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On Friday, Citizens JMP updated its financial outlook for BeiGene Ltd. (NASDAQ:ONC) (NASDAQ:BGNE), increasing the price target to $348 from the previous $288. The firm maintained a Market Outperform rating on the stock. This adjustment followed the announcement of BeiGene’s fourth-quarter financial results, which surpassed top-line expectations, largely thanks to robust global sales of Brukinsa totaling $828 million. The stock has shown remarkable momentum, with a 50.71% year-to-date return and currently trading near its 52-week high of $287.88. According to InvestingPro, the company maintains impressive gross profit margins of 83.67%.
BeiGene reported total revenues of $1.1 billion for the fourth quarter of 2024, exceeding both the company’s and consensus estimates, which stood at $1.0 billion. This included significant revenue from Brukinsa sales, contributing $828 million, with $616 million generated from U.S. sales alone. The company’s research and development (R&D) expenses for the quarter were $542.0 million, which came in below Citizens JMP’s projection of $571.1 million but were higher than the consensus estimate of $536.0 million. Selling, general, and administrative (SG&A) expenses reached $504.7 million, surpassing both Citizens JMP’s and consensus estimates of $464.3 million and $480.9 million, respectively.
The biotechnology firm also provided an optimistic revenue forecast for 2025, projecting total revenues in the range of $4.9 billion to $5.3 billion. This guidance significantly exceeds Citizens JMP’s estimate of $4.6 billion. With expectations that Brukinsa alone will generate approximately $3.7 billion for BeiGene in 2025, and considering the company’s strong cash position of $2.6 billion, Citizens JMP views BeiGene shares as a compelling investment opportunity. With a market capitalization of $29.71 billion, BeiGene operates with a moderate level of debt, as revealed by InvestingPro analysis. Subscribers can access 14 additional ProTips and comprehensive financial metrics for deeper insight into BeiGene’s potential.
The report highlighted the potential for BeiGene’s stock, estimating around a 41% downside in a bear case scenario with a target of $164, and a 34% upside in a bull case scenario, suggesting a target of $375. The fourth-quarter earnings per share (EPS) was reported at ($1.43), which was more favorable than the estimated ($1.68). BeiGene concluded the quarter with a robust cash and equivalents balance of $2.6 billion, positioning the company for continued growth and development in the global biotech industry. Current analyst consensus shows strong bullish sentiment, with targets ranging from $207 to $376, reflecting the market’s confidence in BeiGene’s growth trajectory.
In other recent news, BeiGene Ltd. reported strong fourth-quarter earnings, with its cancer drug Brukinsa generating $828 million in sales, surpassing estimates from both TD Cowen and the consensus forecast. The company’s full-year revenue reached $3.8 billion, marking a 55% increase year-over-year, exceeding the consensus estimate of $3.7 billion. For 2025, BeiGene projects revenue between $4.9 billion and $5.3 billion, indicating a potential growth of 29% to 39% from the previous year. Analysts at TD Cowen raised the price target for BeiGene’s stock to $334, while Jefferies increased their target to $308, both maintaining a Buy rating. These adjustments reflect the company’s strong financial performance and optimistic future projections, including the expectation to reach GAAP breakeven in 2025. BeiGene’s Brukinsa has become the market leader for new chronic lymphocytic leukemia patient starts in the U.S., with sales nearly doubling to $616 million. The company is also advancing its pipeline, with potential regulatory submissions anticipated for its BCL2 inhibitor sonrotoclax in blood cancers. BeiGene ended the year with $2.64 billion in cash and investments and plans to change its name to BeOne Medicines Ltd., pending shareholder approval.
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