Insights

Why BeiGene Stock Jumped Today

Investors cheered another big investment in the Chinese biotech. –

What happened

Shares of BeiGene (NASDAQ: BGNE)(SEHK:6160) were jumping 10.6% higher as of 3:09 p.m. EDT on Tuesday. The nice gain came after Bloomberg reported that Hillhouse Capital plans to buy $1 billion worth of the Chinese biotech’s shares. On July 12 BeiGene announced the pricing of a stock offering of more than 145.8 million shares valued at $2.08 billion.

So what

Stock offerings dilute the value of existing shares. As a result, they often cause share prices to tumble. In BeiGene’s case, though, there was one unusual characteristic about its offering that caused the biotech stock to rise: the sheer size of the transaction.

BeiGene’s stock offering is “the largest equity offering ever by a biotech company,” according to Bloomberg. Hillhouse Capital’s $1 billion investment serves as an anchor for the deal. Others have also already stepped up to buy shares, including Amgen, which already owns over 20% of BeiGene.

Perhaps most importantly, the eagerness of Hillhouse Capital and others to invest large amounts in BeiGene underscores the overall attractiveness of the biotech’s potential. BeiGene currently markets Brukinsa in treating mantle cell lymphoma and is evaluating the drug in several clinical studies targeting other indications. Elzonris is approved in China for treating classical Hodgkin’s lymphoma and urothelial carcinoma. BeiGene also sells cancer drugs Abraxane and Revlimid in China under a license from Bristol Myers Squibb.

Now what

Look for more potential catalysts on the way for BeiGene. The company expects to announce results from a study of zanubrutinib (Brukinsa) with bendamustine plus rituximab in treating chronic lymphocytic leukemia or small lymphocytic lymphoma in the second half of 2020. It also awaits regulatory approvals for Brukinsa in Europe and for tislelizumab in China.

This article was originally published on Fool.com.
All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com.
All figures quoted in US dollars unless otherwise stated.

More reading

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. 

The Motley Fool Hong Kong Limited(www.fool.hk) 2020

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!