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BeOne Medicines (ONC)
NASDAQ:ONC
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BeOne Medicines
(NASDAQ:ONC)
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Rating:55Neutral
Price Target:
$322.00
▼(-6.09% Downside)
BeOne Medicines' overall score is driven by strong earnings call insights and positive technical indicators, offset by weak financial performance and valuation concerns. The company's growth potential is promising, but profitability and cash flow stability remain key challenges.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for BeOne's products, enhancing its market position and supporting long-term financial stability.
Market Leadership
Market leadership in BTK inhibitors strengthens BeOne's competitive advantage, ensuring sustained revenue streams and reinforcing its brand reputation.
Pipeline Progress
A strong pipeline with numerous trials indicates future growth potential and innovation, crucial for maintaining competitive edge in the biotech industry.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder reinvestment in R&D and expansion efforts, impacting long-term growth and financial health.
Cash Flow Volatility
Volatile cash flow can limit the company's ability to fund operations and strategic initiatives, posing risks to financial stability and growth.
Aggressive Competition
Intense competition may pressure pricing and margins, challenging BeOne's ability to maintain its market position and profitability over time.
BeOne Medicines (ONC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.47B
Dividend YieldN/A
Average Volume (3M)378.62K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth47.14%
EPS Growth66.69%
CountryUS
Employees11,000
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)0.91
Shares Outstanding109,663,280
10 Day Avg. Volume436,825
30 Day Avg. Volume378,617
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue5.59
Enterprise Value/Gross Profit6.54
Enterprise Value/Ebitda285.72
Forecast
1Y Price Target
$361.96Price Target Upside5.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
BeOne Medicines Business Overview & Revenue Model
Company DescriptionBeOne Medicines, formerly known as BeiGene, is a global oncology company focused on discovering, developing, and commercializing innovative cancer therapies. Founded in 2010 and headquartered in Cambridge, Massachusetts—with operations spanning over 45 countries across six continents—the company rebranded as BeOne in late 2024 and redomiciled to Basel, Switzerland in 2025. BeOne has established itself as a leader in immuno-oncology and targeted therapies, with key assets including Tevimbra (tislelizumab), a PD-1 monoclonal antibody approved for multiple cancer indications globally, and Brukinsa (zanubrutinib), a Bruton's tyrosine kinase (BTK) inhibitor that surpassed $1.3 billion in annual sales and is approved in major markets such as the U.S., Europe, and China. The company’s strategy combines internal R&D with the development of assets sourced from external partnerships, driving a robust pipeline across hematologic malignancies and solid tumors.
How the Company Makes MoneyBeOne Medicines generates revenue through a multi-faceted business model that includes the development and commercialization of its proprietary drug candidates. The primary revenue streams consist of licensing agreements with larger pharmaceutical companies, which pay upfront fees and royalties for the rights to develop and market BeOne's drugs. Additionally, the company may engage in partnerships for research and development collaborations, receiving funding and milestone payments as specific targets are achieved. Grants and government funding for scientific research also contribute to their income. Strategic collaborations with academic institutions and other biotech firms further enhance their revenue potential, allowing BeOne Medicines to share resources and access broader markets.
BeOne Medicines Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and market leadership, particularly with BRUKINSA's success. Significant progress was noted in pipeline developments and global market expansion. Despite facing competition and challenges in fixed duration therapies, the company's achievements and optimistic outlook for future milestones contributed to a broadly positive sentiment.Q2-2025 Updates
Positive Updates
Record Revenue and Growth
BeOne reported a revenue of $1.3 billion for Q2 2025, representing a 42% year-on-year growth. GAAP earnings per ADS increased by $2 from Q2 of the previous year, and the company generated $220 million of free cash flow.
BRUKINSA Market Leadership
BRUKINSA became the #1 BTK inhibitor in the U.S. market, achieving global revenues of $950 million, growing 49% year-over-year. It demonstrated a 34% reduced risk of progression or death and lower cardiac toxicity versus ibrutinib in the ALPINE trial.
Strong Global Product Revenue
The U.S. market generated $685 million with a 43% growth, China revenue was $429 million with a 23% increase, and Europe contributed $152 million, growing 87% year-over-year.
Pipeline Progress and R&D Achievements
The company filed sonro's initial NDAs in China and expects the initial global approval by the end of 2026. Over 60 abstracts were presented at major conferences, and new Phase III studies were initiated for sonro and BTK CDAC.
Improved Financial Outlook
Gross margin improved to approximately 87%, and non-GAAP net income reached $253 million, a significant increase compared to the previous year. The revenue guidance for the full year 2025 was updated to $5 billion to $5.3 billion.
Negative Updates
Aggressive Market Competition
BRUKINSA faced aggressive discounting from competitors despite its market leadership, although its broad access strategy and protected class status helped maintain patient access.
Challenges with Fixed Duration Therapies
The uptake of fixed duration therapies in CLL has been limited, with existing options not meeting benchmarks for deep and durable responses, high PFS, and safety.
Company Guidance
During BeOne's Q2 2025 earnings call, the company provided detailed guidance on their financial outlook and strategic initiatives. They reported a substantial revenue of $1.3 billion, marking a 42% year-on-year growth, with BRUKINSA contributing $950 million to this figure, showcasing a 49% increase. The company highlighted their financial guidance for the full year 2025, projecting total revenues between $5 billion and $5.3 billion. They expect a mid- to high-80% range for GAAP gross margins, reflecting favorable pricing dynamics and cost efficiencies. Additionally, they anticipate operating expenses between $4.1 billion and $4.4 billion, aiming to achieve positive GAAP operating income and generate positive free cash flow for the year. BeOne's strategic focus includes expanding their oncology pipeline, with over 20 phase III trials underway and expectations for more than 10 proof-of-concept data readouts by 2026. The company also emphasized their leading position in the U.S. BTK inhibitor market and their commitment to further enhancing BRUKINSA's market leadership through innovative strategies and robust clinical data.BeOne Medicines Financial Statement Overview
Summary
BeOne Medicines shows positive revenue growth and improved gross margins, but faces challenges with profitability and cash flow stability. The balance sheet is conservatively leveraged, yet negative ROE indicates profitability issues.Income Statement
BeOne Medicines shows a positive revenue growth trend, with a notable 9.25% increase in the TTM period. However, profitability remains a challenge, as evidenced by negative net profit and EBIT margins. The company has improved its gross profit margin to 85.52% in the TTM, indicating efficient cost management. Despite these improvements, the persistent negative net income and EBIT margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is relatively low at 0.27 in the TTM, suggesting a conservative leverage approach. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, reflecting a solid capital structure, but the negative ROE points to profitability issues that need addressing.55
Neutral
Cash Flow
BeOne Medicines has shown improvement in free cash flow, but the growth rate is negative in the TTM, indicating volatility. The operating cash flow to net income ratio is positive, suggesting some operational cash generation, but the free cash flow to net income ratio indicates that cash flow is not yet robust enough to cover net losses. The company needs to stabilize its cash flow to support long-term growth.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.56B | 3.81B | 2.46B | 1.42B | 1.18B | 308.87M |
| Gross Profit | 3.90B | 3.22B | 2.08B | -511.06M | -447.86M | -1.06B |
| EBITDA | 89.25M | -396.44M | -1.12B | -1.72B | -1.39B | -1.63B |
| Net Income | -177.64M | -644.79M | -881.71M | -2.00B | -1.41B | -1.60B |
Balance Sheet | ||||||
| Total Assets | 6.30B | 5.92B | 5.81B | 6.38B | 8.65B | 5.60B |
| Cash, Cash Equivalents and Short-Term Investments | 2.76B | 2.63B | 3.17B | 4.53B | 6.62B | 4.66B |
| Total Debt | 1.03B | 1.08B | 930.18M | 596.67M | 694.64M | 561.96M |
| Total Liabilities | 2.53B | 2.59B | 2.27B | 2.00B | 2.40B | 1.73B |
| Stockholders Equity | 3.77B | 3.33B | 3.54B | 4.38B | 6.24B | 3.87B |
Cash Flow | ||||||
| Free Cash Flow | 164.84M | -669.77M | -1.75B | -1.97B | -1.61B | -1.51B |
| Operating Cash Flow | 571.21M | -140.63M | -1.16B | -1.50B | -1.30B | -1.28B |
| Investing Cash Flow | -416.03M | -548.35M | 60.00M | 1.08B | 640.66M | -3.17B |
| Financing Cash Flow | 9.39M | 193.45M | 416.48M | -18.97M | 3.64B | 5.20B |
BeOne Medicines Technical Analysis
Positive
342.89
Price Trends
305.97
Positive
276.83
Positive
250.78
Positive
Market Momentum
9.05
Positive
58.63
Neutral
55.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONC, the sentiment is Positive. The current price of 342.89 is above the 20-day moving average (MA) of 324.21, above the 50-day MA of 305.97, and above the 200-day MA of 250.78, indicating a bullish trend. The MACD of 9.05 indicates Positive momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONC.
BeOne Medicines Risk Analysis
BeOne Medicines disclosed 92 risk factors in its most recent earnings report. BeOne Medicines reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BeOne Medicines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 21.24B | 13.76 | 9.76% | ― | 3.48% | 31.44% | |
70 Neutral | 20.38B | 21.79 | 13.13% | 1.69% | 12.58% | 13.00% | |
58 Neutral | 21.51B | -127.59 | -30.46% | ― | 2.43% | 64.37% | |
55 Neutral | $41.47B | ― | -4.95% | ― | 47.14% | 66.69% | |
53 Neutral | 13.44B | -19.09 | 0.00% | ― | 0.00% | -338.19% | |
49 Neutral | 23.60B | -60.81 | -1.88% | ― | 7.51% | 30.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
ONC
BeOne Medicines
342.89
141.58
70.33%
BIIB
Biogen
143.81
-52.00
-26.56%
DGX
Quest Diagnostics
183.33
32.29
21.38%
TEVA
Teva Pharmaceutical
18.45
0.73
4.12%
SMMT
Summit Therapeutics
19.23
-2.68
-12.23%
BNTX
BioNTech SE
96.31
-16.74
-14.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.