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On Friday, Guggenheim increased its price target on BeiGene Ltd. (NASDAQ:ONC) (NASDAQ:BGNE) to $348 from the previous target of $345, while continuing to recommend a Buy rating for the stock. Currently trading at $278.38, BeiGene has demonstrated remarkable momentum with a 50.7% year-to-date return and a market capitalization of $29.7 billion. The adjustment comes in response to BeiGene’s fourth-quarter earnings report, which revealed revenues of $1.1 billion, primarily fueled by robust product sales growth. According to InvestingPro data, the company’s revenue growth reached nearly 55% in the last twelve months.
BeiGene’s Brukinsa, a treatment for various cancers, reported global sales of $828 million in the fourth quarter, surpassing Guggenheim’s expectations as well as the consensus estimates of $705 million and $752 million, respectively. This performance marks a 20% quarter-over-quarter increase and a doubling of sales year-over-year. The company’s management emphasized Brukinsa’s sustained market share lead among new BTK inhibitor patients in approved indications and expressed confidence in the drug’s continued market leadership through its patent expiration in 2037. InvestingPro analysis reveals impressive gross profit margins of 84.4%, highlighting the company’s operational efficiency.
However, sales of Tevimbra, another of BeiGene’s products, fell short of consensus estimates by 12%. Despite this, the management pointed out a 16% year-over-year growth in fiscal year 2024, attributing it to resilient performance despite pricing pressures in China and a modest contribution from the US market in the same year.
The company also highlighted several forthcoming data releases. These include an interim analysis of progression-free survival from the Phase III MANGROVE study evaluating Brukinsa in treatment-naive mantle cell lymphoma, expected in the second half of 2025, and Phase II results for sonrotoclax in relapsed/refractory chronic lymphocytic leukemia and mantle cell lymphoma, with potential accelerated approval filings following these readouts.
BeiGene has completed enrollment for its Phase III CELESTIAL trial, which is investigating a combination of Brukinsa and sonrotoclax in treatment-naive chronic lymphocytic leukemia. Additionally, the company anticipates presenting proof-of-concept data for its early-stage CDK4 inhibitor BGB-43395 in the first half of 2025, which will include efficacy and response rate data.
In light of the fourth-quarter results for fiscal year 2024, Guggenheim has updated its model for BeiGene, which led to the slight increase in the price target to $348 while reaffirming the Buy rating on the company’s stock. InvestingPro subscribers have access to 16 additional investment tips for BeiGene, including detailed analysis of the company’s financial health, growth prospects, and market positioning. The stock is currently trading near its 52-week high of $287.88, suggesting strong market confidence in the company’s growth trajectory.
In other recent news, BeiGene reported impressive fourth-quarter financial results, with total revenues reaching $1.1 billion, surpassing both company and consensus estimates of $1.0 billion. This performance was largely driven by the cancer drug Brukinsa, which generated $828 million in sales, including $616 million from the U.S. alone. The company also provided an optimistic revenue forecast for 2025, projecting total revenues between $4.9 billion and $5.3 billion, exceeding Wall Street’s expectation of $4.74 billion. Analysts at Citizens JMP, TD Cowen, and Jefferies have raised their price targets for BeiGene’s stock, reflecting confidence in the company’s growth trajectory and drug development progress. Citizens JMP increased its target to $348, TD Cowen to $334, and Jefferies to $308, all maintaining a positive outlook on the stock. BeiGene’s full-year revenue for 2024 was reported at $3.8 billion, marking a 55% increase year-over-year, with Brukinsa’s revenue soaring by 105% to $2.6 billion. The company anticipates achieving profitability by 2025 and has a strong pipeline with promising data expected for various cancer treatments. Additionally, BeiGene plans to change its name to BeOne Medicines Ltd., pending shareholder approval.
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