From May 29th to June 2nd, the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting was held in Chicago. During the event, several innovative drugs from FOSUN INTL (00656) announced significant results.
Key subgroup data for the "pan-cancer therapy" HLX43 in treating non-small cell lung cancer was released, providing a crucial foundation for its subsequent clinical development. Phase III clinical data for the PD-1 inhibitor Hansizhuang (H drug) in the neoadjuvant/adjuvant treatment of gastric cancer was presented, potentially ushering in a new era of "chemotherapy-free" treatment for this condition. Additionally, Phase III study data for the rare disease drug Fumaining, targeting symptomatic, inoperable plexiform neurofibromas in adult patients with neurofibromatosis type 1, was disclosed, positioning it as a potential new standard treatment option.
As a premier global oncology conference, ASCO is viewed as a key window into the research capabilities and commercial potential of innovative pharmaceutical companies. The announced results suggest HLX43 could accelerate towards global commercial launch, while Hansizhuang and Fumaining are poised to enter new cycles of commercial scaling. Previous data indicated that Hansizhuang achieved global sales revenue of RMB 1.4926 billion in 2025, a year-on-year increase of 13.7%.
The market widely believes that after completing risk clearance by "repairing the roof on a sunny day," the healthcare business, represented by innovative drugs, has become the most critical valuation anchor for FOSUN INTL. With continuous breakthroughs in the innovation pipeline, the accelerated release of global commercial potential, coupled with steady growth in its insurance business and a gradual recovery in tourism and consumption, this is expected to further drive FOSUN INTL's profit growth and valuation recovery.
Innovative Drugs Enter Harvest Phase, Global Commercial Potential Accelerates
In recent years, driven by innovation and globalization, FOSUN's innovative drugs have been consistently scaling commercially in global markets, becoming a significant growth driver. Data shows that in 2025, FOSUN PHARMA (02196) under FOSUN secured approvals for 16 indications across 7 innovative drugs both domestically and internationally, with marketing applications accepted for 6 innovative drugs. Revenue from innovative drugs reached RMB 9.893 billion, a year-on-year increase of 29.59%.
By the end of 2025, FOSUN had nearly 40 innovative drug clinical trials approved by regulatory bodies in China, the US, and Europe, with several core products entering key clinical stages. In terms of global business development, FOSUN's total upfront payments for out-licensing and collaborative development exceeded USD 260 million in 2025, with potential milestone payments totaling over USD 4 billion. This includes a global licensing deal with Pfizer for the GLP-1 target candidate YP05002, involving an upfront payment of USD 150 million and a potential total deal value of USD 2.085 billion.
Entering the first quarter of 2026, FOSUN's innovative drug momentum continued from 2025. FOSUN PHARMA had marketing applications accepted for 4 innovative drugs and secured approvals from domestic and international regulators for 14 clinical trial applications (by approval count). The impressive performance of drugs like HLX43, Hansizhuang, and Fumaining at ASCO has further heightened market expectations for FOSUN's medium-to-long-term commercial scaling and profit contribution from its innovative drug portfolio. Industry estimates previously suggested that innovative drugs like HLX43, HLX22, and HLX07 each address potential markets worth tens of billions of dollars.
Concurrently, early in 2026, FOSUN's biopharmaceutical R&D platform, Henlius, entered into an exclusive commercialization and co-exclusive development and manufacturing license agreement with Eisai Co., Ltd. for Hansizhuang in Japan, with a potential total value exceeding USD 300 million. Henlius also obtained a Class I Pharmaceutical Manufacturing and Marketing Business License issued by Tokyo, opening a growth pathway into major Asian and global pharmaceutical markets.
Beyond Innovative Drugs: FOSUN's Medium-to-Long Term Value Proposition is Being Reshaped
In its 2025 fiscal year, FOSUN chose to "repair the roof on a sunny day," making impairment provisions for certain real estate and non-core projects to "concentrate resources and efforts on high-growth core sectors." Entering 2026, the market generally believes that FOSUN's strategy of "slimming down and focusing on core businesses" is poised to enter a phase of tangible results.
Firstly, innovative drugs have become a core asset with strong growth certainty. As FOSUN's innovative drugs enter the commercial scaling cycle, their contribution to profits and ability to support valuation are significantly strengthening. Particularly against the backdrop of a broader market reassessment of "China's innovative drug assets" in the Hong Kong market, the value of FOSUN's innovative drug platform is expected to be further amplified.
Secondly, the steady growth of the insurance business provides FOSUN with stable cash flow and an earnings foundation. Data indicates that in 2025, FOSUN's Portuguese insurance subsidiary, Fidelidade, achieved a gross written premium total of EUR 6.53 billion and a net profit attributable to the parent of EUR 201 million, a year-on-year increase of 15.8%. During the same period, Peak Reinsurance saw gross written premiums surge 25% to USD 2.2 billion.
Growth was also significant at its two domestic insurance companies. Fosun United Health Insurance achieved a net profit of RMB 650 million in 2025, a substantial increase of 492%, while Fosun Bao De Xin Life Insurance reported a net profit of RMB 139 million for the same period, marking its fifth consecutive year of profitability. In the first quarter of 2026, Fosun Bao De Xin Life Insurance continued to be profitable. Although Fidelidade, Peak Re, and Fosun United Health Insurance have not yet disclosed Q1 2026 data, based on their 2025 growth rates and the 2026 industry environment, it is reasonable to predict they are likely to continue their strong growth momentum.
Finally, FOSUN's other two core businesses—tourism and consumption—are also experiencing a strong recovery. In Q1 2026, Yuyuan Tourist Mart reported a net profit attributable to the parent of RMB 157 million, a year-on-year increase of 203%. Although the absolute profit figure for the quarter is modest, the high growth rate reflects a positive turning point in Yuyuan's operational fundamentals, with expectations for further momentum in earnings recovery. Fosun Tourism Group also delivered impressive performance during the 2026 Spring Festival, Qingming Festival, and May Day holiday periods. During the May Day holiday, visitor numbers at the Sanya Atlantis resort surged 90% compared to the same period last year.
From a capital markets perspective, this signifies that FOSUN is transitioning from a valuation logic based on a "diversified investment platform" to one aligned with a "core industrial operating group." Recently, several domestic and international brokerages, including Citi, UBS, Guotai Junan, Haitong, and CITIC Securities, have published research reports expressing optimism about FOSUN INTL's improving fundamentals and earnings recovery. Citi specifically highlighted that based on the favorable fundamental trends, it expects FOSUN INTL to deliver strong performance in 2026.
Returning to the topic of innovative drugs, with the formal release of research findings for HLX43, Hansizhuang, Fumaining, and others at ASCO, the market is gaining a genuine appreciation for FOSUN's innovative drug R&D strength and global commercial potential. From a medium-to-long term investment perspective, innovative drugs are not merely a high-growth business for FOSUN but have become a core variable driving the reshaping of its valuation.
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