Chinese Innovative Drugmakers Reveal New Industry Trends and Pipeline Progress

Recently,Hengrui PharmaHengrui Pharma Holds Q3 2025 Earnings Conference. Feng Ji, Director, President, and Chief Operating Officer of Hengrui Pharma, stated at the conference that China's innovative drug market is entering a period of rapid growth. As a leading local company, Hengrui Pharma will continue to benefit from policy support and industry expansion opportunities.

Meanwhile, recently,Dizhe Pharma、Zelgen PharmaMultiple innovative pharmaceutical companies have successively held earnings briefings for the third quarter. The progress of innovative drug pipeline research and development, technology investment, and industry development prospects have become key topics of interest for investors. Industry insiders stated that with the acceleration of commercialization of innovative drugs in China and the continuous increase in BD (Business Development) transactions, the rapid growth trend of the innovative drug industry's performance is expected to continue.

● China Securities Journal reporter Li Mengyang

Build Differentiated Competitiveness

Feng Ji introduced at the earnings briefing that first, Hengrui Pharma remains committed to its core business and steadfastly implements strategies of scientific and technological innovation and internationalization to drive high-quality development. The company has invested over 50 billion yuan in cumulative R&D, establishing differentiated competitiveness through an efficient R&D system and a rich pipeline layout. Currently, the company has received approval for the domestic market launch of 24 Class 1 innovative drugs in China, with innovation achievements firmly holding a leading position in the industry. Secondly, the company continuously improves corporate governance, standardizes operations, strengthens operational stability, and enhances investor returns. To date, the company's total cash dividends have exceeded 9.3 billion yuan, effectively enhancing investor satisfaction. The company’s MSCI ESG rating has been rated as "AA," reaching a leading level in the global pharmaceuticals industry. Additionally, the company is actively conducting share repurchases to boost investor confidence.

According to the Q3 2025 report recently released by Hengrui Pharma, the company achieved a revenue of 23.188 billion yuan in the first three quarters, representing a year-on-year increase of 14.85%; the net profit attributable to shareholders was 5.751 billion yuan, up 24.50% year-on-year. The company stated that from the beginning of the year to the end of the reporting period, there was an increase in cash received from drug sales and upfront payments from overseas licensing.

"Since the beginning of this year, the company's innovative drug revenue has achieved rapid growth. Among them, Rivoceranib, Dalpiciclib, and Hengliptin, which are innovative drugs covered by medical insurance in China, have precisely targeted unmet clinical needs. Their excellent clinical data have been widely validated in practice, and their clinical value has been continuously recognized by doctors and patients, with revenue continuing to grow rapidly," said Liu Xiaohan, Secretary of the Board of Hengrui Pharma.

Notably, in July this year, Hengrui Pharma reached a collaboration with GSK to co-develop up to 12 innovative drugs across respiratory, autoimmune, inflammation, and oncology fields (including the license of HRS9821 outside Greater China). Hengrui Pharma received an upfront payment of $500 million, with potential total payments of approximately $12 billion in option exercise fees and milestone payments, as well as corresponding tiered sales royalties.

In response, Liu Jianjun, CFO of Hengrui Pharma, stated that the company had received the $500 million upfront payment from GSK in the third quarter of this year. The contract includes multiple performance obligations, and the company will recognize revenue based on the allocated transaction price for each individual performance obligation and its completion status.

R&D of Innovative Drugs Becomes the Focus of Attention

Recently, multiple innovative pharmaceutical companies held earnings briefings, with investors showing significant interest in their R&D pipelines and market expansion efforts.

On November 5, Zelgen Pharma's Chairman and General Manager, Sheng Zelin, stated at the company’s third-quarter earnings briefing that the company possesses a product pipeline with differentiated competitive advantages. Its drug candidates focus on areas such as oncology, bleeding and hematological diseases, and immune-inflammatory disorders, filling gaps in China and providing therapeutic options for unmet clinical needs. Additionally, the company has new drug R&D technology platforms and a comprehensive new drug development system at an international level, including small molecule drug R&D and industrialization platforms, as well as complex recombinant protein biologics and antibody drug R&D and industrialization platforms.

"In the first three quarters of 2025, Zelgen Biopharmaceuticals achieved operating revenue of 593 million yuan, representing a year-on-year increase of 54.49%. In the third quarter alone, the company generated 218 million yuan in revenue, marking a year-on-year growth of 51.85%, primarily driven by increased pharmaceutical sales. Notably, recombinant human thrombin saw a significant rise in sales after being included in the National Medical Insurance Drug List at the beginning of the year," said Huang Gang, Vice General Manager and Chief Financial Officer of Zelgen Biopharmaceuticals.

At the company's third-quarter earnings briefing held on November 3, Lv Hongbin, Chief Financial Officer and Board Secretary of Dizhen Pharma, stated that Sunvozertinib and Gao Ruizhe have successfully been included in the National Reimbursement Drug List (NRDL) and maintained a high growth rate after inclusion. In the first three quarters of 2025, the company achieved revenue of 586 million yuan, representing a year-on-year increase of 73%. The company adheres to innovation at the source and accelerates the R&D progress of its products, with R&D investment remaining at a relatively high level. The company is currently still in a loss-making state but aims to bring more products or indications to market quickly in order to achieve profitability as soon as possible.

"With the strong support of national policies, industrial policies, and the capital market, the innovative drug industry has a promising future. As more and more innovative drugs are launched in China and overseas, product collaborations are increasing. I believe the international status of the innovative drug industry will continue to rise." Zhang Xiaolin, Chairman and CEO of Dizhen Medicine, stated.

"At present, the company's R&D pipelines are proceeding smoothly, with a total R&D investment of 1.90 billion yuan accumulated in the first three quarters of 2025. The company holds global rights to its product pipelines and applied for 37 new invention patents in the first half of 2025. By the end of June 2025, the company had obtained a cumulative total of 138 authorized invention patents domestically and internationally. Global intellectual property protection will help the company maintain its global competitiveness."Yifang BioChairman and General Manager Yaolin Wang recently stated at the Q3 earnings briefing.

The industry growth trend is expected to continue.

Industry insiders believe that the growth trend in sectors related to innovative drugs is expected to continue.

　　Everbright SecuritiesIn the latest research report, it was stated that the sales of leading innovative drug companies continued to increase in the third quarter, and some companies received the initial payment from BD transactions, which drove performance growth. As these positive factors continue, the rapid growth trend of the innovative drug industry's performance is expected to continue.

"We believe that the adjustment of innovative drugs from August to October is relatively benign, and there has been no negative change in the fundamentals of the industry, which continues to develop positively. As the third-quarter reports have been fully disclosed and market style shifts, the pharmaceuticals sector is expected to usher in a new round of increases. It is recommended to keep paying attention to the innovation-driven main line, sectors with improving fundamentals, and individual stocks."Zhongtai SecuritiesSaid in a recent research report.

"Looking ahead to 2026, innovative drugs will remain the main investment focus in the pharmaceutical industry, due to reasons including the rising international status of China's innovative drug companies and the explosive growth of BD overseas transactions."Dongwu SecuritiesThe analyst said in the research report.