Positioned for Success in the Biotech Industry

Shi wrote in a Thursday note, “BeiGene (BGNE) is uniquely positioned among its peers for strong R & D capability, productive and cost-efficient clinical development, established commercial product pipeline (BRUKINSA/zanubrutinib, tislelizumab, pamiparib), and big pharma partnerships (Amgen, Novartis). We believe BGNE’s pipeline potential is underappreciated and highlight an ideal time window for investment during the transformative time for BGNE.”

The stock has lost 12% so far this year but has had a more uplifting quarter with gains of about 8%. Shares were nearly flat Thursday.

BeiGene’s Strong Track Record and Strategic Focus

BeiGene is an oncology-focused company that, since its establishment in 2010, has successfully commercialized three internally developed drugs and conducted over 140 clinical trials in more than 45 regions. The company also earned $1.3 billion in product revenue in 2022, which is over 2.5 times its cumulative research and development spending, as stated by Shi.

With offices in Cambridge, Massachusetts, and Beijing, BeiGene’s ambitions extend beyond oncology, evidenced by its inclusion of early autoimmune candidates in its product pipeline. Bolstered by a cash holding of $3.5 billion, the company has developed a unique business model that combines the advantages of its strong presence in China and a global commercial network to innovate with speed and quality at a lower cost.

Strategic Partnerships Driving Long-Term Growth

Shi emphasized that BeiGene’s collaborations with global pharmaceutical giants, like Amgen, will sustain its long-term growth and accelerate global market expansion. In early 2020, Amgen closed a deal, investing about $2.8 billion in cash to acquire a 20.5% stake in BeiGene. Despite Novartis recently canceling its option deal on a cancer drug, both companies are still partnered for a Phase 3 lung cancer trial of the drug ociperlimab.

Key Assets and Market Potential

Shi identified BeiGene’s Bruton’s tyrosine kinase inhibitor, Brukinsa, as a key strength of the company, highlighting its best-in-class potential in the $13 billion global BTK market. BTK inhibitors are a type of drug that treat cancers caused by defective B cells. Additionally, BeiGene’s tislelizumab drug is a major growth driver, holding about 40% market share as China’s top-selling PD-1 drug.

AsumeTech’s contributed to this story.