Summary
BeiGene, Ltd.'s (ONC) Q3 2019 report shows a significant increase in product revenue, up 30% year-over-year for the quarter and 78% year-over-year for the nine-month period, driven by sales of ABRAXANE®, REVLIMID®, and VIDAZA® in China. However, this growth was somewhat offset by a complete absence of collaboration revenue compared to the previous year, primarily due to the termination of the Celgene collaboration agreement for tislelizumab. The company continues to invest heavily in research and development, with R&D expenses increasing significantly by 61% for the quarter and 53% for the nine months, reflecting progress in its clinical pipeline, particularly for zanubrutinib and tislelizumab. Consequently, the net loss widened considerably, driven by these R&D investments and increased selling, general, and administrative expenses. Financially, BeiGene ended the period with a robust cash position of approximately $1.3 billion in cash, cash equivalents, and short-term investments, providing ample runway. However, the company's operating activities consumed substantial cash, highlighting the capital-intensive nature of drug development. Investors should note the strategic importance of the announced collaboration with Amgen, which includes a significant equity investment, as well as the continued heavy investment in pipeline development, which is driving losses but also positions the company for potential future growth.
Financial Highlights
53 data points| Revenue | $50.14M |
| Cost of Revenue | $20.11M |
| Gross Profit | $30.04M |
| R&D Expenses | $236.97M |
| SG&A Expenses | $105.00M |
| Operating Expenses | $362.41M |
| Operating Income | -$312.27M |
| Net Income | -$308.66M |
| EPS (Basic) | $-0.39 |
| Shares Outstanding (Basic) | 781.48M |
Key Highlights
- 1Product revenue increased by 30% year-over-year to $50.1 million for the three months ended September 30, 2019, and by 78% to $165.7 million for the nine months ended September 30, 2019.
- 2Research and development expenses increased significantly, up 61% to $237.0 million for the quarter and up 53% to $644.1 million for the nine months, reflecting advancement of key drug candidates.
- 3Net loss attributable to BeiGene, Ltd. increased to $307.4 million for the quarter and $560.6 million for the nine months, compared to $144.0 million and $405.5 million, respectively, in the prior year periods.
- 4Cash, cash equivalents, and short-term investments stood at $1.3 billion as of September 30, 2019, providing a strong liquidity position.
- 5Collaboration revenue decreased to zero for the quarter from $15.8 million in the prior year, primarily due to the termination of the Celgene collaboration.
- 6Selling, general, and administrative expenses more than doubled, increasing by 115% for the quarter and 99% for the nine months, reflecting organizational expansion and commercial readiness efforts.
- 7The company announced a significant strategic oncology collaboration with Amgen in October 2019, including a $2.7 billion equity investment by Amgen.