HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>BeiGene's 24Q2 results far exceeded expectations. Sales of BRUKINSA may exceed that of Calquence for the first time next year. Breakeven in 2024 becomes possible if effective cost control continues.</li>
<li>BeiGene's 2024 revenue could exceed Hengrui, marking the official transition of China's innovative pharmaceutical industry from the old generation to the new one. Reasonable market value for BeiGene is US$19-27.5bn.</li>
<li>Current valuation cannot reflect strong fundamentals.As BeiGene has established a convincing profit model, the market turmoil actually provides investors with a good opportunity to buy the stock at low price.</li>
</ul>


BeiGene's 24Q2 results far exceeded expectations. Sales of BRUKINSA may exceed that of Calquence for the first time next year. Breakeven in 2024 becomes possible if effective cost control continues.
BeiGene's 2024 revenue could exceed Hengrui, marking the official transition of China's innovative pharmaceutical industry from the old generation to the new one. Reasonable market value for BeiGene is US$19-27.5bn.
Current valuation cannot reflect strong fundamentals.As BeiGene has established a convincing profit model, the market turmoil actually provides investors with a good opportunity to buy the stock at low price.


BeiGene (6160.HK/BGNE.US) 24Q2 - It Is Time to Open a New Chapter in China's Pharmaceutical Industry

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Product sales continued beating expectations. In 2Q24, BeiGene recorded total product sales of US$921mn (+23% QoQ, +66% YoY).</li><li>The 1H24 total product sales reached US$1.67bn, representing 51.4% of our previous FY24 estimate, beating our expectations.</li><li>Zanubrutinib (zanu) maintained strong sales momentum, increasing 30% QoQ or 107% YoY to US$637mn. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Product sales continued beating expectations. In 2Q24, BeiGene recorded total product sales of US$921mn (+23% QoQ, +66% YoY).The 1H24 total product sales reached US$1.67bn, representing 51.4% of our previous FY24 estimate, beating our expectations.Zanubrutinib (zanu) maintained strong sales momentum, increasing 30% QoQ or 107% YoY to US$637mn. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BeiGene (BGNE US) - Sales Exceeding Expectations and Achieving Non-GAAP Profitability

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Revolution Medicines, an American oncology-focused biotechnology company, has made considerable progress in developing therapies for patients with RAS-addicted cancers.</li>
<li>We launched coverage of the stock In November 2023 and added Revolution Medicines to our high conviction list of ideas.</li>
<li>RevMed shares has massively outperformed in 2024 with shares up ~92% YTD vs. a ~12% gain on the XBI. I established a $55 PT and see the valuation as full. </li>
</ul>


Revolution Medicines, an American oncology-focused biotechnology company, has made considerable progress in developing therapies for patients with RAS-addicted cancers.
We launched coverage of the stock In November 2023 and added Revolution Medicines to our high conviction list of ideas.
RevMed shares has massively outperformed in 2024 with shares up ~92% YTD vs. a ~12% gain on the XBI. I established a $55 PT and see the valuation as full. 


2023 High Conviction Update: Revolution Medicines, Time To Take Profits?

<ul>
<li>The market is satisfied with BeiGene's 24Q1 performance. The major reason for BeiGene to narrow net loss in 24Q1 was based on strong product revenue growth rather than cost control. </li>
<li>Given the varying pace of product promotion/R&amp;D expenditure and the changes of product sales growth, BeiGene’s adjusted loss may achieve breakeven in a certain quarter of this year (e.g. 24Q4).</li>
<li>
<a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene (6160 HK) </a>is hard to cut costs largely. Sustained overall profitability may not be achieved until 2026 or 2027. But at least, we still see hope for a turnaround.</li>
</ul>


The market is satisfied with BeiGene's 24Q1 performance. The major reason for BeiGene to narrow net loss in 24Q1 was based on strong product revenue growth rather than cost control. 
Given the varying pace of product promotion/R&amp;D expenditure and the changes of product sales growth, BeiGene’s adjusted loss may achieve breakeven in a certain quarter of this year (e.g. 24Q4).

BeiGene (6160 HK) is hard to cut costs largely. Sustained overall profitability may not be achieved until 2026 or 2027. But at least, we still see hope for a turnaround.


BeiGene (6160.HK/​BGNE.US/688235.CH) 24Q1- A Breakeven Point Is on the Horizon, but It Is Not Stable

<ul><li>Product sales continued beating expectation. In 1Q24, BeiGene recorded total product sales of US$747mn (+18% QoQ, +82% YoY), representing 25.7% of our previous FY24 estimate.</li><li>Zanubrutinib (zanu) maintained strong sales momentum, with sales increasing 18% QoQ or 131% YoY to US$489mn.</li><li>The strong performance of zanu was driven by market share gain in CLL in the US and the expansion of reimbursement coverage in the EU. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Product sales continued beating expectation. In 1Q24, BeiGene recorded total product sales of US$747mn (+18% QoQ, +82% YoY), representing 25.7% of our previous FY24 estimate.Zanubrutinib (zanu) maintained strong sales momentum, with sales increasing 18% QoQ or 131% YoY to US$489mn.The strong performance of zanu was driven by market share gain in CLL in the US and the expansion of reimbursement coverage in the EU. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BeiGene (BGNE US) - Consistently Exceeding Expectations

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeiGene (BGNE US)

BeiGene (6160.HK/BGNE.US) 24Q2 - It Is Time to Open a New Chapter in China's Pharmaceutical Industry

BeiGene's strong Q2 results make breakeven possible in Q4.BRUKINSA may surpass Calquence in sales next year.BeiGene is a new king in China's...

Xinyao (Criss) Wang

BeiGene (BGNE US) - Sales Exceeding Expectations and Achieving Non-GAAP Profitability

Product sales continued beating expectations. In 2Q24, BeiGene recorded total product sales of US$921mn (+23% QoQ, +66% YoY).

CMB International

2023 High Conviction Update: Revolution Medicines, Time To Take Profits?

I remove Revolution Medicines stock from my high conviction list of ideas due to achieving a $55.00 price target and full valuation relative to peers.

Andrei Zakharov

BeiGene (6160.HK/BGNE.US/688235.CH) 24Q1- A Breakeven Point Is on the Horizon, but It Is Not Stable

BeiGene's high product revenue growth in 24Q1 narrowed net loss, with potential for breakeven in 24Q4.This is an affirmation for BeiGene....

Xinyao (Criss) Wang

BeiGene (BGNE US) - Consistently Exceeding Expectations

Product sales continued beating expectation. In 1Q24, BeiGene recorded total product sales of US$747mn (+18% QoQ, +82% YoY), representing 25.7% of...

CMB International

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BeiGene (6160.HK/BGNE.US) 24Q2 - It Is Time to Open a New Chapter in China's Pharmaceutical Industry

​BeiGene's strong Q2 results make breakeven possible in Q4.BRUKINSA may surpass Calquence in sales next year.BeiGene is a new king in China's...

Xinyao (Criss) Wang

BeiGene (BGNE US) - Sales Exceeding Expectations and Achieving Non-GAAP Profitability

Product sales continued beating expectations. In 2Q24, BeiGene recorded total product sales of US$921mn (+23% QoQ, +66% YoY).

CMB International

2023 High Conviction Update: Revolution Medicines, Time To Take Profits?

I remove Revolution Medicines stock from my high conviction list of ideas due to achieving a $55.00 price target and full valuation relative to peers.

Andrei Zakharov

BeiGene (6160.HK/​BGNE.US/688235.CH) 24Q1- A Breakeven Point Is on the Horizon, but It Is Not Stable

​BeiGene's high product revenue growth in 24Q1 narrowed net loss, with potential for breakeven in 24Q4.This is an affirmation for BeiGene....

Xinyao (Criss) Wang

BeiGene (BGNE US) - Consistently Exceeding Expectations

Product sales continued beating expectation. In 1Q24, BeiGene recorded total product sales of US$747mn (+18% QoQ, +82% YoY), representing 25.7% of...

CMB International

BeiGene's strong Q2 results make breakeven possible in Q4.BRUKINSA may surpass Calquence in sales next year.BeiGene is a new king in China's...

BeiGene (6160.HK/BGNE.US/688235.CH) 24Q1- A Breakeven Point Is on the Horizon, but It Is Not Stable

BeiGene's high product revenue growth in 24Q1 narrowed net loss, with potential for breakeven in 24Q4.This is an affirmation for BeiGene....