BeiGene, Ltd. (ONC)
OvervaluedFundamental
71
Price
$365.94
Market Cap
$40.72B
Part 1 · What the company is worth
Overview
ONC trades under BeOne Medicines, formerly known as BeiGene, a global biotechnology company that discovers, develops and sells cancer drugs. Its lead product, Brukinsa, treats certain blood cancers by blocking an enzyme (BTK) the cancer cells need to survive. Unlike a diversified pharmaceutical company, BeOne's revenue and value are concentrated in a small number of approved oncology drugs sold through its own commercial teams in the United States, Europe and China.
How it makes money
Almost all revenue comes from product sales of approved drugs, chiefly Brukinsa, plus smaller in-licensed products such as Amgen's oncology portfolio that BeOne distributes in China. Because it sells directly rather than relying on royalties from a partner, it captures the full margin on each sale but also carries the cost of its own sales forces across multiple continents, and revenue depends on doctors continuing to prescribe its drugs over rival treatments.
Revenue by segment
The company's lead BTK-inhibitor drug for blood cancers such as chronic lymphocytic leukemia, sold globally and the main driver of growth.
An immunotherapy antibody used against several solid tumor cancers, the company's second-largest product.
Oncology drugs originally developed by Amgen that BeOne markets and sells in China under a licensing agreement.
Competitive moat
Patents and licences · NarrowPatents on Brukinsa's chemical structure and manufacturing, plus regulatory approvals in dozens of countries, keep generic competitors out for a fixed period, and clinical data showing advantages over the first BTK inhibitor to market support doctor preference. The protection is time-limited by patent expiry and contestable by newer drugs in the same class, so it does not amount to a durable structural barrier.
What drives demand
DefensiveCancer treatment is not discretionary spending and demand does not track the economic cycle; growth instead depends on winning regulatory approvals for new indications, expanding into new countries, and doctors switching patients from older drugs. The main swing factor is clinical and regulatory success, not the broader economy.
Key risks
- Revenue concentration in a single drug — Brukinsa accounts for roughly three-quarters of revenue; a safety issue, a more effective competing drug, or loss of patent protection would have an outsized effect on the whole company.
- Dependence on regulatory approvals — Selling a drug in a new country or for a new use requires approval from that country's health regulator, a process that can be delayed, restricted or denied regardless of clinical trial results.
- Pricing and reimbursement pressure — Government and private payers in every market where the company sells negotiate or set drug prices and reimbursement terms, and unfavorable changes can reduce revenue on approved products without any change to the drug itself.
- Clinical trial and pipeline risk — Future growth depends on drugs still in clinical trials succeeding and reaching approval; most experimental cancer drugs fail somewhere in that process, and a failure removes an assumed source of future revenue.
The case for
Buyers argue that Brukinsa's clinical data advantages over older BTK inhibitors are winning doctor preference and market share even as the drug class matures, that expansion into Europe and other markets outside the US and China still has room to run, and that the company reaching full-year profitability in 2025 for the first time shows the commercial model scaling.
The case against
Sellers fear that concentrating three-quarters of revenue in one drug leaves little room for error if a safety signal, a stronger competitor or a reimbursement setback emerges, that US growth has already begun decelerating from its earlier triple-digit pace, and that sustaining growth requires the pipeline to deliver new approvals on a schedule biotech development rarely respects.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Its BTK inhibitor Calquence (acalabrutinib) fights BeOne's Brukinsa for the same chronic lymphocytic leukemia and mantle cell lymphoma prescriptions, above all in the United States and Europe.
Imbruvica (ibrutinib), the first BTK inhibitor on the market and the drug BeOne ran its head-to-head trials against, plus Venclexta, compete for the same blood-cancer patients.
Its non-covalent BTK inhibitor Jaypirca (pirtobrutinib) targets the same leukemia and lymphoma patients, including those who have already progressed on a covalent BTK inhibitor like Brukinsa.
Keytruda (pembrolizumab) is the dominant PD-1 antibody and competes with BeOne's Tevimbra (tislelizumab) in oesophageal, gastric and lung cancer.
Opdivo (nivolumab) covers largely the same PD-1 indications as Tevimbra, particularly oesophageal and gastro-oesophageal tumours.
In China, where BeOne generates a large share of its revenue, Innovent's PD-1 antibody Tyvyt and its oncology portfolio compete for the same hospital formularies and reimbursement listings.
Balance Sheet & Liquidity
Revenue
$6.13B
Trailing 12 months (through 6/30/2026)
Net Income
$656M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$942M
Total Equity
$4.36B
Total Liabilities
$3.83B
Current Ratio
3.40
Interest Coverage
7.97
Debt/EBITDA
2.06
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$237.94
Current Price
$365.94
Margin of Safety
-53.8%
Fair Value Range
$154.66 - $321.22
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
831.68
ROE
6.6%
P/B Ratio
104.54
P/FCF
406.64
Gross Margin
88.9%
ROIC
10.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC
10.3%
WACC
12.6%
ROIC − WACC
-2.2 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- Price CAGR 28.24%
- ROIC 10.3%
- Gross Margin 88.9%
- Debt/Equity ratio
- Operating Margin 15.1%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 13.3%
- Revenue Growth 5Y 78.3%
- Analyst Consensus 92% Buy
- Earnings Surprise avg 16.6%
- Earnings Quality (OCF/NI) 2.26
- Net Margin Trend 10.7% vs -3.9%
- Piotroski F-Score 7/9
Failed (5)
- P/FCF 406.64
- P/B Ratio 104.54
- Price below Graham Number
- DCF valuation (Overvalued)
- Share Dilution 10.1%
Unavailable (2)
- Dividend Payout NaN%
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. John V. Oyler | Co-Founder, Executive Chairman & CEO | 57 |
| Mr. Wang Lai Ph.D. | President and Global Head of Research & Development | 48 |
| Dr. Xiaodong Wang Ph.D. | Co-Chairman of Scientific Advisory Board, Non-Executive Director & Co-Founder | 62 |
| Mr. Aaron Rosenberg | Chief Financial Officer | 48 |
| Mr. Chan Lee | General Counsel, Senior VP & Corporate Secretary | 57 |
| Mr. Titus B. Ball | VP & Chief Accounting Officer | 51 |
| Mr. Marcello Damiani | Chief Technology Officer | 55 |
| Ms. Liza Heapes | Head of Investor Relations | - |
| Ms. Eleanor Duff Ph.D. | Senior VP & Head of Corporate Communications | - |
| Mr. Graham Hardiman | Global Head of Human Resources | - |
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-26
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-26
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for ONC, sourced from Markets Gazette.