In-Depth Analysis of the Competitiveness of Hengrui Medicine's Innovative Drug R&D Investment and Pipeline Layout

Based on the Jinling AI Database and public market information [0], the following is a detailed analysis of Hengrui Medicine’s 51% R&D investment ratio for innovative drugs:

---

Hengrui Medicine as a leading enterprise in China’s pharmaceutical innovation, has maintained a high level of R&D investment intensity in the industry. According to the latest financial data, Hengrui Medicine’s R&D investment in 2024 was approximately RMB 6.278 billion, accounting for about 23-25% of its total revenue, and the R&D investment accounted for 51% of total expenditures [0][1]. This investment intensity is not only among the top tier in China’s pharmaceutical industry but also at a relatively high level in the global pharmaceutical industry.

R&D Investment Indicators	Data
2024 R&D Investment Amount	Approx. RMB 6.278 billion
R&D Investment as a Percentage of Total Expenditures	51%
R&D Investment as a Percentage of Revenue	Approx. 23-25%
Number of R&D Personnel	Approx. 5,000+

---

Hengrui Medicine has established an innovative drug R&D system covering multiple therapeutic areas, with a pipeline layout characterized by “diversity, comprehensiveness, depth, and sophistication” [1][2]:

• A total of 24 Class 1 innovative drugs have been approved for marketing, covering oncology, immunology, anesthesia and analgesia, and other fields
• In 2024, the neuroscience segment (including anesthesia and analgesia products) accounted for 15% of total revenue
• Multiple products have been included in the National Medical Insurance Catalog, achieving rapid sales volume growth

• Phase III Clinical
  : 18 products in research
• Phase II Clinical
  : 35 products in research
• Phase I Clinical
  : 45 products in research
• Pre-Clinical Research
  : Approx. 20 projects
• Total number of independently developed innovative products in clinical stages:
  over 100

Hengrui Medicine has established leading advantages in multiple cutting-edge technology fields [2]:

Technology Platform	Competitive Advantages	Representative Products
ADC (Antibody-Drug Conjugate)	Globally leading pipeline, with R&D progress at the forefront	Multiple products in clinical stages
PD-1/PD-L1 Inhibitors	Multiple products marketed, covering multiple indications	Camrelizumab, etc.
Bispecific Antibody Technology	Multiple products in research, leading the industry	PD-L1/TGF-β, etc.
Small Molecule Targeted Drugs	Traditional advantageous field with continuous output	Multiple products marketed

---

In 2025, Hengrui Medicine made multiple important progress in innovative drug R&D [1]:

1. HRS-6257 Tablet
   - New Postoperative Analgesic Drug
   • Approved to initiate postoperative analgesia clinical trials on December 29, 2025
   • Cumulative R&D investment of approx. RMB 15.58 million
   • Has first-in-class potential; no drug targeting the same target has been approved for marketing in China

2. Multiple Innovative Drugs Advancing Simultaneously
   • SHR-4375 Injection approved for clinical trials
   • HRS-4642 Injection approved for clinical trials
   • Covering multiple areas such as oncology and immunology

3. Breakthrough in Overseas Authorization
   • Reached a cooperation with GSK (GlaxoSmithKline), with a total transaction value of
     over USD 12 billion
   • Delivered an outstanding performance in the 2025 boom of China’s innovative drug BD transactions

---

From the perspective of industry comparison, Hengrui Medicine’s R&D investment scale continues to rank among the top [2]:

Pharmaceutical Company	2024 R&D Investment (in RMB 100 million)	Characteristics
BeiGene	128.92	Focused on oncology with high degree of internationalization
Hengrui Medicine	62.78	Most comprehensive pipeline with wide coverage
Fosun Pharma	29.70	Diversified layout
Innovent Biologics	34.75	Leading in the PD-1 field
Junshi Biosciences	20.26	Focused on tumor immunology

:

• Pipeline Breadth
  : Hengrui Medicine’s pipeline covers all fields such as oncology, immunology, anesthesia and analgesia, cardiovascular, and metabolism
• R&D Efficiency
  : High conversion rate from R&D investment to product output
• Commercialization Capability
  : Strong sales network ensures rapid market access for innovative drugs
• International Layout
  : Accelerates globalization through license-outs

---

According to the latest financial data [0]:

Financial Indicators	Value	Industry Comparison
Market Capitalization	USD 40.685 billion	Leading A-share pharmaceutical company
Price-to-Earnings Ratio (PE)	56.40x	Growth premium
Return on Equity (ROE)	14.19%	Good
Net Profit Margin	24.10%	Excellent
Current Ratio	6.55	Financially stable

:

• 1-Year Gain:
  +48.05%
• 6-Month Gain:
  +11.52%
• 30-Day Gain:
  +2.74%

---

1. High R&D Investment Intensity
   : 51% R&D investment ratio ensures continuous innovation capability
2. Complete Pipeline Echelon
   : Full coverage from pre-clinical to marketed products
3. Strong Commercialization Capability
   : Innovative drugs rapidly enter medical insurance to achieve sales volume growth
4. Accelerated Internationalization
   : Frequent overseas authorization cooperation with substantial BD revenue

1. R&D Uncertainty
   : Risk of failure in innovative drug R&D
2. Medical Insurance Negotiation Pressure
   : Innovative drugs face price negotiation pressure
3. Intensified Competition
   : Competition from similar products is becoming increasingly fierce
4. Policy Changes
   : Policy uncertainty in the pharmaceutical industry

---

Hengrui Medicine has built a strong moat of innovative drug pipelines with a

. The company has formed the most comprehensive pipeline layout of “24 marketed drugs + over 100 clinical-stage products”, and maintains a leading position in China in cutting-edge fields such as ADC, PD-1/PD-L1, and bispecific antibodies. Milestone events in 2025, such as the approval of multiple innovative drugs for clinical trials and the over USD 12 billion authorization cooperation with GSK, have verified its innovative R&D strength.

As a leading enterprise in China’s pharmaceutical innovation, Hengrui Medicine’s pipeline competitiveness is reflected in the combination of

, as well as the full-chain capability . During the critical period when the innovative drug industry is transitioning from “R&D stories” to “performance realization”, Hengrui Medicine is expected to continue maintaining its leading position in the industry with its strong pipeline reserves and commercialization capabilities.

---

[0] Jinling AI - Hengrui Medicine Company Profile and Financial Data (600276.SS)

[1] Caifuhao - “Hengrui Medicine Makes a Big Move! RMB 15.58 Million Invested to Develop the First Domestic Postoperative Analgesic Drug” (https://caifuhao.eastmoney.com/news/20251230033000036726130)

[2] 21st Century Business Herald - “Surpassing the US! China’s Innovative Drugs Boom Overseas, 2025 Transactions Exceed USD 130 Billion” (https://news.qq.com/rain/a/20260104A05YMJ00)