AbbVie's Brukinsa patent suit may have merit, says analyst

Based on analysis of available information and input from a MEDACorp patent attorney, SVB Securities Research believes US pharma major AbbVie’s (NYSE: ABBV) allegations that Brukinsa infringes on a recently granted patent (#11,672,803) are substantiative and could potentially result in damages to China-headquartered biotech BeiGene (Nasdaq: BGNE; HKEX).

SVB analyst Dr Andrew Berens noted that the MEDACorp (key opinion leader (KOL) believes that AbbVie may have a strong argument that Brukinsa (zanubrutinib) infringes upon this method-of-use patent, with a number of Brukinsa's properties referenced in the patent, including highly specific parts of the chemical structure (optionally substituted fused heterocyclic ring system with 2-4 nitrogen heteroatoms).

Shares have faced significant pressure since the announcement earlier this month (-10.8% versus XBI's -4.5%). Based on this analysis, Dr Berens is updating his model, assuming a potential settlement and royalties on US sales of Brukinsa. These changes reduce his price target to $257 from $300. He awaits further information from BeiGene regarding the defense, as well as potential timelines, at which point he may re-evaluate his estimates.