This innovative pharmaceutical company has achieved profitability, marking a new stage characterized by stable and positive development cycles.
<h4>Key Points:</h4>
<ul>
<li>Driven by both external licensing and product sales, InnoCare Pharma achieved an annual profit of CNY 644 million, reaching profitability two years ahead of the original plan.</li>
<li>The company's global layout has made significant breakthroughs, including reaching external licensing agreements with Zenas and Prolium.</li>
</ul>
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Multiple factors such as liquidity, investor structure, and cross-border capital controls often lead to a significant valuation gap between companies listed simultaneously in mainland China and Hong Kong, with Hong Kong stocks trading at a lower valuation than A-shares. InnoCare Pharma (9969.HK; 688428.SH) is a typical case, with its H-share valuation consistently only half that of its A-share counterpart. As the company explores diverse revenue sources and sustainable profitability, there is upward potential for its H-shares.
The annual report released on March 25 revealed InnoCare Pharma's first full-year profit, coinciding with the company's tenth anniversary—marking its transformation from a biotech startup to a mature biopharmaceutical enterprise.
Despite significant external licensing transactions attracting high market attention, the company's valuation remains relatively low. InnoCare Pharma has now reached a &#34;triple inflection point&#34;—achieving profitability, deepening its global layout, and making breakthroughs in its core pipeline, marking a new stage in the company's development.
<h4>Organic Growth</h4>
The latest financial report shows that InnoCare Pharma's revenue surged 135% last year to CNY 2.38 billion (approximately USD 344 million). More importantly, the annual profit was approximately CNY 644 million, representing a turnaround of over CNY 1 billion from a loss of CNY 453 million in 2024. The significance of this profitability inflection point is notable—it was achieved two years ahead of the company's original plan, transforming into an organically growing entity no longer reliant on external financing.
Unlike peers that rely on upfront payments from collaborations to achieve early profitability, InnoCare Pharma's profits are driven by a &#34;dual engine&#34; of external licensing and direct product sales: commercially, the company's drug sales reached CNY 1.44 billion last year, a year-on-year increase of 43.4%.
The breakthrough in profitability stems from two major factors: the sustained revenue growth driven by the expansion of indications for the core revenue engine Orelabrutinib, and significant cash inflows from external licensing transactions with partners such as Zenas BioPharma (BIO.US). This not only enhanced revenue and profit levels but also marked the establishment of a full industry chain value system covering R&amp;D, clinical trials, commercialization, and global business development (BD).
Orelabrutinib continues to maintain strong momentum, with all four indications included in the medical insurance catalog. Earlier this year, it was approved for first-line treatment of chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL), further expanding the patient population and revenue potential.
Another commercial product, Tafasitamab, was approved in May 2025 and will be commercially launched in September, making it the first CD19 monoclonal antibody for the treatment of relapsed/refractory diffuse large B-cell lymphoma (R/R DLBCL) in China. Tafasitamab, along with Orelabrutinib, represents targeted therapies for hematological tumors, strengthening InnoCare Pharma's comprehensive competitiveness in the treatment of B-cell lymphoma
In addition to the two already listed products, InnoCare Pharma is developing a new BCL2 inhibitor, Mesutoclax, as a key asset in its hematologic oncology pipeline. As the first BCL2 inhibitor in China to receive breakthrough therapy designation, Mesutoclax is progressing rapidly in multiple registered clinical studies in China and globally.
The Phase III clinical trial of Mesutoclax combined with Obinutuzumab for first-line treatment of CLL/SLL has completed patient enrollment. This fixed-dose combination therapy aims to enhance the remission rate in treatment-naive patients and shows significant potential in overcoming resistant mutations. Mesutoclax also has broad prospects in the fields of acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS).
The company is also entering the dermatology treatment field with two self-developed TYK2 inhibitors, covering a large patient base for indications such as atopic dermatitis, psoriasis, and vitiligo.
InnoCare Pharma's R&amp;D pipeline has now entered a new phase, with new autoimmune products nearing commercialization, forming a clear &#34;second growth curve&#34; that will provide ongoing support for the company's newly acquired profitability.
<h4>Acceleration of Globalization Process</h4>
In 2025, InnoCare Pharma's globalization strategy achieved a significant breakthrough. On October 8, the company reached a collaboration with the U.S. company Zenas, with a potential total transaction amount exceeding $2 billion. This deal set a new record for external licensing in the field of small molecule autoimmune therapies in China. Following the announcement of the agreement, Zenas's stock price nearly doubled within two months, demonstrating market confidence in the immense potential of Obinutuzumab.
This collaboration coincides with the expansion of Obinutuzumab's therapeutic applications from hematologic oncology to autoimmune diseases, which have a broader market outlook. InnoCare Pharma's clinical development projects in the autoimmune field are currently focused on three major indications: multiple sclerosis (MS), primary immune thrombocytopenia (ITP), and systemic lupus erythematosus (SLE).
Notably, the global market for multiple sclerosis treatment is vast and represents a significant potential growth point for multinational pharmaceutical companies. Currently, the multiple sclerosis market is dominated by biologics (represented by CD20 monoclonal antibodies), with annual sales reaching nearly $10 billion and rapid growth. As a differentiated BTK inhibitor, if Obinutuzumab receives regulatory approval, it is expected to become a new option for multiple sclerosis treatment.
In other collaborations, InnoCare Pharma reached an external licensing agreement with Prolium for the CD20xCD3 bispecific antibody ICP-B02 in January 2025. Recent developments indicate that Prolium initiated a single-dose escalation study of the candidate drug in early March this year, with plans to conduct a global multicenter Phase I/II clinical study for systemic sclerosis in the second quarter.
Goldman Sachs, CITIC Securities, Ping An Securities, and several other investment banks have given InnoCare Pharma a &#34;buy&#34; rating, generally believing that the company's long-term growth is driven by three main factors: the continued commercialization and expansion of indications for Obinutuzumab; significant overseas potential for the autoimmune disease pipeline; and the gradual realization of the R&amp;D pipeline's value. Additionally, collaborations with companies like Zenas not only enrich the company's financial reserves but also validate the global competitiveness of its drug development capabilities
For InnoCare Pharma, achieving annual profitability is not only a key financial breakthrough but also indicates that the company's operations have entered a virtuous cycle—sustained expansion driven by revenue-generating products and a pipeline of new drug candidates. From an investor's perspective, the company exhibits characteristics of a mature biopharmaceutical enterprise with both profitability and high growth potential.
Core assets such as Orelabrutinib have entered new global markets and expanded into new indications, leading to a rapid increase in sales. Through significant collaborative projects, the company has established a sustainable growth path. Additionally, the company's comprehensive R&amp;D pipeline covers the fields of oncology and autoimmune diseases, with a well-structured product layout at various stages.
Nevertheless, for this high-growth company that has just achieved profitability, the stock price still appears undervalued, with the current H-share price-to-sales ratio (P/S) at approximately 14 times. If the company can maintain profitability and achieve strong revenue growth through new collaborations, there may be upside potential for the stock price.
Yongzhu Fang focuses on reporting on Chinese companies listed in the United States and Hong Kong, including sponsored content. For more information, including inquiries about individual articles, please click here to contact us.

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InnoCare Pharma has achieved profitability, marking the company's entry into a new development stage. The company's annual profit reached 644 million yuan, achieving profitability two years ahead of the original plan, with significant breakthroughs in global layout. The valuation of the company's H shares is only half of that of A shares, indicating upward potential. The 2025 annual report shows a revenue surge of 135% to 2.38 billion yuan, with a significant turning point in profitability, transforming into an entity focused on endogenous development. Profitability is driven by a dual engine of external licensing and product sales, with drug sales reaching 1.44 billion yuan, a year-on-year increase of 43.4%

InnoCare Pharma achieves profitability milestone, driven by globalization and a strong pipeline for new development