BeiGene Ltd (NASDAQ:BGNE) declined in early trading on Friday, maintaining its downward trajectory through the week amid weakness in Chinese stocks.
AbbVie’s (NYSE:ABBV) patent case, which claims multiple infringements, is likely to be an overhang on BeiGene’s stock, according to Bernstein.
The BeiGene Analyst: Rebecca Liang downgraded the rating for BeiGene from Outperform to Market Perform, while slashing the price target from $335 to $196.
The BeiGene Thesis: It takes four to five years on average to settle a case, and BeiGene chances of winning in court “don’t look great,” Liang said in the downgrade note.
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AbbVie’s claims “seem to stack up,” he added.
“The patent case not only exposes the vulnerability of BeiGene’s single-asset-play to external blows, but also casts doubts on their long-presumed R&D leadership,” the analyst wrote.
Besides Brukinsa, there are no major growth drivers for BeiGene, he further stated.
BGNE Price Action: Shares of BeiGene had declined by 0.29% to $178.07 Friday at publication.
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