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On Monday, BofA Securities analysts upgraded BeiGene Ltd. (NASDAQ:ONC) (NASDAQ:BGNE) stock from Neutral to Buy and increased the price target significantly, setting it at $320.00, up from the previous $207.00. The upgrade comes as a response to BeiGene’s robust sales growth in the United States, prompting BofA to enhance the revenue forecast for the company’s cancer drug Brukinsa. The company, currently valued at $29.14 billion, has demonstrated impressive revenue growth of 55% over the last twelve months, according to InvestingPro data.
The analysts at BofA Securities noted that they have adjusted BeiGene’s revenue projections for the years 2025, 2026, and 2027 by 6.0%, 11.8%, and 15.5%, respectively. This revision is based on the performance of Brukinsa and the company’s overall sales momentum. The stock has already delivered strong returns, with a year-to-date gain of 47% and an impressive gross profit margin of 84%. InvestingPro subscribers can access 15 additional key insights about BeiGene’s performance and valuation metrics.
In addition to the revenue forecast adjustments, BofA Securities incorporated two of BeiGene’s pipeline candidates into their financial model. These include BGB-43395, a CDK4 inhibitor, and BGN-16673, a BTK CDAC, both of which are nearing late-stage clinical trials. Furthermore, the firm updated the probability of success (PoS) for Zanubrutinib in treating refractory or relapsed follicular lymphoma in the U.S., following its approval in 2024.
The analysts also accounted for BeiGene’s expanding product and pipeline portfolio by adjusting the research and development (R&D) and administrative expenses projections. The rationale behind the upgrade and new price objective, according to BofA Securities, lies in BeiGene’s increasing international product sales and its extensive pipeline of assets.
In other recent news, BeiGene has reported significant developments in its financial performance and strategic initiatives. The company announced fourth-quarter revenues of $1.1 billion, exceeding both its own and consensus estimates, largely driven by strong global sales of its cancer drug Brukinsa, which totaled $828 million. This performance has led to several analyst firms, including Guggenheim, Citizens JMP, TD Cowen, and Jefferies, raising their price targets for BeiGene, with figures ranging from $308 to $348, while maintaining positive ratings on the stock.
Guggenheim and Citizens JMP highlighted the impressive sales growth of Brukinsa, which surpassed expectations and contributed significantly to the company’s financial results. Additionally, BeiGene’s full-year revenue reached $3.8 billion, marking a 55% increase year-over-year, with projections for 2025 revenues between $4.9 billion and $5.3 billion. The company also holds a strong cash position of $2.6 billion, supporting its continued growth and development efforts.
BeiGene received FDA Orphan Drug Designation for its drug sonrotocla, intended for treating myelodysplastic syndromes, marking a significant milestone in its drug development pipeline. The company is advancing several clinical trials, including the Phase III CELESTIAL trial for a combination of Brukinsa and sonrotoclax. Analysts noted the potential for BeiGene’s pipeline, with promising data expected in 2025 for treatments targeting various cancers. These developments underscore BeiGene’s strategic focus on expanding its oncology portfolio and achieving profitability by 2025.
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