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Jiangsu Hengrui Stock Jumps 12% on 89% Profit Surge and New Drug Approval
Shares of Jiangsu Hengrui Pharmaceuticals (HK:1276) surged 11.8% to HK$50 on Wednesday following the company's announcement of a substantial third-quarter earnings beat, driven by robust domestic drug sales. The rally was further supported by news of a new regulatory approval in China for one of its innovative drugs.
Earnings Exceed Expectations
The pharmaceutical giant reported that its net profit for the third quarter of 2026 soared nearly 89% year-on-year to RMB 2.46 billion. This figure significantly surpassed consensus estimates, which included a Bloomberg forecast of RMB 2.38 billion and LSEG projections of RMB 1.84 billion.
Quarterly revenue also showed strong growth, rising 20.6% year-on-year to RMB 8.95 billion, topping analyst expectations of RMB 8.55 billion. The company noted that the pace of profit acceleration improved markedly compared to the first half of the year, signaling strong operational momentum.
Pipeline and Licensing Deals Add Momentum
AdAdding to the positive sentiment, China's drug regulator approved a new indication for Hengrui's Class 1 innovative drug, remimazolam tosilate injection. The approval expands the drug's use for sedation during mechanical ventilation in intensive care unit (ICU) settings, opening up a new market for the treatment.
Jiangsu Hengrui also highlighted its growing success in global partnerships. For the first nine months of 2026, the company's out-licensing revenue reached RMB 2.78 billion, an increase of over 31% year-on-year. Key contributors to this growth include:
- A landmark deal with Bristol Myers Squibb that included a $600 million upfront payment.
- A partnership with Novo Nordisk for an experimental weight-loss pill, with a potential value of up to $2.6 billion.
These international collaborations underscore the company's increasing appeal as a partner for innovative medicine development. The stock's performance on Wednesday significantly outpaced the broader Hong Kong market, with the Hang Seng Index closing up a modest 0.3%.
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