Wenyi Zhang
Research expert covering Greater China
Jiangsu Hengrui Pharmaceuticals - statistics & facts
After more than two decades of development, Jiangsu Hengrui Pharmaceuticals has become China's largest developer and manufacturer of antitumor drugs and surgical medications, and one of the most innovative pharmaceutical companies globally. Founded in 1997, the company started as a generic drug manufacturer in its early days. Due to the low technological barrier of generic drugs and a deficiency in competitiveness, Hengrui Pharmaceuticals began to transform itself into an innovative drug company after its listing on China's Shanghai Stock Exchange in 2000.
The company’s researchers published 28 papers in a variety of journals in 2022, including "Lancet Oncology" and "Lancet Haematology", covering Rezvilutamide, Camrelizumab, Recaticimab, and other treatments. The Company has also submitted New Drug Applications (NDAs) for six innovative drugs in 2022, including Adebrelimab for the treatment of small cell lung cancer (SCLC).
For Hengrui Pharmaceuticals, its participation in the centralized procurement scheme has led to a significant drop in the unit price of its generic products and the company's profit margins, yet not entering the scheme would result in a loss of market share. On the other hand, competition in China's innovative drug industry is also intensifying, with Hengrui's primary competitors, such as Fosun Pharmaceutical Group and Innovent Biologics Inc., investing heavily in research and development in recent years.
The recent anti-corruption campaign in China's healthcare sector will also change the current landscape of drug distribution in the country, which may affect Hengrui Pharmaceuticals' long-term sales performance.
Research and innovation
Hengrui Pharmaceuticals devotes great importance to the research and development (R&D) of innovative pharmaceutical products. The company's R&D expenditure has risen steadily in recent years, even when its overall revenues and profits declined. In 2022, Hengrui Pharmaceuticals' R&D investment accounted for nearly 30 percent of its operating revenue, while its R&D staff accounted for nearly a quarter of its total workforce.The company’s researchers published 28 papers in a variety of journals in 2022, including "Lancet Oncology" and "Lancet Haematology", covering Rezvilutamide, Camrelizumab, Recaticimab, and other treatments. The Company has also submitted New Drug Applications (NDAs) for six innovative drugs in 2022, including Adebrelimab for the treatment of small cell lung cancer (SCLC).
Challenges the company faces
Despite being one of the most important companies in China's pharmaceutical industry, Hengrui Pharmaceuticals continues to face challenges on multiple fronts, which have resulted in a drop in its revenue since 2021. While the company continues to increase its investment in research and development, generic drugs remain its primary source of income, with the segment under sustained pressure in recent years thanks to China's centralized drug procurement scheme, whereby drugs are sourced collectively among healthcare providers in large quantities.For Hengrui Pharmaceuticals, its participation in the centralized procurement scheme has led to a significant drop in the unit price of its generic products and the company's profit margins, yet not entering the scheme would result in a loss of market share. On the other hand, competition in China's innovative drug industry is also intensifying, with Hengrui's primary competitors, such as Fosun Pharmaceutical Group and Innovent Biologics Inc., investing heavily in research and development in recent years.
The recent anti-corruption campaign in China's healthcare sector will also change the current landscape of drug distribution in the country, which may affect Hengrui Pharmaceuticals' long-term sales performance.
