A major biopharmaceutical company has reported strong earnings. BeiGene released its 2025 preliminary financial results on February 26, showing annual revenue of 382.05 billion yuan, a year-over-year increase of 40.4%. Net profit attributable to shareholders reached 1.422 billion yuan, marking a turnaround to profitability.
This achievement represents the company's first annual profit and stands as a significant milestone for Chinese biopharmaceutical firms in their global expansion. The performance growth is attributed to increased sales of core products. Global sales of Brukinsa reached 280.67 billion yuan in 2025, growing 48.8% year-over-year. Additionally, several of the company's drug candidates have entered critical clinical trial stages. Tevimbra has been approved for launch in China, and BGB-B2033 has received Fast Track designation from the U.S. FDA.
Despite the positive earnings, BeiGene's stock performance has been subdued. Its Hong Kong-listed shares fell 9.16% yesterday. In early trading today (February 27), both its A-shares and H-shares declined over 1%. Market caution appears to persist regarding the quality of its earnings, a potential slowdown in revenue growth, and cost pressures.
Regarding ETFs, the broader innovative drug sector, which includes BeiGene, continues its adjustment phase. The Huabao Hang Seng Hong Kong Stock Connect Innovative Drug Selection Trading Open Ended Index Securities Inves (520880) is currently down 0.8%, trading at a significant premium with active buying interest. The A-share innovative drug market shows divergence, with the Pharma ETF (562050) consolidating near its opening level.
Data shows BeiGene's H-shares constitute a 10.7% weighting in the Huabao Hang Seng Hong Kong Stock Connect Innovative Drug Selection Trading Open Ended Index Securities Inves (520880), while its A-shares have a 5.32% weighting in the Pharma ETF (562050).
Analysis suggests China's innovative drug sector is transitioning from "scale accumulation" to "value release" on the international stage, entering a commercialization phase where pipeline expectations are turning into actual financial performance. After two quarters of correction, the sector's high-quality companies now show attractive valuations from a long-term perspective, warranting increased attention at current levels.
Investors seeking exposure to the innovative drug sector may consider ETFs for efficient access. For targeted investment in pure-play innovative drug R&D companies, the Huabao Hang Seng Hong Kong Stock Connect Innovative Drug Selection Trading Open Ended Index Securities Inves (520880) and its feeder fund (025221) offer concentrated exposure, with the top ten holdings accounting for over 70% of the portfolio. For investors looking to reduce volatility while maintaining exposure to innovative drugs, the Pharma ETF (562050) and its feeder fund (024986), which allocates over 60% to innovative drugs and includes high-dividend traditional Chinese medicine stocks for better downside resistance, could be an option.
A MACD golden cross signal has formed, indicating positive momentum for several stocks.