In 2026, China's innovative drug industry is steadily entering a new phase of translating innovation into commercial results.
Data from the National Medical Products Administration show that 76 innovative drugs were approved for marketing in China in 2025, a record high, and a further 38 innovative drugs won approval in the first half of 2026.
As more innovative products reach the market, the focus of industry competition is gradually shifting from the accumulation of R&D pipelines to product commercialization, profitability and sustained growth capacity.
For HENGRUI PHARMA (01276), what matters more than its current performance is who will carry the baton for the next round of growth. On one side, some earlier-launched innovative drugs face increasingly fierce market competition; on the other, new products, new indications and global cooperation continue to make progress. As old and new growth drivers overlap, can Hengrui open up new room for expansion?
What new signals does the sharp quarter-on-quarter growth reveal?
The latest third-quarter report shows that in the first three quarters of 2026, Hengrui Pharma generated revenue of 24.409 billion yuan, up 5.26% year on year, of which product sales revenue reached 21.476 billion yuan, up 2.52% year on year.
Net profit attributable to shareholders of the listed company was 6.923 billion yuan, up 20.38% year on year.
In the third quarter alone, revenue was 8.953 billion yuan and net profit attributable to shareholders was 2.458 billion yuan, up 22.39% and 12.59% respectively from the second quarter.
After pressure on growth in the second quarter, the marked sequential improvement in third-quarter operating data provides a fresh signal for gauging the company's subsequent growth trajectory.
Putting this performance in an industry context, in the first half of 2026 revenue of pharmaceutical manufacturing enterprises above designated size was flat year on year, while total profit rose 4.2%, both below the overall growth rate of industrial enterprises above designated size nationwide over the same period.
Against a backdrop of intensifying competition, innovative drug makers also face new tests for growth.
In terms of innovative drug sales, Hengrui's innovative drug sales revenue reached 13.871 billion yuan in the first three quarters, up 17.05% year on year, accounting for 64.59% of pharmaceutical sales revenue.
Among this, revenue from anti-tumor innovative products was 9.865 billion yuan, up 3.13% year on year, accounting for 71.12% of innovative drug sales revenue.
Non-oncology innovative products showed stronger momentum, with sales revenue reaching 4.006 billion yuan, up 75.36% year on year, accounting for 28.88% of innovative drug sales revenue.
Looking at specific products, growth in the non-oncology business already reflects the support of a portfolio spanning multiple therapeutic areas.
According to the company's semi-annual report, products such as Hengliejing in the metabolic field achieved relatively rapid growth, newly reimbursed products including emarateinib, vunakizumab and recaticimab accelerated their volume ramp-up, and products such as remimazolam and tegileridine fumarate in the anesthesia and analgesia field also contributed to growth.
Marketed products across different therapeutic areas contributing revenue in succession is becoming an important foundation for Hengrui to cope with competition in the innovative drug market and broaden its growth sources.
Taking a longer view, innovative R&D in the non-oncology field is accelerating its expansion.
According to statistics in McKinsey's report "Building a Bridge to Global Innovation," from 2019 to September 2025 the number of China's Phase I and Phase II non-oncology innovative pipelines rose from 133 to 814, an increase of about 512%, higher than the roughly 330% increase in the oncology field over the same period.
Related industry statistics from Citeline also show that global R&D pipelines in immunology and obesity grew 20.6% and 30.7% year on year respectively.
The diversification of R&D directions offers innovative drug makers more long-term development opportunities.
For Hengrui, beyond continued expansion in the non-oncology field, the approval and commercialization of important indications for oncology-related products are also important clues for observing growth in the next stage.
Major indications, medical insurance access and core products — who can catch the next growth baton?
In the field of innovative oncology drugs, the continued expansion of important indications is becoming an important path for Hengrui Pharma to cultivate its next stage of growth momentum.
Since the start of this year, several marketed core products have successively won approval for new important indications, further expanding potential patient coverage and creating new opportunities for subsequent sales growth.
In the third quarter, hetrombopag olamine tablets were approved for adult patients with thrombocytopenia caused by anti-tumor therapy mainly based on solid tumor chemotherapy (CTIT), becoming the world's first approved thrombopoietin receptor agonist (TPO-RA) in the CTIT field.
As a non-peptide oral TPO receptor agonist, hetrombopag has further expanded into the tumor supportive care field, and its oral administration improves treatment convenience.
With the applicable patient population further expanded, this new indication is expected to bring new market increment for the product.
In addition, the HER2 ADC trastuzumab rezetecan was approved for a new indication in HER2-positive colorectal cancer, becoming China's first anti-HER2 product approved for colorectal cancer.
This is the third indication approved in China for the product, following lung cancer and breast cancer.
At the same time, trastuzumab rezetecan also made important progress in the first-line treatment of HER2-positive advanced breast cancer.
Its Phase III clinical studies (SHR-A1811-307) as monotherapy or in combination with pertuzumab both reached the primary endpoint of progression-free survival (PFS).
As therapeutic areas and lines of treatment continue to expand, trastuzumab rezetecan is expected to form a richer combination of indications, creating new opportunities for subsequent commercialization growth.
If new indication approvals open up potential market space, then medical insurance access is expected to become an important link in driving the release of commercial value.
In the first half of this year, the HER2 ADC trastuzumab rezetecan was approved for a new indication in second-line treatment of HER2-positive breast cancer, and the CDK4/6 inhibitor dalpiciclib was approved for a new indication in adjuvant treatment of early breast cancer.
The former further expanded the indication range of trastuzumab rezetecan, while the latter extended the treatment setting of dalpiciclib to early-stage patients.
According to information on drugs filed for the 2026 medical insurance catalog adjustment published by the National Healthcare Security Administration, both new indications have entered the public filing list.
For marketed innovative drugs, approval of new indications means an expanded potential patient population, while further expansion of medical insurance coverage is expected to drive the conversion of clinical demand into actual sales.
If the relevant new indications secure medical insurance coverage, Hengrui is expected to usher in a new round of product volume ramp-up opportunities.
Beyond the opportunities brought by new indications, existing core products also continue to provide growth support.
Represented by the second-generation androgen receptor (AR) antagonist rezvilutamide, Hengrui has built an innovative product layout with a market foundation in areas such as prostate cancer.
As clinical awareness rises and physician prescribing accumulates, related products are expected to further expand their sales scale.
From new indication approvals to medical insurance access and then to continued sales of mature products, Hengrui is cultivating new growth opportunities at different commercialization stages.
How to translate an ever-richer indication layout into actual sales increment will be an important focus for Hengrui in the next stage.
From R&D to globalization, what other growth opportunities is Hengrui building?
The continued delivery of commercialization results cannot be separated from the sustained support of its self-developed pipeline.
According to Citeline's "Pharma R&D Annual Review 2026," Hengrui ranks second globally in the number of self-developed pipelines.
At present, the company has 27 Class 1 innovative drugs and 6 Class 2 new drugs approved for marketing in China, with more than 100 self-developed innovative products in clinical development and more than 400 clinical trials underway at home and abroad.
Entering the second half of 2026, Hengrui's innovation results continued to advance, with progress made across multiple stages from new drug launches and registration filings to key clinical studies.
According to information disclosed by the company, a total of 7 innovation results were approved in the third quarter, including 2 Class 1 innovative drugs and 5 new indications; another 7 marketing applications were accepted.
Among them, the closely watched metabolic product pipeline made multiple advances.
Two marketing applications for the oral GLP-1 product HRS-7535 for adult type 2 diabetes and long-term weight management were accepted, and the marketing application for the GLP-1/GIP dual receptor agonist retatrutide injection for adult type 2 diabetes was also accepted.
In addition, two Phase III research results for HRS-7535 were published in Nature Medicine, further enriching the clinical research evidence for the related products.
In the oncology field, Hengrui's innovative products appeared for the 11th consecutive year at the European Society for Medical Oncology (ESMO) Congress.
Hengrui Pharma had a total of 64 anti-tumor and related research results selected, involving 21 innovative drugs.
Notably, two ADC Phase III clinical studies were selected for preferred paper oral presentations: the HERON-Lung01 study of the HER3-targeted ADC rezutug jezutecan (SHR-A2009), focusing on patients with EGFR-mutated advanced non-small cell lung cancer who progressed after EGFR-TKI treatment; and the HORIZON-Breast06 study of the HER2 ADC trastuzumab rezetecan (SHR-A1811), focusing on patients with HER2-low advanced breast cancer.
The appearance of these two studies further demonstrates Hengrui's continuously deepening innovation layout and clinical R&D strength in the ADC field.
The large and diversified self-developed innovation pipeline that Hengrui has built through years of investment provides a solid foundation for global cooperation at different levels.
Differentiated innovative assets spanning therapeutic areas from oncology to metabolism not only bring out-licensing opportunities for products, but also create conditions for joint R&D and deeper strategic cooperation.
From the perspective of the industry environment, international cooperation in China's innovative drugs remains active.
Statistics from a Guosheng Securities research report show that from January to August 2026, the potential total value of China's pharmaceutical outbound deals reached US$112.857 billion, already exceeding the full-year level of 2024.
Against this backdrop, Hengrui's accumulating R&D achievements are being translated into more diverse global cooperation opportunities.
In May this year, Hengrui Pharma reached a global strategic cooperation and licensing agreement with Bristol Myers Squibb (BMS), covering 13 early-stage projects in oncology, hematology and immunology, with cooperation content including bidirectional licensing, joint discovery and development.
The potential total value of this cooperation is up to about US$15.2 billion, of which a US$600 million upfront payment was received in the third quarter.
Compared with traditional one-way asset licensing, this cooperation further extends to bidirectional licensing and joint R&D, reflecting a deepening of the cooperation model between the two sides.
On September 29, Hengrui Pharma reached an exclusive licensing agreement with Novo Nordisk for HRS-1596, a GLP-1/GIP dual receptor agonist with the potential for once-weekly oral administration.
Under the agreement, Novo Nordisk obtained exclusive global rights to develop, manufacture and commercialize HRS-1596 outside Greater China.
The potential total transaction value of this cooperation is up to US$2.6 billion, including a US$300 million upfront payment and up to US$2.3 billion in development, registration and commercialization milestone payments, and Hengrui will also receive royalties based on product sales.
HRS-1596 has been approved to conduct Phase 1 clinical trials in China.
It is worth noting that HRS-1596 is still in the early clinical development stage, yet the upfront payment reached as high as US$300 million.
This transaction arrangement reflects Novo Nordisk's emphasis on the project's R&D potential and further demonstrates the international cooperation appeal of Hengrui's innovative assets in the metabolic field.
In addition to cooperation with large multinational pharmaceutical companies, the NewCo model is also continuing to advance.
Hengrui's NewCo partners Kailera Therapeutics and Braveheart Bio listed on Nasdaq in April and August this year respectively.
By combining innovative asset licensing with partial equity arrangements, Hengrui retains the opportunity to participate in partners' subsequent growth while promoting overseas development of related projects.
From innovative asset licensing to strategic cooperation covering multiple early-stage projects and then to the NewCo model, Hengrui's globalization layout is presenting more diverse paths.
In particular, cooperation with BMS has extended to bidirectional licensing, joint discovery and development, and potential co-commercialization of specific projects.
Compared with pure asset export, the expansion of these cooperation models also provides new opportunities for Hengrui to participate more deeply in global drug R&D and value creation.
From continued sales of marketed innovative drugs to approvals of important indications and progress in medical insurance access, and then to the sustained output of the R&D pipeline and deepening global cooperation, Hengrui is forming more diverse growth support.
The next round of growth no longer relies solely on market volume ramp-up of a single product; a product echelon spanning multiple therapeutic areas and increasingly rich global cooperation paths are creating more opportunities for the continued translation of innovation results.
As commercialization potential is gradually released and innovation value is realized at a faster pace, the momentum for Hengrui's new round of growth is accelerating, and its future growth space is becoming clearer.
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