BOCOM INTL: BEONE MEDICINES (06160) strong product sales in the previous quarter maintains "buy" rating.

BOCOM INTL released a research report stating that BEONE MEDICINES (06160) had sales of $1.1 billion in the fourth quarter of last year, up 38% year-on-year and 10% quarterly. US sales were $845 million, up 37% year-on-year and 14% quarterly. In 1LCLL patients, ZEZHUBU accounts for about half of the BTK category and about one-quarter of all treatment drugs. The gross profit margin in the fourth quarter of last year increased by 4.7 percentage points year-on-year to 90.5%, while general and administrative expenses decreased by 7.7 percentage points year-on-year, and non-GAAP net profit increased significantly to $225 million. The company expects revenue to be $6.2 billion to $6.4 billion in 2026, GAAP operating expenses to be $4.7 billion to $4.9 billion, gross profit margin to be at the high end of the 80% range, non-GAAP net profit to be $1.4 billion to $1.5 billion, maintaining a "buy" rating. The bank pointed out that the company focuses on four major areas: 1) CLL: Sotracal is expected to be launched in Europe and the US this year, and BTK CDAC is expected to submit a listing application in the second half of 2026. The first phase III trial of fixed-cycle therapy of ZEZHUBU + Soto(ZS) with the same mechanism has recently started. In the future, it is expected to form a layout for ZS in first-line treatment, CDAC monotherapy, and Soto+CDAC FDR targeting patients with refractory recurrent diseases. 2) Other hematological tumors: Relying on late-stage varieties such as ZEZHUBU and Soto, as well as CD19/CD20 targeted triple antibodies, double antibodies, and cell therapy, expand to other lymphomas, MM, AML and other indications. 3) Solid tumors: Focus on breast cancer, lung cancer, and gastrointestinal tumors. The recent success of the PD-1+HER2 double antibody+chemotherapy regimen in 1LHER2+ gastric cancer is expected to expand overseas application scenarios. CDK4, B7H4 ADC, and GPC3/4-1BB double antibodies have entered or will start registration studies in the next 12 months. 4) Inflammation/Immunity: Early data on BTK CDAC and IRAK4 CDAC will be read out in 2026.