Hengrui Pharma Q3 2026 Revenue Jumps 20.55% and Non-Recurring Net Profit Nearly Doubles – Innovative Drugs Now Drive 65% of Drug Sales as Generics Shrink

Jiangsu Hengrui Pharmaceuticals Co., Ltd. (SHA: 600276; HKG: 1276) released its financial report for the third quarter of 2026, posting operating revenue of RMB 8.953 billion, up 20.55% year-on-year, and non-recurring net profit attributable to shareholders of RMB 2.514 billion, up 90.93% year-on-year.

Financial Performance

Innovative Drug Revenue – 9M 2026

• Growth Below Internal Target: Hengrui cautioned that, due to changes in the external market environment, slower-than-expected hospital access progress, and intensified competition from some earlier-launched innovative products (such as camrelizumab and pyrotinib), the growth rate of innovative drug sales revenue was below the company’s expectations at the beginning of the year, and full-year growth is still expected to fall short of the initial target.

Out-Licensing Business – 9M 2026

• Revenue Recognition Drivers: Mainly consisted of revenue recognized by GSK and BMS based on the progress of performance obligations and milestone payments for certain licensed products.
• Cash Highlight: The cash inflow was mainly the US$600 million upfront payment from BMS.

Generic Drug Business – Deliberate Contraction

The company proactively reduced resource input and continued to clear out centralized procurement risks, accelerating the mix shift away from generics.

Market Impact & Outlook

• Business Model Transition: With innovative drugs now generating 64.59% of drug sales revenue and generics down to 35.41%, Hengrui Pharma’s pivot from a generic-heavy portfolio toward innovation-led growth is entering its decisive phase.
• Non-Oncology Breakout: The +75.36% surge in non-oncology innovative revenue signals successful diversification beyond the oncology franchise, even as core oncology growth slowed to +3.13%.
• BD Engine Strengthens: Out-licensing — anchored by partnerships with GSK and BMS and a US$600 million upfront payment — has become a material and fast-growing profit contributor, reinforcing Hengrui’s status as China’s most active big-pharma licensor.
• Headwinds Acknowledged: Management’s explicit warning that full-year innovative drug growth will miss the initial target — citing hospital access delays and intensifying competition for camrelizumab and pyrotinib — tempers the headline momentum.

Forward‑Looking Statements
This brief contains forward‑looking statements regarding Hengrui Pharma’s innovative drug sales trajectory, out-licensing revenue recognition, milestone payments, and business mix evolution. Actual results may differ materially due to risks including centralized procurement and reimbursement policy changes, hospital access execution, competitive dynamics, and the progress of partnered programs at GSK and BMS.-Fineline Info & Tech