BeOne Medicines (ONC) reported encouraging data from three solid tumor programs, strengthening confidence in its competitive potential and long-term growth, RBC Capital Markets said in a note Tuesday.
The company on Monday presented "promising" data on a CDK4 inhibitor for breast cancer, a GPC3-4-1BB bispecific antibody for hepatocellular carcinoma, and a B7-H4 antibody-drug conjugate for ovarian cancer.
Analyst Leonid Timashev said each therapy appears to be delivering on its promised profile, with potential safety or efficacy advantages that could support best-in-class positioning or at least strong competitiveness over the coming years.
Although investors have generally been skeptical of BeOne Medicines' solid tumor portfolio, RBC believes the building blocks for success are becoming increasingly visible. As a result, the firm now estimates that the company could generate up to $4.8 billion in solid tumor sales by 2035.
"While more data, and in some cases, optimization is still needed, we think the company's commitment to phase 3 trials and initial data is worth paying attention to," the analyst added.
RBC raised its price target on BeOne Medicines to $436 from $425 while keeping its outperform rating.
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