Buy Rating Affirmed for BeiGene on Strong Q4 Performance and Promising Brukinsa Sales

Leerink Partners analyst Andrew Berens maintained a Buy rating on BeiGene (BGNE – Research Report) on May 8 and set a price target of $267.00.

Andrew Berens has given his Buy rating due to a combination of factors including BeiGene’s strong fourth-quarter financial performance and promising pipeline updates. Berens notes that BeiGene’s total product revenue increased by approximately 19% quarter-over-quarter, with a significant contribution from the global sales of Brukinsa, which surpassed consensus estimates by 9%. The drug’s robust sales in the U.S. were particularly noteworthy as it gained a leading share in the BTK inhibitor class for relapsed/refractory chronic lymphocytic leukemia new patient starts. Additionally, Berens highlights the potentially positive outcome of a patent dispute, which could further strengthen BeiGene’s market position.

Berens also points to BeiGene’s improving gross margins, which climbed to 83% from 80% in the previous year, suggesting an enhanced operational efficiency that could facilitate the company’s path to profitability. In light of these developments, Berens has increased his sales forecast for Brukinsa and raised the price target for BeiGene’s stock to $267. The analyst’s optimism is also fueled by management’s confidence in Brukinsa’s continued growth, supported by data from the Phase 3 ALPINE trial, which is likely to contribute to ongoing sales momentum.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $254.00 price target.

BGNE’s price has also changed moderately for the past six months – from $200.210 to $164.440, which is a -17.87% drop .

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BeiGene (BGNE) Company Description:

BeiGene, Ltd.is a biopharmaceutical company. The company primarily focuses on developing molecularly targeted and immuno-oncology drugs for the treatment of cancer.