Suzhou-based Innovent Biologics is expected to post a profit for the first half of this year.

Analysts also forecast its first full-year profit in 2025.

BeOne, meanwhile, is projected to achieve both first-half and full-year profits in 2024, driven by rising revenue from new drugs.

Innovent Biologics is projected by Nomura’s Zhang Jialin to report a first-half net profit of 260 million yuan (US$36.4 million), compared to a loss of 392.6 million yuan (US$54.96 million) a year ago.

BeOne, a cancer drug developer established in 2010, is anticipated by analysts to post a first-half net profit of US$42 million and a full-year profit of US$109.5 million, with results due August 6.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s biotech sector has evolved from copying to creating breakthrough drugs

The profitability milestone for companies like Innovent and BeOne represents the culmination of China’s decades-long transformation from a scientific laggard to an innovation leader.

After the Cultural Revolution severely disrupted scientific research until 1976, China’s post-1978 economic reforms prioritized biotechnology as a national development focus1. This strategic investment is now paying off, as China approved five first-in-class drugs in 2023, demonstrating genuine innovation rather than imitation2.

The shift is dramatic when viewed historically. Between 2011 and 2021, there was a significant increase in novel drugs approved by Chinese regulatory bodies, indicating rising innovation capacity2. Companies like Innovent, founded in 2011, emerged during this innovation wave and are now developing drugs like mazdutide that compete directly with established Western treatments.

This evolution from generics production to novel drug discovery explains why these firms can finally achieve profitability. They are no longer competing solely on price but creating unique value through innovative treatments.

2️⃣ Chinese biotechs have become major players in global drug licensing despite deal unpredictability

The licensing revenue that’s driving profitability for companies like Innovent and BeOne reflects China’s growing influence in global pharmaceutical partnerships, even as individual deals remain volatile.

In Q1 2025, Chinese companies captured 32% of all global outlicensing biotech deal value—a significant shift that shows how Western pharmaceutical giants now actively seek Chinese-developed drugs3. Major deals like Pfizer’s $1.25 billion agreement with 3SBio demonstrate the substantial value multinational companies place on Chinese innovations4.

However, the example of Innovent’s sintilimab being rejected by the FDA despite Chinese approval, and BeOne’s tislelizumab being returned by both Celgene and Novartis before eventual success, illustrates the persistent unpredictability that analysts highlight.