Jiangsu Hengrui Medicine Co., Ltd (SHA: 600276) reported a 23.08% year-on-year (YOY) decline in revenues to RMB 10.22 billion (USD 1.49 billion) for H1 2022, with net profits falling 24.12% YOY to RMB 2 billion (USD 292.8 million). The company attributed the downturn to volume-based procurement (VBP) price cuts, inclusion of key drugs in the National Reimbursement Drug List (NRDL), and COVID-19-related disruptions.
Financial Performance
- Revenue Drop: Revenues decreased due to VBP price reductions and NRDL inclusion of apatinib, pyrotinib, and fluzoparib.
- Net Profit Decline: Net profits fell in line with revenue, reflecting market access challenges and reduced healthcare activity.
R&D Investment
Hengrui increased R&D spending by 12.74% YOY to RMB 2.9 billion (USD 424.6 million), with 17.85% allocated to overseas projects. The company secured 2 new preparation manufacturing approvals, 11 generic approvals, and 26 clinical trial approvals.
Operational Efficiency
- Sales Restructuring: Hengrui laid off 2,300 sales staff and integrated marketing and medical teams to improve efficiency.
- Digital Marketing: The firm bolstered its digital infrastructure and academic promotion efforts.
Regulatory Filings
- New Approvals: Rezvilutamide, an androgen receptor inhibitor, gained market approval in June 2022.
- Additional Indications: Pyrotinib received a second indication for neoadjuvant therapy in HER2-positive breast cancer.
- Filings Under Review: Adebrelimab, SHR8008, SHR8554, and HR20033 are under NMPA review.-Fineline Info & Tech
