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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________
FORM 10-Q
___________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission File Number: 001-37686
___________________________________________________________
BEIGENE, LTD.
(Exact name of registrant as specified in its charter)
___________________________________________________________
Cayman Islands 98-1209416
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
c/o Mourant Governance Services (Cayman) Limited
94 Solaris Avenue, Camana Bay
Grand Cayman
Cayman Islands KY1-1108
(Address of principal executive offices)
(Zip Code)
+1 (345) 949-4123
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
American Depositary Shares, each representing 13 Ordinary Shares, par value $0.0001 per share BGNE The NASDAQ Global Select Market
Ordinary Shares, par value $0.0001 per share* 06160 The Stock Exchange of Hong Kong Limited
*Included in connection with the registration of the American Depositary Shares with the Securities and Exchange Commission. The ordinary shares are not registered or listed for trading in the United States but are listed for trading on The Stock Exchange of Hong Kong Limited.
As of October 31, 2021, 1,219,734,201 ordinary shares, par value $0.0001 per share, were outstanding, of which 978,399,318 ordinary shares were held in the form of 75,261,486 American Depositary Shares, each representing 13 ordinary shares.
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes      No   
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes     No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐     No  


Table of Contents

BeiGene, Ltd.
Quarterly Report on Form 10-Q
TABLE OF CONTENTS
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Summary of Risk Factors
Below is a summary of the principal factors that make an investment in our American Depositary Shares (“ADSs”) or ordinary shares speculative or risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, are summarized in “Part II – Item 1A – Risk Factors” and should be carefully considered, together with other information in this Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), before making an investment decision regarding our ADSs or ordinary shares.
Our medicines may fail to achieve and maintain the degree of market acceptance by physicians, patients, third-party payors, and others in the medical community necessary for commercial success.
We have limited experience in launching and marketing our internally developed and in-licensed medicines. If we are unable to further develop marketing and sales capabilities or enter into agreements with third parties to market and sell our medicines, we may not be able to generate substantial product sales revenue.
If we are not able to continue to obtain, or experience delays in obtaining, required regulatory approvals, we will not be able to commercialize our medicines and drug candidates, and our ability to generate revenue will be materially impaired.
We face substantial competition, which may result in others discovering, developing, or commercializing competing medicines before or more successfully than we do.
The market opportunities for our medicines may be limited to those patients who are ineligible for or have failed prior treatments and may be small.
We have limited manufacturing capability and must rely on third-party manufacturers to manufacture some of our commercial products and clinical supplies, and if they fail to meet their obligations, the development and commercialization of our medicines and drug candidates could be adversely affected.
If we or any third parties with which we may collaborate to market and sell our medicines are unable to achieve and maintain coverage and adequate level of reimbursement, our commercial success and business operations could be adversely affected.
We depend substantially on the success of the clinical development of our medicines and drug candidates. If we are unable to successfully complete clinical development, obtain regulatory approvals and commercialize our medicines and drug candidates, or experience significant delays in doing so, our business will be materially harmed.
Clinical development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results.
If clinical trials of our drug candidates fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities or do not otherwise produce positive results, we may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our drug candidates.
If we encounter difficulties enrolling patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.
All material aspects of the research, development, manufacturing and commercialization of pharmaceutical products are heavily regulated, and we may face difficulties in complying with or be unable to comply with such regulations, which could have a material adverse effect on our business.
The approval processes of regulatory authorities in the United States, China, Europe and other comparable regulatory authorities are lengthy, time consuming and inherently unpredictable. If we are ultimately unable to obtain regulatory approval for our drug candidates, our business will be substantially harmed.
Our medicines and any future approved drug candidates will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our medicines and drug candidates.
Even if we are able to commercialize our medicines and any approved drug candidates, the medicines may become subject to unfavorable pricing regulations or third-party reimbursement practices or healthcare reform initiatives, which could harm our business.
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We have incurred significant net losses since our inception and anticipate that we will continue to incur net losses for the foreseeable future and may not become profitable.
We have limited experience in obtaining regulatory approvals and commercializing pharmaceutical products, which may make it difficult to evaluate our current business and predict our future performance.
We may need to obtain additional financing to fund our operations, and if we are unable to obtain such financing, we may be unable to complete the development of our drug candidates or achieve profitability.
If we are unable to obtain and maintain patent protection for our medicines and drug candidates through intellectual property rights, or if the scope of such intellectual property rights is not sufficiently broad, third parties may compete against us.
If we fail to maintain an effective distribution channel for our medicines, our business and sales could be adversely affected.
We rely on third parties to manufacture some of our commercial and clinical drug supplies. Our business could be harmed if those third parties fail to provide us with sufficient quantities of product or fail to do so at acceptable quality levels or prices.
If third-party manufacturers fail to comply with manufacturing regulations, our financial results and financial condition could be adversely affected.
We have entered into licensing and collaboration arrangements and may enter into additional collaborations, licensing arrangements, or strategic alliances in the future, and we may not realize the benefits of such arrangements.
If we are not able to successfully develop and/or commercialize Amgen’s oncology products, the expected benefits of the collaboration will not materialize.
We have significantly increased and expect to continue to increase our research, development, manufacturing, and commercial capabilities, and we may experience difficulties in managing our growth.
Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel.
Our business is subject to complex and evolving industry-specific laws and regulations regarding the collection and transfer of personal data. These laws and regulations can be complex and stringent, and many are subject to change and uncertain interpretation, which could result in claims, changes to our data and other business practices, significant penalties, increased cost of operations, or otherwise adversely impact our business.
We manufacture some of our medicines and intend to manufacture some of our drug candidates, if approved. Delays in completing and receiving regulatory approvals for our manufacturing facilities, or damage to, destruction of or interruption of production at such facilities, could delay our development plans or commercialization efforts.
Changes in the political and economic policies of the PRC government or in relations between China and the United States or other governments may materially and adversely affect our business, financial condition, and results of operations and may result in our inability to sustain our growth and expansion strategies.
The audit report included in our Annual Report on Form 10-K filed with the SEC is prepared by auditors who are not inspected fully by the Public Company Accounting Oversight Board, and as such, investors are deprived of the benefits of such inspection.
The trading prices of our ordinary shares and/or ADSs can be volatile, which could result in substantial losses to you.
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PART I.     FINANCIAL INFORMATION
Item 1.     Financial Statements
BEIGENE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
    As of
    September 30, December 31, 
  Note 2021 2020
    $ $
    (unaudited) (audited)
Assets      
Current assets:      
Cash and cash equivalents   1,383,310  1,381,950 
Short-term restricted cash 4 330  307 
Short-term investments 4 2,533,617  3,268,725 
Accounts receivable, net 10 129,584  60,403 
Inventories 5 150,979  89,293 
Prepaid expenses and other current assets 10 235,015  160,012 
Total current assets   4,432,835  4,960,690 
Long-term restricted cash 4 6,056  7,748 
Property, plant and equipment, net 6 450,788  357,686 
Operating lease right-of-use assets 100,585  90,581 
Intangible assets, net 8 14,104  5,000 
Deferred tax assets 9 106,844  65,962 
Other non-current assets 10 175,122  113,090 
Total non-current assets   853,499  640,067 
Total assets   5,286,334  5,600,757 
Liabilities and shareholders' equity  
Current liabilities:  
Accounts payable   206,203  231,957 
Accrued expenses and other payables 10 389,874  346,144 
Deferred revenue, current portion 3 72,626  — 
Tax payable 9 20,878  20,380 
Operating lease liabilities, current portion 18,644  13,895 
Research and development cost share liability, current portion 3 153,838  127,808 
Short-term debt 11 442,372  335,015 
Total current liabilities   1,304,435  1,075,199 
Non-current liabilities:  
Long-term bank loans 11 200,906  183,637 
Deferred revenue, non-current portion 3 52,272  — 
Operating lease liabilities, non-current portion 37,613  29,417 
Deferred tax liabilities 9 13,266  10,792 
Research and development cost share liability, non-current portion 3 266,163  375,040 
Other long-term liabilities 10 54,606  57,429 
Total non-current liabilities   624,826  656,315 
Total liabilities   1,929,261  1,731,514 
Commitments and contingencies 18
Equity:  
Ordinary shares, US$0.0001 par value per share; 9,500,000,000 shares authorized; 1,213,234,201 and 1,190,821,941 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
  121  118 
Additional paid-in capital   7,724,822  7,414,932 
Accumulated other comprehensive income 15 12,580  6,942 
Accumulated deficit   (4,380,450) (3,552,749)
Total equity 3,357,073  3,869,243 
Total liabilities and equity   5,286,334  5,600,757 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
    Three Months Ended Nine Months Ended
    September 30, September 30,
  Note 2021 2020 2021 2020
    $ $
Revenues      
Product revenue, net 12 192,461  91,080  437,202  208,774 
Collaboration revenue 3 13,979  —  525,102  — 
Total revenues   206,440  91,080  962,304  208,774 
Expenses  
Cost of sales - product   47,413  21,123  116,361  49,579 
Research and development   351,937  349,070  1,028,754  939,340 
Selling, general and administrative   269,227  160,837  683,622  391,967 
Amortization of intangible assets   188  187  563  658 
Total expenses   668,765  531,217  1,829,300  1,381,544 
Loss from operations   (462,325) (440,137) (866,996) (1,172,770)
Interest (expense) income, net   (2,230) (614) (11,275) 7,184 
Other income, net   31,477  5,711  26,487  29,368 
Loss before income taxes   (433,078) (435,040) (851,784) (1,136,218)
Income tax benefit 9 (19,223) (8,423) (24,083) (8,344)
Net loss   (413,855) (426,617) (827,701) (1,127,874)
Less: net loss attributable to noncontrolling interests   —  (1,393) —  (3,713)
Net loss attributable to BeiGene, Ltd.   (413,855) (425,224) (827,701) (1,124,161)
Loss per share attributable to BeiGene, Ltd. (0.34) (0.37) (0.69) (1.07)
Weighted-average shares outstanding—basic and diluted 1,205,971,284  1,148,973,077  1,196,391,201  1,052,940,583 
Loss per American Depositary Share ("ADS") (4.46) (4.81) (8.99) (13.88)
Weighted-average ADSs outstanding—basic and diluted 92,767,022  88,382,544  92,030,092  80,995,429 
 The accompanying notes are an integral part of these condensed consolidated financial statements.
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BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Net loss (413,855) (426,617) (827,701) (1,127,874)
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments 664  10,143  6,528  7,526 
Pension liability adjustments (111) —  250  — 
Unrealized holding (loss) gain, net (68) (1,044) (1,140) 184 
Comprehensive loss (413,370) (417,518) (822,063) (1,120,164)
Less: comprehensive loss attributable to noncontrolling interests —  (1,174) —  (3,585)
Comprehensive loss attributable to BeiGene, Ltd. (413,370) (416,344) (822,063) (1,116,579)
 The accompanying notes are an integral part of these condensed consolidated financial statements.
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BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
    Nine Months Ended September 30,
  Note 2021 2020
    $ $
Operating activities:      
Net loss   (827,701) (1,127,874)
Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation and amortization expense   33,336  23,961 
Share-based compensation expenses 14 177,701  134,020 
Unrealized gains on equity investments 4 (17,166) (9,974)
Acquired in-process research and development 53,500  89,500 
Amortization of research and development cost share liability 3 (82,846) (85,296)
Deferred income tax benefits   (38,408) (8,762)
Other items, net   17,719  (10,163)
Changes in operating assets and liabilities:  
Accounts receivable   (69,174) 10,497 
Inventories   (61,686) (6,972)
Other assets   (92,938) (58,921)
Accounts payable   (12,376) 21,979 
Accrued expenses and other payables   819  103,600 
Deferred revenue   124,898  — 
Other liabilities   3,438  (26,722)
Net cash used in operating activities   (790,884) (951,127)
Investing activities:  
Purchases of property, plant and equipment   (147,963) (82,819)
Purchases of investments   (2,062,879) (4,879,705)
Proceeds from sale or maturity of investments   2,758,391  1,972,608 
Purchase of in-process research and development (8,500) (89,500)
Other investing activities (7,500) (2,025)
Net cash provided by (used in) investing activities   531,549  (3,081,441)
Financing activities:  
Proceeds from sale of ordinary shares, net of cost 16 50,000  4,232,017 
Proceeds from research and development cost share liability   —  616,834 
Prepayment to acquire joint venture ("JV") minority interest —  (28,723)
Proceeds from long-term loan 11 16,838  64,288 
Repayment of long-term loan —  (132,061)
Proceeds from short-term loans 11 143,456  48,983 
Repayment of short-term loans (40,229) — 
Proceeds from option exercises and employee share purchase plan   82,192  75,830 
Net cash provided by financing activities   252,257  4,877,168 
Effect of foreign exchange rate changes, net   6,769  4,340 
Net (decrease) increase in cash, cash equivalents, and restricted cash   (309) 848,940 
Cash, cash equivalents, and restricted cash at beginning of period   1,390,005  620,775 
Cash, cash equivalents, and restricted cash at end of period   1,389,696  1,469,715 
Supplemental cash flow information:  
Cash and cash equivalents   1,383,310  1,464,470 
Short-term restricted cash   330  295 
Long-term restricted cash 6,056  4,950 
Income taxes paid   15,214  10,596 
Interest paid   23,398  41,577 
Supplemental non-cash information:  
Acquisitions of equipment included in accounts payable   41,897  30,926 
Acquired in-process research and development included in accrued expenses 45,000  20,000 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
  Attributable to BeiGene, Ltd.    
  Ordinary Shares Additional
Paid-In
Capital
Accumulated
Other Comprehensive Income
Accumulated
Deficit
Total Noncontrolling
Interests
 
  Shares Amount Total
$ $ $ $ $ $ $
Balance at December 31, 2020 1,190,821,941  118  7,414,932  6,942  (3,552,749) 3,869,243  —  3,869,243 
Use of shares reserved for share option exercises (123,097) —  —  —  —  —  —  — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 6,623,773  25,753  —  —  25,754  —  25,754 
Share-based compensation —  —  45,833  —  —  45,833  —  45,833 
Other comprehensive loss —  —  —  (3,738) —  (3,738) —  (3,738)
Net income —  —  —  —  66,495  66,495  —  66,495 
Balance at March 31, 2021 1,197,322,617  119  7,486,518  3,204  (3,486,254) 4,003,587  —  4,003,587 
Use of shares reserved for share option exercises (1,599,676) —  —  —  —  —  —  — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 8,844,082  9,846  —  —  9,847  —  9,847 
Share-based compensation —  —  64,791  —  —  64,791  —  64,791 
Other comprehensive income —  —  —  8,891  —  8,891  —  8,891 
Net loss —  —  —  —  (480,341) (480,341) —  (480,341)
Balance at June 30, 2021 1,204,567,023  120  7,561,155  12,095  (3,966,595) 3,606,775  —  3,606,775 
Proceeds from issuance of ordinary shares, net of cost 2,151,877  —  50,000  —  —  50,000  —  50,000 
Use of shares reserved for share option exercises (3,644,641) —  —  —  —  —  —  — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 10,159,942  46,590  —  —  46,591  —  46,591 
Share-based compensation —  —  67,077  —  —  67,077  —  67,077 
Other comprehensive income —  —  —  485  —  485  —  485 
Net loss —  —  —  —  (413,855) (413,855) —  (413,855)
Balance at September 30, 2021 1,213,234,201  121  7,724,822  12,580  (4,380,450) 3,357,073  —  3,357,073 
Balance at December 31, 2019 801,340,698  79  2,925,970  (8,001) (1,955,843) 962,205  16,150  978,355 
Issuance of ordinary shares in connection with collaboration 206,635,013  21  2,162,386  —  —  2,162,407  —  2,162,407 
Use of shares reserved for share option exercises (3,705,468) —  —  —  —  —  —  — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 3,706,573  11,628  —  —  11,629  —  11,629 
Share-based compensation —  —  38,255  —  —  38,255  —  38,255 
Other comprehensive income —  —  —  1,453  —  1,453  (104) 1,349 
Net loss —  —  —  —  (363,735) (363,735) (1,204) (364,939)
Balance at March 31, 2020 1,007,976,816  101  5,138,239  (6,548) (2,319,578) 2,812,214  14,842  2,827,056 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 10,493,392  16,568  —  —  16,569  —  16,569 
Use of shares reserved for share option exercises and RSU releases (3,493,516) —  —  —  —  —  —  — 
Share-based compensation —  —  45,468  —  —  45,468  —  45,468 
Deconsolidation of entity —  —  —  —  —  —  (3,545) (3,545)
Other comprehensive loss —  —  —  (2,751) —  (2,751) 13  (2,738)
Net loss —  —  —  —  (335,202) (335,202) (1,116) (336,318)
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Balance at June 30, 2020 1,014,976,692  102  5,200,275  (9,299) (2,654,780) 2,536,298  10,194  2,546,492 
Proceeds from issuance of ordinary shares, net of cost 145,838,979  14  2,069,596  —  —  2,069,610  —  2,069,610 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs") 16,575,806  47,631  —  —  47,632  —  47,632 
Use of shares reserved for share option exercises and RSU releases 5,525,182  —  —  —  — 
Share-based compensation —  —  50,297  —  —  50,297  —  50,297 
Other comprehensive income —  —  —  8,880  —  8,880  219  9,099 
Net loss —  —  —  —  (425,224) (425,224) (1,393) (426,617)
Balance at September 30, 2020 1,182,916,659  118  7,367,799  (419) (3,080,004) 4,287,494  9,020  4,296,514 
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BEIGENE, LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands of U.S. Dollar (“$”) and Renminbi (“RMB”), except for number of shares and per share data)
(Unaudited)
1. Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies
Description of business
BeiGene, Ltd. (the "Company", "BeiGene", "it", "its") is a global, commercial-stage biotechnology company focused on discovering, developing, manufacturing, and commercializing innovative medicines to improve treatment outcomes and expand access for patients worldwide.
The Company has delivered ten molecules into the clinic in its first ten years, including three commercial medicines, BRUKINSA®, a small molecule inhibitor of Bruton’s Tyrosine Kinase (“BTK”) for the treatment of various blood cancers, tislelizumab, an anti-PD-1 antibody immunotherapy for the treatment of various solid tumor and blood cancers, and pamiparib, a selective small molecule inhibitor of PARP1 and PARP2. The Company is marketing BRUKINSA® in the world’s two largest pharmaceutical markets, the United States and the People's Republic of China ("China" or the "PRC"), and tislelizumab and pamiparib in China, with an established, science-based commercial organization. Additionally, the Company has licensed the China rights to multiple medicines, including Amgen's XGEVA®, BLINCYTO®, and KYPROLIS®; BMS's REVLIMID®, VIDAZA®, and ABRAXANE®; and EUSA Pharma's SYLVANT® and QARZIBA®. The Company has built state-of-the-art biologic and small molecule manufacturing facilities in China to support current and potential future demand of its medicines and plans to build a commercial-stage biologics manufacturing and clinical R&D center in New Jersey. The Company is also constructing a new small molecule manufacturing campus in Suzhou, China. It also works with high quality contract manufacturing organizations (“CMOs”) to manufacture its internally developed clinical and commercial products.
The Company is a leader in China-inclusive global clinical development, which it believes can facilitate faster and more cost-effective development of innovative medicines. Its internal clinical development capabilities are deep, including a more than 1,800-person global clinical development team that is running more than 90 ongoing or planned clinical trials. This includes more than 30 pivotal or registration-enabling trials for three drug candidates that have enrolled more than 13,000 patients and healthy volunteers, of which approximately one-half have been outside of China, as of September 2021. The Company has over 45 medicines and drug candidates in commercial stage or clinical development, including 10 approved medicines, 2 pending approval, and over 30 in clinical development.
Supported by its development and commercial capabilities, the Company has entered into collaborations with world-leading biopharmaceutical companies such as Amgen and Novartis to develop and commercialize innovative medicines globally. Since its inception in 2010 in Beijing, the Company has become a fully integrated global organization of over 7,600 employees in 23 countries and regions as of September 30, 2021, including China, the United States, Europe and Australia.
Basis of presentation and consolidation
The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020, and the condensed consolidated statements of shareholders' equity for the three and nine months ended September 30, 2021 and 2020, and the related footnote disclosures are unaudited. The accompanying unaudited interim condensed financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including guidance with respect to interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the "Annual Report").
The unaudited interim condensed consolidated interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all normal recurring adjustments, necessary to present a fair statement of the results for the interim periods presented. Results of the operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period.
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The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.
Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries which are not attributable, directly or indirectly, to the controlling shareholders. For a portion of fiscal 2020, the Company consolidated its interests in its joint venture, BeiGene Biologics Co., Ltd. ("BeiGene Biologics") and MapKure, LLC ("MapKure"), under the voting model and recognized the minority shareholder's equity interest as a noncontrolling interest in its condensed consolidated financial statements. In June 2020, the Company deconsolidated MapKure and recorded an equity method investment for its remaining ownership interest in the joint venture (see Note 4). In November 2020, the Company acquired the remaining equity interest in BeiGene Biologics. Subsequent to the share purchase, BeiGene Biologics is a wholly-owned subsidiary of the Company (see Note 7).
Use of estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to, estimating the useful lives of long-lived assets, estimating variable consideration in product sales and collaboration revenue arrangements, identifying separate accounting units and determining the standalone selling price of each performance obligation in the Company’s revenue arrangements, assessing the impairment of long-lived assets, valuation and recognition of share-based compensation expenses, realizability of deferred tax assets, estimating uncertain tax positions, valuation of inventory, estimating the allowance for credit losses, determining defined benefit pension plan obligations, measurement of right-of-use assets and lease liabilities and the fair value of financial instruments. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.
Recent accounting pronouncements
New accounting standards which have been adopted
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB's overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. Certain amendments in this update should be applied retrospectively or modified retrospectively, and all other amendments should be applied prospectively. The Company adopted this standard on January 1, 2021. There was no material impact to the Company's financial position or results of operations upon adoption.
Significant accounting policies
For a more complete discussion of the Company’s significant accounting policies and other information, the unaudited interim condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report for the year ended December 31, 2020.
There have been no material changes to the Company’s significant accounting policies as of and for the nine months ended September 30, 2021, as compared to the significant accounting policies described in the Annual Report.
2. Fair Value Measurements
The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in market with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
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Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and considers an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers.
The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of September 30, 2021 and December 31, 2020:
  Quoted Price    
  in Active Significant  
  Market for Other Significant
  Identical Observable Unobservable
  Assets Inputs Inputs
As of September 30, 2021 (Level 1) (Level 2) (Level 3)
  $ $ $
Cash equivalents      
U.S. treasury securities 237,796  —  — 
Money market funds 62,291  —  — 
Short-term investment (Note 4):
U.S. Treasury securities 2,533,617  —  — 
Other non-current assets (Note 4):
Equity securities with readily determinable fair values 29,467  13,650  — 
Total 2,863,171  13,650  — 
 
  Quoted Price    
  in Active Significant  
  Market for Other Significant
  Identical Observable Unobservable
  Assets Inputs Inputs
As of December 31, 2020 (Level 1) (Level 2) (Level 3)
  $ $ $
Cash equivalents      
U.S. treasury securities 286,072  —  — 
Money market funds 80,838  —  — 
Short-term investment (Note 4):
U.S. Treasury securities 3,268,725  —  — 
Other non-current assets (Note 4):
Equity securities with readily determinable fair values 10,810  6,669  — 
Total 3,646,445  6,669  — 
The Company's cash equivalents are highly liquid investments with original maturities of 3 months or less. Short-term investments represent the Company's investments in available-for-sale debt securities. The Company determines the fair value of cash equivalents and available-for-sale debt securities using a market approach based on quoted prices in active markets.
The Company's equity securities carried at fair value consist of holdings in common stock and warrants to purchase additional shares of common stock of Leap Therapeutics, Inc. ("Leap"), which were acquired in connection with a collaboration and license agreement entered into in January 2020 and in Leap's underwritten public offering in September 2021. The common stock investment in Leap, a publicly-traded biotechnology company, is measured and carried at fair value and classified as Level 1. The warrants to purchase additional shares of common stock in Leap are classified as a Level 2 investment and are measured using the Black-Scholes option-pricing valuation model, which utilizes a constant maturity risk-free rate and reflects the term of the warrants, dividend yield and stock price volatility, that is based on the historical volatility of similar companies.
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Refer to Note 4, Restricted Cash and Investments for details of the determination of the carrying amount of private equity investments without readily determinable fair values and equity method investments.
As of September 30, 2021 or December 31, 2020, the fair values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and short-term debt approximated their carrying values due to their short-term nature. Long-term bank loans approximate their fair value due to the fact that the related interest rates approximate the rates currently offered by financial institutions for similar debt instrument of comparable maturities.
3. Collaborative Arrangements
The Company has entered into collaborative arrangements for the research and development, manufacture and/or commercialization of medicines and drug candidates. To date, these collaborative arrangements have included out-licenses of internally developed products and drug candidates to other parties, in-licenses of products and drug candidates from other parties, and profit- and cost-sharing arrangements. These arrangements may include non-refundable upfront payments, contingent obligations for potential development, regulatory and commercial performance milestone payments, cost-sharing and reimbursement arrangements, royalty payments, and profit sharing.
Out-Licensing Arrangements
For the three and nine months ended September 30, 2021, the Company’s collaboration revenue consisted entirely of revenue recognized under its out-licensing collaborative agreement with Novartis Pharma AG ("Novartis"). There was no collaboration revenue recognized for the three and nine months ended September 30, 2020.
The following table summarizes total collaboration revenue recognized for the three and nine months ended September 30, 2021 and 2020:
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Revenue from Collaborators $ $ $ $
License revenue —  484,646  — 
Research and development service revenue 13,979 —  40,456  — 
Total 13,979 —  525,102  — 
Novartis
In January 2021, the Company entered into a collaboration and license agreement with Novartis, granting Novartis rights to develop, manufacture and commercialize tislelizumab in North America, Europe, and Japan (the "Novartis Territory"). The Company and Novartis have agreed to jointly develop tislelizumab in these licensed countries, with Novartis responsible for regulatory submissions after a transition period and for commercialization upon regulatory approvals. In addition, both companies may conduct clinical trials globally to explore combinations of tislelizumab with other cancer treatments, and the Company has an option to co-detail the product in North America, funded in part by Novartis.
Under the agreement the Company received an upfront cash payment of $650,000 from Novartis. The Company is eligible to receive up to $1,300,000 upon the achievement of regulatory milestones, $250,000 upon the achievement of sales milestones, and royalties on future sales of tislelizumab in the licensed territory. Under the terms of the agreement, the Company is responsible for funding ongoing clinical trials of tislelizumab, Novartis has agreed to fund new registrational, bridging, or post-marketing studies in its territory, and each party will be responsible for funding clinical trials evaluating tislelizumab in combination with its own or third party products. Each party retains the worldwide right to commercialize its propriety products in combination with tislelizumab.
The Company evaluated the Novartis agreement under ASC 606 as all the material units of account within the agreement represented transactions with a customer. The Company identified the following material components under the agreement: (1) exclusive license for Novartis to develop, manufacture, and commercialize tislelizumab in the Novartis Territory, transfer of know-how and use of the tislelizumab trademark; (2) conducting and completing ongoing trials of tislelizumab (“R&D services”); and (3) supplying Novartis with required quantities of the tislelizumab drug product, or drug substance, upon receipt of an order from Novartis.
The Company determined that the license, transfer of know-how and use of trademarks are not distinct from each other and represent a single performance obligation. The R&D services represent a material promise and were determined to be a separate
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performance obligation at the outset of the agreement as the promise is distinct and has standalone value to Novartis. The Company evaluated the supply component of the contract and noted the supply will not be provided at a significant incremental discount to Novartis. The Company concluded that, for the purpose of ASC 606, the provision related to providing clinical and commercial supply of tislelizumab in the Novartis Territory was an option but not a performance obligation of the Company at the outset of the Novartis collaboration agreement. A performance obligation for the clinical and commercial supply will be established as quantities of drug product or drug substance are ordered by Novartis.

The Company determined that the transaction price as of the outset of the arrangement was the upfront payment of $650,000. The potential milestone payments that the Company is eligible to receive were excluded from the transaction price, as all milestone amounts were fully constrained due to uncertainty of achievement. The transaction price was allocated to the two identified performance obligations based on a relative fair value basis. The standalone selling price of the license, transfer of know-how and use of trademarks performance obligation was determined using the adjusted market assessment approach. Based on the valuation performed by the Company, the standalone selling price of the license, transfer of know-how and use of trademarks was valued at $1,231,000. The standalone selling price of the R&D services was valued at $420,000 using a cost plus margin valuation approach. Based on the relative standalone selling prices of the two performance obligations, $484,646 of the total transaction price was allocated to the license and $165,354 was allocated to the R&D services.

The Company satisfied the license performance obligation at a point in time when the license was delivered and the transfer of know-how completed which occurred during the nine months ended September 30, 2021. As such, the Company recognized the entire amount of the transaction price allocated to the license as collaboration revenue during the nine months ended September 30, 2021. The portion of the transaction price allocated to the R&D services was deferred and is being recognized as collaboration revenue as the R&D services are performed using a percentage-of-completion method. Estimated costs to complete are reassessed on a periodic basis and any updates to the revenue earned are recognized on a prospective basis. The Company recognized R&D service revenue of $13,979 and $40,456 during the three and nine months ended September 30, 2021, respectively.

In-Licensing Arrangements
Amgen
In October 2019, the Company entered into a global strategic oncology collaboration with Amgen (the "Amgen Collaboration Agreement") for the commercialization and development in China, excluding Hong Kong, Taiwan and Macau, of Amgen’s XGEVA®, KYPROLIS®, and BLINCYTO®, and the joint global development of a portfolio of oncology assets in Amgen’s pipeline, with BeiGene responsible for development and commercialization in China. The agreement became effective on January 2, 2020, following approval by the Company's shareholders and satisfaction of other closing conditions.
Under the agreement, the Company is responsible for the commercialization of XGEVA®, KYPROLIS® and BLINCYTO® in China for five or seven years. Amgen is responsible for manufacturing the products globally and will supply the products to the Company at an agreed upon price. The Company and Amgen will share equally in the China commercial profits and losses during the commercialization period. Following the commercialization period, the Company has the right to retain one product and is entitled to receive royalties on sales in China for an additional five years on the products not retained. XGEVA® was approved in China in 2019 for patients with giant cell tumor of the bone and in November 2020 for the prevention of skeletal-related events in cancer patients with bone metastases. In July 2020, the Company began commercializing XGEVA® in China. In December 2020, BLINCYTO® was approved in China for injection for the treatment of adult patients with relapsed or refractory (R/R) B-cell precursor acute lymphoblastic leukemia (ALL). In July 2021, KYPROLIS® was conditionally approved in China for injection in combination with dexamethasone for the treatment of adult patients with relapsed or refractory (R/R) multiple myeloma.
Amgen and the Company are also jointly developing a portfolio of Amgen oncology pipeline assets under the collaboration. The Company is responsible for conducting clinical development activities in China and co-funding global development costs by contributing cash and development services up to a total cap of $1,250,000. Amgen is responsible for all development, regulatory and commercial activities outside of China. For each pipeline asset that is approved in China, the Company will receive commercial rights for seven years from approval. The Company has the right to retain approximately one out of every three approved pipeline assets, other than LUMAKRAS (sotorasib), Amgen's KRAS G12C inhibitor, for commercialization in China. The Company and Amgen will share equally in the China commercial profits and losses during the commercialization period. The Company is entitled to receive royalties from sales in China for pipeline assets returned to Amgen for five years after the seven-year commercialization period. The Company is also entitled to receive royalties from global sales of each product outside of China (with the exception of LUMAKRAS).
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The Amgen Collaboration Agreement is within the scope of ASC 808, as both parties are active participants and are exposed to the risks and rewards dependent on the commercial success of the activities performed under the agreement. The Company is the principal for product sales to customers in China during the commercialization period and recognizes 100% of net product revenue on these sales. Amounts due to Amgen for its portion of net product sales are recorded as cost of sales. Cost reimbursements due to or from Amgen under the profit share are recognized as incurred and recorded to cost of sales; selling, general and administrative expense; or research and development expense, based on the underlying nature of the related activity subject to reimbursement. Costs incurred for the Company's portion of the global co-development funding are recorded to research and development expense as incurred.
In connection with the Amgen Collaboration Agreement, a Share Purchase Agreement ("SPA") was entered into by the parties in October 2019. On January 2, 2020, the closing date of the transaction, Amgen purchased 15,895,001 of the Company's ADSs for $174.85 per ADS, representing a 20.5% ownership stake in the Company. Per the SPA, the cash proceeds shall be used as necessary to fund the Company's development obligations under the Amgen Collaboration Agreement. Pursuant to the SPA, Amgen also received the right to designate one member of the Company's board of directors, and Anthony Hooper joined the Company's board of directors as the Amgen designee in January 2020.
In determining the fair value of the common stock at closing, the Company considered the closing price of the common stock on the closing date of the transaction and included a lack of marketability discount because the shares are subject to certain restrictions. The fair value of the shares on the closing date was determined to be $132.74 per ADS, or $2,109,902 in the aggregate. The Company determined that the premium paid by Amgen on the share purchase represents a cost share liability due to the Company's co-development obligations. The fair value of the cost share liability on the closing date was determined to be $601,857 based on the Company's discounted estimated future cash flows related to the pipeline assets. The total cash proceeds of $2,779,241 were allocated based on the relative fair value method, with $2,162,407 recorded to equity and $616,834 recorded as a research and development cost share liability. The cost share liability is being amortized proportionately as the Company contributes cash and development services to its total co-development funding cap.
Amounts recorded related to the Company's portion of the co-development funding on the pipeline assets for the three and nine months ended September 30, 2021 and 2020 were as follows:
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Research and development expense 29,710  30,795  85,040  87,498 
Amortization of research and development cost share liability 28,943  30,056  82,846  85,296 
Total amount due to Amgen for BeiGene's portion of the development funding 58,653  60,851  167,886  172,794 
As of
September 30,
2021
Remaining portion of development funding cap 851,124 
As of September 30, 2021 and December 31, 2020, the research and development cost share liability recorded in the Company's balance sheet was as follows:
  As of
  September 30, December 31,
  2021 2020
  $ $
Research and development cost share liability, current portion 153,838  127,808 
Research and development cost share liability, non-current portion 266,163  375,040 
Total research and development cost share liability 420,001  502,848 
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The total reimbursement due under the commercial profit-sharing agreement for in-line product sales is classified in the income statement for the three and nine months ended September 30, 2021 and 2020 as follows:
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Cost of sales - product 380  (1,023) 1,058  (1,023)
Research and development (373) 61  (310) 61 
Selling, general and administrative (12,552) (3,667) (28,469) (3,667)
Total (12,545) (4,629) (27,721) (4,629)
The Company purchases commercial inventory from Amgen to distribute in China. Total inventory purchases amounted to $32,129 and $50,983 during the three and nine months ended September 30, 2021, respectively, and $7,404 during the three and nine months ended September 30, 2020. Net amounts payable to Amgen as of September 30, 2021 and December 31, 2020 were $105,675 and $122,828, respectively.
Shoreline
In June 2021, the Company signed an exclusive worldwide strategic collaboration with Shoreline Biosciences, Inc., to develop and commercialize a portfolio of NK-based based cell therapeutics leveraging Shoreline’s iPSC NK cell technology and BeiGene’s research and clinical development capabilities for different malignancies.
4. Restricted Cash and Investments
Restricted Cash
The Company’s restricted cash balance of $6,386 and $8,055 as of September 30, 2021 and December 31, 2020, respectively, primarily consists of RMB-denominated cash deposits held in designated bank accounts for collateral for letters of credit. The Company classifies restricted cash as current or non-current based on the term of the restriction.
Short-Term Investments
Short-term investments as of September 30, 2021 consisted of the following available-for-sale debt securities:
    Gross Gross Fair Value
  Amortized Unrealized Unrealized (Net Carrying
  Cost Gains Losses Amount)
  $ $ $ $
U.S. treasury securities 2,533,886  —  (269) 2,533,617 
Total 2,533,886  —  (269) 2,533,617 
 Short-term investments as of December 31, 2020 consisted of the following available-for-sale debt securities:
    Gross  Gross  Fair Value
  Amortized Unrealized Unrealized (Net Carrying
  Cost Gains Losses Amount)
  $ $ $ $
U.S. treasury securities 3,267,875  850  —  3,268,725 
Total 3,267,875  850  —  3,268,725 
As of September 30, 2021, the Company's available-for-sale debt securities consisted entirely of short-term U.S. treasury securities, which were determined to have zero risk of expected credit loss. Accordingly, no allowance for credit loss was recorded as of September 30, 2021.

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Equity Securities with Readily Determinable Fair Values
Leap
In January 2020, the Company purchased $5,000 of Series B mandatorily convertible, non-voting preferred stock of Leap in connection with a strategic collaboration and license agreement the Company entered into with Leap. The Series B shares were subsequently converted into shares of Leap common stock and warrants to purchase additional shares of common stock upon approval of Leap's shareholders in March 2020. In September 2021, the Company purchased $7,250 of common stock in Leap's underwritten public offering. As of September 30, 2021, the Company's ownership interest in the outstanding common stock of Leap was 8.4% based on information from Leap. Inclusive of the shares of common stock issuable upon the exercise of the currently exercisable warrants, the Company's interest is approximately 13.2% based on information from Leap. The Company measures the investment in the common stock and warrants at fair value, with changes in fair value recorded to other (expense) income, net. The Company recorded unrealized gains of $23,764 and $18,388 for the three and nine months ended September 30, 2021, respectively, and unrealized (losses)/gains of $(1,048) and $10,216 for the three and nine months ended September 30, 2020, respectively, in the consolidated statements of operations. As of September 30, 2021 and December 31, 2020, the fair value of the common stock and warrants was as follows:
  As of
  September 30, December 31,
  2021 2020
  $ $
Fair value of Leap common stock 29,467  10,810 
Fair value of Leap warrants 13,650  6,669 

Private Equity Securities without Readily Determinable Fair Values
The Company invests in equity securities of certain companies whose securities are not publicly traded and fair value is not readily determinable and where the Company has concluded it does not have significant influence based on its ownership percentage and other factors. These investments are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company held investments of $21,714 and $9,705 in equity securities without readily determinable fair values as of September 30, 2021 and December 31, 2020, respectively. There were no adjustments to the carrying values of these securities for the three and nine months ended September 30, 2021.
Equity-Method Investments
MapKure
In June 2019, the Company announced the formation of MapKure, LLC ("MapKure"), an entity jointly owned by the Company and SpringWorks Therapeutics, Inc. ("SpringWorks"). The Company out-licensed to MapKure the Company's product candidate BGB-3245, an oral, selective small molecule inhibitor of monomer and dimer forms of activating B-RAF mutations including V600 BRAF mutations, non-V600 B-RAF mutations, and RAF fusions. The Company received 10,000,000 Series A preferred units of MapKure, or a 71.4% ownership interest in exchange for its contribution of the intellectual property. SpringWorks purchased 3,500,000 Series A preferred units, or a 25% ownership interest, and other investors purchased 250,000 Series A preferred units or 1.8% ownership each. Following the initial closing, the Company consolidated its interests in MapKure under the voting model due to its controlling financial interest.
In June 2020, MapKure held a second closing under the existing terms of the SPA in which it issued additional Series A preferred units to SpringWorks and the other investors that purchased units in the first closing (the "Second Closing"), and the Company's ownership interest decreased to 55.6%. As the requisite Series A voting requirements in MapKure's governing documents require 70% combined voting power for certain actions, the Company determined that it lost its controlling financial interest after the Second Closing. Therefore, the Company deconsolidated MapKure and recognized a gain of $11,307 for the excess of the fair value of its 55.6% ownership interest in MapKure and carrying amount of the prior non-controlling interest over the carrying amount of MapKure's net assets within other income during the year ended December 31, 2020.
Upon deconsolidation, the Company recorded an equity investment of $10,000, which represents the estimated fair value of its 55.6% ownership interest in MapKure. Effective June 8, 2020, the Company is accounting for the investment as an equity-method investment and records its portion of MapKure's earnings or losses within other (expense) income, net. The Company recognized losses of $291 and $763 for the three and nine months ended September 30, 2021, respectively, and losses of $143
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and $166 for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021 and December 31, 2020, the carrying amount of the Company's investment in MapKure was $8,746 and $9,509, respectively.
Guangzhou GET Phase I Biomedical Industry Investment Fund Partnership (Limited Partnership)
On July 23, 2020, BeiGene (Guangzhou) invested $11,782 (RMB80,000) in an existing investment fund, Guangzhou GET Phase I Biomedical Industry Investment Fund Partnership (Limited Partnership) (“GET Bio-fund”). The stated purpose of GET Bio-fund is to promote and upgrade the local industrial transformation in Guangzhou and it is committed to invest at least 60% of the total fund in the biotechnology, medical device, and medical information industries.
GET Bio-fund has four limited partners and one general partner, Guangzhou GET Biomedical Industry Investment Fund Management Co., Ltd. (“GET Bio-fund Management”). GET Bio-fund has an agreed duration for seven years, with the first five years as the investment period and the following two years as the projected payback period. The agreed upon duration may be extended for two additional years with the approval of all of the partners. BeiGene Guangzhou, as a limited partner, holds an ownership interest in the fund of 26.3%. The investment committee for the fund has seven members, and requires resolutions to be approved by at least five of the seven members. BeiGene Guangzhou holds one position on the investment committee and GET Bio-fund Management holds three positions. The Company determined that it has the ability to exercise significant influence over the fund due to the Company's ownership interest and involvement on the investment committee, and the investment represents an equity method investment. The Company recognized unrealized losses of less than $1 and $56 for the three and nine months ended September 30, 2021, respectively, and losses of $76 for the three and nine months ended September 30, 2020. As of September 30, 2021 and December 31, 2020, the carrying amount of the Company's investment in the fund was $12,286 and $12,189, respectively.
Other Equity-Method Investments
In addition to the equity-method investments mentioned above, the Company made additional equity-method investments during the year ended December 31, 2020 and the nine months ended September 30, 2021 that it does not consider to be individually significant to its financial statements. The Company recognized the equity-method investments at cost and subsequently adjusted the basis based on the Company's share of the results of operations. The Company records its share of the investees' results of operations within other (expense) income, net.
5. Inventories
The Company’s inventory balance consisted of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Raw materials 54,993  19,330 
Work in process 10,397  1,378 
Finished goods 85,589  68,585 
Total inventories 150,979  89,293 
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6. Property, plant and equipment
Property, plant and equipment are recorded at cost and consisted of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Laboratory equipment 109,950  78,640 
Leasehold improvements 47,521  37,643 
Building 133,478  111,527 
Manufacturing equipment 114,408  96,669 
Software, electronics and office equipment 26,160  20,782 
Property, plant and equipment, at cost 431,517  345,261 
Less accumulated depreciation (110,086) (73,354)
Construction in progress 129,357  85,779 
Property, plant and equipment, net 450,788  357,686 
 As of September 30, 2021 and December 31, 2020, construction in progress ("CIP") of $129,357 and $85,779, respectively, was primarily related to the buildout of additional capacity at the Guangzhou manufacturing facility and expansion of BeiGene (Guangzhou) Co., Ltd.'s ("BGC") research and development activities in Guangzhou, China. Subsequent phases of the Guangzhou factory buildout and BGC research and development expansion will continue to be recorded as CIP until they are placed into service.
Depreciation expense was $11,773 and $32,440 for the three and nine months ended September 30, 2021, respectively, and $8,157 and $23,303 for the three and nine months ended September 30, 2020, respectively.
7. Guangzhou Biologics Business
In March 2017, BeiGene HK, a wholly owned subsidiary of the Company, and Guangzhou GET Technology Development Co., Ltd. (now Guangzhou High-tech Zone Technology Holding Group Co., Ltd.) ("GET"), entered into a definitive agreement to establish a commercial scale biologics manufacturing facility in Guangzhou, Guangdong Province, PRC. BeiGene HK and GET entered into an Equity Joint Venture Contract (the “JV Agreement”).
Under the terms of the JV Agreement, BeiGene HK made an initial cash capital contribution of RMB200,000 and a subsequent contribution of one or more biologics assets in exchange for a 95% equity interest in BeiGene Biologics. GET made a cash capital contribution of RMB100,000 to BeiGene Biologics, representing a 5% equity interest in BeiGene Biologics. In addition, on March 7, 2017, BeiGene Biologics entered into a contract with GET, under which GET agreed to provide a RMB900,000 loan (the “Shareholder Loan”) to BeiGene Biologics. In September 2019, BeiGene Biologics completed the first phase of construction of a biologics manufacturing facility in Guangzhou, through a wholly-owned subsidiary, BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory"), to manufacture biologics for the Company and its subsidiaries.
In September 2020, BeiGene HK entered into a share purchase agreement (“JV Share Purchase Agreement”) with GET to acquire GET’s 5% equity interest in BeiGene Biologics for a total purchase price of $28,723 (RMB195,262). The transaction was finalized in November 2020 upon completion of the business registration filing. The share purchase was recorded as an equity transaction. The carrying amount of the noncontrolling interest balance of $9,116 was adjusted to nil to reflect the increase in BeiGene HK’s ownership interest to 100%, and the difference in the fair value of the consideration paid and the carrying amount of the noncontrolling interest of $19,599 was recorded to additional paid in capital. In conjunction with the JV Share Purchase Agreement, BeiGene Biologics repaid the outstanding principal of the shareholder loan of $132,061 (RMB900,000) and accrued interest of $36,558 (RMB249,140).
In connection with the JV share purchase, the Company entered into a loan agreement with China Minsheng Bank for a total loan facility of up to $200,000 ("Senior Loan"), of which $120,000 will be used to fund the JV share repurchase and repayment of the shareholder loan and $80,000 can be used for general working capital purposes. The Company may extend the original maturity date for up to two additional twelve month periods. In October 2020, the Company drew down $80,000 of the working capital facility and $118,320 of the acquisition facility to be used for the JV share repurchase. In addition, the Company entered into a loan agreement with Zhuhai Hillhouse Zhaohui Equity Investment Partnership ("Zhuhai Hillhouse") for a total loan facility of $73,640 (RMB500,000) ("Related Party Loan"), of which $14,728 (RMB100,000) can be used for general corporate purposes and $58,912 (RMB400,000) can only be applied towards the repayment of the Senior Loan facility,
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including principal, interest and fees. The Company has drawn down $15,520 (RMB100,000) of the Related Party Loan as of September 30, 2021. See Note 11 for further discussion of the loans.
8. Intangible Assets
Intangible assets as of September 30, 2021 and December 31, 2020 are summarized as follows:
  As of
  September 30, 2021 December 31, 2020
  Gross     Gross    
  carrying Accumulated Intangible carrying Accumulated Intangible
  amount amortization assets, net amount amortization assets, net
  $ $ $ $ $ $
Finite-lived intangible assets:            
Product distribution rights 7,500  (3,063) 4,437  7,500  (2,500) 5,000 
Developed product 10,000  (333) 9,667  —  —  — 
Trading license 816  (816) —  816  (816) — 
Total finite-lived intangible assets 18,316  (4,212) 14,104  8,316  (3,316) 5,000 
 Product distribution rights consist of distribution rights on the approved cancer therapies licensed from BMS, REVLIMID®, VIDAZA®, and ABRAXANE®, acquired as part of the transaction with BMS (then Celgene) in 2017. The Company is amortizing the product distribution rights, as a single identified asset, over a period of 10 years which is the term of the agreement. Developed product represents the post-approval milestone payments under the license agreement with Merck KGaA that was terminated during the year ended December 31, 2018 and the commercialization agreement with EUSA Pharma. The Company is amortizing the developed product over the remainder of the product patent or the term of the commercialization agreement. The trading license represents the Guangzhou drug distribution license acquired on September 21, 2018. The Company amortized the drug distribution trading license over the remainder of the initial license term through February 2020. The trading license has been renewed through February 2024.
Amortization expense for developed product is included in cost of sales - product in the accompanying consolidated statements of operations. Amortization expense for product distribution rights and the trading licenses is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows:

  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Amortization expense - Cost of sales - product
216  —  333  — 
Amortization expense - Operating expense
188  187  563  658 
Total 404  187  896  658 
As of September 30, 2021, expected amortization expense for the unamortized finite-lived intangible assets is approximately $424 for the remainder of 2021, $1,695 in 2022, $1,695 in 2023, $1,695 in 2024, and $8,595 in 2025 and thereafter.
9. Income Taxes
Income tax benefit was $19,223 and $24,083 for the three and nine months ended September 30, 2021, respectively, and was $8,423 and $8,344 for the three and nine months ended September 30, 2020, respectively. The income tax benefit for the three and nine months ended September 30, 2021 and September 30, 2020 was primarily attributable to the deferred tax benefit of U.S. stock-based compensation deductions in excess of tax expense on income reported in certain China subsidiaries as adjusted for certain non-deductible expenses.
On a quarterly basis, the Company evaluates the realizability of deferred tax assets by jurisdiction and assesses the need for a valuation allowance. In assessing the realizability of deferred tax assets, the Company considers historical profitability, evaluation of scheduled reversals of deferred tax liabilities, projected future taxable income and tax-planning strategies. Valuation allowances have been provided on deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. After
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consideration of all positive and negative evidence, the Company believes that as of September 30, 2021, it is more likely than not that deferred tax assets will not be realized for the Company’s subsidiaries in Australia and Switzerland, for certain subsidiaries in China, and for all U.S. tax credit carryforwards.
As of September 30, 2021, the Company had gross unrecognized tax benefits of $9,084. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months. The Company’s reserve for uncertain tax positions increased by $778 and $1,961, respectively, in the three and nine months ended September 30, 2021 primarily due to U.S. federal and state tax credits and incentives.
The Company has elected to record interest and penalties related to income taxes as a component of income tax expense. As of September 30, 2021 and December 31, 2020, the Company's accrued interest and penalties, where applicable, related to uncertain tax positions were not material.
The Company conducts business in a number of tax jurisdictions and, as such, is required to file income tax returns in multiple jurisdictions globally. As of September 30, 2021, Australia tax matters are open to examination for the years 2013 through 2021, China tax matters are open to examination for the years 2014 through 2021, Switzerland tax matters are open to examination for the years 2017 through 2021, and U.S. federal tax matters are open to examination for years 2015 through 2021. Various U.S. states and other non-US tax jurisdictions in which the Company files tax returns remain open to examination for 2010 through 2021.
10. Supplemental Balance Sheet Information
The roll-forward of the allowance for credit losses related to trade accounts receivable for the nine months ended September 30, 2021 and 2020 consists of the following activity:
Nine Months Ended
September 30,
2021 2020
$ $
Balance at beginning of the period 112  — 
Current period provision for expected credit losses (7) 114 
Amounts written-off —  — 
Exchange rate changes — 
Balance at end of the period 108  114 

Prepaid expenses and other current assets consist of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Prepaid research and development costs 75,696  71,341 
Prepaid manufacturing cost 59,536  25,996 
Prepaid taxes 38,438  30,392 
Payroll tax receivable 20,911  3,580 
Prepaid Commercial 7,646  2,794 
Interest receivable 7,223  6,619 
Prepaid insurance 4,122  1,347 
Income tax receivable 3,016  4,607 
Non-trade receivable 2,829  4,464 
Other 15,598  8,872 
Total 235,015  160,012 
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Other non-current assets consist of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Goodwill 109  109 
Prepayment of property and equipment 34,579  16,984 
Prepayment of facility capacity expansion activities (1) 23,816  29,778 
Prepaid VAT 21,499  10,913 
Rental deposits and other 7,691  5,962 
Long-term investments (Note 4) 87,428  49,344 
Total 175,122  113,090 
(1) Represents payments for facility expansions under commercial supply agreements. The payments are providing future benefit to the Company through credits on commercial supply purchases.
Accrued expenses and other payables consist of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Compensation related 104,878  106,765 
External research and development activities related 163,937  143,302 
Commercial activities 67,100  66,131 
Employee tax withholdings 27,494  14,373 
Sales rebates and returns related 20,190  11,874 
Professional fees and other 6,275  3,699 
Total 389,874  346,144 
Other long-term liabilities consist of the following:
  As of
  September 30, December 31, 
  2021 2020
  $ $
Deferred government grant income 46,672  49,139 
Pension liability 7,863  8,113 
Other 71  177 
Total 54,606  57,429 

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11. Debt
The following table summarizes the Company's short-term and long-term debt obligations as of September 30, 2021 and December 31, 2020:
Lender Agreement Date Line of Credit Term Maturity Date Interest Rate September 30, 2021 December 31, 2020
$ RMB $ RMB
China Construction Bank April 4, 2018 RMB580,000
9-year
April 4, 2027 (1) 776  5,000  307  2,000 
China Merchants Bank January 22, 2020 (2)
 9-year
January 20, 2029 (2) 1,164  7,500  —  — 
China Minsheng Bank (the "Senior Loan") September 24, 2020 $200,000 (3) 5.8  % 198,320  1,277,835  198,320  1,294,010 
Zhuhai Hillhouse (the "Related Party Loan") September 24, 2020 RMB500,000 (4) 5.8  % 15,520  100,000  15,326  100,000 
Other short-term debt (5) 226,592  1,460,000  121,062  789,918 
Total short-term debt 442,372  2,850,335  335,015  2,185,928 
China Construction Bank April 4, 2018 RMB580,000
 9-year
April 4, 2027 (1) 89,085  574,000  88,584  578,000 
China Merchants Bank January 22, 2020 (2)
 9-year
January 20, 2029 (2) 53,156  342,500  53,641  350,000 
China Merchants Bank November 9, 2020 RMB378,000
9-year
November 8, 2029 (6) 58,665  378,000  41,412  270,206 
Total long-term bank loans 200,906  1,294,500  183,637  1,198,206 
1.The outstanding borrowings bear floating interest rates benchmarking RMB loan interest rates of financial institutions in the PRC. The loan interest rate was 4.9% as of September 30, 2021. The loan is secured by BeiGene Guangzhou Factory's land use right and certain Guangzhou Factory fixed assets in the first phase of the Guangzhou manufacturing facility's build out. The Company repaid $155 (RMB1,000) during the nine months ended September 30, 2021.
2.On January 22, 2020, BeiGene Guangzhou Factory entered into a nine-year bank loan with China Merchants Bank to borrow up to RMB1,100,000 at a floating interest rate benchmarked against prevailing interest rates of certain PRC financial institutions. The loan is secured by Guangzhou Factory's second land use right and fixed assets that will be placed into service upon completion of the second phase of the Guangzhou manufacturing facility's build out. In connection with the Company's short-term loan agreements with China Merchants Bank entered into during the year ended December 31, 2020, the borrowing capacity was reduced from RMB1,100,000 to RMB350,000. The loan interest rate was 4.4% as of September 30, 2021.
3.$120,000 of the Senior Loan was designated to fund the JV share purchase and repayment of the shareholder loan and $80,000 was designated for general working capital purposes. The Senior Loan has an original maturity date of October 8, 2021, which is the first anniversary of the first date of utilization of the loan. The Company may extend the original maturity date for up to two additional 12 month periods.
4.RMB100,000 of the Related Party Loan was designated for general corporate purposes and RMB400,000 was designated for repayment of the Senior Loan, including principal, interest and fees. The loan matures at the earlier of: (i) November 9, 2021, which is one month after the Senior Loan maturity date, if not extended, or (ii) 10 business days after the Senior Loan is fully repaid. Zhuhai Hillhouse is a related party of the Company, as it is an affiliate of Hillhouse Capital. Hillhouse Capital is a shareholder of the Company, and a Hillhouse Capital employee is a member of the Company's board of directors.
5.During the year ended December 31, 2020, the Company entered into additional short-term working capital loans with China Industrial Bank and China Merchants Bank to borrow up to RMB1,480,000 in aggregate, with maturity dates ranging from April 19, 2021 to September 8, 2022. The Company drew down $143,456 (RMB930,082) during the nine months ended September 30, 2021. The Company repaid $40,074 (RMB260,000) of the short-term loans in the nine months ended September 30, 2021. The weighted average interest rate for the short-term working capital loans was approximately 4.3% as of September 30, 2021. One of the short-term working capital loans outstanding in the amount of $9,312 (RMB60,000) is secured by the Company's research and development facility in Beijing and the associated land use right owned by its subsidiary, Beijing Innerway Bio-tech Co., Ltd.
6.The outstanding borrowings bear floating interest rates benchmarking RMB loan interest rates of financial institutions in the PRC. The loan interest rate was 4.3% as of September 30, 2021. The Company drew down $16,838 (RMB107,794) during the nine months ended September 30, 2021. The loan is secured by fixed assets that will be placed into service upon completion of the third phase of the Guangzhou manufacturing facility's build out.
Interest Expense
Interest expense recognized for the three and nine months ended September 30, 2021 was $7,609 and $22,186, respectively, among which, $275 and $526 was capitalized, respectively. Interest expense recognized for the three and nine months ended September 30, 2020 was $4,139 and $12,849, respectively, among which, $97 and $214 was capitalized, respectively.

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12. Product Revenue
The Company’s product revenue is derived from the sale of its internally developed products BRUKINSA® in the United States and China, and tislelizumab and pamiparib in China; the sale of REVLIMID® and VIDAZA® in China under a license from BMS; and XGEVA® and BLINCYTO® in China under a license from Amgen. On March 25, 2020, the Company announced that the China National Medical Products Administration ("NMPA") suspended the importation, sales and use of ABRAXANE® in China supplied to BeiGene by Celgene, a BMS company, and the drug was subsequently recalled by BMS and is not currently available for sale in China.
The table below presents the Company’s net product sales for the three and nine months ended September 30, 2021 and 2020.
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Product revenue – gross 206,029  95,333  497,823  216,210 
Less: Rebates and sales returns (13,568) (4,253) (60,621) (7,436)
Product revenue – net 192,461  91,080  437,202  208,774 
The following table disaggregates net product sales by product for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Tislelizumab 76,980  49,934  200,738  99,877 
BRUKINSA®
65,832  15,662  130,345  23,353 
REVLIMID®
20,209  14,067  46,984  38,914 
VIDAZA®
5,810  8,366  12,771  26,198 
ABRAXANE®
—  —  —  17,381 
XGEVA®
15,699  3,051  33,491  3,051 
BLINCYTO®
5,040  —  5,040  — 
Pamiparib 1,516  —  3,737  — 
Other 1,375  —  4,096  — 
Total product revenue – net 192,461  91,080  437,202  208,774 
The following table presents the roll-forward of accrued sales rebates and returns for the nine months ended September 30, 2021 and 2020:
Nine Months Ended
September 30,
  2021 2020
  $ $
Balance at beginning of the period 11,874  3,198 
Accrual 60,621  7,436 
Payments (52,305) (3,110)
Balance at end of the period 20,190  7,524 
Sales rebates accrued and paid through September 30, 2021 increased as a result of compensating distributors for products previously sold at the pre-NRDL price, which remained in the distribution channel, due to the first inclusion of tislelizumab, BRUKINSA® and XGEVA® in the NRDL.

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13. Loss Per Share
The following table reconciles the numerator and denominator in the computations of basic and diluted loss per share:
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Numerator:    
Net loss (413,855) (426,617) (827,701) (1,127,874)
Less: Net loss attributable to noncontrolling interest —  (1,393) —  (3,713)
Net loss attributable to BeiGene, Ltd. (413,855) (425,224) (827,701) (1,124,161)
Denominator:
Weighted average shares outstanding—basic and diluted 1,205,971,284  1,148,973,077  1,196,391,201  1,052,940,583 
For the three and nine months ended September 30, 2021 and September 30, 2020, the computation of basic loss per share using the two-class method was not applicable as the Company was in a net loss position, and the effects of all share options, restricted shares, restricted share units and ESPP shares were excluded from the calculation of diluted loss per share, as their effect would have been anti-dilutive.
14. Share-Based Compensation Expense
2016 Share Option and Incentive Plan
In January 2016, in connection with the Company's initial public offering ("IPO") on the NASDAQ Stock Market, the board of directors and shareholders of the Company approved the 2016 Share Option and Incentive Plan (the “2016 Plan”), which became effective in February 2016. The Company initially reserved 65,029,595 ordinary shares for the issuance of awards under the 2016 Plan, plus any shares available under the 2011 Option Plan (the “2011 Plan”), and not subject to any outstanding options as of the effective date of the 2016 Plan, along with underlying share awards under the 2011 Plan that are cancelled or forfeited without issuance of ordinary shares. As of September 30, 2021, ordinary shares cancelled or forfeited under the 2011 Plan that were carried over to the 2016 Plan totaled 5,166,510. In December 2018, the shareholders approved an amended and restated 2016 Plan to increase the number of shares authorized for issuance by 38,553,159 ordinary shares, as well as amend the cap on annual compensation to independent directors and make other changes. In June 2020, the shareholders approved an Amendment No. 1 to the 2016 Plan to increase the number of shares authorized for issuance by 57,200,000 ordinary shares and to extend the term of the plan through April 13, 2030. The number of shares available for issuance under the 2016 Plan is subject to adjustment in the event of a share split, share dividend or other change in the Company’s capitalization.
During the nine months ended September 30, 2021, the Company granted options for 6,074,757 ordinary shares and restricted share units for 15,583,295 ordinary shares under the 2016 Plan. As of September 30, 2021, options and restricted share units for ordinary shares outstanding under the 2016 Plan totaled 59,405,189 and 36,239,359, respectively. As of September 30, 2021, share-based awards to acquire 50,670,190 ordinary shares were available for future grant under the 2016 Plan.
2018 Inducement Equity Plan
In June 2018, the board of directors of the Company approved the 2018 Inducement Equity Plan (the “2018 Plan”) and reserved 12,000,000 ordinary shares to be used exclusively for grants of awards to individuals that were not previously employees of the Company or its subsidiaries, as a material inducement to the individual’s entry into employment with the Company or its subsidiaries within the meaning of Rule 5635(c)(4) of the NASDAQ Listing Rules. The 2018 Plan was approved by the board of directors upon recommendation of the compensation committee, without shareholder approval pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules. The terms and conditions of the 2018 Plan, and the forms of award agreements to be used thereunder, are substantially similar to the 2016 Plan and the forms of award agreements thereunder. In August 2018, in connection with the Hong Kong IPO, the board of directors of the Company approved an amended and restated 2018 Plan to implement changes required by the listing rules of the HKEx.
During the nine months ended September 30, 2021, the Company did not grant any options or restricted share units under the 2018 Plan. As of September 30, 2021, options and restricted share units for ordinary shares outstanding under the 2018 Plan
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totaled 30,901 and 831,116, respectively. As of September 30, 2021, share-based awards to acquire 9,294,440 ordinary shares were available for future grant under the 2018 Plan.
2018 Employee Share Purchase Plan
In June 2018, the shareholders of the Company approved the 2018 Employee Share Purchase Plan (the “ESPP”). Initially, 3,500,000 ordinary shares of the Company were reserved for issuance under the ESPP. In December 2018, the board of directors of the Company approved an amended and restated ESPP to increase the number of shares authorized for issuance by 3,855,315 ordinary shares to 7,355,315 ordinary shares. In June 2019, the board of directors adopted an amendment to revise the eligibility criteria for enrollment in the plan. In June 2021, the board of directors of the Company adopted the third amended and restated ESPP to include some technical amendments under U.S. tax rules and to consolidate the changes in the prior amendment, to be effective on September 1, 2021. The ESPP allows eligible employees to purchase the Company’s ordinary shares (including in the form of ADSs) at the end of each offering period, which will generally be six months, at a 15% discount to the market price of the Company’s ADSs at the beginning or the end of each offering period, whichever is lower, using funds deducted from their payroll during the offering period. Eligible employees are able to authorize payroll deductions of up to 10% of their eligible earnings, subject to applicable limitations.
As of September 30, 2021, 5,194,546 ordinary shares were available for future issuance under the ESPP.
The following tables summarizes the shares issued under the ESPP:
Market Price1
Purchase Price2
Issuance Date Number of Ordinary Shares Issued ADS Ordinary ADS Ordinary Proceeds
August 31, 2021 425,386  $ 308.30  $ 23.72  $ 262.06  $ 20.16  $ 8,575 
February 26, 2021 436,124  $ 236.30  $ 18.18  $ 200.86  $ 15.45  $ 6,738 
August 31, 2020 485,069  $ 164.06  $ 12.62  $ 139.45  $ 10.73  $ 5,203 
February 28, 2020 425,425  $ 145.54  $ 11.20  $ 123.71  $ 9.52  $ 4,048 
1 The market price is the lower of the closing price on the NASDAQ Stock Market on the issuance date or the offering date, in accordance with the terms of the ESPP.
2 The purchase price is the price which was discounted from the applicable market price, in accordance with the terms of the ESPP.
The following table summarizes total share-based compensation expense recognized for the three and nine months ended September 30, 2021 and 2020:
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2021 2020 2021 2020
  $ $ $ $
Research and development 31,680  25,410  83,762  69,521 
Selling, general and administrative 35,397  24,887  93,939  64,499 
Total 67,077  50,297  177,701  134,020 
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15. Accumulated Other Comprehensive Income
The movement of accumulated other comprehensive income was as follows:
    Unrealized  
  Foreign Currency Gains/(Losses) on Pension  
  Translation Available-for-Sale Liability  
  Adjustments Securities Adjustments Total
  $ $
Balance as of December 31, 2020 14,184  871  (8,113) 6,942 
Other comprehensive (loss) income before reclassifications 6,528  </