Recently, FOSUN PHARMA (600196.SH/02196.HK) announced plans to launch a new round of A+H share equity incentive program. The core performance assessment indicators focus on net profit attributable to shareholders and innovative drug revenue. The A-share incentive instrument consists of A-share options with a minimum exercise price of 27.93 yuan per share, while H-share incentives utilize restricted share units. The initial grant under this equity incentive plan will cover no more than 201 participants.
Market analysts view this equity incentive program as a significant indicator of FOSUN PHARMA's future direction, demonstrating the company's focus on innovative pharmaceuticals and management's strong confidence in future development prospects. The initiative is expected to further energize the team and accelerate the transformation of innovative achievements. Based on calculations using 2024 as the baseline year, the compound annual growth rate for both indicators from 2025-2027 should not be less than 19%.
Innovation remains the core engine driving FOSUN PHARMA's sustained growth. In recent years, the company has continuously enriched its innovative product pipeline through diversified, multi-layered collaboration models including independent R&D, cooperative development, licensing agreements, fund incubation, and industrial investments. This approach enhances early-stage research transformation and clinical development capabilities to maximize the commercial value of innovative technologies and products. Since 2019, FOSUN PHARMA has cumulatively obtained approvals for 12 independently developed and licensed innovative drugs and biosimilars, while successfully securing commercial rights for 8 innovative drugs in mainland China. These efforts have brought multiple groundbreaking innovative R&D achievements to Chinese patients. In 2025, four products with five indications launched in China and the EU, including the self-developed Fumening (Befotertinib tablets) and Futuoning (Vosaroxin citrate capsules), both small molecule drugs. The research pipeline also includes multiple potential products such as HLX43 (PD-L1/ADC), HLX22, and SAF-189, covering key areas including solid tumors, hematologic malignancies, and immune inflammation, while gradually expanding into chronic disease markets such as cardiovascular, cerebrovascular, and central nervous system disorders.
Currently, FOSUN PHARMA has established three core R&D platforms centered on Henlius (antibodies and ADCs), Global R&D Center (small molecules), and Fosun Kite (cell therapy). The company continues to capture global innovation opportunities through fund investments in frontier technologies including nuclear medicine, small nucleic acids, and peptides. In terms of R&D strategy, FOSUN PHARMA focuses on core therapeutic areas such as solid tumors, hematologic malignancies, and immune inflammation, continuously enriching its product portfolio while actively expanding into chronic diseases (cardiovascular, cerebrovascular, renal and metabolic) and central nervous system fields.
Regarding internationalization, FOSUN PHARMA has achieved frequent business development successes since 2025: HLX15 (daratumumab biosimilar) was licensed to Dr. Reddy's for commercialization in 42 countries including the US and Europe; serplulimab was licensed to Alvogen Korea for launch in South Korea; HLX13 (ipilimumab biosimilar) was granted to Sandoz for multiple developed market rights; and in August, XH-S004 (DPP-1 inhibitor) global rights (excluding China, Hong Kong, and Macau) were licensed out, with upfront payments and milestone amounts totaling up to $645 million. These collaborations not only generate substantial cash flows but also demonstrate the global competitiveness of the company's innovative achievements.
In terms of financial performance, FOSUN PHARMA achieved net profit attributable to shareholders of 2.77 billion yuan in 2024. The equity incentive targets indicate this metric will increase to 4.77 billion yuan by 2027, representing a 72.2% increase. Based on current market capitalization, A-shares trade at only 12.39 times PE, while H-shares trade at 8.33 times PE, significantly below the industry average of approximately 30 times. Its controlling subsidiary Henlius has gained over 252% year-to-date with a PE exceeding 50 times, further confirming that FOSUN PHARMA's stock price remains undervalued and possesses long-term investment value.
Analysis suggests that as the innovative pipeline gradually materializes and internationalization accelerates, FOSUN PHARMA is poised to enter a performance release period. This equity incentive program will serve as an important mechanism driving the company toward high-quality growth.