Key Takeaways
Jiangsu Hengrui Pharmaceuticals Co. (01276.HK) reported a 21.8 percent rise in first-quarter net profit, as the drugmaker benefited from more of its products winning state insurance coverage to counter pressure from a government bulk-buying program.
There were 15 new Hengrui assets, or new indications for existing drugs, included in China’s National Reimbursement Drug List as of the end of 2025, according to a March 2026 note from HSBC Qianhai Securities.
Net profit for the January-to-March period increased to RMB 2.28 billion ($377 million), the company said in a filing Wednesday. That was in line with a mean consensus forecast of RMB 2.3 billion, according to LSEG data. Revenue rose 13 percent to RMB 8.14 billion, falling just short of an average RMB 8.3 billion estimate.
The results underscore the success of Hengrui's strategy to focus on getting its higher-margin innovative drugs added to the national insurance program. This helps insulate the company from the effects of Beijing’s centralized bulk-buying program, which has squeezed revenues for generic drugmakers across the industry by forcing steep price cuts. Hengrui specializes in oncology, immunology, and metabolic drugs.
The earnings performance suggests Hengrui's focus on innovation is providing a durable moat against pricing pressure on its older, generic products. Investors will watch for second-quarter results in July to see if the revenue momentum can catch up to profit growth.
This article is for informational purposes only and does not constitute investment advice.
