Company Reports

BeOne is an emerging Chinese biotechnology company with a global leading position in hematologic cancers, thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeOne to gain market share from existing drugs. We perceive Brukinsa to be the best-in-class drug treatment for chronic lymphocytic leukemia as well as other lymphoma cancers based on statistically significant results compared with its closest competitor, AbbVie's Imbruvica.

BeOne's second-quarter revenue grew 30% year on year to USD 1.7 billion while operating margin increased 1,240 basis points, driven by sales of Brukinsa, which continues to gain market share and lead the industry in new chronic lymphocytic leukemia patients added.

BeOne is an emerging Chinese biotechnology company with a global leading position in hematologic cancers, thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeOne to gain market share from existing drugs. We perceive Brukinsa to be the best-in-class drug treatment for chronic lymphocytic leukemia as well as other lymphoma cancers based on statistically significant results compared with its closest competitor, AbbVie's Imbruvica.

We initiate coverage of BeOne with No Moat and Very High Uncertainty Ratings and an HKD 214 (USD 354) fair value, which reflects a 31% upside based on the June 15 closing price.

We will discontinue analyst coverage of BeOne on or about Nov. 12, 2025.

US President Donald Trump said that the US tariffs on pharmaceutical imports may increase to 150% or even further to 250% in one to one and a half years.

BeOne is an emerging Chinese biotechnology company with a global leading position in hematologic cancers thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeOne to gain market share from existing drugs. In the next five years, we expect Brukinsa to continue contributing more than 60% of BeOne’s total revenue.

BeOne's management revised its 2025 revenue and gross margin guidance range upward. It also disclosed a series of anticipated pipeline milestones for the second half of 2025 and full-year 2026.

BeiGene's first-quarter revenue totaled USD 1.1 billion, putting it on track to meet management's annual guidance range of USD 4.9 - USD 5.3 billion. It also achieved GAAP profitability for the first time.

BeiGene is an emerging Chinese biotechnology company with a global leading position in hematologic cancers thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeiGene to gain market share from existing drugs. In the next five years, we expect Brukinsa to continue contributing more than 60% of BeiGene’s total revenue.

We raise our fair value estimate for no-moat BeiGene to HKD 149 per share from HKD 132, based on better-than-expected Brukinsa sales in the last quarter and a faster ramp-up going forward. Following adjustments, we expect BeiGene to be profitable in 2026, one year ahead of our initial forecast. However, our long-term revenue growth rate projection is unchanged. We reiterate that the key upside to our valuation depends on a more diversified pipeline portfolio. Given the expected risk/reward, we see BeiGene as fairly valued, and we think investors should wait for a more attractive entry point.

BeiGene is an emerging Chinese biotechnology company with a global leading position in hematologic cancers thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeiGene to gain market share from existing drugs. In the next five years, we expect Brukinsa to continue contributing more than 60% of BeiGene’s total revenue.

China healthcare stocks under our coverage, with the exception of medical distributors, have surged 10% to 50% since the end of January, following excitement over DeepSeek. While artificial intelligence may help improve efficiency in the sector, we don’t know if and when the benefits will materialize, so we believe the recent share price rally reflects a shift in investor sentiment on previously oversold stocks. Namely, Sino Biopharm (up 19%), WuXi Biologics (up 34%), and KingMed (up 56%), are reaching or surpassing our fair value estimates. However, we think CSPC (up 10%), Innovent (up 16%), and Adicon (up 21%) are still attractive.

We slightly raise our fair value estimate for no-moat BeiGene to HKD 132 from HKD 125 following better-than-expected Brukinsa drug sales. Brukinsa revenue in the first nine months of 2024 was USD 1.8 billion, more than doubling from a year prior and almost reaching our full-year forecast of USD 1.9 billion. We believe the strong sales growth is largely attributable to Brukinsa acquiring more market share from existing drugs. Evidence for this can be seen in the 7.2% sales decline of AbbVie’s Imbruvica in the same period. We lift our Brukinsa annual sales forecast to USD 2.2 billion while keeping other assumptions largely unchanged. As a result, our respective 2024 and 2025 revenue forecasts are nudged slightly higher to USD 3.7 billion and USD 4.6 billion from USD 3.4 billion and USD 4.2 billion. We continue to view BeiGene shares as fairly valued, and we think investors should wait for a better entry point.

BeiGene is an emerging Chinese biotechnology company with a global leading position in hematologic cancers thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeiGene to gain market share from existing drugs. In the next five years, we expect Brukinsa to continue contributing more than 50% of BeiGene’s total revenue.

BeiGene is an emerging Chinese biotechnology company with a global leading position in hematologic cancers thanks to its core drug Brukinsa. Since its approval in 2019, Brukinsa’s stronger efficacy and superior safety profile have allowed BeiGene to gain market share from existing drugs. In the next five years, we expect Brukinsa to continue contributing more than 50% of BeiGene’s total revenue.

We initiate coverage of BeiGene with a fair value estimate of HKD 125 per share and a no-moat rating. Focusing on oncology therapeutics, BeiGene is a commercial-stage biotechnology company with global revenue. We think the shares are fairly valued and investors should wait for a better entry point. The key upside to our valuation depends on patent-protected portfolio expansion rather than indication expansion from existing commercialized drugs.