Jiangsu Hengrui Medicine Co., Ltd (SHA: 600276), a leading pharmaceutical company in China, has released its financial report for 2023, recording RMB 22.82 billion (USD 3.15 billion) in revenues for the year, marking a 7.26% increase year-on-year (YOY). The net profit attributable to shareholders, after adjustments for non-recurring gains and losses, was RMB 4.141 billion (USD 571.94 million), which represents a YOY increase of 21.46%. The company is recovering well, with innovative drugs compensating for the impact of volume-based procurement (VBP) and National Reimbursement Drug List (NRDL) pricing, which led to a 17% decline in annual sales in 2022.
Pressure on Generic Sales:
The NRDL and VBP continued to affect key products such as rezvilutamide, dalpiciclib, and henagliflozin, which faced an average 65% price reduction due to NRDL negotiations. The generic drug business also took a hit, with combined sales of generic Paclitaxel (albumin bound) and abiraterone decreasing by RMB 702 million compared to the same period last year after failing to secure VBP renewal in several provinces. Additionally, products involved in the 7th round of VBP saw their sales decrease by RMB 911 million due to price cuts.
Innovation Driving Growth:
Hengrui’s innovative transformation is driving growth, with PD-L1 inhibitor adebrelimab, DPP-4 inhibitor retagliptin, CYP51 fungal inhibitor oteseconazole, and other Category 1 products, as well as dexmedetomidine nasal spray, abiraterone nanocrystals, irinotecan liposome, and henagliflozin, among Category 2 drugs, winning market approvals. Novel drugs generated RMB 10.637 billion (USD 1.5 billion) in sales, a YOY increase of 22.1%. Research and development expenses amounted to RMB 6.15 billion (USD 849.4 million), accounting for 26.95% of sales revenues.
Hengrui has established its own discovery platforms for various drug types, including chemical drugs (peptides, PROTACs), monoclonal/bispecific antibody drugs, ADC drugs, small nucleic acids, and nuclear drugs. A total of 11 ADC products have been approved for clinical trials. As of the reporting period, the company has 15 Category 1 innovative drugs and 4 Category 2 new drugs on the market, covering multiple therapeutic areas such as oncology, analgesic anesthesia, metabolic diseases, and infectious diseases. Meanwhile, 14 investigational pipeline candidates were filed with the National Medical Products Administration (NMPA), with 12 Phase III, 35 Phase II, and 30 Phase I clinical studies underway.
Accelerating Out-licensing:
During the period, Hengrui signed 5 out-licensing deals with overseas companies, with a total value exceeding USD 4 billion. These deals included partnerships with Treeline Biosciences for EZH2 inhibitor SHR2554, One Bio for TSLP mAb SHR-1905, Dr. Reddy’s for HER1/HER2/HER4-targeted pyrotinib, Elevar Therapeutics for PD-1 inhibitor camrelizumab for liver cancer, and Merck KGaA for PARP1 inhibitor HRS-1167 and Claudin 18.2 ADC SHR-A1904.- Flcube.com
