BeiGene's net profit increased by 386% year-on-year in the first half of the year, with Brukinsa driving revenue to exceed US$3.2 billion | Financial Report Insights

BeiGene's performance in the first half of 2026 significantly exceeded that of the same period last year, with a marked leap in profitability, demonstrating the effectiveness of its commercialization strategy.

According to the company's announcement, for the six months ended June 30, 2026, BeiGene's total revenue increased by 32.3% year-on-year to US$3.219 billion, and net profit increased by 385.8% year-on-year to US$464 million, with operating leverage effects accelerating. Diluted earnings per ADS increased significantly from US$0.85 in the same period last year to US$4.01.

The core driver was strong demand for its flagship product, Brukinsa® (zanubrutinib), in the US and European markets. During the same period, the company's non-GAAP net income reached $820 million, net cash generated from operating activities was $664 million, free cash flow reached $596 million, and cash and cash equivalents balance rose to $5.1 billion at the end of the period.

Zanubrutinib dominates the market, driven by both the US and European markets.

Zanubrutinib (Brukinsa®) was the core driver of performance during this reporting period. Global sales reached US$2.342 billion in the first half of the year, a year-on-year increase of 34.5%, accounting for 74% of the company's net product revenue.

By market, sales in the U.S. market increased by 32.6% year-over-year to $1.654 billion, driven by increased demand across all indications and favorable net pricing, with approximately $20 million related to non-recurring totals to net adjustments in the first quarter. The European market performed particularly well, with sales increasing by 41.9% year-over-year to $378 million, primarily due to overall market share gains across major markets. Sales in the Chinese market reached $191 million, a 16.3% year-over-year increase, while revenue from other regions surged by 87.3% year-over-year to $120 million.

Revenue from another core product, tislelizumab® (Baizean®), increased by 19.2% year-on-year to US$435 million. Products licensed by Amgen in China contributed a total of US$299.5 million in revenue, with Angavir® increasing by 28.1% year-on-year to US$194 million, becoming the largest contributor among licensed products.

In addition, other revenue increased significantly by 133.9% year-on-year to US$51.4 million, mainly from royalties on IMDELLTRA® under the Amgen collaboration agreement and revenue generated from Novartis’s broad market agreement.

Gross profit margin expanded, but expense growth was significantly lower than revenue growth.

The leap in profitability was driven by rapid revenue growth coupled with continued improvements in operational efficiency. The gross profit margin for product sales in the first half of the year increased to 89.2% from 86.3% in the same period last year, primarily due to the further increase in the proportion of the high-margin zanubrutinib in the product mix, as well as improved production efficiency for zanubrutinib and tislelizumab. On a non-GAAP basis, the gross profit margin was 89.6%.

In terms of operating expenses, R&D expenses increased by 14.6% year-on-year to US$1.154 billion, while sales and administrative expenses increased by 15.2% year-on-year to US$1.148 billion. The combined increase of these two expenses was 14.9%, far lower than the 32.3% revenue growth rate, indicating a significant operating leverage effect. The ratio of sales and administrative expenses to product sales decreased from 41.4% in the same period last year to 36.3%.

Operating profit jumped from $98.99 million in the same period last year to $574.9 million, an increase of 480.8%.

It is worth noting that interest expenses increased by $57.6 million to $72.6 million year-on-year, a surge of 384.3%. This was mainly due to the Royalty Pharma liability arising from the sale of future royalties of IMDELLTRA® in 2025, which resulted in the recognition of $43.4 million in interest expenses during the reporting period using the effective interest rate method. Additionally, the completion of the Hopewell plant led to a decrease in capitalized interest.

Research and Pipeline Progress: Multiple new drugs approved, business collaborations continue to advance

During and after the reporting period, BeiGene made significant progress in both research and development and commercialization.

In May 2026, Brukinsa® (sotocraza, a next-generation BCL2 inhibitor) received accelerated approval from the FDA for the treatment of adult patients with relapsed or refractory mantle cell lymphoma (MCL) who have received at least two lines of prior systemic therapy. In August 2026, the FDA approved a new indication for Brukinsa® in combination with Zanidatumab® and chemotherapy for first-line treatment of adult patients with HER2-positive gastric and esophageal adenocarcinoma.

In August 2026, the company and Revolution Medicines announced a multi-faceted collaboration agreement covering joint clinical evaluation and a regional licensing arrangement that grants BeiGene exclusive development and commercialization rights for a portion of Revolution Medicines' drug candidates in the Asian market.

In July 2026, the company announced an additional investment of $300 million to expand its flagship manufacturing and R&D center in the Hopewell Princeton West Innovation Park in New Jersey, adding small molecule drug production capacity.

In June, the MANGROVE Phase 3 study (evaluating zanubrutinib in combination with rituximab for the treatment of mantle cell lymphoma) yielded positive results, further strengthening the clinical data foundation of its core product.

Ample cash reserves, tax matters create a one-off impact

As of June 30, 2026, the company had $5.098 billion in cash and cash equivalents, and $528 million in restricted cash, indicating ample liquidity. Total debt amounted to $1.073 billion, and the debt-to-equity ratio decreased from 23.4% at the end of 2025 to 20.7%.

The company expects to repay approximately US$201.1 million in bank loans over the next 12 months, and its existing cash and operating cash flow are sufficient to cover the aforementioned needs and operating expenses over the next 12 months.

Regarding income tax expenses, US$107.3 million was recognized in the current reporting period, representing a significant year-on-year increase. This includes approximately US$49.28 million in one-off tax items, primarily stemming from the settlement of a tax audit of one of the company's Chinese subsidiaries, with a tax impact of US$59.03 million, partially offset by non-recurring tax items related to US equity incentives. Excluding the aforementioned non-recurring items, the adjusted effective tax rate is 10.3%.

In addition, the company holds approximately $3.6 billion in deferred tax assets, which are currently maintained at full valuation provision. The company stated that it may release all or part of the valuation provision in the near future, but the specific timing and amount will depend on multiple factors such as profitability, revenue growth, and the progress of clinical projects. If the valuation provision is released in the future, it will have a significant positive impact on the company's net profit.

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