 3.313 billion RMB, up 11.63% year-on-year, accounting for 73.20% of overall innovative drug sales revenue. Non-oncology products performed particularly well, with revenue of 1.213 billion RMB, up sharply by 92.13% year-on-year, and their share rising to 26.80%. The high-speed growth in this sector shows that the company’s innovative pipeline outside oncology is entering a harvest period, with the trend toward product diversification becoming increasingly clear. On external licensing business, revenue of 787 million RMB was recognized during the reporting period, mainly due to GSK’s income recognition according to the progress of performance obligations, providing additional support to the overall revenue. Generic drug revenue declined due to national and local volume-based procurement as well as strategic resource contraction. The company stated that with the continued growth in innovative drug revenue, the proportion of generic drugs in total sales revenue will gradually decrease, and the income structure is expected to further optimize. R&D pipeline intensively delivers, key progress achieved in multiple innovative results In terms of R&D progress, Hengrui Medicine made several important breakthroughs in the first quarter. On market approvals and new indications, three innovative achievements were approved. Among them, the self-developed Category 1 innovative drug Ruilafupu α injection received market approval. It is the world’s first anti-PD-L1/TGF-βRII bispecific antibody fusion protein, approved for first-line treatment of PD-L1 positive, locally advanced unresectable, recurrent or metastatic gastric and gastroesophageal junction adenocarcinoma. HER2 ADC product ruikang trastuzumab for injection gained a new indication for breast cancer, and within one month of approval, it was included in the Chinese Society of Clinical Oncology Breast Cancer Treatment Guidelines (2026 edition). Hetrombopag ethanolamine tablets gained a new first-line indication for severe aplastic anemia, becoming the first and only thrombopoietin receptor agonist approved for this indication in China. For marketing applications, eight new drug applications were accepted during the reporting period, covering HER2-positive colorectal cancer, homozygous familial hypercholesterolemia, Type 2 diabetes and other fields. For clinical R&D, the company received 26 clinical trial approvals; since 2026, six products have been recognized as breakthrough therapies by the CDE, including KRAS G12D targeted product HRS-4642 injection and Lp(a) targeted product HRS-5346 tablets. Financial fundamentals stable, double increase in R&D and sales investment On the balance sheet side, as of March 31, 2026, Hengrui Medicine’s total assets were 71.294 billion RMB, an increase of 2.04% from the end of last year; owners’ equity attributable to shareholders of the listed company was 63.626 billion RMB, up 3.84% from the end of last year. The company’s currency funds amounted to 40.527 billion RMB, reflecting an overall sound financial status. On the expense side, sales expenses in the first quarter amounted to 2.197 billion RMB, R&D expenses were 1.651 billion RMB, both up year-on-year, showing the company’s active stance in both commercialization and R&D investment. Risk Warnings and Disclaimer The market has risks; investment needs to be done cautiously. This article does not constitute personal investment advice, nor does it consider the unique investment objectives, financial situation, or needs of individual users. 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