On Monday, BeiGene , Ltd. (NASDAQ:BGNE) maintained its Buy rating and $283.00 price target from investment firm Jefferies. The endorsement comes after a notable recovery in BTK inhibitor (BTKi) prescriptions, which saw a significant increase in the week following the 4th of July holiday.
According to Jefferies, Brukinsa's total prescriptions (TRx) and new prescriptions (NRx) saw an uptick of 25% and 14% week over week, respectively. This performance was part of a broader trend within the BTKi space, with competitors Calquence and Imbruvica also experiencing growth in prescriptions.
The firm highlighted that Brukinsa's TRx for Q2 2024 showed an approximate 31% rise quarter over quarter. This increase is expected to reflect positively on the drug's U.S. sales for the quarter. In Q1 2024, Brukinsa's U.S. sales reached $351 million, and the consensus estimate for Q2 stands at $380 million, marking an 8% increase quarter over quarter. Jefferies anticipates that this target is well within reach, given the recent prescription trends.
BeiGene's stock continues to draw attention as investors and analysts monitor prescription trends to gauge potential sales outcomes. The company's focus on developing innovative cancer treatments remains a critical factor in its market performance.
In other recent news, BriaCell Therapeutics Corp. has partnered with BeiGene, Ltd. to initiate a clinical trial for a new cancer treatment. The study will assess the safety and efficacy of Bria-OTS™, BriaCell's novel immunotherapy, in combination with BeiGene's anti-PD-1 antibody, tislelizumab, specifically targeting advanced metastatic breast cancer.
The Phase 1/2 clinical trial will initially evaluate Bria-OTS™ alone, with plans to later test it in combination with tislelizumab.
Additionally, BeiGene's shares experienced changes as TD Cowen adjusted its price target for the company's shares to $254, maintaining a Buy rating. Jefferies also revised the price target for BeiGene to $283.00, despite a marginal decrease from the previous target.
These adjustments followed BeiGene's announcement of its product revenue, which surpassed expectations with a total of $747 million, an 8% increase over the consensus of $694 million.
Furthermore, BeiGene reported a significant increase in its first-quarter revenue, which surged 68% to $752 million from $448 million in the same period last year. The company's product revenue, which includes its flagship BRUKINSA treatment, soared 82% to $747 million, exceeding the analyst consensus estimate.
The company's net loss for the quarter also narrowed to -$251.15 million from -$348.43 million in the same quarter last year.
In related news, a survey by the Biotechnology Innovation Organization revealed that a significant majority of U.S. biotech companies are engaged in contractual relationships with Chinese firms. Among these, 79% have at least one contract or product agreement with a manufacturer based in or owned by China.
InvestingPro Insights
In light of the recent analysis by Jefferies on BeiGene, Ltd. (NASDAQ:BGNE), it's worth noting that BeiGene holds more cash than debt on its balance sheet, which can be a sign of financial stability for potential investors. Additionally, the company's impressive gross profit margins, which stood at 84.69% for the last twelve months as of Q1 2024, underscore its ability to maintain profitability on its products, a key factor when considering the company's financial health and operational efficiency.
While analysts do not expect BeiGene to be profitable this year, the substantial revenue growth of 77.42% over the last twelve months as of Q1 2024 indicates a strong increase in sales, which could be partially attributed to the uptick in BTK inhibitor prescriptions noted by Jefferies. Moreover, the company's significant return over the last three months, at 18.18%, may reflect investor optimism about its growth prospects.
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