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PostsOver $1 billion! Innovative drug giant BeiGene breaks through.
China's leading innovative pharmaceutical company has broken free from involution and taken the lead.
Especially BeiGene, which has already been validated by the market.
Recently, BeiGene released its Q3 2024 financial report, showing that the company achieved revenue of RMB 19.136 billion in the first three quarters, a year-on-year increase of 48.63%; net loss was RMB 3.687 billion, up 4.94% YoY; non-GAAP net profit was RMB 3.990 billion, up 41.18% YoY.
Specifically, in Q3, BeiGene achieved revenue of RMB 7.139 billion, up 26.95% YoY; net loss was RMB 809 million, down 160.36% YoY; non-GAAP net profit was RMB 865 million, up 32.47% YoY. Notably, this marks the first time BeiGene's quarterly revenue exceeded $1 billion.
The continuous improvement in financial performance and the sustained sales growth of blockbuster drugs have solidified BeiGene's leadership in the global oncology treatment field.
The report shows that global sales of the core product BRUKINSA (zanubrutinib) reached $690 million in Q3, approximately RMB 4.914 billion. In the first three quarters, BRUKINSA's global sales exceeded $1.8 billion, making it the first "blockbuster" drug from a Chinese innovative pharmaceutical company.
For a long time, there has been a noticeable gap between Chinese pharmaceutical companies and their European and American counterparts, especially in innovative drugs and vaccines. Therefore, a single product achieving sales comparable to global pharmaceutical giants holds significant importance for the industry.
In fact, the innovative drug industry once experienced severe involution, but some leading companies have emerged from the long night to see the dawn, with BRUKINSA's success being the best proof. Although these companies have survived the toughest phase and achieved self-sustaining capabilities, they are still operating at a loss.
As the biggest "dark horse" in China's innovative drug sector, BeiGene is expected to achieve breakeven by 2025. However, judging by regional revenue structure, overseas expansion remains the inevitable path for innovative drug companies.
Data shows that BRUKINSA has been approved in over 70 markets globally, with 90% of its sales revenue coming from international markets such as Europe, America, Central Asia, and North Africa. The same applies to BeiGene's other blockbuster, the PD-1 inhibitor tislelizumab.
The financial report indicates that BRUKINSA's sales in the U.S. reached RMB 3.584 billion, up 85% YoY; sales in Europe totaled RMB 693 million, up 212.7% YoY; and sales in China were RMB 485 million, up 41.1% YoY. This demonstrates that having an international vision and capabilities is essential for leading innovative drug companies.
To further globalize, BeiGene announced on the evening of November 14 its plan to adopt a new English name, BeOne Medicines Ltd., reflecting its commitment to innovative drug R&D and collaboration with global partners to serve more patients and eliminate cancer.
BeiGene stated in the announcement that the new name is part of its broader strategic growth plan. Indeed, BeiGene now serves doctors and patients from diverse cultural backgrounds across Europe, America, Latin America, Central Asia, and North Africa. In the future, more of its products will be promoted to broader regions, making "BeOne" a fitting choice to support its ambition of becoming a "global leader" in oncology.
Kan Jian Finance believes that as the frontrunner in China's innovative drug industry, BeiGene has achieved full self-sustaining capabilities through the success of its two blockbuster products. Moreover, its R&D expenses remain consistently high. The financial report shows that BeiGene's R&D expenditure in Q3 was RMB 3.538 billion, totaling RMB 10.166 billion for the first three quarters. By the end of Q3, the company's cash reserves stood at RMB 12.245 billion, down only RMB 195 million QoQ, indicating that R&D spending no longer depletes its cash reserves.
Innovative drugs represent a long-term and lucrative sector. Drawing lessons from European and American pharmaceutical giants, the success of a single blockbuster product can propel a company to new heights. The high profitability of innovative drugs also provides the necessary conditions for increased R&D investment. Therefore, innovative drug companies deserve support to foster a favorable R&D environment, enabling domestic players to advance faster and further.
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