Jiangsu Hengrui Medicine : Hengrui Pharma Has Announced its Record-breaking First-half 2025 Results

On August 20, Hengrui Pharma (600276.SH;01276.HK) reported a remarkable first-half performance for 2025. Revenue soared to RMB 15.76 billion, up 15.88% year-on-year, while net profit surged to RMB 4.45 billion, up 29.67%, both reaching record highs. Net operating cash flow alsohit a record level, climbing to RMB 4.3 billion, up 41.8%. Innovative drug sales and licensing revenue contributed 60.66% of total revenue, underscoring the company's transformation momentum. Total R&D investment amounted to RMB 3.87 billion, of which RMB 3.23 billion was expensed.

In H1 2025, Hengrui obtained 12 NDA approvals for innovative drugs in China, including six NMEs and six new indications. The company has over 100 innovative products in clinical development and is conducting more than 400 clinical trials globally, including 20+ overseas trials, reflecting its expanding global R&D capabilities. During the reporting period, Hengrui maintained strong momentum on external partnership and signed two licensing deals with top multinational pharmaceutical companies, granting rights to its in-house developed oral, small-molecule Lp(a) inhibitor and oral GnRH receptor antagonists to Merck Sharp & Dohme and Merck KGaA, Darmstadt, Germany, respectively. In July, Hengrui entered into agreements with GSK plc to develop up to 12 innovative medicines. Under the agreements, GSK will pay US$500 million in upfront fees including for the license of the PDE3/4 program. The potential total value of future success-based development, regulatory and commercial milestone payments to Hengrui is approximately US$12 billion if all programs are optioned and all milestones are achieved, while Hengrui will also be eligible for tiered royalties on global product net sales within the licensed territories, further propelling its globalization strategy and long-term growth.

In May, Hengrui listed on the Hong Kong Stock Exchange, raising HK$11.4 billion (US$1.5 billion) in total proceeds including the over-allotment option - the largest pharmaceutical IPO in Hong Kong in the past five years - further enhancing access to global capital. With a growing pool of international talent - including over 30% of mid-to-senior management with overseas experience - and a diversified global pipeline, the company is accelerating its globalization strategy and strengthening its presence in the international pharmaceutical market.