Hengrui Pharma’s H1 Revenue Hits RMB 15.456 Billion; Innovative‑drug Sales Rise to 63% of Total

On August 19, Hengrui Pharma released its 2026 semi‑annual report. During the reporting period, the company recorded operating revenue of RMB 15.456 billion, down 1.94% year‑on‑year. Net profit attributable to shareholders stood at RMB 4.465 billion, up 0.34% year‑on‑year, while non‑GAAP net profit fell 12.71% year‑on‑year to RMB 3.730 billion.

Broadly flat top‑line revenue paired with marginal net‑profit growth and a double‑digit drop in non‑recurring‑adjusted net profit reflects a clear seesaw dynamic: shrinking generics offset expanding innovative‑drug sales.

In the first half, Hengrui Pharma’s generic‑drug revenue reached RMB 5.139 billion, a 16.07% year‑on‑year decline. Generics’ share of total pharmaceutical sales dropped to 36.84% from 44.72% in the same period a year earlier. Sales of Butorphanol and Sevoflurane retreated due to local volume‑based procurement implementation, while nab‑paclitaxel‌ and other procurement‑listed products suffered further revenue contraction from renewed tender price cuts.

Meanwhile, innovative‑drug sales hit RMB 8.809 billion, rising 16.38% year‑on‑year and making up 63.16% of drug revenue. Anti‑tumor innovative products generated RMB 6.265 billion in revenue, up 2.58% year‑on‑year. Core assets including Renruirez® and Dalpiciclib maintained robust growth. New indications for Fluzoparib brought incremental sales, while products such as ReKang trastuzumab, newly added to national medical insurance in 2026, saw rapid early‑launch volume expansion.

Feng Ji, President and Chief Operating Officer of Hengrui Pharma, noted at the earnings briefing that generics faced substantial H1 pressure from national and local volume‑based procurement, with full‑year headwinds remaining pronounced. Generic‑drug revenue contribution will keep shrinking in coming years, he added.

Commenting on moderating oncology‑segment momentum, Feng explained that the large base of the anti‑tumor division capped overall innovative‑drug growth. Mature assets such as pyrotinib suffered revenue adjustments amid fiercer market competition, and Apatinib‌ saw lower sales triggered by medical‑insurance renewal price reductions. Innovative‑drug growth clocked 25.75% in Q1, before sales cadence slowed in Q2 amid shifting industry policy and tightened regulatory oversight.

As organic innovative‑drug expansion meets constraints, out‑licensing has emerged as a meaningful earnings driver. The firm recognized RMB 1.422 billion in related revenue in the half‑year period, consisting chiefly of RMB 1.176 billion from performance‑obligation‑based GSK out‑licensing proceeds plus milestone payments from Braveheart Bio.

Hengrui Pharma’s bigger upside lies ahead, according to management. Jiang Ningjun, Executive Vice‑President and Chief Strategy Officer, disclosed at the briefing that the company struck a landmark global strategic collaboration with BMS in May 2026 and has received a USD 600‑million upfront payment. The two parties will jointly advance 13 early‑stage research programs.

“BD is far more than discrete transactions; it is a strategic instrument,” Jiang stressed. “Hengrui Pharma has built flexible collaboration models, ranging from direct out‑licensing and NewCo structures to global strategic alliances and combination‑therapy partnerships. We select optimal paths tailored to each project and counterparty’s requirements.”

Collaboration also delivers learning‑curve benefits. Jiang said Hengrui Pharma gains exposure to partners’ best practices in FIC / BIC differentiated development, cross‑border clinical alignment, end‑to‑end registration and commercialization. It also cultivates globally‑minded talent and deepens existing alliances to accelerate partnered assets toward launch.

That mindset aligns with Hengrui Pharma’s global ambitions. Zhu Guoxin, Senior Vice‑President and Head of Global Early Research, stated the company has entered a new phase driven by global innovation, AI and cutting‑edge technologies. Its technical platforms cover protein homeostasis modulation, bispecific / multispecific antibodies, ASO oligonucleotides, ADCs, peptides and tissue‑targeted AXC modalities, forming complete workflows from target discovery through pre‑clinical optimization.

Multiple platforms are crossing clinical‑validation thresholds. Its lead RIPTAC candidate has entered clinical trials, marking the world’s second and China’s first clinical‑stage RIPTAC molecule. The milestone moves its protein‑homeostasis platform beyond proof‑of‑concept and into clinical validation.

Even amid moderating growth, R&D investment keeps accelerating. Hengrui Pharma poured RMB 4.605 billion into R&D in H1 2026, an 18.96% year‑on‑year increase, of which expensed R&D spending reached RMB 3.493 billion (+8.21% YoY). During the half‑year, 10 internally‑discovered novel molecules entered clinical development; seven innovative assets secured marketing approvals; nine new‑drug applications were accepted by NMPA; and 17 programs advanced into Phase III trials.

“Short‑term challenges notwithstanding, we expect sustained high‑speed growth for innovative drugs over the next three years,” Feng Ji emphasized.