BeOne Medicines’ Operating Income Jumps 157% as Product Revenue Reaches $1.9 Billion
Key Facts
BeOne Medicines reported GAAP operating income of $418.675 million in the third quarter of 2026, up 157% from $163.114 million in the same period of 2025, according to a company statement. Total revenue rose 34% to $1.89 billion from $1.41 billion a year earlier. Product revenue increased 33% to $1.86 billion from $1.40 billion. The results came as the company raised its full-year revenue outlook, signaling that sales growth had exceeded the level underpinning its previous estimates. CEO John V. Oyler said the strong results and higher guidance reflected “continued rapid global growth and leadership in hematology.”
BRUKINSA was the largest sales driver among the products cited in the statement, with global sales of $1.4 billion in the third quarter, up 34% year over year. U.S. sales reached $1.0 billion, up 36% from the same period. The statement did not describe this level as the first time sales had exceeded $1 billion. TEVIMBRA also generated global sales of $243 million, up 28%. Sales of licensed Amgen products totaled $167 million, a 26% annual increase. The figures highlight the broadening sources of product growth, while BRUKINSA remained the largest contributor among the products for which the company reported figures.
GAAP gross margin improved to 88% in the third quarter, compared with 86% a year earlier. The company attributed the improvement to a higher share of sales from BRUKINSA and productivity gains. The positive impact was partly offset by $22 million in non-cash impairment charges related to the decision to discontinue promotion of POBEVCY. On an adjusted basis excluding depreciation and amortization and impairment charges, the margin rose to 90% from 86% in the year-earlier period. The company expected gross margin to remain in the high eighties, with product mix and improved productivity affecting the figure.
GAAP net income rose to $385 million, an increase of $260 million from the third quarter of 2025. The company said the increase was mainly due to revenue growth and improved operating leverage, meaning sales growth had a greater effect on operating results. Free cash flow was $474 million, up $119 million year over year. Meanwhile, research and development expenses increased 26% to $660.784 million, while selling, general and administrative expenses rose 12% to $593.460 million. The company linked higher research spending to early-stage clinical programs advancing to later stages and preclinical programs moving into trials, while it attributed the increase in commercial expenses to investment to support growth.
BeOne Medicines raised its 2026 revenue outlook to a range of $6.9–$7.0 billion, from $6.6–$6.8 billion previously. It also raised its GAAP operating income outlook to $1.2–$1.3 billion, compared with its previous estimate of $1.0–$1.1 billion. The company expected operating expenses to include investments to support growth, and gross margin to be in the high eighties. It also said some valuation allowances could be reversed in the fourth quarter of 2026, potentially resulting in a material positive tax impact, though it was still assessing the size. GAAP diluted earnings per share were $3.28 per ADS, compared with $1.09 a year earlier, an increase of 201%.
In its development pipeline, the company identified regulatory and clinical milestones for the coming quarters. Its plan includes filing a regulatory application in Japan during the fourth quarter of 2026 for BRUKINSA in first-line MCL. It also aims to begin the Phase 3 GroundBBreaker-301 trial during the quarter, studying BGB-B2033 in patients with second-line or later-stage liver cancer. In Asia, the company expects regulatory action in China during the first half of 2027 on the use of TEVIMBRA with ZIIHERA and chemotherapy for first-line patients with HER2-positive gastric and esophageal adenocarcinoma. These milestones set out a timeline for the next steps in expanding the products’ therapeutic uses, alongside investment in research and development programs.