BeiGene's (BGNE) Shares Surge 32% in a Month: Here's Why

BeiGene, Ltd. BGNE is a next-gen oncology company focusing on discovering and developing innovative and affordable treatments for cancer patients worldwide.

The company currently markets three internally discovered oncology products, including BTK inhibitor, Brukinsa (zanubrutinib), in the United States, China, the EU, the United Kingdom and additional international markets. BeiGene markets its other products like anti-PD-1 antibody, tislelizumab, in the EU and China, and PARP inhibitor, pamiparib, only in China.

Together, these three marketed products, either as a monotherapy or in combination with other agents, treat a plethora of oncology indications across several geographies, including the United States, the EU, the UK and China.

The company has also in-licensed the rights to distribute additional approved medicines for the China market, which contributes to its top line as well.

In the past month, BeiGene’s shares rallied 32%, which was mainly driven by the European Commission’s approval of an application in April 2024, seeking the label expansion of tislelizumab as a treatment for adult patients with non-small cell lung cancer (NSCLC), as a monotherapy and in combination, across three indications, including first- and second-line use.

Tislelizumab will be marketed in the EU under the brand name Tizveni for the approved NSCLC indications. The same compound is already marketed under the brand name, Tevimbra, in the EU for the second-line treatment of advanced or metastaticesophageal squamous cell carcinoma (ESCC).

Per BGNE, the NSCLC indications will be combined with the second-line ESCC indication under the brand name Tevimbra, which is expected to be launched later in 2024 in the first EU countries.

Year to date, shares of BeiGene have lost 4.2% compared with the industry’s 4.9% decline.

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Image Source: Zacks Investment Research

In the United States, BeiGene recently received FDA approval for Tevimbra monotherapy for the second-line treatment of the same ESCC indication as in the EU. The drug is expected to be launched commercially in the second half of 2024.

The label expansion of tislelizumab in the EU and its first approval in the United States is expected to considerably boost the top line. In the first quarter of 2024, revenues generated from total tislelizumab sales were $145 million, representing 26% growth from the year-ago quarter.

Regulatory filings seeking label expansion of the drug as a first-line treatment for patients with unresectable, recurrent, locally advanced or metastatic ESCC and first-line gastric or gastroesophageal junction cancers are also currently under review in the United States and the EU.

Potential label extensions in these geographies will further expand the eligible patient population for the drug, which should drive further revenue growth from its sales.

The strong performance of Brukinsa, approved for various blood cancers, has also likely contributed to the share price growth of BeiGene. In the first quarter of 2024, U.S. sales of the drug totaled $351 million, reflecting 153% over the prior-year period as it gained considerable market share in the region.

BeiGene, Ltd. Price and Consensus

BeiGene, Ltd. Price and Consensus

BeiGene, Ltd. price-consensus-chart | BeiGene, Ltd. Quote

Zacks Rank and Stocks to Consider

BeiGene currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the drug/biotech industry are Ligand Pharmaceuticals LGND, ANI Pharmaceuticals ANIP and Annovis Bio ANVS. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2024 earnings per share (EPS) has remained constant at $4.56. During the same time frame, the consensus estimate for 2025 EPS has remained constant at $5.27. Year to date, shares of LGND have gained 20.5%.

Ligand beat estimates in each of the trailing four quarters, delivering an average surprise of 56.02%.

In the past 30 days, estimates for ANI Pharmaceuticals’ 2024 EPS have risen from $4.43 to $4.44. During the same period, the consensus estimate for 2025 EPS has remained constant at $5.04. Year to date, shares of ANIP have rallied 11.4%.

ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering an average surprise of 53.90%.

In the past 30 days, the Zacks Consensus Estimate for Annovis’ 2024 loss per share has narrowed from $3.35 to $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $2.82 to $1.95. Year to date, shares of ANVS have plunged 55.6%.

ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%.

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Ligand Pharmaceuticals Incorporated (LGND) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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