In a report released today, Rebecca Liang from Bernstein maintained a Hold rating on BeiGene (BGNE – Research Report), with a price target of $196.00.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding BeiGene’s future prospects and the potential of its upcoming asset, BGB-16673. This novel BTK degrader is seen as a significant advancement over the company’s current flagship product, Brukinsa, due to its mechanism that targets the degradation of BTK rather than merely inhibiting its activity. While this could lead to increased applicability across different indications and reduced resistance from mutations, these benefits are still speculative as BGB-16673 is in early-stage development.
The Hold rating also takes into account the financial implications of BGB-16673’s success. BeiGene suggests that the drug could achieve $5 billion in sales, a figure that could reshape the company’s position in the market for B-cell malignancies. However, this estimate is ambitious and competition in the field must be considered. A more conservative sales estimate would be $2-3 billion, reflecting the realistic market share that BeiGene might capture with its new drug. The potential for BGB-16673 to supplant existing therapies like R-CHOP is significant, but with the drug still in the pipeline, the Hold rating reflects the current uncertainty and the need for more data to validate these optimistic projections.
In another report released on January 10, Bank of America Securities also maintained a Hold rating on the stock with a $200.00 price target.
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Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BGNE in relation to earlier this year.
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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.
Read More on BGNE:
- BeiGene: FDA approves label update for BRUKINSA in CLL
- BeiGene treatment of mantle cell lymphoma granted FDA orphan designation
- BeiGene to present new data on hematology portfolio and pipeline
- BeiGene treatment of multiple myeloma granted orphan designation
- BeiGene, Ensem Therapeutics partner on CDK2 inhibitor
