BeiGene Reports First Quarter 2020 Financial Results
“Our recent approval of tislelizumab in
Recent Business Highlights and Upcoming Milestones
- Launched tislelizumab in
Chinain March 2020for patients with classical Hodgkin’s lymphoma (cHL) who have received at least two prior therapies;
- Received approval from the
China National Medical Products Administration(NMPA) for tislelizumab as a treatment for patients with previously treated locally advanced or metastatic urothelial carcinoma;
$52.06 millionin product revenue in the three months ended March 31, 2020;
- As announced previously, the NMPA suspended the importation, sales and use of ABRAXANE® (nanoparticle albumin-bound paclitaxel) in
Chinasupplied to BeiGeneby Celgene Corporation, a Bristol Myers Squibb (BMS) company. As a result, Celgene initiated a voluntary recall of ABRAXANE in mainland China; and
- Received commercial insurance reimbursement for tislelizumab as a treatment for relapsed/refractory classical Hodgkin's lymphoma in Zhuhai,
- Transition activities for the three Amgen commercial oncology medicines, XGEVA® (denosumab), KYPROLIS® (carfilzomib), and BLINCYTO® (blinatumomab) in
Chinaare on track. BeiGeneis preparing to commence promotional activities for XGEVA in patients with giant cell tumor of bone in the third quarter of 2020. Regulatory activities for KYPROLIS and BLINCYTO are in progress, with new drug applications (NDAs) to the NMPA submitted in the fourth quarter 2019. Additionally, a supplemental NDA for XGEVA for an expanded indication in skeletal-related events in Chinawas accepted by the NMPA; and BeiGeneis working with Amgen to advance the clinical-stage oncology assets in the collaboration pursuant to the global development plan.
- Regulatory discussions are in progress and biologics license applications (BLAs) in
Chinafor both SYLVANT® (siltuximab) and QARZIBA®▼ (dinutuximab beta) are expected to be submitted in 2020.
BRUKINSA™ (zanubrutinib), a small molecule inhibitor of Bruton’s tyrosine kinase (BTK) designed to maximize BTK occupancy and minimize off-target effects; approved in
- Initiated a multi-center Phase 2 clinical trial (NCT04382586) evaluating zanubrutinib for the treatment of patients hospitalized for COVID-19 infection and pulmonary distress. The trial is designed to enroll approximately 42 patients, randomized to receive oral zanubrutinib at 320 mg once daily for 28 days plus supportive care, or placebo plus supportive care. An additional cohort of four to 10 patients on mechanical ventilation will all receive zanubrutinib plus supportive care. The trial’s primary endpoint is the respiratory failure-free survival rate at day 28 in the randomized cohort.
Expected Milestones for Zanubrutinib
- Receive approvals in
Chinafor the treatment of patients with relapsed/refractory (R/R) mantle cell lymphoma (MCL) and R/R chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) in the first half of 2020;
- Announce top-line results from the SEQUOIA trial comparing zanubrutinib with bendamustine plus rituximab in patients with treatment-naïve CLL or SLL as early as the second half of 2020;
- File a supplemental new drug application (sNDA) in
Chinafor Waldenström’s macroglobulinemia (WM) in 2020;
- Discuss data from the Phase 3 ASPEN trial (NCT03053440) comparing zanubrutinib to ibrutinib in patients with WM with the
U.S. Food and Drug Administration(FDA) and European Medicines Agency(EMA) in 2020;
- Complete expanded enrollment in the Phase 3 ALPINE trial (NCT03734016) comparing zanubrutinib with ibrutinib in patients with R/R CLL/SLL in 2020; and
- Present data from Phase 3 ASPEN trial comparing zanubrutinib to ibrutinib in patients with WM in an oral presentation at the 2020 ASCO Virtual Science Program being held
May 29-31, 2020, and present three-year follow-up data of treatment-naïve and previously treated patients with WM.
Tislelizumab, a humanized IgG4 anti-PD-1 monoclonal antibody specifically designed to minimize binding to FcγR on macrophages; approved in
- Announced that the
Center for Drug Evaluation (CDE) of the NMPAaccepted an sNDA of tislelizumab in combination with two chemotherapy regimens for first-line treatment of patients with advanced squamous non-small cell lung cancer (NSCLC);
- Announced that the pivotal Phase 3 trial (NCT03663205) of patients with first-line advanced non-squamous NSCLC met its primary endpoint at the planned interim analysis, demonstrating a statistically significant improvement in progression-free survival (PFS) for tislelizumab in combination with pemetrexed and platinum chemotherapy compared to pemetrexed and platinum chemotherapy alone as assessed by the independent review committee (IRC). The safety profile of tislelizumab in combination with pemetrexed and platinum chemotherapy was consistent with the known risks of each study treatment, and no new safety signals were identified;
- Completed enrollment in the Phase 3 trial (NCT03358875) of tislelizumab versus docetaxel as a second- or third-line treatment in patients with NSCLC; and
- Completed enrollment in the global Phase 3 trial (NCT03430843) of tislelizumab versus chemotherapy as a second-line treatment in patients with advanced esophageal squamous cell carcinoma (ESCC).
Expected Milestones for Tislelizumab
- Submit an sNDA in
Chinafor first-line treatment of patients with advanced non-squamous NSCLC in 2020 and present data at an upcoming medical conference;
- Have regulatory discussions with health authorities based on preliminary results from the global Phase 2 trial (NCT03419897) in second- or third-line patients with hepatocellular carcinoma (HCC) in 2020;
- Present data from the Phase 3 trial in patients with first-line advanced squamous NSCLC at the 2020 ASCO Virtual Scientific Program;
- Announce top-line results from the Phase 3 trial (NCT03358875) comparing tislelizumab versus docetaxel in second-or third-line patients with NSCLC and in the global Phase 3 trial (NCT03430843) comparing tislelizumab versus chemotherapy in second-line patients with advanced ESCC in 2020 or early 2021;
- Initiate a Phase 3 trial in
Chinafor patients with resectable Stage II or IIIA NSCLC; and
- Complete enrollment in the pivotal Phase 2 trial (NCT03736889) in
Chinaof patients with mismatched repair deficient (dMMR) or microsatellite instability-high (MSI-H) solid tumors in 2020.
Pamiparib, an investigational selective small molecule inhibitor of PARP1 and PARP2
- Completed enrollment in the Phase 2 clinical trial (NCT03575065) in
Chinain patients with advanced HER2-negative breast cancer harboring germline BRCA mutation that have progressed despite standard therapy or for which no standard therapy exists.
Expected Milestones for Pamiparib
- Have regulatory discussions based on preliminary results from the Phase 2 trial (NCT03333915) in Chinese patients with third-line and above previously treated ovarian cancer (OC) harboring germline BRCA 1/2 mutations, and potentially submit an NDA in
- Announce top-line results from the Phase 3 trial (NCT03519230) of pamiparib as a maintenance treatment in patients with platinum-sensitive recurrent OC in 2020 or the first half of 2021; and
- Present updated data from the Phase 1 trial (NCT02660034) of pamiparib in combination with tislelizumab in patients with advanced solid tumors in 2020.
Lifirafenib, an investigational RAF dimer inhibitor
- Published Phase 1 data in the
Journal of Clinical Oncology.
BGB-A1217, an investigational TIGIT monoclonal antibody
Expected Milestones for BGB-A1217
- Present clinical data from the Phase 1 trial in 2020 or early 2021.
BGB-11417, an investigational small molecule Bcl-2 inhibitor
- Initiated patient enrollment for the Phase 1 trial (NCT04277637) of BGB-11417 in patients with mature B-cell malignancies. We intend to develop BGB-11417 both as a monotherapy and in combination with zanubrutinib.
Sitravatinib, an investigational tyrosine kinase inhibitor of receptor tyrosine kinases (RTKs), including TAM family receptors (TYRO3, Axl, MER), split family receptors (VEGFR2, KIT) and RET, licensed from Mirati Therapeutics in
Expected Milestones for Sitravatinib
- Present additional Phase 1 clinical data on sitravatinib combined with tislelizumab at a medical meeting in 2020.
ZW25, a novel investigational Azymetric™ bispecific antibody currently in Phase 2 clinical development with Zymeworks, Inc.
- Initiated enrollment in a two-arm Phase 1b/2 trial (NCT04276493) evaluating ZW25 in combination with chemotherapy as a first-line treatment for patients with metastatic HER2-positive breast cancer and in combination with chemotherapy and tislelizumab as a first-line treatment for patients with metastatic HER2-positive gastroesophageal adenocarcinoma (GEA).
Expected Milestones for ZW25
- Support clinical development and enrollment of the planned registration-enabling trials in refractory HER2-positive biliary tract cancer in 2020 and first-line HER2-positive gastroesophageal adenocarcinomas in late 2020 or early 2021.
BGB-3245, an investigational RAF dimer inhibitor with activity against mutant monomeric and dimeric forms of B-RAF in preclinical studies. BGB-3245 is being developed by MapKure, which
- Announced that the first patient has been dosed in
Australiain the Phase 1 clinical trial (NCT04249843) in patients with advanced or refractory solid tumors. The U.S.FDA has allowed the Investigational New Drug (IND) application submitted for BGB-3245 to proceed, which will enable study expansion to U.S.sites.
- Completed equipment validation and executed manufacturing process validation for the first phase of our manufacturing facility in
- Began construction of the second phase of our manufacturing facility in
Guangzhouto significantly increase manufacturing capacity, expected to be completed by the end of 2020.
COVID-19 Impact and Response
- The Company expects that the worldwide health crisis of COVID-19 will have a negative impact on its operations, including commercial sales, regulatory interactions and inspections, and clinical trial recruitment and participation. The impact on the Company’s operations in
Chinahas started to alleviate, as much of the country gradually resumes regular business. The Company is working to continue to minimize delays and disruptions and continues to execute on its commercialization, regulatory and clinical development goals globally.
- In addition to the clinical trial of zanubrutinib in COVID-19 patients, the Company announced plans to work with Atreca, Inc. and IGM Biosciences, Inc. to leverage the parties’ technology and expertise in an effort to discover, develop, and manufacture novel IgM or IgA antibodies targeting SARS-CoV-2 for the potential treatment of COVID-19.
First Quarter 2020 Financial Results
Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments were $3.38 billion as of
- Total cash and short-term investments increased
$2.39 billionin the three months ended March 31, 2020, primarily due to the $2.78 billionof cash received from the sale of American Depositary Shares to Amgen in connection with the closing of the Amgen collaboration on January 2, 2020. In the three months ended March 31, 2020, cash used in operating activities totaled $341.94 million, capital expenditures were $21.53 million, and cash used for upfront license payments totaled $43.00 million.
Revenue for the three months ended
- Product revenues totaled
$52.06 millionfor the three months ended March 31, 2020, compared to $57.42 millionfor the three months ended March 31, 2019, and were comprised of:
- Product revenue of
$20.53 millionfrom sales of tislelizumab in Chinasince its launch in March 2020, including launch inventory build at distributors. Despite the challenges posed by COVID-19, the Chinacommercial team launched tislelizumab on plan in the first quarter through efforts in multiple channels including extensive online promotion;
- Product revenue of
$30.82 millionfrom sales of ABRAXANE, REVLIMID and VIDAZA in China, compared to $57.42 millionin the same period of the prior year. The decrease in revenues was due to the negative impact of the COVID-19 pandemic, increased generic competition, and the suspension of ABRAXANE sales in Chinaby the NMPA in March 2020; and
- Product revenue of
$0.72 millionfrom sales of BRUKINSA in the United States. Early launch indicators including new patient starts, reimbursement coverage, and physician perception have been encouraging.
- Collaboration revenue totaled nil for the three months ended
March 31, 2020, compared to $20.41 millionfor the three months ended March 31, 2019.
Expenses for the three months ended
- Cost of sales for the three months ended
March 31, 2020were $14.15 million, compared to $15.26 millionin the same period of 2019. Cost of sales primarily includes acquisition costs related to the amount of ABRAXANE, REVLIMID and VIDAZA that was sold during the period in China, as well as the post-approval cost of tislelizumab and BRUKINSA that was sold during the period.
- R&D Expenses for the three months ended
March 31, 2020were $304.30 million, compared to $178.35 millionin the same period of 2019. The increase in R&D expenses was primarily attributable to continued increases in spending on our ongoing and newly initiated late-stage pivotal clinical trials, development expenses associated with the Amgen collaboration, the preparation for additional regulatory submissions, and manufacturing costs related to pre-commercial activities and supply. R&D expense in the three months ended March 31, 2020also included $43.00 millionof expense related to upfront license payments, compared to $10.00 millionin the same period of 2019. Our co-funding obligation for the development of the pipeline assets under the Amgen collaboration for the three months ended March 31, 2020was $56.00 million, of which $28.37 millionwas recorded as R&D expense. The remaining $27.63 millionwas recorded as a reduction of the R&D cost share liability. R&D-related share-based compensation expense was $20.40 million for the three months ended March 31, 2020, compared to $15.77 millionfor the same period of 2019.
- SG&A Expenses for the three months ended March 31, 2020 were $107.08 million, compared to
$57.65 millionin the same period in 2019. The increase in SG&A expenses was primarily attributable to increased headcount, including the expansion of our commercial team to support the distribution of our commercial products in Chinaand the United States, as well as higher professional service fees and costs to support our growing operations. SG&A-related share-based compensation expense was $17.86 million for the three months ended March 31, 2020, compared to $10.62 millionfor the same period of 2019.
- Net Loss for the three months ended
March 31, 2020was $363.74 million, or $0.36per share, or $4.70per American Depositary Share (ADS), compared to $167.64 million, or $0.22per share, or $2.81per ADS in the same period in 2019.
Select Condensed Consolidated Balance Sheet Data (
(Amounts in thousands of
|Cash, cash equivalents, restricted cash and short-term investments||$||3,376,915||$||985,503|
|Accounts receivable, net||65,620||70,878|
|Property and equipment, net||240,331||242,402|
|Liabilities and equity:|
|Accrued expenses and other payables||179,331||163,556|
|Research and development cost share liability||589,200||—|
Condensed Consolidated Statements of Operations (
(Amounts in thousands of
|Three Months Ended
|Product revenue, net||$||52,059||$||57,421|
|Cost of sales - products||14,149||15,261|
|Research and development||304,302||178,351|
|Selling, general and administrative||107,081||57,645|
|Amortization of intangible assets||283||331|
|Loss from operations||(373,756||)||(173,755||)|
|Interest income, net||6,690||4,477|
|Other income, net||3,681||1,728|
|Loss before income taxes||(363,385||)||(167,550||)|
|Income tax expense||1,554||519|
|Less: Net loss attributable to noncontrolling interest||(1,204||)||(429||)|
|Net loss attributable to
|Net loss per share attributable to
|Weighted-average shares outstanding, basic and diluted||1,005,347,581||774,750,255|
|Net loss per ADS attributable to
|Weighted-average ADSs outstanding, basic and diluted||77,334,429||59,596,173|
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding recent clinical data for BeiGene’s product candidates and approvals of its products; the conduct of late-stage clinical trials and expected data readouts; additional planned commercial product launches; the advancement of and anticipated clinical development, regulatory milestones and commercialization of BeiGene’s products and drug candidates; the success of launch efforts for tislelizumab and BRUKINSA; BeiGene’s efforts to minimize the impact of the COVID-19 pandemic on its operations and to support its patients and physicians on the frontlines; BeiGene’s efforts to develop a therapeutic treatment for COVID-19; the impact of the COVID-19 pandemic on the Company’s clinical development, commercial and other operations; and BeiGene’s plans and the expected milestones under the caption “Recent Business Highlights and Upcoming Milestones”. Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including
|Investor Contact||Media Contact|
|+1 857-302-5189||+1 857-302-7596|
ABRAXANE® is a registered trademark of
XGEVA®, KYPROLIS® and BLINCYTO® are registered trademarks of Amgen.
SYLVANT® and QARZIBA® are registered trademarks of EUSA Pharma.
Source: BeiGene, LTD.