Jiangsu Hengrui Pharmaceuticals: Pipeline Diversification and Regulatory Triumphs Fuel Long-Term Growth

Jiangsu Hengrui Pharmaceuticals (HK:1276) has emerged as a leader in global pharmaceutical innovation, with its 2024–2025 clinical trial approvals and strategic partnerships positioning it for sustained growth. The company's robust pipeline, spanning oncology, cardiovascular disease, and metabolic therapies, combined with regulatory successes and high-value collaborations, underscores its potential to deliver long-term value for investors.

Pipeline Diversification: A Pillar of Resilience

Hengrui's pipeline is a testament to its strategy of diversification across therapeutic areas, reducing reliance on any single drug or market. Key programs include:

1. Oncology Leadership with KRAS G12D Inhibitor (HRS-4642)
   Hengrui's HRS-4642, a first-in-class KRAS G12D inhibitor, targets a mutation found in 3–5% of all cancers, including pancreatic, colorectal, and lung cancers. With multiple Phase 1/2 trials underway—such as combinations with proteasome inhibitors like carfilzomib—this drug addresses a historically “undruggable” target. Early clinical data, including tumor shrinkage in non-small cell lung cancer (NSCLC) patients, suggest transformative potential.

The drug's versatility in combination therapies (e.g., pancreatic cancer trials with gemcitabine/paclitaxel) positions HRS-4642 as a cornerstone of Hengrui's oncology portfolio, which already includes ADCs like SHR-A1921 and checkpoint inhibitors such as camrelizumab.

1. Cardiovascular Breakthroughs with HRS-5346
   In March 2025, Hengrui inked a landmark deal with Merck for its Lp(a) inhibitor HRS-5346, an oral therapy targeting atherosclerotic cardiovascular disease. Elevated Lp(a) affects ~1 in 5 adults globally and is a major independent risk factor for heart attacks and strokes. The $1.97 billion deal (including $200 million upfront) highlights Hengrui's ability to attract global partners for its assets.

With Phase 2 data showing efficacy in reducing Lp(a) levels, HRS-5346 could address a massive unmet need. The partnership also de-risks development costs, allowing Hengrui to focus on other high-potential programs.

1. Metabolic Disease Dominance with GLP-1 Agonists
   Hengrui's metabolic pipeline includes HRS9531 (a dual GLP-1/GIP agonist) and HRS-7535 (an oral GLP-1 agonist), both in Phase 2 trials for obesity and type 2 diabetes. These drugs compete in a fast-growing market, projected to exceed $50 billion by 2030. The collaboration with Kailera Therapeutics—which includes a $6 billion deal—accelerates their global reach, particularly in the U.S. and Europe.

Strategic Partnerships Amplify Global Reach

Hengrui's alliances with Merck and Kailera exemplify its “go global” strategy. The Merck deal not only secures upfront capital but also leverages Merck's expertise in global commercialization. Similarly, the Kailera partnership provides resources to advance oral GLP-1 therapies, which could disrupt the market by offering a convenient alternative to injectables.

Financial Strength and Market Momentum

With over $5 billion invested in R&D since 2024 and a global R&D network of 14 centers, Hengrui is well-funded to push its pipeline forward. Its market cap of HK$380.5 billion and a “Buy” rating with a HK$78 price target (vs. current price ~HK$65) reflect investor optimism.

Investment Considerations

• Upside Catalysts: Positive Phase 2 data for HRS-4642 in pancreatic cancer (expected 2026), HRS-5346's global Phase 3 initiation, and Kailera's GLP-1 Phase 3 results.
• Risk Factors: Regulatory delays (e.g., Merck's Hart-Scott-Rodino review) and competition in crowded markets like diabetes.

Conclusion: A Compelling Growth Story

Jiangsu Hengrui Pharmaceuticals is a rare blend of innovation and execution. Its pipeline diversification across oncology, cardiovascular, and metabolic therapies, paired with strategic partnerships, positions it to capture multi-billion-dollar markets. With a strong balance sheet and a track record of regulatory wins, Hengrui is poised to deliver long-term returns. Investors seeking exposure to China's biotech ascendancy—and global pharmaceutical innovation—should view Hengrui as a core holding.

Recommendation: Buy with a 12–18-month horizon. Monitor Phase 2/3 data readouts and partnership milestones for catalysts.