From China Leadership to Global Competition——Hengrui Pharma's 2025 High-Quality Development Report Card

On March 25, Hengrui Medicine released its 2025 annual report. During the reporting period, the company adhered to the dual-driven strategy of “technological innovation + internationalization,” achieving sustained performance growth with record-high revenue and net profit. The full year saw operating income of 31.629 billion yuan, up 13.02% year-over-year; net profit attributable to shareholders of the listed company of 7.711 billion yuan, up 21.69%; and net profit excluding non-recurring gains and losses of 7.413 billion yuan, up 20.00%. Sales of innovative drugs reached 16.342 billion yuan, a 26.09% increase, accounting for 58.34% of drug sales revenue; licensing income from external partners was 3.392 billion yuan, a 25.62% increase.

While maintaining continuous growth, the company kept high-intensity R&D investment, with a total of 8.724 billion yuan spent on research and development, accounting for 27.58% of operating income. Of this, 6.961 billion yuan was expensed, strengthening the foundation for innovation.

Efficient Transformation of Innovation Achievements and Leading Sales of Innovative Drugs Drive Performance Growth

Among the sales of innovative drugs, anti-tumor products generated 13.24 billion yuan, an 18.52% increase, accounting for 81.02% of total innovative drug sales. The targeted clinical needs met by the second-generation AR antagonist ReviRuzumab and CDK4/6 inhibitor Darsili, supported by excellent clinical data validated in practice, continue to drive strong sales growth. Early-listed innovative drugs such as PARP inhibitor Fluzoparib and TPO receptor agonist Haitupopa, with new indications approved or supported by evidence from post-market studies, provide steady incremental revenue. Products like liposomal Irinotecan (TOP1) and HER2 ADC Rituximab (Rucotuzumab) are in early commercialization stages; although not yet covered by insurance during the reporting period, their clear efficacy in specific patient groups and effective pre-market preparation and market access strategies have driven rapid initial sales.

In the non-tumor segment, sales reached 3.102 billion yuan, a 73.36% increase, accounting for 18.98% of total innovative drug sales. Products like SGLT2 inhibitor Hengglitrazin and GABAa receptor agonist Rimasolum, covered by insurance, achieved rapid growth through effective clinical advantages.

Notably, the company set a goal in its operational plan to achieve over 30% growth in innovative drug sales by 2026. As mentioned above, in 2025, Hengrui’s innovative drug sales increased by 26.09%, demonstrating ongoing strengthening of the pipeline and commercialization capabilities, accelerating growth momentum. Based on this, the company has set higher growth targets, reflecting strong confidence in future development.

New Drugs and Indications Continue to Receive Approvals, About 53 Innovative Achievements Expected in Three Years

In 2025, the company continued to intensify innovation efforts. During the period, the Shanghai Innovation R&D Center was officially launched, further improving the R&D system.

The company continued building industry-leading new technology platforms, strengthening source innovation. During the period, platforms for ADC, bispecific/multispecific antibodies, protein degraders, small nucleic acid drugs, oral peptides, PROTACs/molecular glues/RIPTACs were improved, and a new molecular platform was initially established. Hengrui also vigorously developed AI-driven drug discovery (AIDD), fully empowering innovation and iteration in drug R&D.

The company has formed a highly differentiated, industry-leading innovation product matrix. Currently, it has approved 24 Class 1 innovative drugs and 5 Class 2 new drugs in China, with over 100 proprietary products in clinical development and more than 400 clinical trials underway domestically and internationally.

In 2025, the company (including subsidiaries) obtained approval for 7 Class 1 innovative drugs, including ReciMonoclonal (Rucotuzumab) injection, Emamoxitin sulfate tablets, Sitagliptin-Metformin tablets (I)(II), Rituximab injection, Famitinib malate capsules, PiroloRapatinib injection, and Zemetolstat tablets; one Class 2 innovative drug was approved for market. Additionally, new indications for six existing innovative drugs were approved, covering oncology, metabolism, cardiovascular, immunology, and neuroscience. The pipeline made significant progress, with 15 new drug applications accepted by NMPA, 28 products advanced to Phase III, 61 to Phase II, and 28 products initiated into Phase I for the first time. In 2025, the company received 180 clinical trial approvals; 8 breakthrough therapy designations from CDE; 2 priority review designations. The company also recruited over 22,000 clinical trial participants, leveraging its strong clinical development capacity to efficiently advance regulatory review.

Patent applications and maintenance proceeded smoothly. During the period, 76 patents were granted in Greater China and 209 internationally. As of the end of the reporting period, the company held 986 invention patents authorized in Greater China and 1,021 patents granted in Europe, the US, Japan, and other regions.

In 2025, Hengrui’s 20 products/indications were included in the revised national medical insurance catalog, with 10 products entering the insurance list for the first time. This improves access and affordability of high-quality medicines, accelerates product sales, increases market share, and further consolidates the company’s leading position in innovative drugs.

Looking ahead, the company’s growth potential is expected to further release. According to the announcement, about 53 innovative achievements are expected to be approved and launched between 2026 and 2028. Among new product launches, the GLP-1/GIP dual receptor agonist HRS9531 for overweight/obesity is expected to gain approval. For new indications, Rituximab is anticipated to be approved for HER2-positive colorectal cancer and first-line treatment of HER2-positive breast cancer, among others.

Internationalization Accelerates, Business Development Becomes a New Growth Engine

Strong R&D capabilities underpin the company’s high-level international cooperation. In 2025, Hengrui continued to innovate its BD cooperation model, completing five overseas innovation drug expansion deals. Notably, a strategic alliance with GSK was announced: jointly developing up to 12 innovative drugs including PDE3/4 inhibitor HRS-9821, with Hengrui receiving a $500 million upfront payment, and potential total milestone and sales payments around $12 billion, demonstrating deep recognition of Hengrui’s innovation platform and R&D strength. An exclusive license agreement with MSD for Lp(a) inhibitor HRS-5346 outside Greater China involved a $200 million upfront and up to $1.77 billion in milestone payments, further validating global competitiveness. Additionally, oral GnRH antagonist SHR7280’s commercialization rights in mainland China were licensed to Merck Germany; Myosin small molecule inhibitor HRS-1893 was licensed to Braveheart Bio under a NewCo model; partial international rights for Rituximab were licensed to Glenmark. Since 2023, the company has completed 12 overseas deals, including licensing, NewCo, and strategic alliances, with potential total transaction value exceeding $27 billion. These active BD transactions are accelerating the global realization of Hengrui’s innovative drug value.

Meanwhile, the company is actively advancing overseas independent development and registration. During the period, a new clinical R&D and collaboration center was established in Boston, USA. Currently, the company has 15 R&D centers across Asia, Europe, the US, and Australia, with multiple innovative drugs initiating their first overseas clinical trials. Additionally, the HER2 ADC drug Rituximab combined with Atezolizumab and chemotherapy for gastric or gastroesophageal junction adenocarcinoma received orphan drug designation from the US FDA. The company now has five innovative drugs granted FDA orphan drug status and four ADC products granted FDA fast-track designation.

Furthermore, during the period, the company successfully listed on the Hong Kong Stock Exchange, achieving an “A+H” listing with a fundraising of HKD 11.374 billion, the largest IPO in the Hong Kong pharmaceutical sector in nearly five years, marking 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 period, 381 significant research achievements related to the company’s products received international recognition. These were published in top global journals such as CA (Journal of Clinical Oncology), The Lancet, and JAMA, with a cumulative impact factor of 3,159, including 18 influential papers (impact factor ≥30 in oncology, ≥20 in non-oncology). The company’s participation on the global academic stage reached new heights. In oncology, 72 and 46 studies were selected for ASCO and ESMO conferences respectively, with the first-ever booth presentation at ESMO; in non-oncology, multiple results were accepted as oral presentations at the American Diabetes Association (ADA), American Academy of Dermatology (AAD), and European Renal Association (ERA) meetings.

Building a Global Talent Pipeline and Upgrading Operations and Management

Deepening the internationalization strategy relies on global organizational capabilities. In 2025, the company enhanced talent introduction and development, building a global talent pipeline. Ms. Feng Ji was appointed as President, strengthening global strategic leadership; Mr. Zhu Guoxin was appointed Senior Vice President and Head of Global Early R&D, enhancing pipeline foresight and source innovation; Mr. Yin Hang was appointed Vice President and General Manager of Oncology, further strengthening competitiveness; Mr. Yu Liu was appointed International Chief Medical Officer, leading clinical development outside China and the US; Ms. Karen Atkin was appointed Head of International Business and Portfolio Strategy, further expanding overseas markets. The “Global Elite Program” attracted top students and young scholars from leading universities and research institutions worldwide.

Internally, key talent development programs such as the “Mid-to-High Level High-Potential Talent 400 Program,” “New Manager Training Camp,” and “Hengrui Leadership Summit” were systematically implemented to cultivate a professional, young, and international top talent team.

The company continued to strengthen strategic and organizational alignment. In 2025, a new Biopharmaceutical Business Unit (BBU) was established alongside the existing Oncology Business Unit (OBU), upgrading organizational structure to enhance commercialization capabilities. The company formed a comprehensive system of functions including commercial excellence, marketing, medical affairs, central and provincial sales management, and market access, empowering professional sales teams. The extensive distribution network covers over 25,000 hospitals and more than 200,000 retail pharmacies nationwide. Additionally, a broad grassroots market structure was established, with community terminal coverage exceeding 2,500 outlets, and academic activities reaching 20,000 doctors, significantly enhancing grassroots brand influence.

Deepening Industry-Academia-Research Integration and Committing to Sustainability

To further strengthen its foundational research capabilities, the company actively promotes government-industry-academia-research collaboration. It co-established 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 and applied research in oncology and metabolic diseases. It also signed a strategic cooperation memorandum with the China Science and Technology Development Foundation, investing 100 million yuan to support projects in technological innovation, resource empowerment, talent cultivation, and international exchange, fostering deep integration of science and industry.

As a leading Chinese pharmaceutical innovator, Hengrui always emphasizes social responsibility and sustainable development. In November 2025, following a serious fire at Hongfu Garden in Tai Po, Hong Kong, Hengrui donated HKD 10 million for emergency rescue and post-disaster reconstruction efforts.

Thanks to outstanding performance in innovation, compliance, green development, and social responsibility, Hengrui’s ESG rating by MSCI rose to “AA,” ranking among the top global pharmaceutical companies.

With achievements in innovation and internationalization, Hengrui has received numerous domestic and international recognitions. It has been listed in the top 50 global pharmaceutical companies by Pharmaceutical Executive magazine for seven consecutive years; ranked second globally in pipeline size according to Citeline 2025; included in the Fortune China 500 for 2025; its patent for Haitupopa ethanolamine won the China Patent Gold Award; and it has been certified as a “China Outstanding Employer” for five consecutive years, reaffirming its excellence in HR management.

Looking forward, Hengrui will continue to uphold the “dual-driven” strategy of “technological innovation + internationalization,” focusing on unmet clinical needs and creating differentiated innovative products; balancing independent R&D with open collaboration to bring better treatment options to patients worldwide.