Goldman Sachs on Betta Pharmaceuticals (300558): Results Review — 2Q Sales Soft but Profitability Held; Pan-RAS Momentum Continues
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Abstract
Goldman Sachs' August 24, 2026 earnings review of Betta Pharmaceuticals (300558.SZ) reiterates a Sell within coverage and cuts the 12-month target price to RMB40.15 from RMB43.06 (DCF; 10% discount rate, 1% terminal growth), implying roughly 21.5% downside from the current RMB51.18. Second-quarter revenue of RMB936mn (+15% YoY, -10% QoQ) missed expectations as icotinib, a first-generation EGFR TKI, continued to lose share, yet net profit of RMB66mn held up on cost discipline — R&D expenses fell 16% YoY and administrative expenses 19%. Ensartinib sales grew more than 20% YoY in 1H26. Pan-RAS asset BPI-572270 has enrolled over 60 patients, with no dose-limiting toxicity at 24mg and initial responses as early as the 8mg cohort; management plans US and European expansion plus combinations with MCLA-129 and ensartinib. After EYP-1901's failed LUGANO Phase 3 in wet AMD, Goldman views a successful LUCIA readout as necessary to restore investor confidence. 2026-2028E earnings were cut by RMB201mn/273mn/443mn, with 2026E EPS reduced to RMB1.39 from RMB1.87. The Sell reflects a view that the existing portfolio and visible pipeline are fully priced, with R&D constrained by cash reserves and thin core profitability.