$ONC earnings report

BeOne reported a strong third quarter of 2026. Total revenue was $ 1,889,815, up 34 % from $ 1,412,284 in the prior-year period, while net product revenues increased 33 % to $ 1,855,057. BRUKINSA global sales were $1.4 billion and increased 34%, with U.S. sales of $1.0 billion increasing 36%. TEVIMBRA global sales were $243 million, up 28%, and Amgen in-licensed products generated $167 million, up 26%.

Profitability expanded faster than revenue on a GAAP basis. GAAP income from operations increased 157 % to $ 418,675 and GAAP net income increased 208 % to $ 384,706. GAAP gross margin as a percentage of global product sales rose to 88% from 86%, supported by a greater BRUKINSA sales mix and productivity improvements for BRUKINSA and TEVIMBRA. The result included a $22 million non-cash intangible asset impairment charge associated with discontinuing promotion of POBEVCY. Adjusted gross margin was 90%, compared with 86% in the prior-year period.

Investment continued alongside operating leverage. Q3 GAAP R&D expense rose 26 % to $ 660,784 as clinical programs advanced, while GAAP SG&A expense rose 12 % to $ 593,460 to support commercial growth. Total GAAP operating expenses increased 19 %, below total-revenue growth. Diluted GAAP earnings per ADS were $ 3.28, compared with $ 1.09, and adjusted diluted earnings per ADS were $ 4.59, compared with $ 2.65.

Cash generation was also higher. Q3 net cash provided by operating activities was $ 508,707, compared with $ 402,553, and free cash flow was $ 473,532, compared with $ 354,469. Cash, cash equivalents and restricted cash were $ 5,866,314 as of September 30, 2026, while debt was $ 1,074,081. The release did not report dividends or share repurchases.

Management raised full-year 2026 total-revenue guidance to $6.9B - $7.0B from $6.6B - $6.8B. It also raised GAAP operating-income guidance to $1.2B - $1.3B from $1.0B - $1.1B and non-GAAP operating-income guidance to $1.9B - $2.0B from $1.7B - $1.8B. GAAP operating-expense guidance is $4.9B - $5.0B, versus prior guidance of $4.8B - $5.0B, and gross-margin guidance remains in the high-80% range. The company also identified potential fourth-quarter 2026 reversal of valuation allowances as a prospective material tax benefit.

This Item 2.02 filing is a supplemental disclosure tied to BeOne Medicines' 2026 Interim Report filed with the STAR Market. Its principal U.S. GAAP financial content is a product- and project-level allocation of R&D expense for the six months ended June 30, 2026. The document states that the amounts are in thousands of U.S. dollars and reports total R&D expense of 1,153,504 thousand U.S. dollars, compared with 1,006,783 thousand U.S. dollars for the six months ended June 30, 2025.

The expense increase spans both internal and external development activity. Internal R&D expenses were 718,378 thousand U.S. dollars versus 606,524 thousand U.S. dollars in the prior-year period, while the subtotal of external R&D expenses was 435,126 thousand U.S. dollars versus 400,259 thousand U.S. dollars. R&D collaboration-project expenses were 83,534 thousand U.S. dollars, compared with 47,646 thousand U.S. dollars, making collaboration activity a notable area of higher disclosed spending.

The R&D mix changed across pipeline programs. Spending was higher for Tacabrutideg, BGB-43395, BGB-B2033, BG-C9074, BGB-58067, and BG-C477 relative to the prior-year period. In contrast, disclosed expenses were lower for BRUKINSA®, TEVIMBRA®, BEQALZI™, and other R&D projects. BEQALZI™ remained the largest specifically named product allocation in the table at 74,029 thousand U.S. dollars, while other R&D projects were reported at 98,283 thousand U.S. dollars.

The filing also explains differences between U.S. GAAP and PRC GAAP involving share-based compensation, interim-period income taxes, leasing, and the transfer of royalties from a collaborative arrangement. However, it does not quantify a reconciliation of these differences in the supplied text. There are no revenue, profit, EPS, operating cash flow, free cash flow, cash, debt, capital-return, or forward-guidance figures, so the document does not support a full read on demand, margins, liquidity, or earnings performance.

BeOne reported a strong second quarter, with total revenue of $1,705,071 in thousands of U.S. dollars, up 30% from $1,315,300. Net product revenues rose 29% to $1,679,794, while other revenue increased 91% to $25,277. BRUKINSA global sales totaled $1.2 billion, up 31%, including U.S. sales of $893 million, also up 31%. TEVIMBRA global sales increased 18% to $229 million, and Amgen in-licensed products global sales increased 25% to $157 million.

Profitability expanded faster than revenue. GAAP gross margin increased to 90% from 87%, reflecting a higher proportion of global BRUKINSA sales and lower costs for BRUKINSA and TEVIMBRA from productivity improvements. GAAP income from operations increased 270% to $325,047 in thousands of U.S. dollars, while adjusted income from operations increased 83% to $503,029. GAAP SG&A expense as a percentage of product sales declined to 35% from 41%, supporting the Company's stated improved operating leverage.

The Company continued to invest in commercial expansion and development. GAAP R&D expense increased 17% to $612,280 in thousands of U.S. dollars as early clinical programs advanced into late stage and preclinical programs entered the clinic. GAAP SG&A expense increased 10% to $593,214. In-process R&D upfront fees and milestone payments for in-licensed assets were $23.3 million, compared with $0.5 million in the prior-year period. GAAP net income increased 151% to $237,007, adjusted net income increased 76% to $444,497, and free cash flow increased 98% to $435,344.

Management raised FY 2026 total revenue guidance to $6.6B - $6.8B from $6.3B - $6.5B. It also raised GAAP operating income guidance to $1.0B - $1.1B from $750M - $850M and non-GAAP operating income guidance to $1.7B - $1.8B from $1.45B - $1.55B. The Company maintained guidance for GAAP gross margin in the high-80% range and increased expected GAAP combined R&D and SG&A expense to $4.8B - $5.0B from $4.7B - $4.9B.

Clinical and regulatory progress accompanied the financial results. BRUKINSA generated positive Phase 3 MANGROVE topline results, BEQALZI received U.S. FDA accelerated approval in relapsed or refractory MCL, and TEVIMBRA received Japan regulatory approval in first-line gastric cancer. Near-term attention centers on BRUKINSA first-line MCL regulatory submissions in 2H 2026, the U.S. FDA action for TEVIMBRA plus ZIIHERA and chemotherapy in first-line HER2-positive GEA in 2H 2026, and the uncertain timing and magnitude of a possible valuation-allowance reversal.