Accelerating 'Innovation + Internationalization': Multiple Innovative Biopharma Companies Report Strong Mid-Year Results

Source: China Securities Journal

Xinhua Finance, Beijing, August 22nd, by reporter Mengyang LiHengrui PharmaRelease of the 2025 Semi-Annual Report. In the first half of 2025, Hengrui Pharma achieved operating revenue of 15.761 billion yuan, a year-on-year increase of 15.88%; net profit attributable to shareholders of the listed company was 4.450 billion yuan, a year-on-year increase of 29.67%; net operating cash flow reached 4.300 billion yuan, a year-on-year increase of 41.80%. The company's revenue, net profit, and net operating cash flow in the first half of the year all reached record highs for the same period. According to the reporter's review, so far,BeOne MedicinesHansoh Pharma and other innovative pharmaceutical companies disclosed their performance for the first half of the year. The revenue from innovative drugs, progress in the R&D pipeline, and overseas expansion plans have become key focuses of market attention.

Industry insiders stated that China's innovative drug-related enterprises have achieved a transformation from quantitative to qualitative change, gradually evolving from "followers" to "leaders." The prosperity of the innovative drug sector is expected to continue, with the pace of "innovation and internationalization" accelerating, becoming the core direction of the pharmaceutical sector.

Hengrui PharmaR&D investment exceeded 3.8 billion yuan in the first half of the year

In terms of innovative drugs, Hengrui Pharma's semi-annual report shows that in the first half of 2025, the company's sales and licensing revenue from innovative drugs amounted to 9.561 billion yuan, accounting for 60.66% of the company's total revenue, with innovative drug sales revenue reaching 7.57 billion yuan.

Hengrui Pharma stated that the revenue from innovative drugs such as Rivoceranib, Dalpiciclib, and Hengliptin continued to maintain rapid growth. Earlier launched innovative drugs like Ailuxib, Remimazolam, Pyrotinib, and Fluazoparib, with the gradual accumulation of post-marketing research evidence in evidence-based medicine and the continuous approval of new indications, kept contributing incremental sales revenue to the company.

"Innovation drug out-licensing has become a routine business for the company, and its revenue has become an important part of the company's total income. In the first half of the year, the company received a $200 million upfront payment from Merck Sharp & Dohme and a $75 million payment from IDEAYA for out-licensing, which were recognized as income, further driving the growth of operating performance indicators," Hengrui Pharma stated.

In terms of R&D, Hengrui Pharma introduced that the company adheres to high-intensity R&D investment. In the first half of the year, the company's R&D investment reached 3.871 billion yuan, of which 3.228 billion yuan was expensed R&D investment. In the first half of the year, six Class 1 innovative drugs (including subsidiaries in the consolidated financial statements) were approved for marketing.

In terms of R&D pipeline, Hengrui Pharma stated that the company has more than 100 self-innovative products under clinical development, with over 400 clinical trials being conducted both in and outside China. In the first half of the year, 15 self-developed innovative molecules entered the clinical stage. The drug types include small molecule chemical drugs, antibodies, and ADCs (antibody-drug conjugates), covering multiple therapeutic areas such as oncology, metabolism and cardiovascular diseases, immunology, and respiratory diseases.

Looking ahead, Hengrui Pharma stated that the company will always adhere to the strategy of innovation and internationalization, accelerate the R&D of innovative drugs, and continuously introduce new drugs with international competitiveness. Through self-developed efforts and open cooperation, the company will deepen its global presence via multiple pathways, expedite the overseas expansion of innovative drugs, and achieve high-quality development driven by dual synergistic forces.

Innovation and Internationalization Become Key Words

Recently, Several Innovative Pharmaceutical Companies Disclose Their Financial Performance for the First Half of the Year; Innovation and Internationalization Become Key Drivers of Growth. According to the recent announcement of BeOne Medicines' financial data for the first half of 2025, the company achieved a total operating revenue of 17.518 billion yuan in the first half of 2025, representing a year-on-year increase of 46%; net profit attributable to shareholders was 450 million yuan, reversing losses to profits.

BeOne Medicines stated that in the first half of 2025, the company's product revenue reached 17.36 billion yuan, compared to 11.908 billion yuan in the same period last year. The growth in product revenue was mainly driven by the sales increase of self-developed product Brukinsa (Zanubrutinib capsules), authorized products from Amgen, and Tislelizumab Injection (BGB-A317). The company achieved profitability in the first half of the year, primarily due to the significant growth in product revenue and improved operational efficiency through expense management.

Recently, Hansoh Pharma released its mid-term performance announcement for 2025. In the first half of 2025, Hansoh Pharma achieved revenue of approximately RMB 7.434 billion, representing a year-on-year increase of about 14.3%. Hansoh Pharma stated that the company has seven innovative drugs that generated sales revenue in China, forming a rich product pipeline. In the first half of the year, the company's revenue from innovative drugs and collaborative products was approximately RMB 6.145 billion, increasing by 22.1% year-on-year, and accounting for about 82.7% of total revenue, becoming the core driving force for the sustainable growth of the group’s performance.

According toHuadong MedicineIn the recently released semi-annual report for 2025, the company achieved operating revenue of 21.675 billion yuan in the first half of the year, representing a year-on-year increase of 3.39%; net profit attributable to shareholders reached 1.815 billion yuan, marking a year-on-year growth of 7.01%. Regarding innovative drugs, Huadong Medicine stated that its Innovative Drug Research and Development Center is advancing the development of over 80 innovative drug pipelines.

Recently,Gan&Lee PharmaceuticalsPublication of the 2025 Semi-Annual Report. During the reporting period, the company achieved operating revenue of 2.067 billion yuan, representing a year-on-year increase of 57.18%; net profit attributable to shareholders of the listed company was 604 million yuan, marking a year-on-year increase of 101.96%. The company stated that, as a global pharmaceutical enterprise driven by science and innovation, Gan&Lee Pharmaceuticals consistently upholds that research and development is the primary productive force. In the first half of the year, the company invested 552 million yuan in R&D, accounting for 26.70% of its operating revenue. The company also noted that during the reporting period, domestic sales revenue in China reached 1.845 billion yuan, increasing by 55.28% year-on-year; meanwhile, the company accelerated its international market expansion efforts, with international sales revenue reaching 219 million yuan, surging by 74.68% year-on-year.

The prosperity of the innovative drug sector is expected to continue.

"In recent years, China's innovative drug R&D capabilities have significantly improved, with continuous breakthroughs in original innovative drugs. The logic of China's innovative drug market is on the rise, driven by policy support and overseas expansion, leading to a rapid explosion in market size in recent years."Soochow SecuritiesIt is estimated that by 2030, the scale of China's innovative drug market (in-hospital sales + out-of-hospital sales + upfront and milestone payments from BD + sales royalties) will exceed 2 trillion yuan, representing an increase of approximately 264% compared to the market size in 2024.

TF SecuritiesIt was also noted that, looking back at the development of China's innovative drug industry over the past decade, China's innovative drugs have made significant breakthroughs in terms of quantity, quality, and technology, progressing from nothing to something. The quality of China's innovative drugs has gained increasing recognition overseas, with a growing number of them being approved for listing abroad, and the value of overseas transactions has also continued to rise.

"Considering the strong engineering transformation capabilities of China's innovative drug companies, the continuous emergence of high-quality BIC (Best in Class) and FIC (First in Class) molecules, and the ongoing improvement in the quality of early-stage data, their competitive ability on a global scale is becoming increasingly outstanding. In terms of innovative drug investment, we believe that future investments will place greater emphasis on international collaboration, early-stage data, and platform-based companies. The importance of AI-driven drug discovery, profitability of innovative pharmaceutical enterprises, and breakthrough therapies is also expected to continue rising." Tianfeng Securities further stated.

Industrial SecuritiesIt is believed that China's innovative drug-related enterprises have achieved a transformation from quantitative to qualitative change, gradually evolving from "followers" to "leaders." Looking ahead, the innovative drug sector has room for breakthroughs and can be continuously monitored over the long term. Companies with differentiated innovation capabilities and potential global Best-in-Class (BIC) product portfolios are highly regarded.

Editor: Luo Hao