Hengrui put down his "prudence" and was forced to use two "big tricks" in a row

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Whenever Hengrui makes major adjustments in its production and management, while being happy for Hengrui's changes, it feels regretful for Hengrui's "helpless compromise"

Over the weekend, Hengrui launched two big moves, one is "capitalization of R&D investment", and the other is "a strategic cooperation with Cornerstone, 1.

In this regard, the market generally believes that Hengrui has finally abandoned its previous "conservative" practices and gradually moved closer to the market rules.

Recalling the protagonist with an IQ of only 75 in "Forrest Gump", the "running" he persisted in his entire life is so similar to that of medical research and development.

Running is often not necessary to break the game wisely

R&D investment capital is only "good-looking financial reports"

On November 20, Hengrui Medicine issued an announcement stating that the company decided to change the estimate of the timing of the capitalization of R&D expenditures, so that the company’s R&D expenditure measurement would be more in line with the company’s actual situation

In theory, the core purpose of capitalization of R&D investment is indeed to match benefits and costs

For example, Fosun Pharma (R&D investment in 2020 is 4.

But to be fair, due to the extensive distribution of R&D pipelines in the early years, Hengrui’s financial report, which is cost-based on R&D expenditures, is not beautiful enough.

It is true that with the increase in Hengrui’s base, the pressure on corporate growth has doubled.

On the other hand, this change will indeed achieve a new release of Hengrui's performance.

License-in "compromise" is to give up "noble and proud"

When the CRO was very popular, Hengrui and BeiGene agreed to say “no” to them.

If other companies say this, it may be regarded as a “fake high”, but Hengrui’s statement proves that it recognizes the strength of its own R&D team.

But it is precisely because of this that Hengrui did not pay special attention to license-in in the early years, thinking that license-in may be really redundant when its own pipeline is waiting for resources

Indeed, License in has always been one of the core strategies of Bigpharma overseas.

But thinking about it now, after all, the difficulty of license-out is greater than that of license-in.

However, if, while ensuring self-developed pipeline resources, supplemented by excellent license-in projects to stabilize the company's operations, so that the later license out will be more integrated, I personally think that Hengrui's benefits will be greater in this cooperation
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