Chinese Biotech BeiGene Stock Falls Despite Strong Brukinsa Sales And Earnings Beat

BeiGene Ltd. ONC stock is trading lower after the company reported mixed first-quarter 2025 financial results on Wednesday.

The Chinese biotech reported adjusted earnings per ADS of $1.22, a turnaround from a loss of $(1.40), beating the consensus loss of 74 cents.

Revenue for the first quarter of 2025 was $1.12 billion, compared to $752 million a year ago, in line with the consensus estimate, driven primarily by growth in Brukinsa product sales in the U.S. and Europe.

• The U.S. continued to be the company’s largest market, with product revenue of $563 million compared to $351 million in the prior-year period.
• In-licensed products from Amgen Inc. AMGN and TEVIMBRA also contributed to product revenue growth.
• U.S. sales of Brukinsa totaled $563 million in the first quarter of 2025, representing growth of 60% over the prior-year period driven primarily by demand, with more than 60% of the quarter-over-quarter growth coming from expanded use in CLL as Brukinsa continued to gain share as the leader in new patient starts in the U.S. in CLL and all other approved indications
• Brukinsa sales in Europe totaled $116 million, up 73%.
• Sales of TEVIMBRA totaled $171 million, up 18%.

Also Read: BeiGene Discontinues Lung Cancer Drug Study After Interim Data Showed Limited Survival Benefit

Gross margin for the first quarter of 2025 was 85.1% compared to 83.3%, increasing due to a proportionally higher sales mix of global Brukinsa than other products in the portfolio. Gross margins also benefited from cost-of-sales productivity improvements for Brukinsa and TEVIMBRA.

On an adjusted basis, gross margin increased to 85.5% for the first quarter of 2025, compared to 83.7% in the prior year.

R&D Expenses increased 5% to $481.9 million, primarily due to advancing preclinical programs into the clinic and early clinical programs into late-stage.

SG&A Expenses increased 7% to $459.3 million due to continued investment in Brukinsa’s global commercial expansion, primarily in the U.S. and Europe.

Guidance: BeiGene reaffirmed fiscal 2025 sales guidance of $4.90 billion—$5.3 billion, compared to the consensus of $5.09 billion.

Due to mix and production efficiencies compared to 2024, gross margin is expected to be in the mid-80% range.

In April, the U.S. Patent and Trademark Office (USPTO) rendered a Final Written Decision invalidating all claims of Pharmacyclics’ U.S. Patent No. 11,672,803 concerning Brukinsa that BeiGene challenged in a post-grant review proceeding.

The USPTO’s Final Written Decision is appealable by Pharmacyclics.

Price Action: At the last check on Wednesday, ONC stock was down 4.90% at $229.91 during the premarket session.

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