BeiGene's Brukinsa Positioned as Preferred BTK Inhibitor: Analyst Says Survey Supports Bullish View

Citi initiated coverage on BeiGene Ltd BGNE with a price target of $275 and a Buy stock rating.

The analyst notes that a detailed survey of 85 U.S. hematologists/oncologists suggests BeiGene's flagship asset Brukinsa is positioned to become the favored BTK inhibitor for Chronic lymphocytic leukemia (CLL), a cancer of the blood and bone marrow patients starting first-line therapy. 

Last week, the FDA accepted for review of Brukinsa's supplemental application seeking approval for a fifth indication, relapsed or refractory (R/R) follicular lymphoma (FL) after at least two prior lines of therapy, with a target action date in Q1 of 2024.

The analyst projects the global annual BTKi market will grow from its ~$7 billion revenue base in 2022 to ~$12 billion by 2028, of which it sees Brukinsa generating 2028 global sales of ~$4 billion (vs. consensus of around $3 billion). 

For Q1 FY23, global sales of Brukinsa stood at $211.4 million, up from $104.3 million a year ago.

Citi analyst expects a successful execution of the U.S. launch of Brukinsa to elevate BeiGene's perception as a major global biopharma player as the company diversifies revenues geographically. 

The analyst also says that beyond Brukinsa, BeiGene has established leading commercial capabilities in China, evidenced by tislelizumab's rapid rise to market share leadership within the China PD-(L)1 class.

Q1 sales of tislelizumab in China were $114.9 million, up from $87.6 million a year ago.

Last month, BeiGene said that it was aware that Pharmacyclics LLC filed a complaint alleging that BeiGene's blood cancer therapy Brukinsa (zanubrutinib) infringes a Pharmacyclics patent issued on June 13, 2023. Pharmacyclics is an AbbVie Inc ABBV company.

Price Action: BGNE shares are up 1.25% at $198.79 on the last check Monday.