Hengrui Medicine 2025 Annual Report: Continuous Performance Growth, Innovation Momentum Surging

(Source: Beijing Business Daily)

On March 25, Heng Rui Medicine released its annual report for 2025. During the reporting period, the company adhered to a dual-driven strategy of “technological innovation + internationalization,” achieving continuous performance growth, with both revenue and net profit hitting new highs. The annual operating revenue reached 31.629 billion yuan, a year-on-year increase of 13.02%; the net profit attributable to shareholders of the listed company was 7.711 billion yuan, a year-on-year increase of 21.69%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 7.413 billion yuan, a year-on-year increase of 20.00%. Revenue from innovative drug sales was 16.342 billion yuan, a year-on-year increase of 26.09%, accounting for 58.34% of total drug sales revenue; revenue from external licensing was 3.392 billion yuan, a year-on-year increase of 25.62%.

While achieving continuous growth, the company maintained high-intensity R&D investment, with total R&D expenditure reaching 8.724 billion yuan for the year, accounting for 27.58% of operating revenue, with 6.961 billion yuan of that as expensed R&D investment, solidifying the foundation for innovation.

Efficient transformation of innovation results empowers growth, with innovative drug sales leading performance growth

In the innovative drug sales revenue, the income from anti-tumor products was 13.240 billion yuan, a year-on-year increase of 18.52%, accounting for 81.02% of the overall innovative drug sales revenue. The innovative drugs covered by medical insurance, such as Rivolumab (a second-generation AR antagonist) and Darsylib (a CDK4/6 inhibitor), precisely address unmet clinical needs, and their excellent clinical data have been widely validated in clinical practice, maintaining strong growth in sales revenue. Earlier launched innovative drugs like Olaparib (a PARP inhibitor) and Lusutrombopag (a TPO receptor agonist), with the continuous approval of new indications or the gradual accumulation of evidence from post-marketing studies, continue to inject stable incremental revenue into the company. Products like Iritinib liposome (TOP1) and Rukankuzumab (HER2 ADC), although still in the early stages of commercialization and not yet included in medical insurance during the reporting period, have driven rapid early-stage growth through clear efficacy advantages for specific patients and efficient pre-launch preparations and market access strategies.

In the innovative drug sales revenue, non-tumor products achieved revenue of 3.102 billion yuan, a year-on-year increase of 73.36%, accounting for 18.98% of the overall innovative drug sales revenue. Products like Empagliflozin (an SGLT2 inhibitor) and Remimazolam (a GABAa receptor agonist) have achieved rapid growth through effective communication of clinical advantages within medical insurance.

Notably, the company has set a goal in the business plan of the annual report to strive for over 30% growth in innovative drug sales revenue by 2026. As mentioned above, the innovative drug sales revenue of Heng Rui Medicine has already achieved a 26.09% growth in 2025, clearly indicating that the company has continuously strengthened its capabilities in delivering innovation pipelines and commercialization, accelerating the release of growth momentum. Based on this, the company has set higher growth targets, demonstrating its strong confidence in future development.

New drugs and new indications continue to be approved, with approximately 53 innovative results poised for launch within three years

In 2025, the company continued to intensify innovation efforts. During the reporting period, the company’s Shanghai innovation R&D center was officially put into use, further improving the company’s R&D system.

The company continues to build industry-leading new technology platforms, strengthening source innovation. During the reporting period, the company continually improved its established mature technology platforms in ADCs, bi- and multi-specific antibodies, protein degraders, small nucleic acid drugs, oral peptides, PROTAC/molecular glue/RIPTAC, and has preliminarily established a new molecular mode platform. Meanwhile, Heng Rui is vigorously developing artificial intelligence drug discovery (AIDD), fully empowering the innovation and iteration of drug development.

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

In 2025, the company (including its consolidated subsidiaries) had 7 Class 1 innovative drugs approved for listing, including injection of Ricacizumab, Emicizumab sulfate tablets, Regaglitin Metformin (I)(II), injection of Rukankuzumab, Famitinib capsules, injection of Lornoxicam Palonosetron, and Zemetuzumab tablets; 1 Class 2 innovative drug was approved for listing, and 6 newly approved indications for previously approved innovative drugs were also granted, covering oncology, metabolic, cardiovascular, immune, and neuroscience disease areas. During the reporting period, the company’s R&D pipeline made significant progress, with 15 listing applications accepted by NMPA, 28 clinical trials advancing to Phase III, 61 advancing to Phase II, and 28 innovative products advancing to clinical Phase I for the first time. In 2025, the company obtained 180 clinical approval documents; received 8 designations for breakthrough therapy from CDE and 2 for priority review. Additionally, in 2025, the company recruited over 22,000 participants for clinical research, leveraging its own clinical development capabilities to efficiently advance the regulatory review process of its products.

Patent applications and maintenance work progressed smoothly. During the reporting period, the company obtained 76 authorizations in the Greater China region and 209 authorizations abroad. As of the end of the reporting period, it held 986 authorized invention patents in the Greater China region and 1,021 authorized patents in Europe, the U.S., Japan, and other countries.

In 2025, Heng Rui Medicine had a total of 20 products/indications approved through the new national medical insurance catalog adjustments, including 10 products entering medical insurance for the first time, continuously improving the accessibility and affordability of quality drugs, which also helps accelerate product volume and increase market share, further consolidating the company’s leading position in the field of innovative drugs.

In terms of future growth potential, the company is expected to further release its growth potential. According to announcements, approximately 53 innovative results are expected to be approved for listing from 2026 to 2028. In terms of new products, the GLP-1/GIP dual receptor agonist HRS9531, which has best-in-class potential for overweight/obesity, is expected to be approved. In terms of new indications, Rukankuzumab is expected to be approved for multiple new indications, including HER2-positive colorectal cancer and first-line treatment for HER2-positive breast cancer.

Accelerating internationalization, BD becomes a new engine for performance growth

The strong innovation R&D capabilities lay a solid foundation for the company’s high-level international cooperation. In 2025, Heng Rui Medicine continued to innovate its BD cooperation model, achieving 5 transactions for the overseas business expansion of innovative drugs. Notably, a strategic alliance was established with GSK: the two parties will jointly develop up to 12 innovative drugs, including the PDE3/4 inhibitor HRS-9821, with Heng Rui receiving a $500 million upfront payment, potential total amounts of around $12 billion in option exercise fees, milestone payments, and corresponding sales commissions, highlighting deep recognition of Heng Rui’s innovative platform and R&D strength. An exclusive license for the Lp(a) inhibitor HRS-5346 outside of Greater China was reached with MSD, with a $200 million upfront payment and a maximum of $1.77 billion in milestone payments, further validating global competitiveness. Additionally, commercial rights for the oral GnRH antagonist SHR7280 were authorized to Merck in Germany, the Myosin small molecule inhibitor HRS-1893 was licensed to Braveheart Bio in a NewCo model, and partial international market rights for Rukankuzumab were authorized to Glenmark. Since 2023, the company has completed 12 overseas business expansion transactions, including external licensing, NewCo, and strategic alliances, with a total potential transaction value exceeding $27 billion. This series of active BD transactions is accelerating the global value realization of Heng Rui’s innovative drugs.

At the same time, Heng Rui is also actively promoting overseas independent development and registration. During the reporting period, the company opened a clinical R&D and collaboration center in Boston, USA. Currently, the company has established 15 R&D centers in Asia, Europe, America, and Australia, with multiple innovative drugs initiating their first overseas clinical trials during the reporting period. Additionally, during the reporting period, the HER2 ADC innovative drug Rukankuzumab in combination with Abemaciclib and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma was granted orphan drug designation by the FDA. Currently, the company has 5 innovative drugs with FDA orphan drug designation and 4 ADC products with FDA fast track designation.

Furthermore, during the reporting period, the company successfully listed on the Hong Kong Stock Exchange, achieving an “A+H” listing, raising 11.374 billion HKD, marking the largest IPO in the Hong Kong pharmaceutical sector in nearly 5 years, reaching 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 reporting period, 381 important research results related to the company’s products gained international recognition. These were published consecutively in top global journals such as CA (Clinical Cancer Research), The Lancet, and JAMA (Journal of the American Medical Association), with a cumulative impact factor of 3,159 points, including 18 significant research papers (with an impact factor ≥30 for oncology and ≥20 for non-oncology journals). The company’s participation on the global academic stage has reached new heights. In the field of oncology, 72 items were selected for the ASCO annual meeting, and 46 items for the ESMO annual meeting, marking its first participation at ESMO in an exhibition format; multiple non-oncology results were accepted as oral presentations at international conferences such as the ADA Annual Meeting, AAD, and ERA.

Building a global talent pipeline, comprehensive upgrade of operational management

The deepening of the international strategy relies on the support of global organizational capabilities. In 2025, the company deepened talent introduction and development, building a global talent pipeline. Ms. Feng Ji was invited to join and serve as the company’s president, strengthening global strategic leadership; Mr. Zhu Guoxin was appointed as the company’s senior vice president and global early-stage research head, enhancing the forward-looking layout and source innovation of the pipeline; Mr. Yin Hang was appointed as the company’s vice president and general manager of the oncology division, continuously strengthening competitiveness in the oncology field; Mr. Yu Liu was appointed as the international chief medical officer, responsible for advancing clinical development outside the U.S. and China; and Ms. Karen Atkin was appointed as the head of international business and portfolio strategy, further strengthening overseas business development. At the same time, through the “Global Elite Program,” the company widely attracts outstanding students and young scholars from top global universities and research institutions.

In terms of internal training, for key talents at different levels, the company systematically implemented training programs such as the “400 Development Project for High-Potential Middle and Senior Management,” “New Manager Training Camp,” and “Heng Rui Leadership Summit,” making every effort to create a professional, youthful, and international first-class talent team.

The company continues to strengthen the alignment of strategy and organization, establishing a new biopharmaceutical division (BBU) in 2025, which runs parallel with the existing oncology division (OBU), enhancing leading commercialization capabilities through organizational upgrades. The company has formed a complementary functional system encompassing commercial excellence, marketing, medical affairs, central and provincial sales management, and central and provincial market access to empower its professional sales team. The company has established a broad and deep omnichannel coverage network. Currently, the sales network spans over 25,000 hospitals and more than 200,000 offline retail pharmacies nationwide. Additionally, the company has set up a grassroots market structure, upgrading its layout based on market potential and product characteristics. As of now, community terminal coverage has surpassed 2,500, with academic activities reaching 20,000 doctors, significantly enhancing brand influence at the grassroots level.

Deepening the integration of government, industry, academia, and research, practicing sustainable commitments

To further strengthen the company’s foundational research capabilities in the biopharmaceutical field, the company actively promotes the synergy of government, industry, academia, and research, jointly establishing 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 or applied basic research in areas such as oncology and metabolic diseases. Additionally, a strategic cooperation memorandum was signed with the China Science and Technology Development Foundation, committing 100 million yuan to fund projects in seven major areas, including technological innovation, resource empowerment, talent cultivation, and international exchange, working together to promote deep integration of technological and industrial innovation.

At the same time, as a leading enterprise in China’s pharmaceutical innovation, Heng Rui Medicine always emphasizes fulfilling social responsibilities and deeply practices sustainable development concepts.

In November 2025, a severe fire occurred in Hong Fu Yuan, Tai Po, Hong Kong, raising deep concerns across society. Heng Rui Medicine announced an emergency donation of 10 million HKD for urgent rescue and post-disaster reconstruction efforts.

Thanks to its outstanding performance in pharmaceutical innovation, compliant operations, green development, and social responsibility, Heng Rui Medicine has risen to “AA” in the MSCI ESG rating by the international authoritative index agency MSCI, ranking among the top in the global pharmaceutical industry.

With the results of innovative, international, and high-quality development, Heng Rui Medicine has repeatedly received authoritative recognition both domestically and internationally. It has been listed for seven consecutive years on the Top 50 global pharmaceutical companies by Pharmaceutical Executive; according to the 2025 pipeline size ranking published by Citeline, the company’s self-developed pipeline ranks second in the world; successfully entering the 2025 Fortune China 500 list published by Fortune Chinese Network; the patent for Lusutrombopag (Hengqu®) won the China Patent Gold Award; Heng Rui Medicine has also been certified as a “Top Employer in China” for five consecutive years, further affirming its achievements in human resource management.

In the future, Heng Rui Medicine will continue to adhere to the dual-driven strategy of “technological innovation + internationalization,” deeply cultivate unmet clinical needs, and create differentiated innovative products; persist in balancing independent research and open cooperation to bring more and better treatment options to patients worldwide.