CICC has released a research report stating that it maintains its earnings forecasts for BeiGene (06160) for 2026 and 2027. The firm retains an Outperform industry rating and, based on a DCF model, maintains target prices of RMB 340, HKD 266, and USD 445 for A/H/US shares, implying upside potentials of 13.41%, 24.77%, and 27.77%, respectively.
CICC's key views are as follows: On August 10, BeiGene and Revolution Medicines announced a clinical development and regional commercialization collaboration. The partnership primarily involves two parts: 1) The two parties will evaluate and conduct combination studies of BeiGene's candidate drugs and Revolution's four RAS(ON) inhibitors. The collaboration plans to combine BeiGene's two drugs, BGB-58067 (PRMT5 inhibitor) and BG-T187 (EGFRxMETxMET trispecific antibody), with daraxonrasib (Pan-RAS) or zoldonrasib (RAS G12D) for the treatment of RAS-driven cancers. 2) BeiGene has obtained exclusive rights to develop and commercialize Revolution's four RAS(ON) inhibitors, including daraxonrasib and zoldonrasib, in certain Asian markets. As consideration, Revolution will receive development and sales milestone payments, as well as tiered royalties based on net sales. BeiGene will also be responsible for funding and conducting a global registration Phase 3 clinical trial for one of Revolution's RAS(ON) inhibitors.
CICC believes this move will accelerate the company's development progress in the RAS field. Based on early Tango data, the PRMT5 inhibitor and RAS(ON) show potential for combination use in MTAP-deleted pancreatic cancer with RAS mutations. This collaboration will significantly speed up the development progress of BeiGene's two drugs in this area. Furthermore, the cooperation reflects Revolution's high recognition of BeiGene's domestic commercialization capabilities and global clinical strengths. Drugs like daraxonrasib have become potential blockbuster drugs in the pancreatic cancer field, and combined with BeiGene's mature domestic commercialization capabilities, CICC believes this partnership is expected to boost BeiGene's domestic performance in the future. CICC views that the company's "fast track" clinical development strategy is accelerating its R&D velocity in the solid tumor field, and the value of related molecules is expected to be gradually factored into market capitalization as clinical data is disclosed.
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