In 2026, China's innovative drug industry continued to enter a new phase of commercializing innovative achievements. Data from the National Medical Products Administration shows that 76 innovative drugs were approved for marketing in China in 2025, a record high; in the first half of 2026, another 38 innovative drugs were approved. As more innovative products enter the market, the focus of industry competition is gradually shifting from the accumulation of R&D pipelines to product commercialization, profitability, and sustainable growth capabilities.
For Hengrui Medicine, what's more noteworthy than its current performance is who will take over the next round of growth. On one hand, some of its earlier-marketed innovative drugs face increasingly fierce market competition; on the other hand, new products, new indications, and global collaborations are making continuous progress. Amidst the transition between old and new growth drivers, can Hengrui unlock new growth opportunities?
Significant quarter-on-quarter growth,
What new signals has Hengrui Medicine released?
The latest Q3 report shows that in the first three quarters of 2026, Hengrui Medicine achieved operating revenue of RMB 24.409 billion, a year-on-year increase of 5.26%; among which, product sales revenue was RMB 21.476 billion, a year-on-year increase of 2.52%. Net profit attributable to shareholders of the listed company was RMB 6.923 billion, a year-on-year increase of 20.38%. In the third quarter alone, operating revenue was RMB 8.953 billion and net profit attributable to the parent company was RMB 2.458 billion, representing quarter-on-quarter increases of 22.39% and 12.59%, respectively. After facing pressure on performance growth in the second quarter, the significant quarter-on-quarter growth in operating data in the third quarter provides a new signal for observing the company's future growth trend.
Observing this performance within the industry context, in the first half of 2026, the operating revenue of pharmaceutical manufacturing enterprises above designated size remained flat year-on-year, while the total profit increased by 4.2% year-on-year, both lower than the overall growth rate of industrial enterprises above designated size nationwide during the same period. Against the backdrop of continuously intensifying industry competition, the growth of innovative pharmaceutical companies also faces new challenges.
In terms of innovative drug sales performance, Hengrui's innovative drug sales revenue reached 13.871 billion yuan in the first three quarters, a year-on-year increase of 17.05%, accounting for 64.59% of total drug sales revenue. Among them, revenue from anti-tumor innovative products reached 9.865 billion yuan, a year-on-year increase of 3.13%, accounting for 71.12% of innovative drug sales revenue. Non-tumor innovative products showed even stronger growth momentum, with sales revenue reaching 4.006 billion yuan, a year-on-year increase of 75.36%, accounting for 28.88% of innovative drug sales revenue.
Looking at specific products, the growth in non-oncology businesses has already demonstrated the supporting role of a diversified product portfolio. According to the company's semi-annual report, products such as Hengligliflozin in the metabolic field achieved rapid growth, while newly included products in the national medical insurance scheme, such as Amaxitinib, Funazilumab, and Recarcassimumab, accelerated their sales volume. Products in the anesthesia and analgesia field, such as Remazolam and Tageridin Fumarate, also contributed to the growth. The continuous contribution of revenue from marketed products in different therapeutic areas is becoming an important foundation for Hengrui to cope with competition in the innovative drug market and broaden its growth sources.
Looking at the bigger picture, innovative R&D in non-oncology fields is expanding rapidly. According to McKinsey's report, "Building Bridges to Global Innovation," from 2019 to September 2025, the number of Phase I and II non-oncology innovative pipelines in China increased from 133 to 814, an increase of approximately 512%, higher than the approximately 330% increase in the oncology field during the same period. Citeline's industry statistics also show that global R&D pipelines in immunology and obesity increased by 20.6% and 30.7% year-on-year, respectively. This diversification of R&D directions provides innovative pharmaceutical companies with more long-term development opportunities. For Hengrui, in addition to the continued expansion in non-oncology fields, the approval and commercialization of key indications for oncology-related products are also important clues for observing the next stage of growth.
Major indications, medical insurance access and core products
Who can take the baton of growth?
In the field of innovative oncology drugs, the continuous expansion of key indications is becoming an important path for Hengrui Medicine to cultivate the next stage of growth momentum. Since the beginning of this year, several of its core products already on the market have been approved for new key indications, further expanding the potential patient coverage and creating new opportunities for subsequent sales growth.
In the third quarter, hetrombopag ethanolamine tablets were approved for adult patients with thrombocytopenia induced by chemotherapy-based antitumor therapy (CTIT) in solid tumors, becoming the world's first approved thrombopoietin receptor agonist (TPO-RA) in the CTIT field. As a non-peptide oral TPO receptor agonist, hetrombopag further expands into the field of supportive cancer treatment, with oral administration improving treatment convenience. With the further expansion of the applicable patient population, this new indication is expected to bring new market growth to the product.
Furthermore, the HER2 ADC trastuzumab Recon was approved for a new indication in HER2-positive colorectal cancer, becoming the first anti-HER2 product approved for colorectal cancer in China. This is the third indication approved for this product in China, following lung cancer and breast cancer. Meanwhile, trastuzumab Recon has also made significant progress in the first-line treatment of HER2-positive advanced breast cancer. Its Phase III clinical trial (SHR-A1811-307), whether as monotherapy or in combination with pertuzumab, met the primary endpoint of progression-free survival (PFS). With the continuous expansion of its therapeutic areas and lines of treatment, trastuzumab Recon is expected to form a richer portfolio of indications, creating new opportunities for subsequent commercial growth.
If the approval of new indications opens up potential market space, then medical insurance access is expected to become an important part of promoting the release of commercial value.
In the first half of this year, the HER2 ADC trastuzumab Recombinant Human (RAH2ADC) received approval for a new indication of second-line treatment for HER2-positive breast cancer, and the CDK4/6 inhibitor Darcirib received approval for a new indication of adjuvant treatment for early-stage breast cancer. The former further expands the indications for RHA2 trastuzumab, while the latter extends the treatment options for Darcirib to early-stage patients. According to the information on drugs submitted for adjustment to the 2026 National Healthcare Security Administration's medical insurance catalog, both new indications have been included in the publicly submitted application list.
For innovative drugs already on the market, the approval of new indications means an expansion of the potential patient base, while further expansion of medical insurance coverage is expected to drive the conversion of clinical demand into actual sales. If the relevant new indications are successfully covered by medical insurance, Hengrui is expected to usher in a new round of product market expansion opportunities.
In addition to the opportunities brought by new indications, existing core products continue to provide growth support. Revertulin, a second-generation androgen receptor (AR) antagonist, is a prime example; Hengrui has established a market-based portfolio of innovative products in areas such as prostate cancer. With increased clinical awareness and a growing number of physician prescriptions, these products are expected to further expand their sales volume.
From obtaining approval for new indications to advancing medical insurance coverage, and then to the continued sales of mature products, Hengrui is cultivating new growth opportunities at different stages of commercialization. How to translate its ever-expanding indication portfolio into actual sales growth will be a key focus for Hengrui in the next phase.
From R&D to globalization
What other growth opportunities is Hengrui targeting?
The continued realization of commercial success relies on the sustained support of its self-developed R&D pipeline. According to Citeline's "Pharma R&D Annual Review 2026," Hengrui ranks second globally in the number of its self-developed pipelines. Currently, the company has 27 Class 1 innovative drugs and 6 Class 2 new drugs approved for marketing in China, more than 100 self-developed innovative products in clinical development, and over 400 clinical trials being conducted domestically and internationally.
Entering the second half of 2026, Hengrui's innovative achievements continued to advance, with progress made in multiple stages, from new drug launches and registration applications to key clinical studies. According to the company's disclosure, a total of 7 innovative achievements were approved in the third quarter, including 2 Class 1 innovative drugs and 5 new indications; in addition, 7 marketing applications were accepted.
Among these, the product pipeline in the highly anticipated metabolic field has made several advancements. Two marketing applications for the oral GLP-1 product HRS-7535 for the treatment of type 2 diabetes and long-term weight management in adults have been accepted, as has the marketing application for the GLP-1/GIP dual receptor agonist reptopeptide injection for the treatment of type 2 diabetes in adults. Furthermore, the results of two Phase III studies of HRS-7535 were published in Nature Medicine, further enriching the clinical research evidence for related products.
In the field of oncology, Hengrui's innovative products have been showcased at the European Society for Medical Oncology (ESMO) Congress for the 11th consecutive year. In 2026, Hengrui Medicine had 64 research achievements in anti-tumor and related fields selected, involving 21 innovative drugs. Notably, two Phase III clinical trials of ADCs were selected for oral presentation: the HERON-Lung01 study of the HER3-targeted ADC Ruzetatumab (SHR-A2009), focusing on patients with EGFR-mutant advanced non-small cell lung cancer who had progressed after EGFR-TKI treatment; and the HORIZON-Breast06 study of the HER2-targeted ADC Ruzetatumab (SHR-A1811), focusing on patients with HER2-low expression advanced breast cancer. The presentation of these two studies further demonstrates Hengrui's continuously deepening innovative layout and clinical research and development capabilities in the ADC field.
Hengrui's vast and diversified pipeline of independent innovations, built through years of continuous investment, provides a solid foundation for its global collaborations at various levels. Its differentiated innovative assets across multiple therapeutic areas, from oncology to metabolism, not only generate opportunities for product licensing but also create conditions for joint R&D and deeper strategic cooperation. From an industry perspective, international collaborations in Chinese innovative drugs remain active. According to statistics from a Guosheng Securities research report, the potential total value of Chinese pharmaceutical overseas transactions reached US$112.857 billion from January to August 2026, exceeding the total level for the entire year of 2024. Against this backdrop, Hengrui's continuously accumulating R&D achievements are translating into more diverse global collaboration opportunities.
In May of this year, Hengrui Medicine and Bristol-Myers Squibb (BMS) entered into a global strategic collaboration and licensing agreement covering 13 early-stage projects in the fields of oncology, hematology, and immunology. The collaboration includes two-way licensing, joint discovery and development, and other aspects. The potential total value of this collaboration is up to approximately US$15.2 billion, with an initial payment of US$600 million received in the third quarter. Compared to traditional one-way asset licensing, this collaboration extends to two-way licensing and joint research and development, demonstrating a deepening of the cooperation model between the two parties.
On September 29, Hengrui Medicine and Novo Nordisk entered into an exclusive licensing agreement for HRS-1596, a GLP-1/GIP dual receptor agonist with the potential for once-weekly oral administration. Under the agreement, Novo Nordisk obtains exclusive global rights to develop, manufacture, and commercialize HRS-1596 outside of Greater China. The potential total transaction value of this collaboration is up to $2.6 billion, including a $300 million upfront payment and up to $2.3 billion in development, registration, and commercialization milestone payments. Hengrui will also receive royalties based on product sales. HRS-1596 has already been approved to conduct Phase 1 clinical trials in China.
It is noteworthy that HRS-1596 is still in the early stages of clinical development, yet the initial payment is as high as $300 million. This transaction arrangement reflects Novo Nordisk's emphasis on the project's research and development potential, and further demonstrates the international appeal of Hengrui's innovative assets in the field of metabolism.
In addition to collaborations with large multinational pharmaceutical companies, the NewCo model is also being continuously promoted. Hengrui's NewCo partners, Kailera Therapeutics and Braveheart Bio, were listed on Nasdaq in April and August of this year, respectively. Through a combination of innovative asset licensing and partial equity arrangements, Hengrui is promoting the overseas development of related projects while retaining opportunities for its partners to participate in their future growth.
From licensing innovative assets to strategic collaborations covering multiple early-stage projects, and the NewCo model, Hengrui's globalization strategy is taking a more diversified approach. In particular, its collaboration with BMS has expanded to include two-way licensing, joint discovery and development, and potential co-commercialization of specific projects. Compared to simple asset licensing, these expanded collaboration models provide Hengrui with new opportunities to participate more deeply in global drug development and value creation.
From the continued sales of its marketed innovative drugs to the approval of key indications and their inclusion in medical insurance programs, and the continuous output of its R&D pipeline and the deepening of global cooperation, Hengrui is forming a more diversified growth engine. The next round of growth will no longer rely solely on the market expansion of a single product; its multi-therapeutic product portfolio and increasingly rich global cooperation pathways are creating more opportunities for the continuous transformation of innovative achievements. As commercial potential is gradually released and the value of innovation is rapidly realized, the momentum for Hengrui's new round of growth is rapidly converging, and its future growth potential is becoming increasingly clear.
Source: https://news.yaozh.com/archive/49263.html