Sino Biopharm has charted a distinct path for its innovative drug development. On March 26, the company released its full-year 2025 results, reporting revenue of RMB 31.83 billion, a 10.3% year-on-year increase. Adjusted net profit attributable to shareholders reached RMB 4.54 billion, surging 31.4% compared to the previous year. This marks the fourth consecutive reporting period of double-digit growth, positioning its growth rate among the leaders of major domestic pharmaceutical firms.

However, the figures only tell part of the story. The market's real focus should be on the unique growth trajectory Sino Biopharm is pursuing, which differs significantly from other large Chinese pharmaceutical companies. Over the past year, the company has undertaken three major strategic moves.

In July 2025, it fully acquired Linx Pharmaceuticals for $950 million, gaining access to a globally leading ADC technology platform and several potential first-in-class assets, including a Claudin 18.2 ADC and a CCR8 monoclonal antibody. In January 2026, it acquired Hejiya for RMB 1.2 billion, securing the world's first clinically validated "once-a-year" ultra-long-acting siRNA delivery platform, providing immediate entry into the trillion-dollar chronic disease market. In February 2026, it entered into a global licensing agreement with Sanofi for rovatixitinib, valued at up to $1.53 billion, setting a record for the highest out-licensing deal in China's transplantation field.

This strategy involves both acquiring platforms and out-licensing pipelines. By using mergers and acquisitions to rapidly build up core technology platforms and pipeline depth, and then leveraging business development to bring self-developed innovations to the global market, Sino Biopharm's dual approach of "M&A + BD" is nearly unique among major domestic pharmaceutical companies. Chairwoman Xie Qirong stated plainly during the earnings call, "Out-licensing will be the most critical internal performance metric for our future BD efforts." This signals a clear intention: international revenue is set to become a visible figure on the company's financial statements starting in 2026.

Turning to fundamentals, annual revenue from innovative products reached RMB 15.22 billion in 2025, growing 26.2% year-on-year and accounting for 47.8% of total revenue, just shy of the 50% mark. Over the past three years (2023-2025), the company secured approvals for 16 innovative products, including seven Category 1 national innovative drugs. The volume growth driven by this wave of approvals has been the core driver behind the sustained double-digit performance growth. Notably, the gross margin rose to 82.1% in 2025, an increase of 0.6 percentage points. In an environment of常态化 volume-based procurement and ongoing National Reimbursement Drug List price negotiations, an improving gross margin indicates that the increasing share of innovative product revenue is indeed enhancing the company's profitability structure. The sales and administrative expense ratio also decreased from 42.1% to 41.3%, while per capita output doubled from RMB 1.5 million in 2019 to RMB 3 million.

CEO Xie Chengrong revealed a key detail: even excluding the impact of Sinovac dividends, the core net profit attributable to shareholders still grew by 15% in 2025. Furthermore, this growth figure does not yet include any contribution from out-licensing revenue. In other words, once the $135 million upfront payment from Sanofi and future milestone payments begin to be recognized, Sino Biopharm's profit growth has additional upside potential. Another easily overlooked metric is the cash position. As of the end of 2025, net cash (including financial investments) reached RMB 16.9 billion. Following significant acquisitions, the cash reserves have increased rather than decreased, providing a substantial financial safety net and ammunition for further M&A or in-licensing activities.

Sino Biopharm's M&A rationale is clear: it seeks not just pipelines, but platforms. The acquisition of Linx brought an antibody discovery and ADC technology platform; Linx's two core assets have already been licensed to AstraZeneca and Merck, with cumulative deal values nearing $4 billion. Qin Ying, founder of Linx, now serves as Chief Scientist for Oncology across the entire group, responsible for early-stage research projects for large-molecule oncology drugs. The integration is complete, with the core team fully incorporated into Sino Biopharm's system. The acquisition of Hejiya provided an siRNA delivery platform. Its key advantage is ultra-long-acting dosing capability; Phase I data for its Lp(a) siRNA product, Kylo-11, showed a greater than 90% reduction in Lp(a) with a single low dose, with effects lasting over a year at medium-to-high doses. Globally, no drugs specifically targeting Lp(a) reduction are yet approved, indicating a wide-open field. Chairwoman Xie Qirong emphasized the platform's versatility: "The oligonucleotide platform can deliver not only to the liver but also to extra-hepatic tissues. It can cover metabolic, cardiovascular, liver, kidney, respiratory diseases, and even CNS disorders. With a high safety window and low dosing frequency, its future potential is immense."

The collaboration with Sanofi marks the formal activation of the "out-licensing" channel. Rovatixitinib is the world's first approved JAK/ROCK dual inhibitor, with a $135 million upfront payment, a total potential deal value of up to $1.53 billion, plus double-digit royalties. This deal demonstrates Sino Biopharm's capability to out-license its self-developed, first-in-class products at competitive terms to a global top-ten multinational corporation. CEO Xie Chengrong also clarified an important point: due to accounting standards and the timing of the transaction closure, the $300 million milestone payment received by Linx from Merck was not consolidated into the 2025 financial statements, although the cash was received in full. All future partnership payments related to Linx will be 100% consolidated starting in 2026, meaning BD revenue will officially become a distinct growth contributor.

Chairwoman Xie Qirong provided clear numerical expectations for 2026-2028: nearly 20 Category 1 national innovative drugs are anticipated to gain approval. By the end of 2028, the total number of launched innovative products is expected to reach nearly 40. From a pipeline perspective, the oncology segment is the most densely populated with promising assets. The Phase III trial for Claudin 18.2 ADC (LM-302) in third-line gastric cancer has completed patient enrollment, making it the first ADC of its target globally to finish registration trial enrollment. The CCR8 monoclonal antibody (LM-108) has entered Phase III for second-line gastric cancer, with Phase II data for first-line gastric and pancreatic cancer expected at this year's ESMO congress. Both products originated from the Linx acquisition, possess global first-in-class potential, and are core candidates for future out-licensing. Qin Ying also highlighted the EGFR/c-Met bispecific antibody; Phase I data showed an Objective Response Rate of 64.7% in patients resistant to third-generation EGFR inhibitors, with a 6-month Progression-Free Survival rate of 79% and a Grade 3+ Adverse Event rate of 52.6%, significantly lower than the 87% seen with competitor products targeting the same pathway. The data will be formally presented at the end of this month at the European Lung Cancer Congress, with a Phase III trial planned to initiate within the year.

The chronic disease portfolio is also accelerating. Beyond Kylo-11 (Lp(a) siRNA), an APOC3 siRNA is planned to enter Phase II in the second half of the year, and a PCSK9 dual-target siRNA is expected to begin clinical trials this year. In the weight-loss arena, a diversified portfolio has been formed, encompassing oral therapies (GLP-1 small molecule, THR-β) and injectables (GIP/GLP-1 bispecific antibody, ActRIIA/B, INHBE siRNA). Xie Qirong used a vivid description: "We aim to comprehensively enhance the weight-loss experience across five dimensions: route of administration, dosing frequency, muscle preservation, weight-loss efficacy, and safety." In respiratory and autoimmune diseases, three products are advancing into Phase III trials, including a PDE3/4 inhibitor (for COPD), a TSLP monoclonal antibody (for asthma), and a ROCK2 inhibitor (for pulmonary fibrosis). Phase II data for a TYK2 inhibitor in psoriasis is planned for presentation at EADV this year, with Xie Qirong noting its efficacy is "significantly superior to other TYK2/JAK inhibitors and potentially comparable to biologics."

Concluding the earnings presentation, Xie Qirong summarized the pace since the start of 2026: the Hejiya acquisition in January, the Sanofi licensing deal in February, and the full-year results in March. "We have had significant activity every month," she said, adding, "We hope to continue sharing good news with you every month going forward." Xie Qirong also announced that the company's stock ticker has been officially changed from 'Sino Biopharm' to 'SBP Group', marking a new starting point and reflecting a heightened focus on innovation and internationalization. Relying solely on the Chinese market is insufficient for deepening this innovation focus. Sino Biopharm's chosen path is clear: using M&A to build a robust foundation of pipelines and technology platforms, and using BD to propel innovative products globally. The success of this strategy will be critically tested by the pace of BD execution throughout 2026 and 2027.