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    ONC
    Earnings call· Jun 2026(Q2 FY26)

    BeOne Medicines Q2 FY26 earnings call ONC

    Aug 5, 2026 Source

    Executive summary

    BeOne Medicines AG Q2 FY26 — Strong BRUKINSA Performance and Pipeline Advancement Drive Raised Guidance

    BeOne Medicines delivered a very strong second quarter, with robust financial performance driven by BRUKINSA's continued market leadership and broad-based growth across geographies. The company raised its full-year revenue and operating income guidance, reflecting confidence in its commercial execution and pipeline advancements. Significant progress was made in both hematology and solid tumor pipelines, including a key FDA approval and positive Phase III data readouts, positioning the company for sustained long-term value creation.

    Highlights

    5
    • Total revenues reached $1.7 billion, representing 30% growth year-over-year.

    • BRUKINSA global revenues exceeded $1.2 billion, growing 31% year-over-year, driven by highest new patient starts and strong performance across all 5 approved indications.

    • Adjusted income from operations increased to $503 million, up over 80% year-over-year, demonstrating scalability.

    • FDA approval of BEQALZI as the first and only BCL2 inhibitor in mantle cell lymphoma.

    • Successful Phase III MANGROVE study for BRUKINSA, showing a chemo-free regimen was superior to standard of care with a hazard ratio of 0.57.

    Concerns

    2
    • The CELESTIAL 301 study did not reach statistical superiority in the uMRD analysis versus the VO regimen, though the IDMC recommended continuation for the PFS endpoint.

    • A tax audit settlement had an approximate $60 million impact on net income.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $6.6 billion to $6.8 billion
    high materiality
    High
    Full-year 2026 GAAP Operating Income
    $1 billion to $1.1 billion
    high materiality
    High
    Full-year 2026 Non-GAAP Operating Income
    $1.7 billion to $1.8 billion
    high materiality
    High
    Full-year 2026 Operating Expenses
    $4.8 billion to $5 billion
    medium materiality
    High
    Gross Margin
    high 80% range
    medium materiality
    High
    Operating expenses growth rate
    similar to what we've seen over the recent 2 years
    medium materiality
    Medium

    Segment performance

    9
    SegmentRevenueYoYQoQMargin
    Global
    Total revenue for the quarter, reflecting strong execution and a durable underlying business.
    $1.7 billion30%
    BRUKINSA Global Sales
    Exceeded expectations, driven by highest level of sustained new patient starts and strong growth across all 5 approved indications.
    Patients treated: >300,000 across 80+ markets
    $1.2 billion31%
    U.S. BRUKINSA Sales
    Exceeded expectations due to high new patient starts, strength in non-CLL indications, favorable duration of therapy, and improved patient adherence.
    $893 million31%
    TEVIMBRA Global Sales
    Maintained market leadership in China despite steep competition, with global launches gaining traction.
    $229 million18%
    Amgen In-licensed Portfolio
    Strong year-over-year growth, contributing meaningfully to revenue.
    $157 million25%
    U.S. Revenue
    Largest market, driven by strong demand.
    $899 million31%
    China Revenue
    Demonstrated continued strength across commercial portfolio, maintaining market leadership for TEVIMBRA and BRUKINSA. Foreign exchange contributed 7% to reported growth.
    $500 million17%
    Europe Revenue
    Important growth driver for the company.
    $208 million37%
    Rest of World Revenue
    Strong momentum with key markets like Japan and Brazil making increasingly meaningful contributions.
    $73 millionmore than doubled

    Operational metrics

    16
    Gross margin
    just under 90%
    Q2 FY26

    Benefiting from mix as well as productivity improvements for both BRUKINSA and TEVIMBRA.

    Operating expenses
    $1.2 billion13% growth
    Q2 FY26

    Reflecting advancement of key clinical programs and continued investment to support commercial growth.

    Adjusted income from operations
    $503 millionmore than 80% year-over-year growth
    Q2 FY26

    Demonstrates the scalability of the model.

    Adjusted net income
    $444 million
    Q2 FY26

    Reported for the quarter.

    Adjusted diluted earnings per ADS
    $3.84vs $2.25 a year ago
    Q2 FY26

    Increased compared to the prior year period.

    Tax audit settlement impact
    $60 million
    Q2 FY26

    Approximate impact on net income.

    Landmark PFS delta (BRUKINSA vs other BTKis)
    12%vs other 2 continuous BTKis
    Year 6

    Equivalent of 1 in 8 patients not progressing, showing continued divergence over time.

    VO landmark PFS
    82%drops to 42% at year 6
    Year 3

    Represents a 40-point collapse in high-risk patients.

    AV Amplify landmark PFS
    69%
    Year 3

    Lower than VO at a similar time point, based on limited data disclosed to date.

    BRUKINSA reduction in risk of death vs Acala
    24%
    Real-world data

    Statistically significant reduction in risk of death in a large real-world dataset of over 10,500 patients.

    BRUKINSA reduction in risk of death vs ibrutinib
    36%
    Real-world data

    Statistically significant reduction in risk of death in a large real-world dataset of over 10,500 patients.

    Foreign exchange contribution to China revenue growth
    7%
    Q2 FY26

    Due to year-over-year renminbi strengthening.

    CDK4 inhibitor ORR
    around 70%
    ASCO 2026

    Reported at ASCO, showing promising efficacy.

    CDK4 inhibitor neutropenia rate
    21%
    ASCO 2026

    Differentiated hematological safety profile compared to approved CDK4/6 inhibitors.

    GPC3 4-1BB bispecific ORR
    over 30%
    ASCO 2026

    Demonstrating strong monotherapy activity, comparable to current first-line combination regimens.

    B7-H4 ADC (BG-C9074) treatment-related Grade 3+ AEs
    approximately 26%
    ASCO 2026

    Less than half the rates reported for other ADCs in development for first-line ovarian cancer without biomarker selection, indicating potentially best-in-class tolerability.

    Industry KPIs

    6
    MetricValueDetails
    Pipeline read out calendar4 more potentially market-expanding Phase III readouts
    Regulatory approvals filingsBEQALZI FDA approval
    Therapeutic drug market shareBRUKINSA is the #1 BTK inhibitor
    Prescription volume new startsHighest level of sustained new patient starts
    Clinical trial efficacy safety dataHazard ratio of 0.69
    Cumulative patients uptake since launch>300,000patients

    Risks & headwinds

    3
    Competitive environment for BRUKINSAOngoing

    Despite the competitive environment

    Mitigation: BRUKINSA's differentiated profile, clinical data, real-world evidence, and highest level of sustained new patient starts.

    CELESTIAL 301 study uMRD endpoint missQ2 FY26

    Did not reach statistical superiority in the uMRD analysis versus the VO regimen

    Mitigation: IDMC recommended continuation toward primary regulatory endpoint of PFS; management remains confident in achieving PFS endpoint, noting uMRD superiority was a very high bar and uMRD rates don't consistently predict PFS outcomes.

    Biosimilar competition for XGEVA (Amgen in-licensed portfolio)Beyond this year

    Biosimilar competition that's coming for XGEVA

    Mitigation: Will share more on evolution as understanding develops; not a near-term impact.

    What to watch in Q3 FY26

    5

    BRUKINSA MANGROVE study full data presentation

    H2 FY26
    CurrentHazard ratio of 0.57 disclosed
    TargetFull data at upcoming medical meeting

    Why it matters

    Full data will provide more detail on the efficacy and safety of the chemo-free regimen, potentially solidifying its position as a new standard of care in frontline MCL.

    Global submissions are planned for the second half of 2026, and we're looking forward to sharing the full data at an upcoming medical meeting.

    Q&A highlights

    8

    Can you provide more color on BRUKINSA sales growth, specifically quantifying growth from non-CLL indications? Also, are you seeing any impact from the Acala launch in CLL, and how do you expect dynamics to evolve?

    BRUKINSA's growth is broad-based, driven by highest new patient starts since launch, strong performance across all indications (including non-CLL where prevalence is about 1/3 of total), and favorable duration of therapy reinforced by real-world data. No significant impact from AV AMPLIFY is currently observed, but long-term data is crucial for CLL, and AV AMPLIFY currently lacks it, showing lower uMRD and PFS rates at 3 years compared to BRUKINSA's 6-year data.

    We are achieving our highest level of new patient starts since launch. So we're really pleased to see the uptake in the marketplace. This is driven by strength in CLL as well as our non-CLL indication.

    asked by Yanan Zhu · answered by Aaron Rosenberg

    3 min read6 chapters

    Detailed Narrative

    01

    BRUKINSA's Market Leadership and Differentiated Profile

    BRUKINSA continues to exceed expectations, achieving its highest level of sustained new patient starts since launch and showing strong growth across all five approved indications. Management highlighted BRUKINSA's scientific differentiation, including its design for complete BTK inhibition, superior clinical outcomes demonstrated in head-to-head trials (e.g., Alpine study with HR 0.69 vs ibrutinib), and compelling real-world evidence. Recent analyses of over 10,500 Medicare patients showed a statistically significant 24% and 36% reduction in the risk of death compared to Acala and ibrutinib, respectively, reinforcing its best-in-class profile.

    02

    MANGROVE Study Success and MCL Treatment Paradigm Shift

    The Phase III MANGROVE study of BRUKINSA demonstrated a chemo-free regimen (BRUKINSA plus rituximab) was superior to standard chemotherapy regimens in frontline mantle cell lymphoma (MCL), with a hazard ratio of 0.57. This represents a potential paradigm shift, offering the first chemo-free treatment option for MCL patients. Global submissions for this regimen are planned for the second half of 2026, with full data to be shared at an upcoming medical meeting. Physicians have expressed significant excitement about the potential to avoid chemotherapy toxicities.

    03

    Solid Tumor Pipeline Advancements and Proof of Concept

    BeOne Medicines is experiencing an inflection year for its solid tumor pipeline, with five programs achieving clinical proof of concept and advancing towards pivotal development. The CDK4 inhibitor has begun Phase III in breast cancer, showing a 70% ORR with letrozole and a differentiated safety profile (21% neutropenia, no Grade 3+). The GPC3 4-1BB bispecific demonstrated over 30% ORR in second-line+ HCC, with a China registration-enabling cohort completing enrollment in 2.5 months. The B7-H4 ADC (BG-C9074) showed competitive efficacy and potentially best-in-class tolerability (26% Grade 3+ AEs) in ovarian cancer, with Phase III initiation planned by year-end.

    04

    Emerging Pipeline Assets and ESMO Highlights

    Further pipeline progress includes the PRMT5 inhibitor receiving FDA orphan drug designation for pancreatic cancer and demonstrating initial evidence of clinically meaningful brain activity, with initial data to be presented at ESMO. The CEA ADC also showed compelling first-in-class potential in non-small cell lung cancer, with initial data at ESMO. A highly potent RAS on inhibitor is expected to enter the clinic before year-end, designed to be CNS penetrant. These programs highlight the company's diversified mechanisms and modalities, aiming for sustainable innovation.

    05

    CELESTIAL 301 Study Update and CLL Treatment Strategy

    The CELESTIAL 301 study, evaluating a BRUKINSA plus BCL2 inhibitor combination, did not achieve statistical superiority in the uMRD analysis versus the VO regimen. However, the IDMC recommended continuing the study towards its primary regulatory endpoint of progression-free survival (PFS). Management remains confident in achieving the PFS endpoint, emphasizing that uMRD superiority against VO was a high bar and that uMRD rates do not consistently predict PFS outcomes across different mechanisms of action. The company continues to prioritize long-term follow-up in CLL trials, noting significant divergence in PFS outcomes between 3 and 6 years for various regimens, especially in high-risk patients.

    06

    Manufacturing Expansion and Global Reach

    BeOne Medicines announced a $300 million expansion of its flagship U.S. manufacturing site in Hopewell, New Jersey, underscoring its commitment to scaling production. BRUKINSA has now treated over 300,000 patients across more than 80 markets globally, demonstrating significant international reach. The company's global organization is executing at a high level🎣, supporting both commercial delivery and pipeline advancement.

    AI-generated summary of the company’s earnings call. Not investment advice.