Summary
This 8-K filing by Beigene, Ltd. (ONC) on April 17, 2017, provides an update on its previously announced equity joint venture (JV) with Guangzhou GET Technology Development Co., Ltd. (GET). The JV, named BeiGene Biologics Co.,., aims to research, develop, and produce biologics within China. This amendment refines the initial agreement, primarily by adjusting capital contribution schedules and the initial term of governing bodies and certain management positions. Investors should note that the company also anticipates receiving additional tax subsidies related to this JV. While the core purpose of the JV remains unchanged, these adjustments indicate a pragmatic approach to the operational rollout and financial commitments. Beigene, Ltd. is an emerging growth company and has elected to use the extended transition period for complying with new or revised financial accounting standards.
Key Highlights
- 1Beigene, Ltd. amended its equity joint venture contract and capital contribution agreement with Guangzhou GET Technology Development Co., Ltd. (GET).
- 2The joint venture, BeiGene Biologics Co.,., will focus on the research, development, and production of biologics in China.
- 3Key amendments include adjustments to capital contribution schedules.
- 4Changes were also made to the initial term of the JV's governing bodies and certain management positions.
- 5The JV Company is expected to receive additional tax subsidies.
- 6Beigene, Ltd. is an emerging growth company that has opted to use the extended transition period for new accounting standards.