SHANGHAI (Reuters) -Shares in Jiangsu Hengrui Pharmaceuticals dropped nearly 5% on Tuesday, after China’s biggest drugmaker by market value reported a worse-than-expected third-quarter profit.

The specialist in oncology, neurology, immunology, respiratory, metabolic and cardiovascular drugs has expanded licensing deals and developed more innovative drugs amid Beijing’s centralised bulk buying programmes, which have squeezed generic drug revenues.

“Hengrui third-quarter profit growth fell short of market expectations with no contribution from BD (business development) income,” said Cui Cui, an analyst at investment bank Jefferies.

In September, Hengrui agreed to grant a paid license for its innovative cancer drug, trastuzumab rezetecan, to the Swiss arm of India’s Glenmark Pharmaceutical

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