BGNE - BeiGene: Navigating Patent Disputes Towards Profitability (Rating Upgrade)

2024-06-21 14:41:10 ET

Summary

• Brukinsa, a BTK inhibitor by BeiGene, shows strong revenue growth amidst ongoing patent litigation with AbbVie.
• BeiGene's financial health appears stable, with a favorable current ratio and a cash runway extending into 2026.
• I recommend buying BeiGene stock due to Brukinsa's robust growth potential and the company's lower valuation since last year.

BeiGene: Evaluating Brukinsa's Potential Amidst Ongoing Litigation

BeiGene, Ltd.' s ( BGNE ) stock is off nearly 23% since my review one year ago. My article then focused on the patent battle between the company and AbbVie Inc. ( ABBV ) regarding BeiGene's BTK inhibitor, Brukinsa (zanubrutinib). I ended with a "hold" recommendation, stating:

Despite profitability concerns and the lawsuit, BGNE's strong momentum, diversified drug portfolio, and robust R&D capabilities suggest a hold recommendation for existing shareholders, while potential investors should await further clarity on the lawsuit and profitability trajectory.

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