Weekly Medical Overview (03.23-03.27)

Hengrui Medicine’s 2025 Revenue Grows 13.02% to 31.629 Billion Yuan, Innovative Drug Sales Revenue Reaches 16.342 Billion

On March 25, Hengrui Medicine released its annual report for 2025. It disclosed that the company’s total operating revenue for the year reached 31.629 billion yuan, a year-on-year increase of 13.02%; net profit attributable to shareholders was 7.711 billion yuan, up 21.69%; net profit attributable to shareholders after deducting non-recurring gains and losses was 7.413 billion yuan, an increase of 20%.

The company invested a total of 8.724 billion yuan in R&D throughout the year, accounting for 27.58% of its operating revenue, of which 6.961 billion yuan was capitalized R&D expenditure.

Sales revenue from innovative drugs reached 16.342 billion yuan, a year-on-year increase of 26.09%, accounting for 58.34% of total pharmaceutical sales revenue; revenue from external licensing was 3.392 billion yuan, up 25.62%.

Among the innovative drug sales revenue, revenue from anti-tumor products was 13.240 billion yuan, a year-on-year increase of 18.52%, accounting for 81.02% of total innovative drug sales revenue. Notably, sales of innovative drugs such as Ruvelimab (a second-generation AR antagonist) and Dalsilil (a CDK4/6 inhibitor) continued to grow strongly. Earlier launched innovative drugs like Olaparib (a PARP inhibitor) and Eltrombopag (a TPO receptor agonist) have continued to inject stable incremental revenue into the company with the continuous approval of new indications or the gradual accumulation of evidence from post-marketing studies. Products like Liposomal Irinotecan (TOP1) and Trastuzumab Deruxtecan (HER2 ADC) are still in the early stages of commercialization but have already driven rapid initial volume growth.

In innovative drug sales revenue, non-tumor products achieved revenue of 3.102 billion yuan, a year-on-year increase of 73.36%, accounting for 18.98% of total innovative drug sales revenue. Products such as Canagliflozin (an SGLT2 inhibitor) and Remimazolam (a GABAa receptor agonist) have seen rapid growth.

Additionally, the company stated in the annual report’s business plan that it aims to achieve over 30% growth in innovative drug sales revenue in 2026.

Innovent Biologics: 2025 Product Revenue Grows 44.6% to 11.896 Billion Yuan, Company Product Portfolio Expanded to 18 Launched Products

On March 26, Innovent Biologics released its annual performance announcement for the year ending December 31, 2025. The company achieved a total revenue of 13.042 billion yuan, a year-on-year increase of 38.4%. Gross profit was 11.286 billion yuan, up 42.6%. The company achieved annual profitability for the first time, with IFRS net profit of 814 million yuan, a significant improvement compared to a loss of 94.63 million yuan in 2024.

In the financial review, product revenue was 11.896 billion yuan, a year-on-year increase of 44.6%, mainly benefiting from the continued leading advantage in the oncology field and rapid expansion of the comprehensive product line. Although licensing revenue decreased to 957 million yuan (from 1.1 billion yuan in 2024), the strong growth in overall revenue still drove an increase in the company’s profitability. Non-IFRS net profit grew significantly to 1.723 billion yuan, a year-on-year increase of 419.6%.

In the management discussion and analysis, it was mentioned that the company implemented a “dual-driver” strategic upgrade in 2025, with both oncology and comprehensive product lines driving business growth. Three core innovative assets have entered or are about to enter global Phase III clinical trials, laying the foundation for future growth. The company’s product portfolio has expanded to 18 launched products, of which 12 have been included in China’s National Reimbursement Drug List (NRDL), further consolidating its market position.

Tongce Medical: Received Regulatory Work Letter from the Shanghai Stock Exchange Due to Related Party Transactions

Recently, Tongce Medical announced that the company received a regulatory work letter due to asset purchases from related parties. The involved parties include the listed company, directors, senior management personnel, controlling shareholders, actual controllers, intermediary agencies, and their related personnel.

Shiyao Group: 2025 Total Revenue of 26.006 Billion Yuan, Total Licensing Amount Reached 28.21 Billion USD

On March 25, Shiyao Group released its annual performance report for the year ending December 31, 2025. The total revenue of the company and its subsidiaries was 26.006 billion yuan, a decrease of 10.4% compared to 29.009 billion yuan in 2024. Additionally, the profit attributable to shareholders was 3.882 billion yuan, a year-on-year decrease of 10.3%. Basic earnings per share were 3.398 yuan, down 7.8% from the previous year. Despite the revenue decline, the company increased its final dividend per share to 1.5 Hong Kong cents, a 50.0% increase from the previous year.

In the financial review, the revenue from prescription drugs was 20.584 billion yuan, a year-on-year decrease of 13.3%. Sales in the neurological and anti-tumor fields fell by 19.0% and 50.0%, respectively. Revenue from raw materials business slightly increased by 2.1% to 3.657 billion yuan, while functional foods and other businesses achieved a 4.5% growth, reaching 1.765 billion yuan.

The announcement mentioned that several blockbuster products and new indications approved for marketing from 2024 to 2025 will provide continuous growth momentum for the group: Mingfule® as an innovative drug in the cerebrovascular disease field continues to enhance the company’s advantages in this area, creating a synergistic effect with Enbip® and further consolidating the company’s leading position in the treatment of cerebrovascular diseases; the successful launch of products such as Enshuxing® (an injection of anti-IL-6 monoclonal antibody), biosimilar Omalizumab Enyitan®, anti-diabetic drug Ploglitazone tablets, and Meloxicam Nanocrystals injection has led to a more balanced layout in autoimmune diseases, endocrine metabolism, and anti-tumor treatment fields, significantly enhancing future growth space.

In 2025, the company received 14 production approvals and 73 clinical approvals, with 5 breakthrough therapy designations, several of which are globally patented and have extremely high market value. The company continues to promote the implementation of its innovation pipeline, strengthen key core technological breakthroughs, rely on two national key laboratories, focus on applied basic research and breakthrough common technological challenges, while actively exploring cutting-edge technologies such as cell therapy and nucleic acid therapy, promoting the research and development of autologous CAR-T candidate drug SYS6055, therapeutic cancer vaccines, and small nucleic acid drugs, further improving the layout of innovative products and showcasing the company’s strong innovation and research capabilities. In terms of digitalization, the company is actively deepening the application of AI technology in drug development, expanding the AI-assisted research and development platform to empower innovation through technology, accelerate intelligent transformation, and continuously enhance research and development efficiency and results conversion capabilities.

In terms of business expansion, from the beginning of 2025 to now, the company has completed 5 external licensing agreements, with a total contract amount of 28.21 billion USD, fully demonstrating the group’s international innovation capabilities and technological strength, significantly enhancing the group’s international visibility and industry influence, and laying a solid foundation for expanding overseas markets and deepening international cooperation.

Xiansheng Pharmaceutical: Appointed Zhou Yunshu as Chief Executive Officer

On March 26, Xiansheng Pharmaceutical announced that Zhou Yunshu has been appointed as the Chief Executive Officer, effective March 25, 2026. In this role, he is responsible for overseeing the overall management of the group’s business operations, reporting to the board of directors, and must accept the board’s guidance and supervision.

The announcement mentioned that Zhou Yunshu, 54, has over 30 years of experience in R&D and commercialization in the pharmaceutical industry. Prior to joining the group, he served as a full-time consultant at Innovent Biologics (Suzhou) Co., Ltd. (a subsidiary of Innovent Biologics Limited (stock code: 1801.HK)) from August 2022 to October 2025, mainly responsible for providing professional guidance on Innovent’s market strategy and commercialization. Earlier, he worked at Lianyungang Pharmaceutical Factory (the predecessor of Jiangsu Hengrui Medicine Co., Ltd. (stock codes: 600276.SH and 1276.HK)) and then worked at Hengrui Medicine from August 1995 to July 2021. During his tenure, he held multiple positions, including but not limited to member of the foreign trade department, section chief and deputy director of the development department, deputy general manager, general manager, and chairman.

Merck: Acquires Terns Pharmaceuticals for Approximately $6.7 Billion, Net Consideration of Approximately $5.7 Billion

Recently, Merck and Terns Pharmaceuticals announced that they have reached a final agreement, whereby Merck will acquire Terns for $53.00 per share in cash through its subsidiary, with a total equity value of approximately $6.7 billion. After deducting the cash received, the net value of the transaction is approximately $5.7 billion, representing a premium of about 31% over the 60-day volume-weighted average price as of March 24, 2026, and a premium of about 42% over the 90-day volume-weighted average price.

Terns, headquartered in Foster City, California, has been dedicated to developing oral drugs for the treatment of cancer, obesity, and metabolic liver disease. Its core product is an oral drug TERN-701 for the treatment of chronic myeloid leukemia.