Hengrui Pharma third-quarter profit jumps 88.9% on licensing deals

what happened

Jiangsu Hengrui Pharmaceuticals, which ranks as China's largest drugmaker by market capitalisation, said on Tuesday that its profit rose 88.9% in the third quarter of 2026. The main driver was income from out-licensing drugs, Reuters reported.

Net profit for the quarter ended September 30 reached 2.5 billion yuan ($375 million), up from 1.3 billion yuan a year earlier. That beat one analyst's forecast of about 1.84 billion yuan, according to LSEG data. Operating revenue rose 21% to 9 billion yuan. The results were released after the market closed.

why it matters

Chinese drugmakers are expanding licensing deals and developing new medicines as state bulk-buying programmes squeeze their revenue. Global pharma firms are increasingly searching for China-developed experimental drugs ahead of patent expiries. Hengrui shares are down about 23% this year, against a 2% fall in the Hang Seng Biotech Index. The company said innovative drug sales growth improved in the third quarter but expects a gap with its full-year target to persist.

market impact

Hengrui shares: a profit beat driven by licensing income supports the stock, which has fallen sharply this year

• ▲Hengrui Pharma shares pressure up — profit beat above forecast driven by licensing income

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