Broker: UOB Kay Hian
Date of Report: Thursday, 07 August 2025
BeiGene Delivers Blockbuster 2Q25 Results: Revenue Soars, Margins Expand, and Strong 2025 Outlook
Overview: BeiGene’s Breakout Quarter Powers Up Global Oncology Ambitions
BeiGene (6160 HK), a leading global oncology innovator, has posted stellar results for 2Q25, with revenue soaring and profitability metrics beating expectations. The company’s robust performance—driven by its flagship drug BRUKINSA and a rapidly expanding R&D pipeline—has prompted management to boost 2025 guidance and reaffirm a bullish outlook for the years ahead. UOB Kay Hian maintains a “BUY” rating, raising the target price to HK\$240.00, indicating an upside potential of 31.4%.
Key Stock Data and Performance
- Share Price (HK\$): 182.70
- Target Price (HK\$): 240.00
- Market Cap (US\$m): 37,093.6
- 52-week High/Low (HK\$): 190.8 / 99.8
- Major Shareholders: Amgen (17.6%), Baker Brothers (8.3%), HHLR Fund (6.6%)
- Price Performance (%): 1M: 23.0 | 3M: 19.3 | 6M: 35.3 | 1Y: 84.1 | YTD: 67.3
2Q25 Financial Highlights: Revenue, Earnings, and Margins Surge
- Revenue: US\$2.4 billion (+44.7% YoY)
- Adjusted Net Earnings: US\$389 million (vs. consensus US\$149.9m full-year estimate)
- Gross Profit Margin: 86.5% (up from 84.3% YoY)
- Operating Profit: US\$99 million (vs. -US\$369 million YoY)
- Positive Free Cash Flow: US\$207.4 million
- Positive Operating Cash Flow: US\$307.7 million
Detailed Financial Table (Select Metrics)
| Year to 31 Dec (US\$m) |
2023 |
2024 |
2025F |
2026F |
2027F |
| Net Turnover |
2,459 |
3,810 |
5,302 |
7,003 |
8,622 |
| EBITDA |
– |
(382) |
359 |
734 |
1,623 |
| Operating Profit |
– |
(568) |
186 |
526 |
1,380 |
| Net Profit (Reported) |
(882) |
(645) |
116 |
488 |
1,214 |
| Net Profit (Adjusted) |
(882) |
(645) |
567 |
995 |
1,757 |
| EPS (US\$ cent) |
(65.0) |
(47.1) |
39.0 |
68.4 |
120.8 |
| PE (x) |
n.a. |
n.a. |
59.7 |
34.0 |
19.3 |
| P/B (x) |
8.9 |
9.6 |
9.4 |
8.3 |
6.3 |
| EV/EBITDA (x) |
n.a. |
n.a. |
99.3 |
48.5 |
21.9 |
| Net Margin (%) |
(35.9) |
(16.9) |
2.2 |
7.0 |
14.1 |
| Net Debt/(Cash) to Equity (%) |
(65.0) |
(48.6) |
(43.0) |
(42.2) |
(51.2) |
| ROE (%) |
(22.3) |
(18.8) |
3.4 |
13.2 |
26.7 |
BRUKINSA: The Driving Force Behind BeiGene’s Global Expansion
- BRUKINSA global sales: +49% YoY in 2Q25, reaching US\$950 million
- US Sales: US\$684 million (+43% YoY), overtaking Ibrutinib and Acalabrutinib to become BTKi market leader
- EU Sales: US\$150.5 million (+85% YoY), with increased market share in all major markets
- China Sales: US\$83 million (+31% YoY)
- Rest of World: US\$33 million (+149% YoY)
- BRUKINSA’s share of 1H25 total revenue: 71.6%
TEVIMBRA, BeiGene’s PD-1 mAb, posted sales of US\$194 million, up 22% YoY. Products in-licensed from Amgen added another 27% YoY growth, while collaboration revenue surged 65% YoY to US\$13 million.
Margin Expansion and Strong Cost Controls
- Gross Margin: Rose to 86.5% in 1H25 (from 84.3%) driven by higher global BRUKINSA mix and cost efficiencies
- SG&A/Revenue: Dropped 10.8 percentage points to 41.0% (from 51.8%)
- R&D/Revenue: Dropped 13.1 percentage points to 41.4% (from 54.4%)
- Operating profit turned positive: US\$99 million in 1H25 (vs. -US\$369 million YoY)
- Adjusted net earnings: US\$389 million (vs. -US\$123 million YoY)
Profit margins are expected to improve further as BeiGene scales up sales and sharpens operating efficiency.
2025 Outlook: Raised Guidance and Positive Free Cash Flow
Management has increased its 2025 revenue guidance to US\$5.0–5.3 billion (from US\$4.9–5.3 billion), with gross margin expected in the mid-to-high 80% range. Total operating expenses (R&D and SG&A) are targeted at US\$4.1–4.4 billion. The company forecasts entering a new era of sustained profit and positive free cash flow from 2025 onward, backed by a diversified revenue mix and rising margins.
Robust R&D Pipeline and Near-term Catalysts
BeiGene boasts a global pipeline of 170+ trials, spanning hematology and solid tumors. Key candidates include:
- Sonrotoclax (BCL2 inhibitor): NDA filed in China for relapsed/refractory chronic lymphocytic leukemia (R/R CLL), with global filings for mantle cell lymphoma (MCL) expected 2H25
- CDK4 inhibitor, B7-H4 ADC, PRMT5 inhibitor: Promising data readouts anticipated for solid tumors
- Four pivotal data readouts and filings plus 10+ proof-of-concept milestones expected in the near term
The expanding portfolio is expected to generate significant clinical and commercial returns in coming years.
Upcoming Market Approvals: What to Watch
| Product |
Indication / Region |
Estimated Approval |
| BRUKINSA |
~20 global approvals |
2Q25 |
| BRUKINSA |
Tablet formulation (US, EU) |
2H25 |
| BRUKINSA |
~11 global approvals |
2H25 |
| TEVIMBRA |
1L GC (AU), 1L ES-SCLC (EU), +7 global approvals |
2Q25 |
| TEVIMBRA |
1L GC, 1L ESCC (BR, UK) |
2H25 |
| TEVIMBRA |
Neo/adj NSCLC (EU), Alt Dosing Q6W (US) |
2H25 |
| Zanidatamab |
2L HER2+ BTC (CN) |
2H25 |
*Note: ESCC = Esophageal Squamous Cell Carcinoma; NPC = Nasopharyngeal Carcinoma; GC = Gastric Cancer; ES-SCLC = Extensive-Stage Small Cell Lung Cancer; NSCLC = Non-Small Cell Lung Cancer.
Valuation and Recommendation
UOB Kay Hian maintains a “BUY” rating with a target price of HK\$240.00, built on a DCF model (WACC 10.5%, terminal growth 3.5%). Key catalysts include strong R&D progress, new product launches, and continuous business development.
Risks to Watch
- Policy risks in the US
- Intensifying market competition
- Risks in new product development and regulatory approvals
- Business development uncertainties
Summary: BeiGene Positioned for Sustained Growth
BeiGene’s 2Q25 performance marks a major inflection point, with top-line growth, margin expansion, and a powerful pipeline reinforcing the company’s global leadership in oncology. With an upgraded outlook, robust cash generation, and a diversified portfolio, BeiGene stands out as a compelling opportunity for investors seeking exposure to the next wave of biopharma innovation.
