Citing the company's growth possibilities linked to its main medicine, Brukinsa (zanubrutinib), Morgan Stanley assigned BeiGene (BGNE, Financials) with an overweight rating. The investment bank assigned the pharmaceutical business a price objective of $300; the stock was last trading for $205.73, down modestly.
Analyst Sean Laaman says Brukinsa, a second-generation Bruton Tyrosine Kinase inhibitor, has better performance and safety than other medications in its class. Laaman projects a five-year CAGR over 30% for Brukinsa particularly, with revenues possibly reaching $6 billion by 2028.
Laaman underlined the possible influence of Eli Lilly's (LLY, Financials) third-generation BTKi, Jaypirca (pirtobrutinib), now licensed for third-line therapy. First-line data for Jaypirca is expected in the first quarter of 2025, and positive results could introduce competitive pressures for Brukinsa in the BTKi market.
Beyond Brukinsa, BeiGene's pipeline consists of interesting assets such the BCL2 inhibitor sonrotoclax and the BTK degrader BGB-16683, which may improve the portfolio of the firm even more. Laaman pointed out that sonrotoclax could increase therapy alternatives and income sources when used with Brukinsa.
Recently, BeiGene revealed many strategic projects meant to improve its oncology portfolio and increase its worldwide profile. Especially, the firm intends to rename as BeOne Medicines Ltd., which reflects its aim to unite the world against cancer.
Investing $800 million to expand its biologics production and clinical research capacity, BeiGene opened a flagship U.S. plant in Hopewell, New Jersey in July 2024. By the end of 2025, this development is planned to generate hundreds of highly technologically advanced positions, therefore highlighting the company's commitment to worldwide development.
Financially, BeiGene said that Brukinsa (zanubrutinib) had $479 million in sales in the second quarter of 2024, a 114% increase over the same time the year before. Expanding usage in chronic lymphocytic leukemia and rising market share across significant European markets help to explain this spike.
Legal concerns, however, abound because AbbVie sued in September 2024 claiming that BeiGene stole trade secrets in order to create its BTK degradater program. Declining these accusations, BeiGene has claimed intellectual property rights.
