10-QPeriod: Q2 FY2021

BeOne Medicines Ltd. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 5, 2021For Securities:ONCBEIGF

Summary

BeiGene, Ltd. (ONC) reported strong revenue growth in its Q2 2021 filing, with total revenues reaching $150.0 million, a significant increase from $65.6 million in the prior year period. This growth was driven by substantial increases in product revenue, particularly from its internally developed medicines BRUKINSA® and tislelizumab, as well as the addition of collaboration revenue from the Novartis agreement. The company's R&D expenses also saw an increase, reflecting continued investment in its pipeline. Despite a net loss of $480.3 million for the quarter, the company maintains a robust cash position, ending the period with over $1.7 billion in cash, cash equivalents, and restricted cash, bolstered by recent financing activities and upfront payments from collaborations. Key developments during the quarter included positive results from the Phase 3 SEQUOIA trial for BRUKINSA® and multiple regulatory updates for its product candidates.

Financial Statements
Beta

Key Highlights

  • 1Total revenues increased by 128.5% to $150.0 million for the three months ended June 30, 2021, compared to $65.6 million in the prior year period.
  • 2Product revenue grew by 111.2% to $138.6 million, driven by strong sales of tislelizumab and BRUKINSA®.
  • 3Collaboration revenue of $11.4 million was recognized from the Novartis agreement, compared to no collaboration revenue in the prior year period.
  • 4Research and development expenses increased by 24.5% to $356.1 million, reflecting ongoing investment in clinical trials and drug development.
  • 5Selling, general, and administrative expenses increased by 87.3% to $232.3 million, supporting the expansion of commercial operations.
  • 6The company ended the period with $1.787 billion in cash, cash equivalents, and restricted cash, indicating a strong liquidity position.
  • 7Recent developments include positive topline results from the Phase 3 SEQUOIA trial for BRUKINSA® and Health Canada approval for BRUKINSA® for mantle cell lymphoma.

Frequently Asked Questions

The primary driver of revenue growth was a significant increase in product revenue, primarily from the strong performance of BeiGene's internally developed medicines BRUKINSA® and tislelizumab. Additionally, the company recognized collaboration revenue from its agreement with Novartis, which contributed to the overall revenue increase.

BeiGene's R&D expenses increased by 24.5% to $356.1 million compared to the same period last year. This increase reflects the company's continued commitment to investing in its extensive pipeline of drug candidates, funding ongoing clinical trials, and advancing its research and development programs.

BeiGene ended the second quarter of 2021 with a strong liquidity position, reporting $1.787 billion in cash, cash equivalents, and restricted cash. This healthy cash balance is supported by proceeds from financing activities and upfront payments from its strategic collaborations.

Key recent developments highlighted include positive topline results from the Phase 3 SEQUOIA trial for BRUKINSA® in chronic lymphocytic leukemia/small lymphocytic lymphoma, demonstrating a statistically significant improvement in progression-free survival. Additionally, BRUKINSA® received approval from Health Canada for mantle cell lymphoma, and the company announced a worldwide strategic collaboration with Shoreline Biosciences, Inc. for NK-based cell therapeutics.