Hua Medicine announced robust interim results for the first half of 2026, with CEO Dr. Li Chen highlighting significant growth for their core product, HuaTangNing (dorzagliatin tablets). Sales volume increased by 73% year-on-year to approximately 3.055 million packs, generating revenue of approximately RMB 378.9 million, a 74% year-on-year increase.
The company's profitability saw marked improvement, with the gross profit margin rising to 61.8% from 54.2% in the first half of 2025, an increase of 7.6 percentage points. Gross profit reached RMB 234.3 million, surging 99% year-on-year. Profit from commercial operations, defined as gross profits less selling expenses, doubled to approximately RMB 107.4 million, demonstrating a successful transition to rapid commercial development. The selling expense-to-revenue ratio stabilized at 33.5%.
Hua Medicine also saw a substantial narrowing of its pre-tax loss to approximately RMB 30.2 million. This represents a significant improvement compared to the adjusted loss of approximately RMB 59.6 million in the corresponding period of 2025, after excluding a one-off income from the termination of the Bayer contract. This performance indicates a clear path to full-scale profitability, supported by healthy cash reserves of approximately RMB 1,072.9 million as of June 30, 2026.
Key strategic milestones include the marketing approval and commercial launch of dorzagliatin in Hong Kong and Macao Special Administrative Regions, marking the beginning of the company's internationalization strategy. Furthermore, a five-year patent term extension for dorzagliatin was granted, extending core patent protection to April 2034, and the product's price on the National Reimbursement Drug List will remain unchanged for 2026 and 2027, ensuring long-term commercial profitability. The company's professional sales team expanded by 93% to 187 product representatives, with an additional 75 staff in marketing and medical affairs, representing a 79% increase compared to the same period in 2025.
