Biotech rising star has lifeline from geopolitics
ONC•BeOne Medicines reported third-quarter revenue growth of 34% to $1.9 billion and adjusted net profit growth of 208% to $385 million. The article says licensing carve-outs in proposed U.S. and Chinese biotech controls may help protect access to key medicines.
1. Strong quarterly results
BeOne Medicines reported third-quarter revenue of $1.9 billion, up 34% year on year, and adjusted net profit of $385 million, up 208%. Sales of its cancer treatment Brukinsa recently surpassed a rival treatment from AstraZeneca, and more than half of BeOne's sales came from the United States.
2. Geopolitical exposure
The company uses China for research, clinical trials and parts of its supply chain, while also running trials in more than 45 countries and manufacturing in the United States. It rebranded from BeiGene last year and moved its legal headquarters to Switzerland.
3. Licensing carve-outs
The United States proposed adding biotech to industries subject to outbound investment controls, with a carve-out for licensing deals that allow Chinese companies to sell innovative drugs in the United States. China also shared a plan to add certain biotechnologies to its export restrictions list while protecting licensing. Investors are betting the life-saving potential of BeOne's drugs will protect the company.
