Hengrui Medicine (600276.SS): 3Q Call Takeaways: Growth recovery gaining traction; BD income visibility improves

Management attributed the improving innovative-drug growth in 3Q to continued growth from established products including CDK4/6, AR, fluzoparib and henagliflozin, as well as the accelerating ramp-up of newer NRDL-listed products including the HER2 ADC, IL-17, JAK1 and PCSK9 franchises, while several mature oncology products including PD-1 and apatinib remained under pressure. Management maintained its FY26 innovative-drug sales target with reference to the equity-incentive target of Rmb19.2bn, implying 4Q innovative-drug growth of at least Rmb5.3bn, or ~+19% yoy. Management expects 4Q BD income recognition to be broadly similar to 3Q and FY26 BD income to exceed FY25;