BeiGene (BGNE) to Report Q4 Earnings: What's in the Cards?

BeiGene BGNE is expected to report its fourth-quarter 2023 results soon.

BeiGene currently markets three internally discovered oncology products, including BTK inhibitor, Brukinsa(zanubrutinib), in the United States, China, EU, United Kingdom and additional international markets. The company markets its other products like anti-PD-1 antibody, tislelizumab, in the EU and China, and PARP inhibitor, pamiparib, only in China.

The company has also in-licensed the rights to distribute an additional 14 approved medicines for the China market, which contributes to its top line.

In the past year, shares of BeiGene have plunged 35.3% compared with the industry's 8.7% decline.

Factors to Consider

BeiGene reports its revenues under two segments: Product Revenue and Collaboration Revenue. The company's fourth-quarter revenues are expected to have been driven by the sales of its internally discovered and developed products, as well as increased sales of in-licensed products from Amgen AMGN.

Sales in the Product Revenue segment are likely to have been boosted by the increased sales of Brukinsa and tislelizumab in the fourth quarter of 2023. The U.S. sales of Brukinsa have been skyrocketing as the drug continues to gain market share across all its FDA-approved indications. The positive trend is likely to have continued in the to-be-reported quarter. Brukinsa sales are likely to have increased in China in the to-be-reported quarter as well.

Tislelizumab sales in China are likely to have benefited from rising patient demand and valiant marketing efforts. Sales of additional in-licensed products from Amgen have also been encouraging, generating incremental revenues for BeiGene.

BGNE entered into a global strategic oncology collaboration with Amgen in October 2019. Per the agreement, the company in-licensed commercialization and development rights to three of Amgen's approved products, Xgeva, Kyprolis and Blincyto, in China. These two companies also agreed to jointly develop a portfolio of oncology assets in Amgen's pipeline globally. However, BeiGene is responsible for development and commercialization in China.

Operating expenses are likely to have increased owing, to an improvement in internal costs for research and development and sales and marketing in the United States and EU. However, BeiGene expects its robust product revenue growth to continue to meaningfully outpace operating expenses, generating continued operating leverage.

Other Updates

During the to-be-reported quarter, BeiGene announced that Brukinsa, in combination with obinutuzumab, was approved in the EU to treat adult patients with relapsed or refractory (R/R) follicular lymphoma FL who have received at least two prior lines of systemic therapy. Brukinsa is now approved for four indications in the EU, including R/R FL, chronic lymphocytic leukemia (CLL), marginal zone lymphoma (MZL) and Waldenström's macroglobulinemia WM.

The approval in the EU for R/R FL was based on positive results from the company's ROSEWOOD study, in which, patients treated with the Brukinsa/Obinutuzumab combo achieved a higher overall response rate compared with obinutuzumab monotherapy.

BeiGene recently reported the FDA's approval of a label update for Brukinsa to include superior progression-free survival results from the phase III ALPINE study comparing the drug against Imbruvica (ibrutinib) in previously treated patients with R/R CLL. Imbruvica is being jointly developed and commercialized by J&J and AbbVie for several blood cancer indications in different geographies.

In the United States, Brukinsa is approved for the treatment of adult patients with CLL, WM, MZL and mantle cell lymphoma.

Earnings Surprise History

BeiGene's earnings surpassed expectations in two of the trailing four quarters, missing the mark on the other two occasions. The company delivered an average earnings surprise of 41.12% in the same time frame.

In the last reported quarter, the company reported an earnings surprise of 163.61%.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for BeiGene this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: BeiGene has an Earnings ESP of -22.86%. The Most Accurate Estimate is pegged at a loss of $2.89 per share, wider than the Zacks Consensus Estimate of a loss of $2.36.

Zacks Rank: BGNE currently carries a Zacks Rank #3.

BeiGene, Ltd. Price, Consensus and EPS Surprise

BeiGene, Ltd. price-consensus-eps-surprise-chart | BeiGene, Ltd. Quote

Stocks to Consider

Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around.

CRISPR Therapeutics CRSP has an Earnings ESP of +100.00% and a Zacks Rank #3 at present.'

CRISPR's stock has shot up 76.3% in the past year. It beat earnings estimates in each of the last four quarters. CRSP has an earnings surprise of 45.74%, on average.

Sarepta Therapeutics SRPT has an Earnings ESP of +877.29% and a Zacks Rank #2 at present.

Sarepta's stock has gained 10.4% in the past year. Sarepta beat earnings estimates in each of the last four quarters. SRPT has an earnings surprise of 48.67%, on average.

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