BeiGene Reports Third Quarter 2018 Financial Results
Nov 07, 2018 7:00 AM
“We now have three new drug applications currently under review with the
“The milestones this quarter pave the way for an exciting upcoming year that could further transform BeiGene,” continued Oyler. “We expect to launch two innovative internally developed products in
Recent Business Highlights and Upcoming Milestones
Clinical Programs
Zanubrutinib (BGB-3111), an investigational small molecule inhibitor of Bruton’s tyrosine kinase (BTK)
- We are engaged in a series of continuing discussions with national regulatory authorities regarding new drug applications (NDAs) for zanubrutinib in Waldenström's macroglobulinemia (WM) and other indications. We had previously announced a plan, based on discussions with the
U.S. Food and Drug Administration (FDA), to file for accelerated approval in WM in the first half of 2019. Based on recent discussions with the FDA regarding our filing plans, we are revising guidance around the timing of our first NDA filing for zanubrutinib inthe United States . We now expect to submit an initial NDA for zanubrutinib inthe United States in 2019 or early 2020; - Submitted and received acceptance from the
China National Medical Products Administration (NMPA) for our NDA for patients with relapsed/refractory (R/R) mantle cell lymphoma (MCL); - Submitted and received acceptance by the NMPA for our NDA for patients with R/R chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL);
- Initiated a global head-to-head Phase 3 trial versus ibrutinib in R/R CLL or SLL;
- Announced updated results from the Phase 1 clinical trial in patients with WM that were presented at the 10th
International Workshop on Waldenström's Macroglobulinemia (IWWM). These data, in 73 evaluable patients with WM, continued to demonstrate that zanubrutinib was associated with high rates of overall (92%), major (82%) and very good partial response (VGPR; 41%) and was generally well-tolerated; and - Announced preliminary results from the Phase 1 clinical trial in Chinese patients with B-cell lymphomas from an oral presentation at the 21st Annual Meeting of the
Chinese Society of Clinical Oncology (CSCO).
Expected Upcoming Milestones in 2018
- Present full results of the pivotal Phase 2 trial in Chinese patients with R/R MCL in an oral presentation at the 60th
American Society of Hematology (ASH) Annual Meeting, taking placeDecember 1 to 4, 2018 inSan Diego, CA ; BeiGene will hold an investor webcast from ASH onMonday, December 3 , at8:00 pm PST . A live webcast and replay of the event will be available on BeiGene’s investor website, http://ir.beigene.com;
- Present updated safety and activity data from a global Phase 1 study in patients with MCL at ASH; and
- Initiate a global Phase 2 trial in patients with R/R marginal zone lymphoma (MZL).
Tislelizumab (BGB-A317), an investigational humanized monoclonal antibody against the immune checkpoint receptor PD-1
- Submitted and received acceptance from the China NMPA of our first NDA for tislelizumab as a treatment for patients with relapsed/refractory classical Hodgkin’s lymphoma (R/R cHL);
- Announced preliminary results from the Phase 2 clinical trial in
China of tislelizumab combined with chemotherapy as first-line treatment in patients with advanced lung cancer; and announced preliminary results of tislelizumab from the Phase 1/2 clinical trial inChina in patients with non-small cell lung cancer from presentations at CSCO and theInternational Association for the Study of Lung Cancer (IASLC) 19thWorld Conference on Lung Cancer (WCLC); - Announced preliminary results from the Phase 1/2 trial in
China in patients with microsatellite instability-high (MSI-H) or mismatch repair-deficient (dMMR) solid tumors at CSCO; - Completed enrollment in the Phase 2 pivotal trial in
China for urothelial bladder cancer; and
- Initiated the following trial:
° A Phase 2 trial in Chinese patients with MSI-H or dMMR solid tumors.
Expected Upcoming Milestones in 2018
- Present data from the pivotal Phase 2 trial of tislelizumab in Chinese patients with R/R cHL in an oral presentation at ASH;
- Present updated data from expansion cohorts in the Phase 1 trial at the
European Society for Medical Oncology Immuno-Oncology (ESMO IO) congress; and - Initiate additional global randomized frontline pivotal Phase 3 clinical trials in gastric and esophageal cancers in 2018 or early 2019, as well as additional pivotal trials in
China in 2019.
Pamiparib (BGB-290), an investigational small molecule PARP inhibitor
- Announced preliminary clinical data from an ongoing Phase 1 trial of pamiparib in combination with temozolomide in patients with locally advanced or metastatic solid tumors that were presented at the
European Society for Medical Oncology (ESMO) 2018Congress .
Expected Upcoming Milestones in 2018
- Present Phase 1/2 trial data on pamiparib in combination with radiation therapy and/or temozolomide in patients with newly diagnosed or recurrent/refractory glioblastoma in an oral presentation at the 23rd Annual Scientific Meeting and Education Day of the
Society for Neuro-Oncology (SNO), being heldNovember 15-18 inNew Orleans, LA .
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
- Initiated a Phase 1 trial in
China andAustralia in combination with tislelizumab in patients with advanced solid tumors.
Commercial Programs in
- Generated
$38.45 million in product revenue from sales inChina of ABRAXANE®, REVLIMID® and VIDAZA® in the third quarter of 2018, a 22% increase quarter-over-quarter, and 146% growth compared to the fourth quarter of 2017, the first full quarter following the license of these products from Celgene; and
- Received national reimbursement in
China from theState Medical Insurance Administration (SMIA) for VIDAZA® (azacitidine for injection) for the treatment of patients with intermediate-2 / high-risk myelodysplastic syndrome (MDS), acute myeloid leukemia (AML) with 20-30% bone marrow blasts and chronic myelomonocyte leukemia (CMML).
Corporate Developments
- Announced a global clinical collaboration with MEI Pharma, Inc. to evaluate the safety and efficacy of MEI's ME-401, an investigational PI3K delta inhibitor, in combination with zanubrutinib for the treatment of patients with B-cell malignancies;
- Announced a global clinical collaboration with SpringWorks Therapeutics to evaluate the safety, tolerability, and preliminary efficacy of combining lifirafenib and SpringWorks Therapeutics' investigational MEK inhibitor, PD-0325901, in patients with advanced solid tumors; and
- Appointed Dr.
Jian (Jonathan) Liu as Senior Vice President of Bio-Manufacturing. Prior to joiningBeiGene ,Dr. Liu served on the Senior Leadership Team of Johnson &Johnson (J&J) Global Pharmaceutical Development & Manufacturing Sciences (PDMS) and China R&D, respectively, responsible for PDMS business strategy development and regional execution.
Third Quarter 2018 Financial Results
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments were $2.10 billion as of September 30, 2018, compared to
Cash used by operations for the three months ended
Revenue for the three months ended September 30, 2018 was
- Product revenue from sales of ABRAXANE®, REVLIMID® and VIDAZA® in
China totaled$38.45 million for the third quarter of 2018, compared to$31.43 million for the three months endedJune 30, 2018 , and$8.82 million for the three months endedSeptember 30, 2017 (which only included one month of product sales following the in-license from Celgene), respectively. - Collaboration revenue totaled
$15.76 million for the third quarter of 2018, compared to$21.38 million for the three months endedJune 30, 2018 , and$211.39 million for the three months endedSeptember 30, 2017 , respectively. The decrease, compared to the second quarter of 2018, is primarily due to lower research and development costs in the period on clinical trials that are being reimbursed by Celgene. The decrease, compared to the third quarter of 2017, is due primarily to the upfront revenue recognized in the third quarter of 2017 from the Celgene collaboration.
Expenses for the three months ended
- Cost of sales for the three months ended
September 30, 2018 were$8.71 million , compared to$1.94 million in the third quarter of 2017 (which only included one month of sales), an increase of 348.97 percent. Cost of sales relates to the cost of acquiring ABRAXANE®, REVLIMID® and VIDAZA® for distribution inChina . - R&D Expenses for the three months ended
September 30, 2018 were$147.59 million , compared to$87.66 million in the same period in 2017, an increase of 68.4%. The increase in R&D expenses was primarily attributable to increased spending on our ongoing and newly initiated late-stage pivotal clinical trials, preparation for regulatory filings and commercial launch of our late-stage drug candidates, manufacturing costs related to pre-commercial activities and supply, as well as increases in spending related to our preclinical-stage programs. The overall increase in R&D expenses was also attributable to increased R&D-related employee share-based compensation expense, which was $15.52 million for the three months endedSeptember 30, 2018 , compared to$10.38 million for the same period in 2017, due to increased headcount and a higher share price. - SG&A Expenses for the three months ended September 30, 2018 were $48.82 million, compared to
$15.64 million in the same period in 2017, an increase of 212.1%. 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 existing commercial products inChina and the potential launches of our late-stage drug candidates, higher professional service fees and costs to support our growing operations, and higher SG&A-related share-based compensation expense, which was $9.61 million for the three months endedSeptember 30, 2018 , compared to$2.95 million for the same period in 2017, due to increased headcount and a higher share price. - Net Loss for the third quarter of 2018 was $144.03 million, or
$2.53 per American Depositary Share (ADS), compared to net income of$117.39 million , or$2.79 per ADS in the same period in 2017. For the third quarter of 2018, net loss per ordinary share was$0.19 , compared to net income of$0.21 in the same period in 2017.
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Financial Summary
Select Condensed Consolidated Balance Sheet Data (
(Amounts in thousands of
| As of | |||||
| 2018 | 2017 | ||||
| (unaudited) | (audited) | ||||
| Cash, cash equivalents, restricted cash and short-term investments | $ | 2,101,072 | $ | 837,516 | |
| Accounts receivable | 37,372 | 29,428 | |||
| Unbilled receivables | 4,878 | — | |||
| Working capital | 1,991,771 | 763,509 | |||
| Property and equipment, net | 111,262 | 62,568 | |||
| Total assets | 2,408,627 | 1,046,479 | |||
| Accounts payable | 85,552 | 69,779 | |||
| Accrued expenses and other payables | 75,882 | 49,598 | |||
| Bank loan [1] | 49,560 | 18,444 | |||
| Shareholder loan | 146,409 | 146,271 | |||
| Total liabilities | 425,196 | 362,248 | |||
| Noncontrolling interest | 12,985 | 14,422 | |||
| Total equity | $ | 1,983,431 | $ | 684,231 | |
| [1] The bank loan attributable to BeiGene Biologics, a joint venture that is 95% owned by | |||||
Condensed Consolidated Statements of Operations (
(Amounts in thousands of
| Three Months Ended | Nine Months Ended | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Revenue | ||||||||||||
| Product revenue, net | $ | 38,447 | $ | 8,822 | $ | 93,123 | $ | 8,822 | ||||
| Collaboration revenue | 15,755 | 211,391 | 46,427 | 211,391 | ||||||||
| Total revenues | 54,202 | 220,213 | 139,550 | 220,213 | ||||||||
| Expenses: | ||||||||||||
| Cost of sales – products | (8,706 | ) | (1,944 | ) | (19,512 | ) | (1,944 | ) | ||||
| Research and development | (147,590 | ) | (87,660 | ) | (421,541 | ) | (177,678 | ) | ||||
| Selling, general and administrative | (48,820 | ) | (15,641 | ) | (122,895 | ) | (35,187 | ) | ||||
| Amortization of intangible assets | (188 | ) | (63 | ) | (563 | ) | (63 | ) | ||||
| Total expenses | (205,304 | ) | (105,308 | ) | (564,511 | ) | (214,872 | ) | ||||
| (Loss) income from operations | (151,102 | ) | 114,905 | (424,961 | ) | 5,341 | ||||||
| Interest income (expense), net | 4,553 | (1,785 | ) | 7,997 | (3,581 | ) | ||||||
| Other income, net | 1,585 | 1,103 | 2,389 | 1,541 | ||||||||
| (Loss) income before income taxes | (144,964 | ) | 114,223 | (414,575 | ) | 3,301 | ||||||
| Income tax benefit | 472 | 3,061 | 7,252 | 2,680 | ||||||||
| Net (loss) income | $ | (144,492 | ) | $ | 117,284 | $ | (407,323 | ) | $ | 5,981 | ||
| Less: Net loss attributable to noncontrolling interest | (461 | ) | (102 | ) | (1,809 | ) | (237 | ) | ||||
| Net (loss) income attributable to | $ | (144,031 | ) | $ | 117,386 | $ | (405,514 | ) | $ | 6,218 | ||
| Net (loss) income attributable to | ||||||||||||
| Basic | $ | (2.53 | ) | $ | 2.79 | $ | (7.49 | ) | $ | 0.15 | ||
| Diluted | $ | (2.53 | ) | $ | 2.54 | $ | (7.49 | ) | $ | 0.14 | ||
| Weighted-average ADSs outstanding: | ||||||||||||
| Basic | 56,906,867 | 42,118,973 | 54,114,038 | 40,563,845 | ||||||||
| Diluted | 56,906,867 | 46,200,975 | 54,114,038 | 43,172,139 | ||||||||
| Net (loss) income per share attributable to | ||||||||||||
| Basic | $ | (0.19 | ) | $ | 0.21 | $ | (0.58 | ) | $ | 0.01 | ||
| Diluted | $ | (0.19 | ) | $ | 0.20 | $ | (0.58 | ) | $ | 0.01 | ||
| Weighted-average ordinary shares outstanding: | ||||||||||||
| Basic | 739,789,269 | 547,546,656 | 703,482,491 | 527,329,985 | ||||||||
| Diluted | 739,789,269 | 600,612,680 | 703,482,491 | 561,237,818 | ||||||||
Condensed Consolidated Statements of Comprehensive Loss (
(Amounts in thousands of
| Three Months Ended | Nine Months Ended | |||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||
| Net (loss) income | $ | (144,492 | ) | $ | 117,284 | $ | (407,323 | ) | $ | 5,981 | ||
| Other comprehensive loss, net of tax of nil: | ||||||||||||
| Foreign currency translation adjustments | (4,217 | ) | 341 | (1,912 | ) | 985 | ||||||
| Unrealized holding gain, net | 354 | 51 | 1,402 | 58 | ||||||||
| Comprehensive (loss) income | (148,355 | ) | 117,676 | (407,833 | ) | 7,024 | ||||||
| Less: Comprehensive loss attributable to noncontrolling interests | (486 | ) | (70 | ) | (1,812 | ) | (178 | ) | ||||
| Comprehensive (loss) income attributable to | $ | (147,869 | ) | $ | 117,746 | $ | (406,021 | ) | $ | 7,202 | ||
About BeiGene
Forward-Looking Statements
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 the encouraging clinical data for BeiGene’s product candidates and product revenue for its products; the advancement of and anticipated clinical development and regulatory milestones for its product candidates; and our 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 | |
| Craig West | ||
| +1 857-302-5189 | + 1 857-302-5663 | |
| ir@beigene.com | media@beigene.com | |
| i ABRAXANE®, REVLIMID®, and VIDAZA® are registered trademarks of Celgene Corporation. | ||
