Summary of BeOne Medicines (ONC/688235.SS) Earnings Review Company Overview - BeOne Medicines is a global oncology company based in Switzerland, focusing on innovative cancer treatments, particularly in hematology and solid tumors, with key products including Brukinsa and Tevimbra [13][14]. Key Financial Highlights - **2Q Product Sales**: Achieved US$1.3 billion, a 41% year-over-year increase, surpassing expectations (GSe: US$1.23 billion) [1] - **Brukinsa Sales**: Contributed US$684 million, reflecting a 43% year-over-year growth and a 21% quarter-over-quarter increase [1] - **Tevimbra Sales**: Reported US$194 million, a 22% year-over-year increase, with strong performance in China [1] - **China Sales**: Reached US$83 million, a 31% year-over-year increase [1] Guidance and Profitability - **FY25 Guidance**: Raised from US$4.9 billion to a range of US$5.0 billion to US$5.3 billion [1] - **Net Income**: Increased to US$94 million in 2Q, compared to US$1 million in 1Q, driven by strong topline growth and a gross profit margin (GPM) of 87.4% [2] - **Operating Expenses**: SG&A expenses were US$538 million (+21% y/y), and R&D expenses were US$525 million (+15% y/y) [2] Market Position and Competitive Landscape - **Market Share**: Brukinsa continues to gain market share among BTK inhibitors, with a 38% share in the US [1][11] - **1L CLL Position**: Management expressed confidence in maintaining a strong position against competition from pirtobrutinib, citing the need for head-to-head trials for new entrants [7] Future Catalysts - **Upcoming Milestones**: Key trials and data readouts expected in the next 12 months include: - Brukinsa: Phase 3 MANGROVE trial readout in TN MCL in 2H25 - Sonrotoclax: First global registrational filing in R/R MCL in 2H25 - BTK CDAC: Phase 3 initiation in R/R CLL in 2H25 [8] Valuation and Price Target - **Earnings Estimates**: Adjusted FY2025-2027 earnings estimates to US$2.77, US$6.61, and US$8.04 respectively [9] - **Target Prices**: Updated 12-month target prices to US$378.20 for ONC and Rmb328.65 for A-share [9][14] Risks and Considerations - **Key Risks**: Include uncertainties in R&D and regulatory approvals, competition in the BTK/PD-1 space, and potential market access bottlenecks [13][14]. Conclusion - BeOne Medicines is positioned for growth with strong sales performance, raised guidance, and a robust pipeline. The company is well-placed to navigate competitive pressures and capitalize on upcoming clinical milestones [13][14].

Investment Rating - The investment rating for BeiGene is "Buy" with a target price of US$345.00, indicating an expected share price return of 48.5% [2][4]. Core Insights - BeiGene is transitioning to a global pharmaceutical player, officially changing its name to BeOne Medicines on May 23, 2025. The product Brukinsa has outperformed competitors Calquence and Imbruvica in quarterly sales in the US, contributing significantly to the overall growth of the BTKi class [1][2]. - The company achieved GAAP profitability in Q1 2025 and reiterated its FY25 guidance, projecting revenues between US$4.9 billion and US$5.3 billion, with GAAP operating expenses between US$4.1 billion and US$4.4 billion. The company has a robust pipeline of late- and early-stage catalysts that are expected to drive future growth [1][2]. Summary by Sections Financial Performance - In Q1 2025, BeiGene achieved positive GAAP operating income of US$11 million, marking a significant milestone for the company [1]. - The company has set a revenue guidance for FY25 between US$4.9 billion and US$5.3 billion, with operating expenses projected between US$4.1 billion and US$4.4 billion [1]. Market Position - Brukinsa has surpassed both Calquence and Imbruvica in US quarterly sales, driving over 100% of the net 11% year-over-year growth in the BTKi class, while Imbruvica saw a contraction of approximately 13% and Calquence only a 3% growth [1]. - The transformation into a global pharmaceutical entity is expected to enhance BeiGene's market position and investor appeal [1]. Valuation - The target price of US$345.00 is derived from a discounted cash flow (DCF) analysis, utilizing a weighted average cost of capital (WACC) of 9% and a terminal growth rate of 2.5% post-2032 [4].