On August 19, Sino Biopharmaceutical Limited (SBP Group, 1177.HK) announced its 2026 interim results: In the first half of the year, it achieved revenue of RMB 19.44 billion, continuing the double-digit growth trend and reaching a new record high; the adjusted net profit attributable to the parent company from core business reached RMB 3.34 billion, a year-on-year increase of 92.3%, with revenue from innovative medicines and out-licensing becoming the core driver of performance growth. Meanwhile, the Company officially announced the launch of its global brand "SBP Group", articulating its strategy of "Science is where the company starts, Breakthroughs are what it pursues, and Patients are why it does what it does."

 

 

Performance Highlights: Core Business Profit Nearly Doubles, Continuous Stream of Mid- to Long-Term Blockbuster Products

 

In the first half of 2026, driven by the dual engines of "innovative medicines + out-licensing," SBP Group continued its double-digit growth momentum, with operating revenue reaching RMB 19.44 billion, a year-on-year increase of 10.6%. In terms of revenue structure, revenue from innovative drugs and out-licensing totaled RMB 8.79 billion, a year-on-year increase of 44.3%, indicating that the commercialization of innovative assets has entered a period of accelerated delivery. In terms of profitability, excluding the impact of factors such as dividend income, the adjusted net profit attributable to the parent company from core business reached RMB 3.34 billion, a year-on-year increase of 92.3%. 

 

In the first half of the year, the Company's R&D expenses reached RMB 3.08 billion, and the R&D expense ratio for the full year is expected to reach 19%. Rovadicitinib tablets, a first-in-class JAK/ROCK inhibitor; Peceleganan Spray, a first-in-class ganan-class anti-infective medicine; Naldemedine tablets, the world's first oral selective peripherally-acting mu-opioid receptor antagonist; and the second-generation Flurbiprofen patches developed based on a new hot-melt transdermal technology platform were approved for marketing. The core product Anlotinib was approved for three additional major indications: first-line hepatocellular carcinoma, alveolar soft tissue sarcoma, and first-line squamous non-small cell lung cancer. Culmerciclib was approved for the first-line treatment of HR+/HER2- advanced breast cancer, becoming the world's first CDK2/4/6 inhibitor covering both first-line and second-line treatment for advanced breast cancer. To date, the Company has received marketing approval for a total of 20 Class 1/2 innovative medicines and 8 biosimilars.

 

From 2026 to 2030, the Company expects to achieve marketing approval for 30 innovative medicines, with peak domestic sales expected to exceed RMB 50 billion. Among them, more than 10 products, including TQB2102 (HER2 BsADC), M701 (EPCAM/CD3 BsAb), TRD205 (AT2R antagonist), Tecotabart Vedotin (CLDN18.2 ADC), TQC3721 (PDE3/4 inhibitor), and Lanifibranor (pan-PPAR agonist), are expected to address key therapeutic areas such as oncology, liver disease, respiratory, and analgesia. These products are expected to become blockbuster products with peak domestic sales exceeding RMB 2 billion, creating a sustainable product portfolio that ensures sustained momentum from newly launched products and mid-term pipeline assets.

 

In the longer term, SBP Group is leveraging its independently developed next-generation I/O, ADC, and siRNA technology platforms to advance a global first-in-class pipeline and develop the next generation of potential blockbuster products. In the I/O field, the Company is continuously expanding around dual-target/tri-target and novel TCEs, with candidates including TQB6628 (PD-1/IL-2 BsAb) and LM-2168 (PD-1/CTLA-4^TME BsAb). In the ADC field, the Company focuses on cutting-edge directions like new targets and dual-payloads, with a pipeline including TRD120 (CEA/CDH17 ADC) and LM-316 (Ly6E dpADC). In the siRNA field, the Company is advancing technologies including once-yearly injections, dual-target, and extrahepatic delivery, with candidates such as Kylo-11 (LPA siRNA) and HJY-21 (AGT/PCSK9 siRNA). These pipeline initiatives demonstrate a clear succession strategy across different stages of development, opening up greater space for future revenue and global collaboration.

 

Global Value Realization: BD Revenue Surges, Dual-Cycle Model Fully Operational

 

 

Theresa Tse, Chairwoman of the Board of SBP Group

 

Sustained high R&D investment, which has remained among the highest levels in the industry for many consecutive years, has supported the Company's continuous breakthroughs in the field of innovative medicines and maintained its leading position in China. The Company's strategic collaborations with leading global multinational pharmaceutical companies such as Sanofi, GSK, and AstraZeneca have enabled it to establish a dual cycle innovation model in China, integrating "Chinese Innovation for the World" and "Global Innovation for China" across multiple therapeutic areas, and unlock a new growth curve of internationalization. 

 

In the first half of 2026, SBP Group's internationalization strategy entered a period of accelerated value realization, with out-licensing revenue reaching RMB 980 million, marking a significant contribution to revenue growth for the first time. 

 

In March, the Company exclusively licensed the global rights of its first-in-class JAK/ROCK inhibitor, Rovadicitinib, to Sanofi for a total deal value of up to US$1.53 billion, setting a new record for out-licensing in the transplant field by a domestic pharmaceutical company. A few months later, it licensed the overseas rights of its PDE3/4 inhibitor TQC3721 to AstraZeneca for a total deal value of up to US$1.9 billion, the largest single-product deal in China's respiratory field in the last three years. With two major deals concluded within six months, SBP Group continues to attract interest from large multinational pharmaceutical companies through its original innovation, and its overseas business development (BD) is becoming a sustainable growth engine.

 

Earlier, two core assets of its subsidiary, LaNova Medicines, LM-305 and LM-299 (MK-2010), were licensed to AstraZeneca and Merck, respectively, with a cumulative total deal value of nearly US$4 billion. To date, SBP Group has completed a total of 4 out-licensing deals with large multinational pharmaceutical companies, with upfront payments totaling over US$1 billion and a total deal size exceeding US$7 billion. Through various forms such as out-licensing, investment and M&A, pipeline in-licensing, and strategic partnerships, the Company has established over 30 external collaborations.

 

As a major pharmaceutical company in China that was among the first to propose and put into practice "two-way BD", it has been delivering a steady stream of successes in "going global" while continuously stepping up its efforts in "bringing in" external assets. This year, the Company has twice entered into strategic collaborations with GSK, securing the rights to bepirovirsen, a milestone

product for the functional cure of hepatitis B, as well as the commercialization rights in mainland China for two blockbuster respiratory products, Trelegy Ellipta and ANORO. Combined with the fruitful results of previous strategic collaborations with multinational pharmaceutical companies like Boehringer Ingelheim, SBP Group's "two-way BD" model is now fully established, achieving the dual cycle of "Chinese Innovation for the World" and "Global Innovation for China". 

 

AI in Pharma: RMB 600 Million Investment Over Three Years, Transforming the Entire Value Chain

 

 

Eric Tse, Chief Executive Officer of SBP Group

 

AI is becoming a general-purpose capability for SBP Group which is embedded across the entire drug lifecycle. It is not a separate business or a standalone project, but a "capability layer" superimposed on R&D, production, and commercialization. It transforms the Group's pipeline scale, professional data, and industry scenarios into higher-quality R&D decisions, faster development speeds, and greater operational and production efficiency. 

 

Another key highlight of this interim results announcement was the Company's first systematic disclosure of its progress and achievements in the field of AI-enabled pharmaceutical innovation. Over the past three years, SBP Group has invested approximately RMB 600 million in that field, building an AI-enabled ecosystem that covers the entire drug lifecycle, including drug R&D, clinical development, registration, production, and commercialization. It has developed numerous intelligent agent applications such as an AI-powered information platform, protein structure prediction models, a supply chain brain, and adverse reaction report processing.

 

In terms of R&D, SBP Group's AI-enabled medicine development now covers six major technology platforms: small molecules, ADC, siRNA, OAPD^®, molecular glues, and TME, spanning multiple therapeutic areas such as oncology, cardiovascular/metabolic, respiratory/autoimmune, and surgery/analgesia, supporting the development of Pre-IND and clinical-stage pipelines. TRD205 (AT2R antagonist), developed on the Company's second-generation AI drug discovery platform, has completed Phase II clinical trials and has been granted Breakthrough Therapy Designation. TQB3909 (BCL-2 inhibitor), discovered through the small-molecule AI design platform, has had its marketing application submitted and has been granted Priority Review. Multiple potential best-in-class candidates developed on the OAPD^® platform, including TQB3019 (BTK PROTAC) and TQB3126 (ER PROTAC), have entered clinical development.

 

In the production field, by applying AI to key processes such as process optimization, the yield of PD-L1 antibody has been increased by more than 20%, and the manufacturing cost of biologics has been reduced by 20%. In areas such as management, operations, and commercialization, through a comprehensive "AI native" transformation, significant improvements in workforce productivity and cost reduction have been achieved. SBP Group also announced that its full-year selling and administrative expense ratio is expected to decline to 35%, demonstrating the tangible benefits of AI-driven transformation.

 

Brand Refresh: SBP Group Embarks on a "Second Growth Curve" of Internationalization

 

 

At the results announcement conference, SBP Group officially announced the launch of its new global brand, "SBP Group".

 

"SBP" stands for "Science, Breakthroughs, and Patients". Over the past decade, SBP Group has successfully grown into a leading innovative pharmaceutical company in China. In the next decade, SBP Group will continue to focus on internationalization and strive to become a leading global innovative pharmaceutical company guided by this philosophy: Science is where we start, Breakthroughs are what we pursue, and Patients are why we do it, which is in line with "Science for a Healthier World".

 

The new brand marks the Company's transition into a new phase of global growth, driven by two strategic priorities. The first is product internationalization, building a globally competitive innovative product pipeline through independent R&D and collaborative M&A. The second is operational internationalization, accelerating the global business layout by deepening global partnerships and expanding independent commercialization capabilities in key international markets. Meanwhile, the Company continues to increase investment in global talent, organizational capabilities, and infrastructure construction to provide strong support for the two strategic priorities and promote more innovative medicines to benefit patients worldwide.

 

Theresa Tse, Chairwoman of the Board of SBP Group, stated: “SBP Group is willing to collaborate with global partners to accelerate the journey of bringing Chinese innovation to the world and global innovation to China. Meanwhile, we will also accelerate progress in global cutting-edge science and breakthrough innovations through our AI-driven, full-lifecycle innovation system. We always remember that the significance of any scientific breakthrough ultimately lies in whether it can truly benefit patients and improve lives".

 

Forward-Looking Statements:

This press release contains certain forward-looking statements, other than statements of historical fact. Words such as "expect", "believe", "continue", "may", "estimate", "hope", "intend", "plan", "potential", "predict", "project", "should", "will", "propose", and similar expressions are intended to identify forward-looking statements, but not all forward-looking statements contain these identifying words. These forward-looking statements are predictions made by the company's management regarding the company's development based on current beliefs and expectations, as well as currently available data and information. They are not promises of future performance and are subject to uncertainties or risks such as policy, R&D, market, and regulatory factors. Current or potential investors are advised to carefully consider the potential risks and should not place undue reliance on the forward-looking statements in this press release, which contain information only as of the date of this press release. Unless required by law, the company undertakes no obligation to update or revise any forward-looking statements in this press release as a result of new information, future events, or other circumstances.