Sino Biopharm's innovative drug development has taken a different path.
On March 26, SINO BIOPHARM (01177.HK) released its full-year 2025 results. Revenue reached 31.83 billion yuan, a year-on-year increase of 10.3%. Adjusted net profit attributable to the parent company was 4.54 billion yuan, a year-on-year surge of 31.4%. This marks the fourth consecutive reporting period with double-digit growth, placing its growth rate at the forefront among domestic Big Pharma.
However, numbers are merely superficial. What the market truly needs to pay attention to is that Sino Biopharm is forging a growth path distinctly different from other major domestic pharmaceutical companies.
Over the past year, Sino Biopharm has undertaken three major initiatives.
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In July 2025, it acquired Levonce for $950 million in an all-cash deal, securing a world-leading ADC technology platform and potential first-in-class (FIC) assets such as Claudin 18.2 ADC and CCR8 monoclonal antibody.
In January 2026, it acquired Hegia for 1.2 billion RMB, obtaining the world's first clinically validated &#34;once-yearly injection&#34; ultra-long-acting siRNA delivery platform, instantly entering the trillion-dollar chronic disease market.
In February 2026, it entered into a global licensing collaboration with Sanofi for Rovalcitinib, worth $1.53 billion, setting a new record for outbound licensing in China's transplant field.
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On one hand, acquiring platforms; on the other hand, selling pipelines.
By rapidly addressing core technology platforms and pipeline depth through M&amp;A, and then promoting self-innovated achievements to the global market through business development (BD), this &#34;M&amp;A + BD&#34; dual-pronged approach is virtually unmatched among domestic Big Pharma.
Theresa Tse, Chairwoman of the Board, stated directly at the earnings call: &#34;Outbound licensing will be the core internal performance target for our future BD.&#34;
The meaning of this statement is clear: Sino Biopharm's international revenue is set to become a visible figure on its financial statements starting from 2026.
<h2>Innovative Product Revenue Exceeds 15 Billion</h2>
Let's first look at the fundamentals.
For the full year 2025, Sino Biopharm's innovative product revenue reached 15.22 billion yuan, a year-on-year increase of 26.2%, with its proportion of total revenue rising to 47.8%. This proportion is just one step away from 50%.
Over the past three years (2023 to 2025), the company has cumulatively obtained approvals for 16 innovative products, including 7 national Class 1 innovative drugs. The volume effect driven by frequent approvals is the core engine behind the continuous double-digit growth in performance.
Worth mentioning is the gross profit margin, which reached 82.1% in 2025, up 0.6 percentage points year-on-year.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/56f1fa3d-9f30-49a2-8082-cd885bb147f0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/56f1fa3d-9f30-49a2-8082-cd885bb147f0.png"/>
In an environment where centralized procurement is normalized and drug price negotiations (NRDL) continue to exert downward pressure, the fact that gross profit margin can still increase indicates that the rising proportion of innovative product revenue is indeed improving the company's profitability structure.
The sales and administrative expense ratio also decreased from 42.1% to 41.3%, and revenue per employee increased from 1.5 million yuan in 2019 to 3 million yuan.
Chief Executive Officer Eric Tse revealed a key detail at the earnings call: Even after excluding the impact of Sinovac's dividend, the core net profit attributable to the parent company still grew by 15% in 2025. And this growth rate does not include any contribution from license-out revenue.
In other words, as the $135 million upfront payment from Sanofi and future milestone payments begin to appear on the financial statements, Sino Biopharm's profit growth has additional upside potential.
Another number that is often overlooked is cash reserves.
As of the end of 2025, the company's net cash (including wealth management products) reached 16.9 billion yuan. After completing large-scale acquisitions, the cash on hand has increased rather than decreased. The thick safety cushion in terms of funding means there is ammunition for further M&amp;A or license-in opportunities.
<h2>A Dual Approach of Acquiring and Selling</h2>
Sino Biopharm's acquisition logic is clear: in addition to pipelines, it also needs to buy platforms.
The acquisition of Levonce provided antibody discovery and ADC technology platforms. Levonce's two core assets have been licensed to AstraZeneca and MSD, respectively, with cumulative transaction amounts close to $4 billion.
Qin Ying, the founder of Levonce, now serves as the Chief Scientist for the oncology segment of the entire Sino Biopharm group, responsible for early research project initiation for large molecules in oncology. The integration of this acquisition is complete, with the core team fully incorporated into the Sino Biopharm system.
The acquisition of Hegia provided an siRNA delivery platform.
The biggest highlight of this platform is its ultra-long-acting drug delivery capability. Its Lp(a) siRNA product, Kylo-11, showed in Phase I data that a single low-dose administration achieved an Lp(a) reduction of over 90%, with the effect lasting for more than a year at medium and high doses. Currently, no drugs specifically for lowering Lp(a) have been approved globally, indicating a wide-open market.
Chairwoman Theresa Tse particularly emphasized the platform's extensibility at the earnings call: &#34;The oligonucleotide platform can not only perform intrahepatic delivery but also extrahepatic delivery. It can cover metabolism, cardiovascular and cerebrovascular diseases, liver diseases, kidney, respiratory, and even CNS. It has a high safety window and low dosing frequency, with enormous future potential.&#34;
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/aa345ac7-780c-471a-a0f7-6f84fb8e033a.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/aa345ac7-780c-471a-a0f7-6f84fb8e033a.png"/>
The collaboration with Sanofi signifies the official opening of the &#34;selling out&#34; track.
Rovalcitinib is the world's first approved dual inhibitor of JAK/ROCK, with an upfront payment of $135 million and a total transaction value of up to $1.53 billion, plus double-digit sales royalties.
The significance of this transaction lies in its demonstration of Sino Biopharm's ability to license its self-innovated FIC products to a global top-10 MNC at a competitive price.
CEO Eric Tse also provided an important clarification: due to accounting standards and transaction timing, the $300 million milestone payment received by Levonce from MSD was not included in the consolidated financial statements for 2025, although the cash has been fully received.
In the future, all collaboration payments from Levonce will be 100% recognized in the listed company's financial statements, meaning that starting from 2026, BD revenue will officially become an independent source of growth on the balance sheet.
<h2>Pipeline Entering the Eve of an Explosion</h2>
Theresa Tse provided a clear numerical expectation at the earnings call: from 2026 to 2028, nearly 20 national Class 1 innovative drugs are expected to receive approval for marketing. By the end of 2028, the total number of approved innovative products will reach nearly 40.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/57b1e733-1d09-4aeb-8d7b-33d6de73b2bf.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/57b1e733-1d09-4aeb-8d7b-33d6de73b2bf.png"/>
From a pipeline structure perspective, the oncology segment is the most densely packed with highlights.
The Phase III trial for Claudin 18.2 ADC (LM-302) in third-line gastric cancer has completed enrollment, making it the first ADC targeting the same pathway to complete registration clinical enrollment globally. CCR8 monoclonal antibody (LM-108) has entered Phase III for second-line gastric cancer, and Phase II data for first-line gastric and pancreatic cancer will be presented at ESMO this year.
Both of these products originate from the acquired Levonce and possess global FIC potential, serving as core reserves for future outbound BD.
Qin Ying also highlighted the EGFR/c-Met bispecific antibody at the earnings call. Phase I data showed an ORR of 64.7% in third-generation EGFR-resistant patients, with a 6-month PFS rate of 79%. The incidence of Grade 3 or higher adverse events was 52.6%, significantly lower than the 87% observed in competitors targeting the same pathway. The data will be officially released at the European Lung Cancer Conference later this month, and a Phase III trial is planned to commence within the year.
The layout in the chronic disease segment is also accelerating.
In addition to Kylo-11 (Lp(a) siRNA) mentioned earlier, APOC3 siRNA is planned to enter Phase II in the second half of this year, and PCSK9 dual-target siRNA is expected to initiate clinical trials this year.
In the weight loss field, a diversified matrix has been formed, including oral medications (GLP-1 small molecule, THR-β) and injectables (GIP/GLP-1 bispecific antibody, ActRIIA/B, INHBE siRNA).
Theresa Tse used a vivid description: &#34;We aim to comprehensively enhance the weight loss experience from five dimensions: route of administration, dosing frequency, muscle retention, weight loss efficacy, and safety.&#34;
In the respiratory and autoimmune fields, three products are advancing through Phase III clinical trials, including a PDE3/4 inhibitor (COPD), a TSLP monoclonal antibody (asthma), and a ROCK2 inhibitor (pulmonary fibrosis). Phase II data for the TYK2 inhibitor in psoriasis is scheduled for release at EADV this year. Theresa Tse stated that its efficacy is &#34;significantly superior to other TYK2/JAK inhibitors and can even rival biologics.&#34;
Theresa Tse summarized the rhythm since the beginning of 2026 at the end of the earnings call: acquisition of Hegia in January, licensing agreement with Sanofi in February, and release of full-year results in March. There have been actions every month. She said, &#34;We hope to share good news with everyone continuously every month going forward.&#34;
Theresa Tse also announced at the earnings call that Sino Biopharm's stock short name has been officially changed from Sino Biopharm to SBP Group, marking a new starting point to further focus on innovation and internationalization strategies.
To achieve a greater focus on innovation, relying solely on the Chinese market is clearly insufficient. The path Sino Biopharm has chosen is clear: to thicken the foundation of its pipeline and technology platforms through M&amp;A, and to push innovative products to the global market through BD.
Whether this path will be successful will be most critically tested by the pace of BD implementation in 2026 and 2027.

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The next blockbuster BD deal is on its way

- China Biologic Products (01177.HK) reported a 2025 total revenue of 31.83 billion CNY, a year-on-year increase of 10.3%, with adjusted net profit rising 31.4% to 4.54 billion CNY.  
- The company has undertaken significant acquisitions, including a $950 million purchase of Auron Biopharma and a $1.2 billion acquisition of Hegia, positioning itself uniquely in the domestic pharmaceutical market.  
- With a target of launching nearly 20 innovative products by 2028, including advancements in oncology and chronic disease treatment, China Biologic aims for substantial international revenue growth through a dual strategy of acquisitions and global business development.

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Buying Platforms, Selling Pipelines: Deconstructing the Innovation Logic of SINO BIOPHARM