Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma) reported first-quarter 2026 operating revenue of RMB 8.14 billion, up 12.98% year on year. Net profit attributable to shareholders reached RMB 2.28 billion, a 21.78% increase, while basic earnings per share advanced to RMB 0.34 from RMB 0.30 a year earlier. After deducting non-recurring items, net profit stood at RMB 2.17 billion, up 16.59%.\n\nInnovative-drug revenue rose 25.75% to RMB 4.53 billion, accounting for 61.69% of total drug sales. Within this segment, oncology products generated RMB 3.31 billion (+11.63%), while non-oncology products almost doubled to RMB 1.21 billion (+92.13%). Revenue from out-licensing agreements, mainly related to milestones with GSK, contributed an additional RMB 787 million. Sales of generic drugs declined, reflecting ongoing national volume-based procurement and the company’s strategic shift toward innovation.\n\nR&D expenditure remained elevated. Total R&D investment reached RMB 2.22 billion, including RMB 1.65 billion booked as expenses in the income statement. Three innovative products obtained new approvals during the quarter: Retlirafusp-α Injection (anti-PD-L1/TGF-βRII bispecific fusion protein), a new breast-cancer indication for Trastuzumab Rezetecan (HER2 ADC), and a first-line severe aplastic anemia indication for Hetrombopag Olamine Tablets. Eight marketing applications were accepted, and six assets received Breakthrough Therapy Designation from the Chinese regulator.\n\nOperating cash inflow increased 41.66% to RMB 786.45 million, supported by higher cash receipts from product sales. Net cash outflow from investing activities totaled RMB 723.75 million, primarily for fixed-asset and intangible-asset additions, while financing activities resulted in a RMB 185.72 million outflow. Cash and equivalents stood at RMB 39.68 billion at quarter-end.\n\nTotal assets grew 2.04% from year-end 2025 to RMB 71.29 billion. Shareholders’ equity attributable to owners expanded 3.84% to RMB 63.63 billion, while total liabilities declined to RMB 7.15 billion. The balance sheet remained cash-rich, with cash at bank and on hand of RMB 40.53 billion against inventories of RMB 2.89 billion.\n\nManagement highlighted the goal of maintaining annual innovative-drug revenue growth above 30% through continued product launches, indication expansions, and improved reimbursement access, alongside sustained high-level R&D investment.
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