What we think about BeiGene (BGNE)
BeOne Medicines in Three Words: China, Innovative, Partnerships
Breaking Update: BeiGene is in the middle of changing its name to BeOne Medicines, pending shareholder approval in early 2025. The stock's ticker has already changed from BGNE to ONC.
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Background
BeiGene was founded in 2010 with the mission of improving the broken state of drug development. It sought to develop personalized medicines that would target specific variants of a patient’s genome, then make them inexpensively to be globally available.
In 2020, its BTK inhibitor "Brukinsa" became the first Chinese-developed drug to win the commercial approval of America’s FDA. It continued to diversify its pipeline with other drugs too, such as tislelizumab and pamiparib.
These drugs were not only innovative new medicines, but they were also outperforming several of the world’s best-in-class blockbuster drugs such as AbbVie’s (NYSE: ABBV) Imbruvica or AstraZeneca’s (Nasdaq: AZN) Calquence. BeiGene was becoming significantly more valuable as a company, especially as it was progressing new candidates into later-stage trials.
Today, tislelizumab has joined Brukinsa and won its own FDA approval. Now commercialized as Tevimbra, this PD-1 inhibitor gives the company a second income stream to organically fund its growing pipeline.
Even though BeiGene is headquartered in China, it aims to sell its drugs all over the world. It conducts trials in-house rather than outsourcing them to CROs, and it purposely sets the R&D bar high so that it can apply and win approvals in the US, Europe, and Japan. On average, BeiGene’s research programs cost 20% more than would be necessary if they were just seeking China’s regulatory blessing.
BeiGene has officially commercialized Brukinsa (a BTK inhibitor), Tevimbra (a PD-1), and Pamiparib (a PARP inhibitor). Along with the rights it holds to also sell its partners’ drugs, it is now selling more than two dozen approved assets in China, in the US, and in Europe.
BeiGene is headquartered in Beijing and it employs around 10,000 people. Revenues were $2.5 billion in 2023, up 70% year-over-year.
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"For those who Believe in the growth story, excellent execution and a promising pipeline make now a good time to consider a position."
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