凤凰网财经·2025-10-29 02:58Core Viewpoint - Heng Rui Pharmaceutical is transitioning from its previous identity as a "generic drug king" to focus on innovative drugs, showing significant growth in revenue and net profit in its recent quarterly report, driven by the success of innovative drugs and major international collaborations [1][3]. Financial Performance - For the first three quarters of 2025, Heng Rui reported a revenue of 23.188 billion yuan, a year-on-year increase of 14.85%, and a net profit of 5.751 billion yuan, up 24.5% [3][4]. - The operating cash flow for the period surged by 98.68% to 9.11 billion yuan, attributed to increased sales and cash from overseas licensing agreements [2][4]. Innovation and R&D - Heng Rui's R&D expenses reached 4.945 billion yuan in the first three quarters, with total R&D investment exceeding 50 billion yuan [4][5]. - The company has 24 approved innovative drugs and 5 new drugs, with 13 new drug applications accepted by the National Medical Products Administration in the first three quarters [5]. Market Position and Competition - Heng Rui lost its title as "pharmaceutical king" in A-shares to BeiGene, with a market cap lagging by approximately 16.8 billion yuan as of late October 2023 [6]. - The competition between Heng Rui and BeiGene highlights differing strategies, with Heng Rui focusing on a "fast-follow" approach while BeiGene emphasizes original innovation [6]. Impact of Price Cuts and Market Challenges - The introduction of centralized procurement has significantly impacted Heng Rui's traditional generic drug business, leading to a sharp decline in revenue from key products [7][9]. - The company's revenue fell for the first time in 2021, with a notable drop in net profit due to price reductions on key drugs after entering the medical insurance list [9][10]. Internationalization Strategy - Heng Rui's international revenue has remained low, with overseas sales not exceeding 800 million yuan from 2017 to 2024, contrasting sharply with BeiGene's international success [11]. - The company is now pursuing a business development (BD) strategy to enhance its international presence, achieving significant licensing deals in 2023 [12][13]. Recent Developments - In 2023, Heng Rui completed five overseas licensing deals worth over $4 billion, including a notable agreement with GlaxoSmithKline for global rights to certain projects [12][13]. - The increase in contract liabilities indicates a substantial influx of cash from overseas licensing agreements, which may positively impact future performance [13][14].