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BeiGene (ONC)
NASDAQ:ONC
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BeiGene
(NASDAQ:ONC)
Rating:60Neutral
Price Target:
$245.00
▼(-4.24%Downside)
Positive Factors
Financial Performance
The first-ever quarterly GAAP profitability marks a significant milestone for BeiGene, driven by strong top-line growth and enhanced operating leverage.
Market Position
Zanubrutinib achieved a leading position in the BTK inhibitor market within China, capturing a significant market share.
Product Development
BeiGene is preparing to initiate Ph3 trials of BGB-43395 in HR+/HER2- breast cancer, showcasing a significant R&D milestone.
Product Sales Growth
Beigene's self-developed drugs, tislelizumab and zanubrutinib, showed significant year-over-year growth in sales.
Negative Factors
Future Competition
There are some concerns for future competition to Tevimbra in China from Akeso/Summit's ivonescimab, which is unlikely to have NRDL coverage until at least FY27.
Patent Challenges
The USPTO invalidated all claims on ABBV's '803 patent, removing a ~$2.5 billion cash outflow assumption for potential settlement fees.
BeiGene (ONC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.09B
Dividend YieldN/A
Average Volume (3M)343.30K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth51.16%
EPS Growth50.65%
CountryUS
Employees11,000
SectorHealthcare
Sector Strength41
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)0.00
Shares Outstanding109,486,740
10 Day Avg. Volume234,311
30 Day Avg. Volume343,298
Financial Highlights & Ratios
PEG Ratio-6.67
Price to Book (P/B)7.89
Price to Sales (P/S)0.00
P/FCF Ratio-8.21
Enterprise Value/Market Cap0.01
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.13
Enterprise Value/Ebitda-0.22
Forecast
1Y Price Target
$335.18Price Target Upside31.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
BeiGene Business Overview & Revenue Model
Company DescriptionBeiGene, Ltd., an oncology company, engages in discovering and developing various treatments for cancer patients in the United States, China, Europe, and internationally. Its commercial stage products include BRUKINSA, a small molecule inhibitor of Bruton's Tyrosine Kinase (BTK) for the treatment of various blood cancers; TEVIMBRA, an anti-PD-1 antibody immunotherapy for the treatment of various solid tumor and blood cancers; and PARTRUVIX, a selective small molecule inhibitor of PARP1 and PARP2 enzymes that is being evaluated as a monotherapy and in combinations for the treatment of various solid tumors. The company's clinical stage products comprise BGB-11417, a small molecule Bcl-2 inhibitor; BGB-16673, a BTK-targeting chimeric degradation activation compound active against wild-type and mutant BTK; BGB-10188; BGB-21447, a Bcl-2 inhibitor; Ociperlimab (BGB-A1217), a TIGIT inhibitor; Zanidatamab, a bispecific HER2-targeted antibody; Surzebiclimab (BGB-A425), a TIM-3 inhibitor; BGB-A445, an OX40 agonist antibody; BGB-15025, a small molecule inhibitor of HPK1; BGB-24714, a SMAC mimetic; BGB-26808, a HPK-1 inhibitor; Lifirafenib and BGB-3245 that are inhibitors of RAF; BGB-30813; BGB-A3055, an anti-CCR8 antibody; and BGB-43395, a CDK-4 inhibitor. It also has various preclinical programs. The company has license agreements with Ensem Therapeutics, Inc.; Shandong Luye Pharmaceutical Co., Ltd.; Shoreline Biosciences, Inc.; Nanjing Leads Biolabs, Inc.; EUSA Pharma; Assembly Biosciences, Inc.; Bio-Thera Solutions, Ltd.; Amgen Inc.; and Beijing Novartis Pharma Co., Ltd. BeiGene, Ltd. was incorporated in 2010 and is based in Camana Bay, the Cayman Islands.
How the Company Makes MoneyBeiGene makes money primarily through the development, production, and commercialization of its oncology drugs. The company's revenue model is based on the sale of its proprietary cancer treatments, which are marketed and distributed in multiple regions, including the United States, China, and other international markets. Key revenue streams include product sales, which are driven by the successful approval and market penetration of its drugs. Additionally, BeiGene partners with other pharmaceutical companies and research institutions to co-develop and commercialize cancer therapies, which can result in milestone payments, royalties, and shared profits. Significant partnerships, such as those with Amgen and Novartis, contribute to its earnings by expanding its product portfolio and global reach.
BeiGene Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.84%|
Next Earnings Date:Aug 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial and operational performance with significant revenue growth, market leadership, and pipeline advancements. Despite challenges in fixed-duration treatments and navigating a complex global environment, the company's strategic initiatives and investments are positioning it well for future growth.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Global sales reached $1.1 billion in Q1 2025, marking a 49% increase from Q1 2024. The U.S. market alone grew by 60%, driven by strong demand for BRUKINSA.
BRUKINSA's Market Leadership
BRUKINSA became the market leader by revenue in the U.S. BTK market, with Q1 2025 sales reaching $563 million, a 60% growth compared to the previous year. It surpassed competitors in new patient starts for CLL.
GAAP Profitability Achieved
For the first time, the company achieved GAAP profitability, with net income showing significant improvement from the previous year.
Robust Pipeline Progress
The company is advancing a strong pipeline, including the BTK CDAC and sonro, with multiple Phase III trials initiated and more than 10 proof-of-concept readouts expected in 2025.
Global Expansion and Growth
Significant sales growth was seen in Europe (75% increase) and the rest of the world (146% increase), driven by new launches and market expansion.
Negative Updates
Challenges in the Fixed Duration Treatment Market
Some fixed-duration regimens failed to meet high efficacy and safety standards, highlighting challenges in this area of treatment.
Macroeconomic and Regulatory Challenges
The company is navigating a complex global environment, including trade policies and tariffs, although it has made significant investments to mitigate these risks.
Company Guidance
During the call, the company provided detailed guidance and updates across various metrics. For the first quarter of fiscal year 2025, they achieved revenue of $1.1 billion, marking a 49% growth compared to the previous year. The U.S. market saw a 60% increase, with BRUKINSA leading in new patient starts and achieving $563 million in sales, representing a 60% year-over-year growth. The company also achieved GAAP profitability for the first time, with significant improvements in operating profit and cash flow. They anticipate full-year revenue between $4.9 billion and $5.3 billion, maintaining a gross margin in the mid-80 percentile range. Additionally, they highlighted their robust pipeline progress, with over 10 proof-of-concept readouts expected across their solid tumor pipeline in 2025, and emphasized the strategic investments made to ensure supply chain resiliency, including an $800 million investment in a New Jersey manufacturing facility. The company also announced their redomiciling to Switzerland, reflecting their evolution into a globally diversified oncology leader.BeiGene Financial Statement Overview
Summary
BeiGene is on a strong growth trajectory with improving revenue and gross profit margins. However, persistent negative net income, high operational costs, and negative free cash flow are key risks. The company's solid equity and cash positions provide stability, but profitability needs to be addressed for long-term sustainability.Income Statement
BeiGene shows a strong revenue growth trajectory with a significant increase from $308.9M in 2020 to $4.18B in TTM 2025. Gross profit margins have improved vastly; however, the company has consistently reported negative EBIT and net income, indicating ongoing operational challenges and high costs relative to revenue.55
Neutral
Balance Sheet
The company maintains a solid equity position with an improving debt-to-equity ratio, indicating disciplined financial management amidst high growth. The equity ratio suggests strong asset backing, though consistent negative net income impacts ROE negatively.60
Neutral
Cash Flow
Operating cash flow has shown improvement in TTM 2025, yet free cash flow remains negative, reflecting substantial capital expenditures and investments. The cash position is strong, providing a buffer for ongoing cash outflows, but profitability remains a concern.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.18B | 3.81B | 2.46B | 1.42B | 1.18B | 308.87M | Gross Profit |
| 3.54B | 3.22B | 2.08B | -511.06M | -447.86M | -1.06B | EBIT |
| -295.75M | -568.20M | -1.21B | -1.79B | -1.44B | -1.66B | EBITDA |
| -117.30M | -396.44M | -1.12B | -1.72B | -1.39B | -1.63B | Net Income Common Stockholders |
| -392.37M | -644.79M | -881.71M | -2.00B | -1.41B | -1.60B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.52B | 2.63B | 3.17B | 4.54B | 6.62B | 4.66B | Total Assets |
| 5.84B | 5.92B | 5.81B | 6.38B | 8.65B | 5.60B | Total Debt |
| 996.83M | 1.08B | 930.18M | 891.13M | 694.64M | 561.96M | Net Debt |
| -1.52B | -1.55B | -2.24B | -2.98B | -3.68B | -819.99M | Total Liabilities |
| 2.34B | 2.59B | 2.27B | 2.00B | 2.40B | 1.73B | Stockholders Equity |
| 3.50B | 3.33B | 3.54B | 4.38B | 6.24B | 3.87B |
| Cash Flow | Free Cash Flow | ||||
| -240.47M | -669.77M | -1.75B | -1.97B | -1.61B | -1.51B | Operating Cash Flow |
| 212.02M | -140.63M | -1.16B | -1.50B | -1.30B | -1.28B | Investing Cash Flow |
| -460.46M | -548.35M | 60.00M | 1.08B | 640.66M | -3.17B | Financing Cash Flow |
| -2.62M | 193.45M | 416.48M | -18.97M | 3.64B | 5.20B |
BeiGene Technical Analysis
Positive
255.86
Price Trends
242.48
Positive
240.89
Positive
221.09
Positive
Market Momentum
3.93
Negative
61.28
Neutral
81.62
Negative
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 255.86 is above the 20-day moving average (MA) of 239.54, above the 50-day MA of 242.48, and above the 200-day MA of 221.09, indicating a bullish trend. The MACD of 3.93 indicates Negative momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 81.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONC.
BeiGene Risk Analysis
BeiGene disclosed 91 risk factors in its most recent earnings report. BeiGene 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 3 New Risks
1.
Your rights as a shareholder will change as a result of the Continuation. Q4, 2024
2.
As a result of increased shareholder voting requirements upon completion of the Continuation, we will have less flexibility with respect to certain aspects of capital management than previously. Q4, 2024
3.
If you fail to make a required tax filing, the Continuation could result in adverse tax consequences for you. Q4, 2024
BeiGene Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $19.10B | 13.15 | 9.19% | ― | 1.25% | 26.10% | |
71 Outperform | $10.89B | 20.82 | 9.64% | ― | 17.99% | 152.10% | |
70 Outperform | $35.49B | 41.80 | 17.33% | ― | 78.01% | ― | |
61 Neutral | $26.72B | ― | -3.87% | ― | 0.58% | -764.64% | |
60 Neutral | $32.09B | ― | -11.44% | ― | 51.16% | 50.65% | |
54 Neutral | $5.24B | 3.27 | -45.39% | 2.80% | 16.77% | -0.07% | |
49 Neutral | $6.06B | ― | -27.51% | ― | -2.46% | -637.11% |
* Healthcare Sector Average
Performance Comparison
ONC
BeiGene
255.86
99.79
63.94%
BIIB
Biogen
133.13
-92.85
-41.09%
BMRN
BioMarin Pharmaceutical
56.65
-26.29
-31.70%
BIO
Bio-Rad Laboratories
219.42
-65.03
-22.86%
ARGX
Argenx Se
585.93
206.63
54.48%
BNTX
BioNTech SE
108.49
10.51
10.73%
BeiGene Corporate Events
Executive/Board ChangesShareholder MeetingsStock Buyback
BeiGene Holds Annual Shareholders Meeting, Key Resolutions Passed
Neutral
May 21, 2025
On May 21, 2025, BeiGene, Ltd. held its Annual Meeting of Shareholders, where approximately 70% of the outstanding ordinary shares were represented. Key resolutions passed included the re-election of several directors, the ratification of Ernst & Young as auditors, and the approval of mandates for share issuance and repurchase. These decisions are poised to influence BeiGene’s strategic direction and operational flexibility, potentially impacting shareholder value and market positioning.
The most recent analyst rating on (ONC) stock is a Buy with a $317.00 price target. To see the full list of analyst forecasts on BeiGene stock, see the ONC Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.