Top 20 Chinese Listed Pharmaceutical Companies Invested RMB 65.7 Billion in R&D in 2023, Led by BeiGene, Hengrui, and Fosun Pharma

Apr 30, 2024 08:30 CST Updated 08:30

BeOne

Developer of Molecular Targeted and Immune Anti-Tumor Drugs

Hengrui Pharma

Innovative and High-Quality Pharmaceutical Developer

Fosun Pharmaceutical

Healthcare Industry Group

CSPC

Developer of finished drugs and active pharmaceutical ingredients

Sino Biopharm

Pharmaceutical R&D Developer

SPH

Pharmaceutical R&D and Manufacturing

CR PHARMA COMM

Pharmaceutical Circulation Service Provider

CHANGCHUN HIGH-TECH

Pharmaceutical R&D Developer

Innovent

High-end Biologics Developer

HUTCHMED

Biopharmaceutical Manufacturer

Hansoh Pharma

Pharmaceutical Research, Production, and Sales

Simcere

Innovative Drug Developer

Kelun

Innovative Pharmaceutical R&D Company

Junshi Biosciences

Innovative Drug Developer

Zai Lab

Innovative Global Biopharmaceutical Company

Joincare

Integrated Pharmaceutical Group

Huadong Medicine

Large Comprehensive Pharmaceutical Product Developer

WuXi AppTec

New Drug R&D and Production Service Provider

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As pharmaceutical companies in China disclose their 2023 financial performance, we have compiled the TOP20 ranking of R&D expenses among these companies, includingBeOne Medicines(12.889 billion yuan), Hengrui Pharma (6.15 billion yuan),Fosun Pharmaceutical(5.937 billion yuan) ranked TOP3, and BeOne Medicines still firmly holds the position of "the top R&D company."

Source: BioPharma Era Compilation

In terms of R&D expenses, 20 pharmaceutical companies invested a total of 65.7 billion yuan in R&D expenses, a year-on-year increase of 4% compared to nearly 63.4 billion yuan in 2022. Overall, the R&D expenses of the TOP20 pharmaceutical companies all exceeded 1 billion yuan, with only BeOne Medicines reaching over 10 billion yuan, and 12 companies investing between 2 billion and 5 billion yuan in R&D expenses.

In terms of year-over-year growth, Sixty percent of the TOP20 pharmaceutical companies increased their R&D expenses in 2023, with particularly notable growth from CHANGCHUN HIGH-TECH (+46%), Humanwell Healthcare Group (+36%), and Huadong Medicine (+34%). Meanwhile, Hengrui Pharma, SPH,Innovent BioR&D investment in 2023 showed negative growth.

BeOne Medicines

BeOne Medicines' 2023 financial report shows: revenue of 17.423 billion yuan, a year-on-year increase of 82.13%; net profit attributable to shareholders of -6.716 billion yuan, narrowing from a loss of -13.642 billion yuan in the same period last year; adjusted operating loss during the reporting period was 5.176 billion yuan. R&D expenses amounted to 12.889 billion yuan, an increase of 8% year-on-year.Mainly due to the expansion of global R&D pipelines, leading to increased investment in the research and development of clinical and preclinical candidate drugs.。

BeOne Medicines was founded in 2010 and focuses on the discovery and development of innovative therapies. Currently, three self-developed drugs have been approved for marketing:Brukinsa^®、Tislelizumab^®HUTCHMED^®In 2022, BeOne Medicines' innovative drug revenue reached 8.48 billion yuan, exceedingHengrui Pharma8.116 billion yuan, becoming the "top innovative drug company." In terms of R&D, BeOne Medicines has consistently held the position of the "top R&D company," with cumulative R&D investment exceeding 50 billion yuan from 2015 to the present.

R&D Pipeline

Hengrui Pharma

Hengrui Pharma's 2023 Financial Report Shows: Revenue of 22.82 Billion Yuan, a Year-on-Year Increase of 7.26%; Net Profit Attributable to Shareholders of the Listed Company at 4.302 Billion Yuan, a Year-on-Year Increase of 10.14%. Among This, Innovative Drugs Surpassed the 10 Billion Yuan Mark for the First Time, Reaching 10.637 Billion Yuan (+22%), Accounting for 47% of Total Revenue; Accumulated R&D Investment Reached 6.15 Billion Yuan, Including 4.954 Billion Yuan in Expensed R&D Investment.

Notably, in 2023, Hengrui Pharma's sales expenses amounted to 7.577 billion yuan, representing a year-on-year increase of 3.12%, while its R&D investment dropped by 3% in the same year. As a pharmaceutical company with innovation-driven R&D as its core competitiveness, Hengrui spent 1.4 billion yuan more on sales than on R&D. Perhaps recognizing this issue, Hengrui mentioned as early as its 2021 annual report that it aimed to streamline its sales staff and increase R&D personnel. By the end of 2023, the company had 5,110 R&D staff members.

During the reporting period, 12 clinical programs in the company's pipeline advanced to Phase III, 35 progressed to Phase II, and 30 moved to Phase I. The company has over 90 self-innovated products under clinical development, with nearly 300 clinical trials being conducted both in China and internationally.

Progress of R&D Pipeline During the Reporting Period (Partial)

Fosun Pharmaceutical

Fosun Pharmaceutical 2023 Financial Report Shows: Revenue of 41.4 billion yuan, a year-on-year decrease of 5.81%; pharmaceutical business revenue reached 30.222 billion yuan, accounting for 73%. R&D investment totaled 5.937 billion yuan, a year-on-year increase of 1%; R&D expenses were 4.346 billion yuan, a year-on-year increase of 1%. As of the end of the reporting period, the group had 3,491 R&D personnel, of which more than 1,800 held a master's degree or higher.

The R&D investment in the pharmaceutical business reached 5.172 billion yuan (+1.47%), accounting for 17.11% of the pharmaceutical business revenue.

During the reporting period, the group had eight indications for six innovative drugs approved for marketing, exclusive commercial licenses for four products approved for marketing, seven indications for five products entered the pre-marketing approval stage, and 20 innovative drug/biosimilar projects approved to conduct clinical trials. By the end of the reporting period, the group had over 70 major innovative drug and biosimilar projects under development.

Update on the Progress of Key R&D Pipelines During the Reporting Period

Summary

The development of a pharmaceutical company cannot be separated from financial support, and the investment in R&D expenses can promote the progress of the company's R&D pipeline, shorten the time for new products to reach the market, and increase the company’s sales. Although the ranking of pharmaceutical companies’ R&D expenses has changed over the past few years, the top 10 have remained almost unchanged. In 2023, the overall R&D investment of Chinese pharmaceutical companies showed an increasing trend, but there is still a significant gap compared to global pharmaceutical R&D investment.

Reference: Announcements from various pharmaceutical companies

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