BeOne: The China Partner Amgen Part-OwnsNarrow moat

Amgen (AMGN) — moat facet

Amgen paid $2.8 billion for about a fifth of BeOne, which now sells three of its drugs in China indefinitely and competes with it in cancer.

BeOne, formerly BeiGene, is Amgen's route into China and also an investment. In January 2020 Amgen acquired an equity stake in BeOne for approximately $2.8 billion in cash1. At 30 June 2026 it owned about 17%, worth $5.4 billion, against $5.8 billion at the end of 2025, and recorded an unrealized loss of $227 million on it in the second quarter2.

BeOne stake ($bn)2.8Paid, Jan 20205.8Fair value, Dec 20255.4Fair value, Jun 2026Amgen Form 10-K FY2025 and Form 10-Q Q2 2026
Worth about twice what Amgen paid.

The commercial side is a profit-sharing collaboration. BeOne began selling XGEVA in China in 2020, BLINCYTO in 2021 and KYPROLIS in 2022, and the two companies share profits and losses equally during the commercialisation periods3. After an amendment on 11 November 2025, BeOne will retain the right to commercialize the three drugs in China for so long as they are sold there, and Amgen manufactures and supplies them4. BeOne also jointly develops part of Amgen's oncology portfolio5.

The relationship is part partner, part rival: BeOne is an oncology company with its own products, competing in the same cancers for doctors' attention and investors' money. Amgen's stake makes it a shareholder in a competitor's success.

The stake's value also moves Amgen's reported earnings. Unrealized gains and losses on equity investments pass through other income, and the 10-K estimates that a 20% fall in the value of its equity portfolio would cost about $1.4 billion6.

What decides whether the arrangement pays is the value of the stake against what Amgen paid. At $5.4 billion in June 20267 it is well above the $2.8 billion invested; a fall below that cost would mean the China strategy has produced neither a growing market for Amgen's drugs nor a profitable investment.

Moat trajectory: Holding steady

Stake worth $5.4bn; China rights retained by BeOne.

The number that tests this moat
Reported
Unrealized loss on the BeOne holding, latest quarter
$227M (Q2 2026); $570M in Q2 2025

Quarterly swings in the stake's value, now $5.4bn; a value falling toward the $2.8bn paid would mean the China strategy has failed as an investment.

Source: Amgen Form 10-Q, Q2 2026 ↗
References
  1. ReportedIn January 2020 Amgen acquired an equity stake in BeOne for approximately $2.8 billion in cash.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  2. ReportedAt 30 June 2026 it owned about 17%, worth $5.4 billion, against $5.8 billion at the end of 2025, and recorded an unrealized loss of $227 million on it in the second quarter.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
  3. ReportedBeOne began selling XGEVA in China in 2020, BLINCYTO in 2021 and KYPROLIS in 2022, and the two companies share profits and losses equally during the commercialisation periods.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  4. ReportedAfter an amendment on 11 November 2025, BeOne will retain the right to commercialize the three drugs in China for so long as they are sold there, and Amgen manufactures and supplies them.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  5. ReportedBeOne also jointly develops part of Amgen's oncology portfolio.
    Amgen Form 10-K for fiscal 2025 - Item 1 business: products, collaborations, staff and pipeline. — FY2025 · publ. 13 February 2026 · source ↗
  6. ReportedUnrealized gains and losses on equity investments pass through other income, and the 10-K estimates that a 20% fall in the value of its equity portfolio would cost about $1.4 billion.
    Amgen Form 10-K for fiscal 2025 - Item 1A risk factors, government pricing and legal proceedings including the IRS dispute. — FY2025 · publ. 13 February 2026 · source ↗
  7. ReportedAt $5.4 billion in June 2026 it is well above the $2.8 billion invested; a fall below that cost would mean the China strategy has produced neither a growing market for Amgen's drugs nor a profitable investment.
    Amgen Form 10-Q for the quarter ended 30 June 2026 - product sales, the TAVNEOS proceeding, the IRS dispute, the BeOne stake and the balance sheet. — Q2 2026 · publ. 5 August 2026 · source ↗
Sources
Generated September 28, 2026