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China's Hengrui Pharma nine-month profit rises on out-licensing gains

By Reuters News


Overview

  • China drugmaker's Q3 revenue for first nine months rose 5.3% yr/yr

  • Net profit attributable to shareholders up 20.4% yr/yr, driven by out-licensing revenue

  • Growth in innovative drug sales slowed by market access and competition


Outlook

  • Company expects full-year innovative drug revenue growth below initial target due to market factors

  • Company plans to accelerate market access and expand academic promotion for new products in Q4


Result Drivers

  • OUT-LICENSING REVENUE - Co said higher out-licensing revenue, including milestone payments from GSK and BMS, drove profit growth

  • INNOVATIVE DRUG SALES - Co said sales of innovative drugs rose, led by non-oncology products, but overall growth fell short of expectations due to slower hospital access and increased competition

  • GENERIC DRUG DECLINE - Co said generic drug sales revenue fell 16.4% yr/yr, impacted by centralized procurement policies and reduced resource allocation


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

RMB 24.41 bln

9M Net Income Attributable

RMB 6.92 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the pharmaceuticals peer group is "buy"

  • Wall Street's median 12-month price target for Jiangsu Hengrui Pharmaceuticals Co Ltd is HK$73.18, about 55.2% above its October 26 closing price of HK$47.14

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 32 three months ago


Reuters Recommended Reads

  • Oct 26 - China's WuXi AppTec nine-month revenue rises on chemistry segment growth; lifts 2026 outlook

  • Oct 26 - China XLX Fertiliser nine-month profit rises on export growth

  • Oct 27 - Novartis slightly misses Q3 net sales estimates, but tops core EPS view


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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