geniespins| Hengrui Pharmaceutical: In 2023, operating income will increase by 7.26% year-on-year and net profit will increase by 10.14% year-on-year

On the evening of April seventeenthGeniespinsHengrui Pharmaceutical released its 2023 annual report, and the company achieved an operating income of 228 in 2023.Geniespins.2 billion yuan, an increase of 7% over the same period last yearGeniespins.26%; the net profit belonging to shareholders of listed companies was 4.302 billion yuan, up 10.14% from the same period last year; and the net operating cash flow was 7.644 billion yuan, an increase of 504.12% over the same period last year. The company intends to distribute a cash dividend of 2.00 yuan (including tax) for every 10 shares to all shareholders.

Hengrui Pharmaceutical said that during the reporting period, the company invested 6.15 billion yuan in research and development, which strongly supportedGeniespinsThe company's project research and development and innovation development. At the same time, the company continues to improve operation management, promote quality improvement and efficiency, and the sales expense rate is 1.34% lower than that of the same period last year. It is worth noting that the report mentioned that the company is continuing to strengthen the construction of commercial system, and from the strategic level in-depth layout of the retail market, expand DTP pharmacies and other channels, speed up the coverage of innovative drug sales channels.

On the same day, Hengrui Medicine released its quarterly report for 2024. According to the announcement, in the first quarter of this year, Hengrui Pharmaceutical achieved operating income of 5.998 billion yuan, an increase of 9.20% over the same period last year, while net profit belonging to shareholders of listed companies was 1.369 billion yuan, up 10.48% from the same period last year. It is worth noting that during the reporting period, the net operating cash flow was 1.255 billion yuan, an increase of 486.35%. The company said this was due to increased revenue and faster customer rebates during the reporting period, resulting in an increase in cash received for the sale of goods.

Innovation drives revenue growth

Hengrui Pharmaceutical said that as the company's innovative achievements continue to be approved, the clinical value of innovative drugs is highlighted, driving revenue growth. In 2023, the company's innovative drug revenue reached 10.637 billion yuan (including tax, excluding foreign licensing income), although facing changes in the external environment, product price reduction and access difficulties and other factors, it still achieved a year-on-year growth of 22.1%.

During the reporting period, the company has 3 Class 1 innovative drugs (Adebelimab, repaglitine phosphate, Otconazole), 4 Class 2 new drugs (dexmetomidine Hydrochloride nasal spray, Abiterone Acetate nanocrystals, irinotecan hydrochloride liposomes, Hengglejing metformin sustained-release tablets) have been approved and listed on the market. Up to now, the company has been approved to list 16 Class 1 innovative drugs and 4 Class 2 new drugs in China.

In terms of patent application and maintenance, by the end of 2023, the company has applied for 2389 invention patents and 662 PCT patents, with 545 domestic effectively authorized invention patents and 667 foreign authorized patents such as Europe, America and Japan.

The company is developing the pipeline rapidly. During the reporting period, 12 clinical projects were promoted to Ⅲ, 35 to Ⅱ, and 30 to Ⅰ. More than 90 independent innovative products were under clinical development and nearly 300 clinical trials were carried out at home and abroad. A total of 7 CDE breakthrough treatments have been identified since 2023.

Internationalization is advancing steadily.

Hengrui Pharmaceutical said that the company continues to steadily promote its international strategy, attaches equal importance to independent research and development and open cooperation, and strengthens international cooperation on the basis of endogenous development.

In terms of BD business, Hengrui Pharmaceuticals signed five licensing partnerships with a total transaction value of more than US $4 billion in 2023, involving innovative drugs including PARP1 inhibitor HRS-1167, Claudin-18.2 ADC drug SHR-A1904, EZH2 inhibitor SHR2554, TSLP monoclonal antibody SHR-1905, TKI pyrrothinib, and PD-1 inhibitor Carrilizumab combined with indications for the treatment of hepatocellular carcinoma. Among them, the company exclusively licensed the innovative anti-cancer drugs HRS-1167 and SHR-A1904 to Merck, Germany, with a total transaction value of more than 1.4 billion euros. This is also the first time that Hengrui has partnered with a large multinational pharmaceutical company around the world. At present, Hengrui has achieved 10 overseas licenses for innovative drugs.

In terms of international clinical trials, according to the company, the company's first international multicenter phase Ⅲ clinical study, Carrelizumab combined with apatinib in the treatment of advanced liver cancer, has reached the main end point of the international multicenter Ⅲ study, and the listing declaration in the United States has been officially accepted by FDA. At present, the company has three independent research and development of ADC innovative drugs SHR-A2009, SHR-A1912, SHR-A1921 have won the US FDA fast track qualification, is expected to accelerate clinical trials and listing registration progress.

Continuously optimize operation and management

In the face of various uncertain market factors, Hengrui Pharmaceutical said that the company comprehensively promotes the integration of resources, strengthens the dual-engine drive mechanism of medicine and market, continuously optimizes the organizational structure, and strengthens the team of medical and marketing professionals. further reduce front-line sales staff and promote operational efficiency. The company's sales expense rate in 2023 decreased by 1.34% compared with the same period last year.

At the same time of the release of the annual report, Hengrui Pharmaceutical announced the appointment of Lu Yun as the company's deputy general manager. According to the company, Lu Yun is a senior executive nurtured by Hengrui, who has worked in Hengrui for 15 years and has been deeply engaged in CMC research and development for many years.

In addition, Hengrui Pharmaceutical also unveiled the 2023 Environmental, Social and Governance (ESG) report, demonstrating the company's practices and achievements in implementing sustainable development. With its outstanding performance in benefiting patient health, green sustainable development, employee well-being and social responsibility, Hengrui Pharmaceutical MSCI ESG rating has been continuously upgraded to "A" level year after year, which is in the leading level in China's pharmaceutical industry.

(article source: China Securities News, China Securities Network)