Citigroup has issued a research report assigning a Buy rating to Hengrui Pharma (01276) H-shares, with a target price of HK$134. The report highlighted that the company's innovative drug sales for the first quarter of 2026 grew 26% year-on-year to RMB 4.5 billion, increasing their contribution to total product sales from 54% in the same period last year to 62%.
Management has reaffirmed its target of achieving over 30% annual growth in innovative drug sales for 2026, noting that accelerated hospital access in March has laid a foundation for full-year sales growth. In the first quarter of 2026, the company recognized business development revenue of RMB 787 million from its collaboration with GSK, with full-year projections estimated at approximately RMB 250 million.
The progress of collaborative products remains on track. The global Phase III trial for Ribupatide (GLP-1/GIP) was initiated in December 2025, and the global Phase III trial for HRS-1893 (Myosin) is scheduled to commence in 2026.
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