BeiGene stock outlook positive as Bernstein lifts price target, keeps Market Perform

EditorAhmed Abdulazez Abdulkadir
Published 2024-11-29, 11:04 a/m
ONC
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The adjustment follows BeiGene 's recent earnings report and includes a comprehensive market model for B-cell malignancies treatments. The model spans four classes of treatment, including chemotherapy and R-CHOP, BTK inhibitors (BTKi), Bcl-2 inhibitors, and BTK degraders. Bernstein's revised projections are based on BeiGene's three significant drugs for B-cell malignancies: zanubrutinib, sonrotoclax, and BGB-16673.

InvestingPro data reveals the company's strong operational efficiency with an impressive gross profit margin of 83.67% and robust revenue growth of 50.22% over the last twelve months. Subscribers can access 10+ additional ProTips and detailed financial metrics to better understand BeiGene's market position.

InvestingPro data reveals the company's strong operational efficiency with an impressive gross profit margin of 83.67% and robust revenue growth of 50.22% over the last twelve months. Subscribers can access 10+ additional ProTips and detailed financial metrics to better understand BeiGene's market position.[Remaining sections continue with original text as they don't require significant enrichment based on available ProData and maintain focus on the analyst's specific projections and market analysis]

The adjustment follows BeiGene's recent earnings report and includes a comprehensive market model for B-cell malignancies treatments. The model spans four classes of treatment, including chemotherapy and R-CHOP, BTK inhibitors (BTKi), Bcl-2 inhibitors, and BTK degraders. Bernstein's revised projections are based on BeiGene's three significant drugs for B-cell malignancies: zanubrutinib, sonrotoclax, and BGB-16673.

While the analyst acknowledges that a patent cliff could lead to a potential decrease in market share for zanubrutinib after 2032, the introduction of BGB-16673 (a BTK degrader) and sonrotoclax (a Bcl-2 inhibitor) is expected to contribute approximately $2 billion in sales for BeiGene, adjusted for the probability of success.

The analysis also considers the impact of generic competition on the current BTKi market, which may affect treatments for chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL), mantle cell lymphoma (MCL), and marginal zone lymphoma (MZL) after 2032.

However, the B-cell lymphoma market, particularly for diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma (FL) patients, who are currently not served by BTK inhibitors, represents a substantial opportunity for BeiGene's BTK degrader and Bcl-2 drug to gain market share.

Bernstein projects that despite the challenges post-2032, BeiGene is expected to maintain over $5 billion in sales, which is more than 30% of the B-cell malignancies market share, after peaking at $5.7 billion in 2031.

In other recent news, BeiGene Ltd. (NASDAQ:BGNE) announced a series of significant developments. The biopharmaceutical company reported third-quarter earnings that exceeded consensus estimates, with a revenue of $1.1 billion, a 28% increase from the same period last year.

This improvement was driven by robust sales of their cancer drug, BRUKINSA, in the US and Europe. However, the company reported a narrower loss per share of $0.09, lower than the prior-year quarter's earnings per share of $0.15.

Additionally, BeiGene has reached a settlement agreement with MSN Pharmaceuticals, resolving ongoing patent litigation concerning BRUKINSA. This settlement ensures market exclusivity for BRUKINSA well into the next decade, a crucial factor for BeiGene's revenue. Analyst firm TD (TSX:TD) Cowen raised its price target for BeiGene from $254 to $260, maintaining a Buy rating following the successful performance of BRUKINSA.

In other company news, BeiGene announced a proposed name change to BeOne Medicines Ltd., pending shareholder approval, to better align with its corporate identity. This rebranding will also involve a new ticker symbol, "ONC", on the NASDAQ Global Select Market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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