Trendy Medicine Bar: Looking forward to InnoCare Pharmaceutical Co., Ltd. soaring for nine days after breaking even
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InnoCare Pharmaceutical Co., Ltd.’s third quarter report once again delivered a high score! Revenue in the first three quarters was 1.12 billion yuan, a significant increase of 60% year-on-year, and the net loss also narrowed significantly by 75%. The company expects to achieve breakeven throughout this year!
InnoCare Pharmaceutical Co., Ltd. has had an outstanding performance since 2025. Orelabrutinib's revenue growth is extremely impressive, with revenue in the first three quarters exceeding 1 billion yuan, more than all of last year. The company also raised its full-year sales guidance for Orelabrutinib to a growth of at least 40%. At the same time, its next-generation BCL2 inhibitor mesutoclax (ICP-248) has achieved amazing efficacy and is advancing into clinical practice very quickly.
More importantly, InnoCare Pharmaceutical Co., Ltd. successfully reached a large-scale BD transaction in early October: with orelabrutinib as the core target, it reached a blockbuster licensing cooperation with overseas biopharmaceutical company Zenas BioPharma, with the total transaction value exceeding US$2 billion.
InnoCare Pharmaceutical Co., Ltd. This phoenix will soar for nine days!
01
Achieve breakeven two years ahead of schedule
The first happiness is financial revenue. In terms of financial data, InnoCare Pharmaceutical Co., Ltd. released very promising numbers. Analysts originally predicted that InnoCare Pharmaceutical Co., Ltd. would achieve breakeven in 2027, but with the launch of BD and the commercialization strength demonstrated in the third quarter report, we can roughly speculate that InnoCare Pharmaceutical Co., Ltd. will achieve breakeven this year. It should be a certainty.
In this morning's earnings conference call, InnoCare Pharmaceutical Co., Ltd. announced an increase in guidance. It is expected that full-year revenue will exceed 2 billion yuan, and the full-year revenue growth of orelabrutinib will be raised to at least 40%. More importantly, InnoCare Pharmaceutical Co., Ltd. has given a forecast that it will achieve breakeven this year! If nothing else, InnoCare Pharmaceutical Co., Ltd. will achieve its break-even goal two years ahead of schedule! At the same time, the company's management forecasts profitability in 2026, with significant revenue growth and continued profitability from 2027 onwards.
In addition, in terms of finance, InnoCare Pharmaceutical Co., Ltd. is currently in a state of "having food in hand and not panic in mind". As of September 30, 2025, InnoCare Pharmaceutical Co., Ltd. held cash and related account balances of approximately 7.76 billion yuan. With sufficient cash guarantee, the company can continue to accelerate the development of various pipeline projects and provide more and better treatment options for patients in China and around the world.
The second joy is clinical progress. InnoCare Pharmaceutical Co., Ltd. is advancing efficiently in clinical aspects. Orelabrutinib will become the first BTK inhibitor independently developed in China to treat ITP. Don’t underestimate the ITP market. Hengrui’s best-selling product in the past two years is not anti-tumor drugs such as PD-1 monoclonal antibodies, nor anesthetic drugs, but the platelet-raising product Hetrombopag ethanolamine. The approval of the ITP indication will bring strong support to the commercialization of orelabrutinib.
In addition to orelabrutinib, InnoCare Pharmaceutical Co., Ltd.'s most interesting pipeline is the BCL2 inhibitor Mesutoclax. Its research on the treatment of MCL has been selected as an oral report at this year's ASH Annual Meeting, and the data is extremely exciting. The author also wrote in a previous article that its combination with orelabrutinib in the first-line treatment of CLL/SLL is worth looking forward to. It is expected to complete patient enrollment this year, which will further build InnoCare Pharmaceutical Co., Ltd.’s market advantage in hematoma.
The potential of the TYK2 small molecule in terms of self-immunization is also commonplace. After all, BMS gave its TYK2 inhibitor Sotyktu a $4 billion peak sales target. InnoCare Pharmaceutical Co., Ltd.'s two TYK2 molecules have been deeply deployed in six major dermatology indications and compete for a market worth hundreds of billions of dollars.
Next year, InnoCare Pharmaceutical Co., Ltd. will have 5-7 molecules entering clinical trials, including bis-antibodies, ADCs, molecular glues, etc.
02
Blockbuster BD improves financial performance
InnoCare Pharmaceutical Co., Ltd. gave its orubrutinib-based pipeline BD to Zenas. In fact, it was very, very unexpected at the time, and many people underestimated the value of this transaction. For self-immune indications such as multiple sclerosis alone, the down payment and recent payments are as high as US$100 million and 7 million Zenas shares. As Zenas stock continues to rise, the down payment and recent payments have exceeded US$300 million, and the total BD amount has exceeded US$2 billion.
Regarding the opportunities of BTK inhibitors in multiple sclerosis indications, the Gazelle News article has written in detail that there are already pioneers in the field of BTK inhibitors working in the field of multiple sclerosis! And just on November 10, Roche announced that its BTK inhibitor fenebrutinib was successful in phase III clinical indications for multiple sclerosis, thus verifying the feasibility of BTK inhibitors to be effective in multiple sclerosis indications. The road has been leveled, just waiting for people to leave. This further demonstrates the great potential of InnoCare Pharmaceutical Co., Ltd.'s orelabrutinib in the field of MS.
(Image source: Zenas official website)
Zenas’ just-released third-quarter report also once again reflects its confidence in orelabrutinib, and they are fully advancing two major Phase III registration trials.
(Image source: Zenas official website)
In addition, it is worth noting that before the introduction of obrutinib, Zenas had a pipeline called Obexelimab, which is a dual antibody targeting CD19 and Fc γ RIIb. This drug is also indicated for multiple sclerosis. The currently announced Phase II study for the treatment of RMS has reached the primary endpoint, which shows that Zenas has extensive experience in developing MS.
Why BD? The first is cost. After all, there are two international third-phase clinical trials, primary and secondary multiple sclerosis. Each clinical group must enroll more than 500 people, which is expensive. InnoCare Pharmaceutical Co., Ltd. has saved this international clinical funds and can prioritize the development of other clinical trials and obtain more certain profits.
For the certainty of this transaction, InnoCare Pharmaceutical Co., Ltd. received not only a down payment of US$100 million, but also 7 million shares of Zenas common stock. And Zenas’ stock price has risen from less than $10 in May 2025 to over $35 today. At present, the total value of the down payment plus stocks has exceeded US$300 million! This BD transaction will significantly improve the financial performance of InnoCare Pharmaceutical Co., Ltd., which is believed to be an important source of confidence for the company's management to enter the profit channel starting from 2025.
Beyond that are forward returns. As we all know, the choice of BD buyer is very important. It is necessary to choose a truly professional foreign pharmaceutical company that prioritizes pipeline development. Zenas is a top player in the MS track and puts the development of orelabrutinib at a very high priority, which is conducive to the release of long-term value. In addition to the down payment and milestone payments of US$2 billion, it will also receive a sales share of up to 17-19 percentage points, which may bring considerable overseas net profits to InnoCare Pharmaceutical Co., Ltd. After all, Ocrelizumab, a monoclonal antibody that specifically treats multiple sclerosis, will have sales of $7.6 billion in 2024.
In addition, in terms of forward income, the current stock value still has a lot of room for growth for Zenas, and InnoCare Pharmaceutical Co., Ltd. will grow with it and obtain generous long-term income.
This time BD will undoubtedly bring huge potential overseas opportunities to InnoCare Pharmaceutical Co., Ltd.