Biotech rising star has lifeline from geopolitics
ONC•BeOne Medicines’ third-quarter sales rose 34% to $1.9 billion and adjusted net profit increased 208% to $385 million. More than half of sales came from the United States, while licensing carve-outs in proposed U.S. and Chinese biotech controls may help preserve access to key medicines and markets.
1. Strong quarterly results
BeOne Medicines reported third-quarter sales of $1.9 billion, up 34% year on year, and adjusted net profit of $385 million, up 208%. Revenue growth was powered by its cancer drugs, including Brukinsa, whose sales surpassed a rival treatment from AstraZeneca to become the global market leader. More than half of BeOne’s sales came from the United States.
2. Global operations
The company was co-founded by American CEO John Oyler and Xiaodong Wang, who was born in Wuhan and educated in the United States. BeOne says it was conceived as a global company; it uses China for research, clinical trials and parts of its supply chain, runs trials in more than 45 countries, and has established manufacturing in the United States. It rebranded from BeiGene last year and moved its legal headquarters to Switzerland.
3. Controls and licensing
Washington proposed adding biotech to industries covered by outbound investment controls, while including a carve-out for licensing deals that let Chinese companies sell innovative drugs in the United States. China also shared a plan to add certain biotechnologies to its export restrictions list, with licensing similarly protected. BeOne’s U.S. shares have risen 8% since its earnings report and more than 30% this year.
