Key Takeaways:
CLSA raised its BeiGene target price 10% to HK$321.70, keeping an Outperform rating after second-quarter results beat estimates.
BeiGene's second-quarter revenue rose 29.6% to $1.7 billion, with net profit up 151.3% to $237 million, both ahead of market expectations on steady Brukinsa sales and operating leverage, CLSA said.
Brukinsa, the BTK inhibitor that competes with AbbVie's Imbruvica, posted global sales of $1.3 billion, up 31.4%, with US sales climbing 30.5%. CLSA estimates Brukinsa's market share widened to 43.1% in the second quarter from 42% in the first.
Management raised its 2026 revenue outlook to $6.6-6.8 billion from $6.3-6.5 billion and lifted operating income guidance to $1.0-1.1 billion from $750-850 million. CLSA raised its 2026-2028 sales forecasts by 4%, 3.3% and 3.2%, and net profit estimates by 23.5%, 12.5% and 7.3%.
The company also advanced its solid-tumor pipeline. The GPC3 x 4-1BB bispecific antibody BGB-B2033 completed a registrational expansion study in China for later-line hepatocellular carcinoma, and BeiGene plans to launch a global phase 3 trial for second-line liver cancer in the second half. CLSA also raised its US-listed target for BeiGene (ONC.US) to $522.50 from $501.30.
The guidance raise signals management expects Brukinsa's momentum to continue as it takes share from AbbVie's Imbruvica. Investors will watch the global phase 3 trial for BGB-B2033, expected to start in the second half, as the next catalyst for the solid-tumor franchise.
This article is for informational purposes only and does not constitute investment advice.
