Tianfeng Securities: Innovative Drugs and Pharmaceuticals — H1 2026 Sector and Company Review and Outlook
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Tianfeng Securities' review of China's innovative-drug and pharmaceutical sectors for H1 2026 finds the innovative segment entering a phase of rapid profit growth. Revenue at 25 A-share innovative-drug companies rose 50.62% year over year to RMB 46.16 billion, with net profit attributable swinging to profit at RMB 8.89 billion. Growth was driven by expanding overseas license-out deals — totaling USD 99.7 billion in H1 — and the commercialization ramp of core products; expense structures kept optimizing and gross margins rose steadily.
By contrast, the traditional pharmaceutical segment remained under pressure from volume-based procurement: 136 listed companies saw revenue slip 1.17% to RMB 251.90 billion, with net profit down 0.48%.
At company level, BeiGene posted high revenue and profit growth and raised its full-year 2026 guidance; Kelun-Biotech is converting sac-TMT's commercial value with rapid overseas clinical progress; Innovent Biologics is propelled by twin metabolic and oncology engines and has set a 2030 long-term revenue target; Hengrui Medicine's innovative-drug revenue share keeps climbing with continued BD monetization. Hansoh Pharmaceutical and CSPC Pharmaceutical are also covered. Delivering innovation and deepening internationalization are the sector's keys ahead.
Key exhibits
Exhibit 1
