Hengrui Medicine's First Half Profit Rises 30%

Jiangsu Hengrui Medicine Co. reported a 30% jump in H1 profit, driven by strong sales of anti-tumor drugs, anesthetics, contrast agents, anti-inflammatory drugs, and cardiovascular disease treatments. The company's growth was fueled by its diversified product portfolio and expanding market share in the Chinese pharmaceutical industry.

Jiangsu Hengrui Medicine Co., one of China's largest pharmaceutical companies, reported a significant 30% increase in its first-half profit, driven by robust sales of its anti-tumor drugs, anesthetics, contrast agents, anti-inflammatory drugs, and cardiovascular disease treatments. The company's diversified product portfolio and expanding market share in the Chinese pharmaceutical industry contributed to its strong financial performance.

According to analysts' consensus estimates from Bloomberg, Hengrui's net profit for the first half of 2025 rose 40% year-over-year (YoY) to 4.1 billion yuan (US$570.8 million), with revenue up 9% to 15.7 billion yuan [1]. This growth was largely attributed to the successful rollout of novel drugs and revenue from technology licensing. The company's focus on innovative drug development has reduced its reliance on less lucrative generics, a trend that is expected to continue.

Generics accounted for 43% of Hengrui's revenue in 2024, down from 62% in 2022, and this figure is projected to fall to 23% by 2027 [1]. This shift in revenue structure is a key driver of the company's profit growth, as it moves away from the lower-margin generics market towards higher-margin innovative drugs.

Hengrui's success in the first half of 2025 underscores the impact of a decade of policy reforms in China that have raised the quality of generics and streamlined the approval process for innovative drugs. These reforms have encouraged pharmaceutical firms to invest in novel drug development, enhancing the industry's global competitiveness.

References:
[1] https://www.scmp.com/business/article/3322005/chinese-pharma-firms-hengrui-hansoh-expected-post-strong-first-half-profits?module=china_future_tech&pgtype=homepage