BeiGene started at overweight at Morgan Stanley on Brukinsa market share growth
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mbbirdy
- Morgan Stanley has initiated coverage of BeiGene (NASDAQ:BGNE) at overweight saying that the pharma’s key drug Brukinsa (zanubrutinib) is taking over a larger share of the Bruton Tyrosine Kinase inhibitors (BTKi) market.
- The investment bank set a $300 price target (~40% upside based on Dec. 2 close).
- Analyst Sean Laaman said that the second-generation BTKi Brukinsa has better efficacy and safety compared to other BTKi drugs and the market for those meds are growing. For Brukinsa, he sees five-year CAGR (2023-2028E) of better than 30% to ~$6B.
- For the BTKi market as a whole, he sees 21% growth in 2024E to ~$11B and double-digit CAGR to ~$16B in 2028E.
- Laaman added that BeiGene has other pipeline assets that could further help the company. He highlighted the BTK degrader BGB-16683 and the BCL2 inhibitor sonrotoclax, with the latter potentially in combination with Brukinsa.
- He noted that Eli Lilly’s (LLY) third-generation BTKi Jaypirca (pirtobrutinib), which currently has a third-line indication, has first-line data slated for release in Q1 2025. If the results are positive, it could potentially put pressure on Brukinsa.