BeOne Medicines Signals Stronger Future with Brukinsa Leadership and Royalty Sale

BeOne Medicines (formerly BeiGene) has seen success with its lead product BRUKINSA, a BTK inhibitor. The company has also sold its royalty interests in several assets to a subsidiary of Eli Lilly and Company. This transaction is expected to provide a significant boost to BeOne's financial position and enable the company to focus on its core operations. The stock has been upgraded to Buy.

BeOne Medicines (formerly BeiGene), a biopharmaceutical company, has seen significant progress with its lead product, BRUKINSA, a BTK inhibitor. The company has also sold its royalty interests in several assets to a subsidiary of Eli Lilly and Company, which is expected to provide a substantial boost to BeOne's financial position. This transaction, along with the company's strong financial performance and diversified product portfolio, has led to an upgrade of its stock to Buy.

BRUKINSA has shown remarkable success, particularly in liquid cancers like chronic lymphocytic leukemia (CLL) and mantle cell lymphoma (MCL). In the second quarter of 2025, global sales of BRUKINSA reached $950 million, representing a 49% year-over-year (YoY) increase. This performance has solidified BRUKINSA's position as the leading BTK inhibitor in the U.S., surpassing older rival IMBRUVICA [1].

BeOne's financial health has also improved significantly. The company reported a 42% YoY increase in revenues to $1.3 billion in the second quarter of 2025, driven primarily by BRUKINSA sales in the U.S. and Europe. This strong performance has translated into a GAAP net income of $94 million, up from a $120 million loss in the same period last year. Free cash flow stood at $220 million, indicating a positive cash flow trend [1].

The company's balance sheet is robust, with $2.756 billion in total cash and cash equivalents, short-term borrowings of $808.394 million, and long-term debt of $146.091 million. Additionally, BeOne generated $571.2 million in cash from operations over the trailing twelve months, further strengthening its financial position [1].

The sale of BeOne's royalty interests in IMDELLTRA to Royalty Pharma plc (RPRX) for up to $950 million is expected to significantly enhance BeOne's cash position. IMDELLTRA, a lung cancer drug developed in partnership with Amgen Inc. (AMGN), received U.S. approval in 2024 and demonstrated statistically significant and clinically meaningful improvement in overall survival compared to local standard-of-care chemotherapy [1].

BeOne's diversified product portfolio includes TEVIMBRA, a PD-1 drug approved for esophageal and gastric cancer. TEVIMBRA sales reached $194 million in the second quarter of 2025, up 22% YoY, indicating initial success in the European market. The company's pipeline includes over 40 clinical and commercial stage assets, providing a strong foundation for future growth [1].

Despite the ongoing legal battle with AbbVie, BeOne has made significant progress in defending its BTK inhibitor. The USPTO invalidated all claims of AbbVie's '803 patent challenged by BeOne, weakening AbbVie's infringement claims and strengthening BeOne's defense. Additionally, BeOne settled a generic threat from MSN, delaying a generic BRUKINSA until at least June 2037 [1].

In conclusion, BeOne Medicines' strong financial performance, successful lead product, and diversified product portfolio have driven a significant upgrade of its stock to Buy. The company's robust financial position and promising pipeline position it well for future growth.

References:
[1] https://seekingalpha.com/article/4816713-beone-medicines-brukinsa-leadership-royalty-sale-signal-stronger-future