by winston » Tue Aug 16, 2022 4:14 pm
not vested
BeiGene (BGNE)
The first JPM pick is BeiGene, a clinical-stage biopharmaceutical company, with, in its words, ‘a broad and deep pipeline’ that takes a shotgun approach to the field of oncology.
The company is developing a tremendous number of drug candidates, more than 50, both in-house and as collaborative efforts, to address treatment needs in some 80% of cancer malignancies. A pipeline that size gives the company a competitive advantage when compared to peers.
BeiGene is a truly international biotech firm, operating in Asia, in Europe, and in the Americas, and boasting administrative offices in Beijing, China, Cambridge, Massachusetts, and Basel, Switzerland. From these offices, the company oversees its development activities, and the commercialization activities for its line of approved commercial-stage products.
The leading approved products are zanubrutinib, branded as Brukinsa, pamiparib, branded as Partruvix, and tislelizumab, branded under its own name. As a group, these drugs are approved in several international jurisdictions for the treatment of various hematological cancers and solid tumors.
BeiGene has been actively commercializing them for several years now, and in 2Q22 the company realized $304.5 million in total sales revenue. This number included $128.7 million from Brukinsa and $104.9 million in sales of tislelizumab in China.
The company’s total revenue, which includes collaboration fees, reached $341.6 million, compared to $150 million in the year-ago quarter.
Covering the stock for JPMorgan, analyst Xiling Chen believes BGNE presents a compelling risk reward. Kumar rates the stock an Overweight (i.e. Buy) along with a $296 price target that implies a 50% one-year upside.
Backing his bullish stance, Chen writes: "We see BeiGene shares as undervalued given quality of assets/growth and highlight the stock as one of our top picks in the sector...
BeiGene has grown into a fully integrated biopharma company with best-in-class clinical development capabilities, one of the largest and best oncology commercial platforms in China, and unmatched partnership skills with global biopharma companies.
We expect the company’s 16 commercial assets and broad pipeline to drive very attractive, diversified long-term growth. While we remain moderately below consensus on long-term sales, we see additional pipeline traction as upside to our estimates..."
Overall, 6 Wall Street analysts have chimed in on this biotech giant, and left 5 Buy recommendations against 1 Hold for a Strong Buy consensus rating. The shares are priced at $192.77 and their $253.76 average price target indicates an upside potential of ~29% in the coming months.
Source: TipRanks
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