BeiGene shares reiterate Buy rating on robust oncology pipeline

EditorNatashya Angelica
Published 12/17/2024, 10:45 AM
ONC
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Tuesday, TD Cowen reiterated its Buy rating on BeiGene , Ltd. (NASDAQ:BGNE) shares, maintaining a $260.00 price target, aligning with the broader analyst consensus that sees potential upside in the stock. According to InvestingPro data, analyst targets range from $207 to $376, with the company currently commanding an $18.7 billion market cap.

The firm highlighted the company's recent presentations at scientific conferences, emphasizing the strength of its oncology pipeline. BeiGene's research and development updates from the American Society of Hematology (ASH) and the San Antonio Breast Cancer Symposium (SABCS) were particularly noted for showcasing promising data.

The analyst from TD Cowen praised BeiGene's pipeline as one of the best in the industry for oncology. This assessment is supported by the company's impressive financial metrics, with InvestingPro data showing remarkable revenue growth of 50% year-over-year and industry-leading gross profit margins of 84%.

Specific mention was made of Brukinsa, sonro, and BGB-16673, which is a BTK degrader. These treatments were recognized for their best-in-class profiles when used as single agents and in combination with other therapies. The firm underscored that these developments reinforce BeiGene's leadership in hematological malignancies.

BeiGene's BGB-43395, a CDK4 inhibitor, was identified as a key component of the company's breast cancer treatment strategy. The initial pharmacokinetic, pharmacodynamic, and safety data, along with early indications of efficacy, were described as encouraging by the TD Cowen analyst. These findings contribute to the optimism surrounding BeiGene's potential in addressing various forms of cancer.

The company's recent R&D Day was a significant event where BeiGene presented these updates. The data provided during this day has been crucial in reaffirming the analyst's positive outlook on the company's stock. The presentations at ASH and SABCS served to further solidify the evidence of BeiGene's prominent position in the oncology sector.

In summary, TD Cowen's continued support for BeiGene is based on the company's robust oncology pipeline, demonstrated by recent data from key industry conferences. The firm's Buy rating and price target of $260.00 reflect confidence in BeiGene's ongoing research and potential for future growth in the oncology market.

While the company maintains strong growth metrics, InvestingPro subscribers have access to over 10 additional key insights and detailed financial analysis that could help inform investment decisions in this promising biotech player.

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

Morgan Stanley (NYSE:MS) resumed coverage of BeiGene with an Overweight rating and set a new price target of $300.00, citing the growing market share of BeiGene's drug Brukinsa and the potential of Brukinsa in the European market. Bernstein also adjusted their projections based on BeiGene's three significant drugs for B-cell malignancies: zanubrutinib, sonrotoclax, and BGB-16673.

BeiGene has also resolved ongoing patent litigation with MSN Pharmaceuticals concerning Brukinsa, ensuring market exclusivity for this key product in its oncology portfolio well into the next decade. TD Cowen raised its price target for BeiGene from $254 to $260, maintaining a Buy rating for the company.

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. These developments highlight BeiGene's commitment to growth and innovation in the biopharmaceutical sector.

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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