"Large Banks" CMB International: Beigene's product sales were strong last season, with slight fluctuations on the profit side

Jiangyin International published a report stating that Beigene (06160.HK) had sales of $1.1 billion for Zebrutinib in the fourth quarter of last year, representing a year-on-year increase of 38% and a quarter-on-quarter increase of 10%. Sales in the United States were $845 million, with year-on-year and quarter-on-quarter increases of 37% and 14%, respectively. Among 1LCLL patients, Zebrutinib holds about half of the market share in the BTK category and about a quarter among all treatment drugs. The gross profit margin in the fourth quarter increased by 4.7 percentage points year-on-year to 90.5%, while the general and administrative expense ratio decreased by 7.7 percentage points year-on-year. Non-GAAP net profit surged year-on-year to $225 million. The company guided for revenue of $6.2 billion to $6.4 billion in 2026, GAAP operating expenses of $4.7 billion to $4.9 billion, a gross profit margin in the high 80% range, and non-GAAP net profit of $1.4 billion to $1.5 billion.

The bank indicated that the company focuses on four major areas: 1) Chronic Lymphocytic Leukemia (CLL): Sotigalimab is expected to be launched in Europe and the United States within the year, and BTK CDAC is expected to submit a listing application in 2H26. The fixed-cycle therapy of Zebrutinib + Sotigalimab (ZS) has recently initiated its first mechanism-controlled Phase III trial. In the future, it is expected to form a layout targeting ZS as the main first-line treatment, CDAC as a single agent, and Sotigalimab + CDAC FDR targeting the difficult-to-treat relapse population. 2) Other hematological malignancies: Expanding to other lymphomas, multiple myeloma (MM), acute myeloid leukemia (AML), etc., relying on late-stage products like Zebrutinib, Sotigalimab, and CD19/CD20 targeted tri-antibodies, bispecific antibodies, and cell therapies. 3) Solid tumors: Focusing on breast cancer, lung cancer, and gastrointestinal tumors. Recently, the PD-1 + HER2 bispecific antibody + chemotherapy regimen achieved success in 1L HER2+ gastric cancer, with potential for expanded overseas application scenarios. CDK4, B7H4 ADC, and GPC3/4-1BB bispecific antibodies have entered or will initiate registration studies within the next 12 months. 4) Inflammation/Immunity: Early data for BTK CDAC and IRAK4 CDAC will be read out in 2026. The bank slightly lowered its profit forecast for Beigene for 2026 to 2027 and adjusted the target price to HKD 229.2, maintaining a "Buy" rating