Hengrui Pharmaceuticals 2025 Revenue of 33.629 Billion Yuan, YoY Growth of 13%, Innovative Drug Revenue Reaches 16.342 Billion Yuan | Financial Report Insights

On March 25th, the leading domestic innovative pharmaceutical company Hengrui Medicine disclosed its 2025 performance report, achieving double-digit growth in both revenue and profit, with outstanding performance in core innovative businesses. The annual report shows the company achieved total operating revenue of 31.629 billion yuan, a 13.02% increase year-over-year; net profit attributable to shareholders reached 7.711 billion yuan, up 21.69%.

The most notable highlight in the financial report is the accelerated realization of the results of its innovation strategy. By 2025, sales revenue from innovative drugs reached 16.342 billion yuan, a 26.09% increase, accounting for 58.34% of total drug sales revenue, becoming the company’s main growth driver. Meanwhile, licensing out innovative drugs contributed 3.392 billion yuan in revenue, serving as another key engine driving performance growth after direct sales.

Core financial data are as follows:

• 2025 total revenue: 31.629 billion yuan, up 13.02%

• Total profit: 8.708 billion yuan, up 21.45%

• Net profit attributable to shareholders: 7.711 billion yuan, up 21.69%

• Net profit after deducting non-recurring gains and losses: 7.413 billion yuan, up 20.00%

• Net cash flow from operating activities: 11.235 billion yuan, up 51.36%

• Net assets attributable to shareholders: 61.272 billion yuan, up 34.61%

Innovative drugs lead growth, with significant contributions from licensing out

During the reporting period, the company’s anti-tumor innovative drugs achieved revenue of 13.24 billion yuan, an 18.52% increase, mainly driven by products included in medical insurance such as Rivaroxaban (for prostate cancer) and Dalcetrapib (for breast cancer). Non-oncology innovative drugs performed even better, with revenue reaching 3.102 billion yuan, a substantial 73.36% increase, demonstrating that the company’s commercialization capabilities in metabolic, anesthesia, immunology, and other chronic disease areas are accelerating.

In 2025, Hengrui made significant progress in the internationalization of its innovative drugs. The licensing agreements with multinational pharmaceutical companies such as MSD, GSK, and IDEAYA began to generate substantial income, with total upfront and milestone payments of approximately 3.392 billion yuan for the year. This not only brought substantial cash flow but also further validated the global competitiveness and commercial value of its R&D pipeline.

Due to ongoing policy influences, the company’s generic drug business experienced a slight decline. However, the launch of domestically developed new products like Bupivacaine Liposome and the approval of the first generic injectable Paclitaxel (albumin-bound) in the U.S. effectively offset the decline of existing products, demonstrating the company’s increasing resilience in its business structure.

R&D Engine: Rapid Pipeline Advancement and Deepening International Layout

Hengrui’s high-performance growth is driven by continuous high-intensity R&D investment and efficient output. In 2025, the company’s cumulative R&D expenditure reached 8.724 billion yuan, including 6.961 billion yuan in expense-based R&D, maintaining a high R&D-to-revenue ratio of over 27%, providing a solid foundation for the rapid commercialization of innovative results.

During the reporting period, the company’s R&D achievements were prolific, with 7 Class 1 innovative drugs and 1 Class 2 innovative drug approved for marketing, and 6 existing products gaining new indications. Notable products include the HER2 ADC drug Sacituzumab Govitecan, PCSK9 monoclonal antibody Repatha, and JAK1 inhibitor Emaximib, further enriching the product portfolio. By the end of the period, 24 Class 1 innovative drugs had been approved for listing in China, firmly ranking among the industry’s top tier.

The R&D pipeline also shows strong momentum. During the period, 15 new drug applications (NDA) were accepted, 28 projects advanced to Phase III clinical trials, 61 entered Phase II, and 28 new molecules entered clinical stages for the first time, indicating a tightly connected R&D pipeline. The company expects approximately 53 innovative products and new indications to be approved between 2026 and 2028, providing a solid foundation for sustained future growth.

Meanwhile, Hengrui’s international R&D efforts are accelerating. The company established a new clinical R&D center in Boston, USA, and several innovative drugs have initiated overseas clinical trials. The core product, Camrelizumab combined with Apatinib for first-line liver cancer, has been resubmitted for BLA in the U.S. and accepted; Repatha’s indication for gastric cancer has also received orphan drug designation from the FDA. In 2025, the company successfully listed on both the Hong Kong and A-share markets, raising approximately HKD 11.374 billion, providing ample capital support for its internationalization strategy.

Commercialization and Operations: System Optimization and Academic Brand Enhancement

To support the rapid growth of innovative products, Hengrui Medicine deeply optimized its commercialization system in 2025. The company has built a commercial network covering over 25,000 hospitals and 200,000 offline pharmacies nationwide, with dedicated teams for DTP pharmacies, retail markets, and grassroots areas, launching the “Channel Building Project” to deepen market penetration in county and community markets.

In brand development, the company strengthened a “dual-wheel” mechanism led by Medical Affairs and Marketing, accumulating evidence through numerous post-launch clinical studies. During the period, 381 research results related to the company’s 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 standing.

In operations and compliance, the company optimized organizational structure, implemented sales efficiency projects, and adopted digital management tools to continuously improve operational efficiency. It also successfully obtained certifications for GB/T 35770-2022 and ISO 37301:2021 compliance management systems, becoming one of the listed companies in the pharmaceutical industry with full-chain authoritative certifications, laying a solid institutional foundation for sustainable development.

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