- Generated total revenues of $929 million, an increase of 56%
from the prior-year period; reduced GAAP operating loss and
achieved non-GAAP operating income
- Strengthened hematology leadership with global BRUKINSA
revenues of $637 million, an increase of 107% from the prior-year
period; advanced pivotal programs for BCL2 inhibitor sonrotoclax
and BTK-targeted degrader BGB-16673
- Advanced innovative solid tumor pipeline of more than 15
investigational molecules, including ADCs, multispecific
antibodies, and targeted therapies for lung, breast, and
gastrointestinal cancers
- Strengthened global presence with opening of $800 million,
42-acre flagship U.S. biologics manufacturing facility and clinical
R&D center in New Jersey and proposal to redomicile from Cayman
Islands to Switzerland, an innovative biotech ecosystem for life
sciences leaders and institutions
BeiGene, Ltd. (NASDAQ: BGNE; HKEX: 06160; SSE: 688235), a global
oncology company, today announced results from the second quarter
2024 and corporate updates that strengthen the Company for future
global growth.
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“This was a tremendous second quarter and an inflection point as
BeiGene achieved positive non-GAAP operating income with rapidly
increasing global revenues and continued financial discipline.
Having now reached this milestone, we will further build on our
differentiated, strategic capabilities as a leading, global
oncology innovator,” said John V. Oyler, Co-Founder, Chairman and
CEO of BeiGene. “BRUKINSA is emerging as the BTKi class leader in
the U.S. in new patient starts across all approved indications,
demonstrating the strength of its clinical efficacy and safety
data, and is the only BTKi to demonstrate superior efficacy versus
ibrutinib in a head-to-head trial. With our leadership in
hematology, we are working to expand into other highly prevalent
cancer types, backed by one of the largest oncology research teams
in the industry. With our continued growth in established
biopharmaceutical hubs such as New Jersey and Switzerland, we are
better positioned to reach even more patients with our innovative
medicines.”
Financial Highlights
(Amounts in thousands of U.S. dollars)
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except
percentages)
2024
2023
% Change
2024
2023
% Change
Net product revenues
$
921,146
$
553,745
66
%
$
1,668,064
$
964,036
73
%
Net revenue from collaborations
$
8,020
$
41,516
(81
)%
$
12,754
$
79,026
(84
)%
Total Revenue
$
929,166
$
595,261
56
%
$
1,680,818
$
1,043,062
61
%
GAAP loss from operations
$
(107,161
)
$
(318,715
)
(66
)%
$
(368,509
)
$
(689,973
)
(47
)%
Adjusted income(loss) from operations*
$
48,464
$
(193,051
)
125
%
$
(98,877
)
$
(468,910
)
(79
)%
* For an explanation of our use of non-GAAP financial measures
refer to the "Use of Non-GAAP Financial Measures" section later in
this press release and for a reconciliation of each non-GAAP
financial measure to the most comparable GAAP measures, see the
table at the end of this press release.
Key Business Updates
BRUKINSA® (zanubrutinib)
- U.S. sales of BRUKINSA totaled $479 million in the second
quarter of 2024, representing growth of 114% over the prior-year
period, with more than 60% of the quarter over quarter demand
growth coming from expanded use in CLL as BRUKINSA continued to
gain share in CLL new patient starts; BRUKINSA sales in Europe
totaled $81 million in the second quarter of 2024, representing
growth of 209%, driven by increased market share across all major
markets, including Germany, Italy, Spain, France and the UK;
- Presented data from Arm D of the Phase 3 SEQUOIA trial
evaluating BRUKINSA in combination with venetoclax in
treatment-naïve (TN) patients with high-risk CLL and/or small
lymphocytic lymphoma (SLL) with del(17p) and/or TP53 mutation as an
oral presentation at the European Hematology Association (EHA) 2024
Hybrid Congress; preliminary data demonstrated an overall response
rate of 100% in 65 response-evaluable patients and a rate of
complete response (CR) plus CR with incomplete hematopoietic
recovery (CRi) of 48%; and
- Presented new analyses highlighting improved progression free
survival and response rates and a low usage of antihypertensive
medicines for patients treated with BRUKINSA compared to other
Bruton’s tyrosine kinase inhibitors (BTKis) used to treat CLL/SLL,
including acalabrutinib and ibrutinib at the American Society of
Clinical Oncology (ASCO) Annual Meeting and EHA.
TEVIMBRA® (tislelizumab)
- Sales of tislelizumab totaled $158 million in the second
quarter of 2024, representing growth of 6% compared to the
prior-year period;
- Presented new data from the Phase 3 RATIONALE-306 study
evaluating TEVIMBRA plus chemotherapy in patients with advanced or
metastatic esophageal squamous cell carcinoma (ESCC) at ASCO;
and
- Received an update that the U.S. Food and Drug Administration
(FDA) has deferred approval for tislelizumab in first-line
unresectable, recurrent, locally advanced, or metastatic ESCC with
a target PDUFA action date of July 2024 on account of a delay in
scheduling clinical site inspections.
Key Pipeline Highlights
Hematology Sonrotoclax (BCL2 inhibitor)
- More than 1,000 patients enrolled to date across the
program;
- Completed enrollment in global Phase 2 trial in R/R mantle cell
lymphoma (MCL) and continued enrollment in global Phase 2 trial in
Waldenstr�m’s macroglobulinemia (WM) and China-only Phase 2 trial
in R/R CLL, all with registrational intent, as well as continued
enrollment in global Phase 3 CELESTIAL trial in combination with
BRUKINSA in TN CLL;
- At EHA 2024, presented data highlighting deep and durable
responses with tolerable safety profile in Phase 1 studies in
combination with BRUKINSA in R/R CLL/SLL and R/R MCL as well as
results of additional Phase 1 trials demonstrating encouraging
response rates, durable responses and manageable safety profiles as
monotherapy in R/R WM, in combination with azacitidine in both TN
and R/R acute myeloid leukemia, and in combination with
dexamethasone in R/R multiple myeloma harboring translocation
(11;14);
- Received FDA fast track designation for R/R WM; and
- Anticipating first subjects enrolled in Phase 3 programs in R/R
CLL and R/R MCL in the fourth quarter of 2024 or first quarter of
2025.
BGB-16673 (BTK CDAC)
- More than 300 patients enrolled to date across the program;
continued to enroll potentially registration enabling expansion
cohorts in R/R MCL and R/R CLL; and
- At EHA 2024, presented data highlighting promising preliminary
efficacy and safety in patients with R/R CLL/SLL; anticipating
first subject enrolled in Phase 3 program in fourth quarter of 2024
or first quarter of 2025.
Solid Tumors Lung Cancer
- Multiple randomized tislelizumab lung cancer combination
cohorts with BGB-A445 (anti-OX40), LBL-007 (anti-LAG3) and
BGB-15025 (HPK1 inhibitor) expected to read out in 2024;
- BGB-C354 (B7H3 ADC): Initiated dose escalation for the
Company’s first internally developed ADC;
- BGB-R046 (IL-15 prodrug): Initiated dose escalation; this is a
cytokine prodrug, leveraging protease-dependent release of active
IL-15 in the tumor microenvironment and eliciting anti-tumor
activity by promoting T and natural killer (NK) cell expansion;
and
- Pan-KRAS, MTA-cooperative PRMT5 inhibitors and EGFR CDAC
targeted protein degrader on track to enter the clinic in the
second half of 2024.
Breast and Gynecologic Cancers
- BGB-43395 (CDK4 inhibitor): Continued dose escalation in
monotherapy and in combination with fulvestrant and letrozole in
the anticipated efficacious dose range with no dose limiting
toxicities observed; more than 60 patients enrolled to date across
the program; potential to share first readout of Phase 1 data in
the fourth quarter of 2024; and
- BG-68501 (CDK2 inhibitor) and BG-C9074 (B7H4 ADC): Continued
monotherapy dose escalation, with pharmacokinetics as expected and
no dose limiting toxicities observed.
Gastrointestinal Cancers
- Tislelizumab combination cohorts with LBL-007 (anti-LAG3) in
ESCC reading out in 2024;
- BLA accepted by the NMPA for zanidatamab for the treatment of
second-line biliary tract cancer; and
- CEA ADC, FGFR2b ADC and GPC3x4-1BB bispecific antibody on track
to enter the clinic in the second half of 2024.
Immunology & Inflammation
- Initiated clinical development of BGB-43035 (IRAK4 CDAC) with
potential to induce deeper and faster IRAK4 degradation with
stronger cytokine inhibition than competitors; this is the second
targeted degrader from the Company’s proprietary CDAC
platform.
Corporate Updates
- Opened flagship U.S. biologics manufacturing facility and
clinical R&D center at the Princeton West Innovation Campus in
Hopewell, N.J.; the facility includes 400,000 square feet of
dedicated manufacturing space; and
- Announced intent to change jurisdiction of incorporation from
the Cayman Islands to Basel, Switzerland, enabling the Company to
deepen its roots in a global biopharmaceutical hub as it further
executes on its global growth strategy to reach more patients
around the world with its innovative medicines; this
redomiciliation is subject to shareholder approval.
Second Quarter 2024 Financial
Highlights
Revenue for the three months ended June 30, 2024, was
$929 million, compared to $595 million in the same period of 2023,
driven primarily by growth in BRUKINSA product sales in the U.S.
and Europe of 114% and 209% respectively.
Product Revenue for the three months ended June 30, 2024,
was $921 million, compared to $554 million in the same period of
2023, representing an increase of 66%. The increase in product
revenue was primarily attributable to increased sales of BRUKINSA.
For the three months ended June 30, 2024, the U.S. was the
Company’s largest market, with product revenue of $479 million,
compared to $224 million in the prior year period. In addition to
BRUKINSA revenue growth, product revenues were positively impacted
by sales of in-licensed products from Amgen in China and
tislelizumab.
Gross Margin as a percentage of global product revenue
for the second quarter of 2024 was 85%, compared to 83% in the
prior-year period. The gross margin percentage increased primarily
due to proportionally higher sales mix of global BRUKINSA compared
to other products in the portfolio.
Operating Expenses
The following table summarizes operating expenses for the second
quarter 2024 and 2023, respectively:
GAAP
Non-GAAP
(in thousands, except
percentages)
Q2 2024
Q2 2023
% Change
Q2 2024
Q2 2023
%
Research and development
$
454,466
$
422,764
7
%
$
382,509
$
363,735
5
%
Selling, general and administrative
$
443,729
$
395,034
12
%
$
363,922
$
331,607
10
%
Amortization
$
—
$
188
(100
)%
$
—
$
—
NM
Total operating expenses
$
898,195
$
817,986
10
%
$
746,431
$
695,342
7
%
The following table summarizes operating expenses for the first
half 2024 and 2023, respectively:
GAAP
Non-GAAP
(in thousands, except
percentages)
Q2 YTD 2024
Q2 YTD 2023
% Change
Q2 YTD 2024
Q2 YTD 2023
% Change
Research and development
$
915,104
$
831,348
10
%
$
787,949
$
725,431
9
%
Selling, general and administrative
$
871,156
$
723,533
20
%
$
736,068
$
614,761
20
%
Amortization
$
—
$
375
(100
)%
$
—
$
—
NM
Total operating expenses
$
1,786,260
$
1,555,256
15
%
$
1,524,017
$
1,340,192
14
%
Research and Development (R&D) Expenses increased for
the second quarter of 2024 compared to the prior-year period on
both a GAAP and adjusted basis primarily due to advancing
preclinical programs into the clinic and early clinical programs
into late stage. Upfront fees and milestone payments related to
in-process R&D for in-licensed assets totaled $12 million in
the second quarter of 2024, compared to nil in the prior-year
period.
Selling, General and Administrative (SG&A) Expenses
increased for the second quarter of 2024 compared to the prior-year
period on both a GAAP and adjusted basis due to continued
investment in the global commercial launch of BRUKINSA, primarily
in the U.S. and Europe. SG&A expenses as a percentage of
product sales were 48% for the second quarter of 2024 compared to
71% in the prior year period.
Income (Loss) from Operations in the second quarter of
2024 operating loss decreased 66% on a GAAP basis. On an adjusted
basis, we achieved operating income of $48 million. The decrease in
GAAP operating loss and achievement of profitability on an adjusted
basis is a key strategic goal and the result of tremendous efforts
to drive growth while maintaining investment discipline.
GAAP Net Loss improved for the quarter ended June 30,
2024, compared to the prior-year period, as our product revenue
growth and management of expenses is driving increased operating
leverage.
For the quarter ended June 30, 2024, net loss per share were
$(0.09) and $(1.15) per American Depositary Share (ADS), compared
to $(0.28) per share and $(3.64) per ADS in the prior year
period.
Cash Used in Operations for the quarter ended June 30,
2024, totaled $96 million compared to $294 million in the
prior-year period, driven by improved operating leverage.
For further details on BeiGene’s Second Quarter 2024 Financial
Statements, please see BeiGene’s Quarterly Report on Form 10-Q for
the second quarter of 2024 filed with the U.S. Securities and
Exchange Commission.
About BeiGene
BeiGene is a global oncology company that is discovering and
developing innovative treatments that are more affordable and
accessible to cancer patients worldwide. With a broad portfolio, we
are expediting development of our diverse pipeline of novel
therapeutics through our internal capabilities and collaborations.
We are committed to radically improving access to medicines for far
more patients who need them. Our growing global team of more than
10,000 colleagues spans five continents. To learn more about
BeiGene, please visit www.beigene.com and follow us on LinkedIn, X
(formerly known as Twitter) and Facebook.
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
BeiGene’s potential to further emerge as a leading, global oncology
innovator; BeiGene’s ability to expand into other highly prevalent
cancer types; BeiGene’s preliminary clinical data and activities,
as well as anticipated read outs; whether shareholders will approve
BeiGene’s change in jurisdiction of incorporation and if approved,
whether this change will enable BeiGene to further execute on its
global growth strategy; and BeiGene’s plans, commitments,
aspirations and goals under the caption “About BeiGene”. Actual
results may differ materially from those indicated in the
forward-looking statements as a result of various important
factors, including BeiGene’s ability to demonstrate the efficacy
and safety of its drug candidates; the clinical results for its
drug candidates, which may not support further development or
marketing approval; actions of regulatory agencies, which may
affect the initiation, timing and progress of clinical trials and
marketing approval; BeiGene’s ability to achieve commercial success
for its marketed medicines and drug candidates, if approved;
BeiGene's ability to obtain and maintain protection of intellectual
property for its medicines and technology; BeiGene’s reliance on
third parties to conduct drug development, manufacturing,
commercialization, and other services; BeiGene’s limited experience
in obtaining regulatory approvals and commercializing
pharmaceutical products; BeiGene’s ability to obtain additional
funding for operations and to complete the development of its drug
candidates and achieve and maintain profitability; and those risks
more fully discussed in the section entitled “Risk Factors” in
BeiGene’s most recent quarterly report on Form 10-Q, as well as
discussions of potential risks, uncertainties, and other important
factors in BeiGene’s subsequent filings with the U.S. Securities
and Exchange Commission. All information in this press release is
as of the date of this press release, and BeiGene undertakes no
duty to update such information unless required by law.
Condensed Consolidated Statements of
Operations (U.S. GAAP)
(Amounts in thousands of U.S. dollars, except
for shares, American Depositary Shares (ADSs), per share and per
ADS data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Revenues
Product revenue, net
$
921,146
$
553,745
$
1,668,064
$
964,036
Collaboration revenue
8,020
41,516
12,754
79,026
Total revenues
929,166
595,261
1,680,818
1,043,062
Cost of sales - products
138,132
95,990
263,067
177,779
Gross profit
791,034
499,271
1,417,751
865,283
Operating expenses:
Research and development
454,466
422,764
915,104
831,348
Selling, general and administrative
443,729
395,034
871,156
723,533
Amortization of intangible assets
—
188
—
375
Total operating expenses
898,195
817,986
1,786,260
1,555,256
Loss from operations
(107,161
)
(318,715
)
(368,509
)
(689,973
)
Interest income, net
13,225
15,070
29,385
31,086
Other expense, net
(11,984
)
(63,818
)
(10,222
)
(45,515
)
Loss before income taxes
(105,920
)
(367,463
)
(349,346
)
(704,402
)
Income tax expense
14,485
13,674
22,209
25,166
Net loss
(120,405
)
(381,137
)
(371,555
)
(729,568
)
Net loss per share, basic and diluted
$
(0.09
)
$
(0.28
)
$
(0.27
)
$
(0.54
)
Weighted-average shares outstanding—basic
and diluted
1,361,082,567
1,360,224,377
1,358,315,145
1,357,211,308
Net loss per ADS, basic and diluted
$
(1.15
)
$
(3.64
)
$
(3.56
)
$
(6.99
)
Weighted-average ADSs outstanding—basic
and diluted
104,698,659
104,632,644
104,485,780
104,400,870
Select Condensed Consolidated Balance Sheet
Data (U.S. GAAP)
(Amounts in thousands of U.S. Dollars)
As of
June 30,
December 31,
2024
2023
(unaudited)
(audited)
Assets:
Cash, cash equivalents, and restricted
cash
$
2,617,931
$
3,185,984
Accounts receivable, net
529,449
358,027
Inventories
443,260
416,122
Property, plant and equipment, net
1,516,491
1,324,154
Total assets
5,712,179
5,805,275
Liabilities and equity:
Accounts payable
333,022
315,111
Accrued expenses and other payables
646,538
693,731
R&D cost share liability
203,627
238,666
Debt
1,036,928
885,984
Total liabilities
2,345,924
2,267,948
Total equity
$
3,366,255
$
3,537,327
Note Regarding Use of Non-GAAP Financial Measures
BeiGene provides certain non-GAAP financial measures, including
Adjusted Operating Expenses and Adjusted Operating Loss and certain
other non-GAAP income statement line items, each of which include
adjustments to GAAP figures. These non-GAAP financial measures are
intended to provide additional information on BeiGene’s operating
performance. Adjustments to BeiGene’s GAAP figures exclude, as
applicable, non-cash items such as share-based compensation,
depreciation and amortization. Certain other special items or
substantive events may also be included in the non-GAAP adjustments
periodically when their magnitude is significant within the periods
incurred. BeiGene maintains an established non-GAAP policy that
guides the determination of what costs will be excluded in non-GAAP
financial measures and the related protocols, controls and approval
with respect to the use of such measures. BeiGene believes that
these non-GAAP financial measures, when considered together with
the GAAP figures, can enhance an overall understanding of BeiGene’s
operating performance. The non-GAAP financial measures are included
with the intent of providing investors with a more complete
understanding of the Company’s historical and expected financial
results and trends and to facilitate comparisons between periods
and with respect to projected information. In addition, these
non-GAAP financial measures are among the indicators BeiGene’s
management uses for planning and forecasting purposes and measuring
the Company’s performance. These non-GAAP financial measures should
be considered in addition to, and not as a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
The non-GAAP financial measures used by the Company may be
calculated differently from, and therefore may not be comparable
to, non-GAAP financial measures used by other companies.
RECONCILIATION OF SELECTED GAAP MEASURES TO
NON-GAAP MEASURES
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(in thousands)
(in thousands)
Reconciliation of GAAP to adjusted cost
of sales - products:
GAAP cost of sales - products
$
138,132
$
95,990
$
263,067
$
177,779
Less: Depreciation
2,684
2,180
5,029
4,360
Less: Amortization of intangibles
1,177
840
2,360
1,639
Adjusted cost of sales - products
$
134,271
$
92,970
$
255,678
$
171,780
Reconciliation of GAAP to adjusted
research and development:
GAAP research and development
$
454,466
$
422,764
$
915,104
$
831,348
Less: Share-based compensation cost
55,406
45,948
93,451
79,976
Less: Depreciation
16,551
13,081
33,704
25,941
Adjusted research and development
$
382,509
$
363,735
$
787,949
$
725,431
Reconciliation of GAAP to adjusted
selling, general and administrative:
GAAP selling, general and
administrative
$
443,729
$
395,034
$
871,156
$
723,533
Less: Share-based compensation cost
75,288
57,381
125,957
98,741
Less: Depreciation
4,519
6,046
9,131
10,031
Adjusted selling, general and
administrative
$
363,922
$
331,607
$
736,068
$
614,761
Reconciliation of GAAP to adjusted
operating expenses
GAAP operating expenses
$
898,195
$
817,986
$
1,786,260
$
1,555,256
Less: Share-based compensation cost
130,694
103,329
219,408
178,717
Less: Depreciation
21,070
19,127
42,835
35,972
Less: Amortization of intangibles
—
188
—
375
Adjusted operating expenses
$
746,431
$
695,342
$
1,524,017
$
1,340,192
Reconciliation of GAAP to adjusted
income (loss) from operations:
GAAP loss from operations
$
(107,161
)
$
(318,715
)
$
(368,509
)
$
(689,973
)
Plus: Share-based compensation cost
130,694
103,329
219,408
178,717
Plus: Depreciation
23,754
21,307
47,864
40,332
Plus: Amortization of intangibles
1,177
1,028
2,360
2,014
Adjusted income (loss) from operations
$
48,464
$
(193,051
)
$
(98,877
)
$
(468,910
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807337131/en/
Investor Contact Liza Heapes +1 857-302-5663 ir@beigene.com
Media Contact Kyle Blankenship +1 667-351-5176
media@beigene.com
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