BRIEF: Surging drug sales drive Hengrui Pharma’s profit growth

Pharmaceutical company Jiangsu Hengrui Pharmaceuticals Co. Ltd. (1276.HK; 600276.SH) saidon Wednesday that its revenue for the first half of 2025 reached 15.76 billion yuan ($2.19 billion), up 15.9% year-on-year. Its net profit for the period rose 29.7% to 4.45 billion yuan.

The growth was mainly driven by a sharp increase in sales and licensing income from the company’s innovative drugs, which totaled 9.56 billion yuan in the period, up 26.8% and accounting for more than 60% of revenue. The company said sales for its newer products such as rezvilutamide and dalpiciclib grew as their inclusion in China’s national health insurance expanded, while earlier drugs gained momentum through newly approved indications. In addition, Hengrui booked up-front payments of $200 million from Merck and $75 million from IDEAYA Biosciences, further boosting its profit.

During the period, the company invested 3.87 billion yuan on R&D, including 3.23 billion yuan on product development expenses, up 6.3% year-on-year and representing 20.5% of revenue. Its administrative, sales and distribution expenses totaled 5.80 billion yuan, up 10.9%, though their share of revenue fell from 38.4% to 36.8%.

Hengrui’s shares opened 1.2% higher in Hong Kong on Thursday and closed at HK$77.40 by the midday break, down 1.46%.

By Lee Shih Ta

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