More than half of the pharmaceutical companies listed on the Chinese mainland reported increased net profits last year, primarily driven by the commercialization of innovative drugs and licensing agreements.
As of April 6, 112 drugmakers on the mainland had published their 2025 financial results, and data shows that 60 of these companies experienced a rise in net profit compared to the previous year.
Hengrui Pharmaceuticals achieved a net profit of 7.7 billion Chinese yuan (around $1.1 billion) in 2025, representing nearly a 22% increase from the year before. Their revenue reached 31.6 billion yuan (about $4.6 billion), up 13%, with both innovative drug sales and licensing-out revenues rising by 26% to 16.3 billion yuan and 3.4 billion yuan, respectively.
This year, Hengrui projects its innovative drug sales will grow by over 30% compared to last year.
InnoCare Pharma reported its first-ever annual profit of 642 million yuan (roughly $94 million) in 2025, a 135% increase in operating revenue to nearly 2.4 billion yuan, mainly driven by income from licensing-out deals.
Fosun Pharmaceutical Group saw its net profit jump 22% to 3.4 billion yuan last year from 2024. Its operating revenue edged up 1.5% to 41.7 billion yuan, with revenue from innovative drugs accounting for over a third of total pharmaceutical sales and about 31% coming from overseas markets.
Chunlizhengda Medical Instruments experienced a 118% surge in net profit in 2025 compared to the previous year, along with nearly a 30% increase in revenue. The company attributed this strong growth to steady supply chains that support China’s centralized procurement system and its deeper expansion into international markets.
Weigao Orthopedic Device reported a 20% rise in net profit to 268.6 million yuan and a 4.8% increase in operating revenue to 1.5 billion yuan last year. The company noted benefits from the successful implementation of volume-based procurement and growing market share of domestic Chinese brands.
Companies specializing in pharmaceutical R&D outsourcing, such as WuXi AppTec, Porton Pharma Solutions, and Tigermed Consulting, said their profits doubled last year. WuXi AppTec credited this to ongoing efforts to deepen its contract research, development, and manufacturing organization model and to improve production efficiencies in clinical commercialization projects.
Experts believe that innovative R&D and industrial upgrades have become central to the pharmaceutical industry’s evolution. The healthcare model is rapidly being rebuilt, with notable trends toward integrating online and offline services and providing more personalized solutions.
As consumer preferences shift towards diversity, customization, and high-tech options, companies with strong innovative R&D capabilities and international expansion strategies will continue to strengthen their competitive edge. Conversely, firms with weaker R&D foundations may face increasing operational challenges.