BeiGene's Revenue Exceeds Expectations, Stock Inches Up
The Chinese biotech firm, which completed its secondary listing in Hong Kong this week ending down 1 percent on debut, posted better-than-expected revenue results Thursday.
Chinese biotech firm BeiGene Ltd. (Nasdaq: BGNE), which completed its secondary listing in Hong Kong this week, posted today its financial results for the second quarter, showing a better-than-expected revenue increase.
In New York, the stock of the cancer drug maker inched up $1.56 to $174.09 per share.
The stock of BeiGene was trading at $174.09 per share Thursday afternoon after the company
posted second-quarter results. (Source: Thomson Reuters Eikon)
The Beijing-based company said its revenue for the second three months of 2018 was $52.8 million compared with nil during the same period a year ago.
BeiGene attributed the increase in revenue to its collaboration on research and development with Celgene Corp. (Nasdaq: CELG), an American biotech company that develops drugs for cancer and inflammatory diseases. Sales of abraxane, revlimid, and vidaza brought the majority share, or 60 percent, of the total revenue in the second quarter.
Net loss during the second quarter soared nearly 160 percent to $156.7 million. Loss per American depositary share was $2.92, compared with a loss of $1.52 per share at the same time last year.
Total expenses soared to $215.9 million from $58 million a year ago, the company said, attributable to the risen costs of sales, research and development, and general and administrative.
"We continued to make excellent progress with encouraging new clinical data, including initial topline data from pivotal trials for our lead drug candidates, zanubrutinib and tislelizumab," John Oyler, the chairman, chief executive officer, and founder of BeiGene, said Thursday.
Oyler also said the company has continued expanding its clinical programs, enrolling more than 3,000 patients and conducting 50 clinical trials worldwide.
Xiaobin Wu, BeiGene's president and general manager of China, commented, "Our commercial organization in China is expanding its footprint to prepare for potential new product launches, and we have seen good growth of our commercial product revenue in China since the transition of these products to BeiGene since last September."
This week, BeiGene has completed a secondary listing of its shares in Hong Kong, raising $902.7 million with support from key international investors on the deal. Among them were New York-based Baker Bros. Advisors LLC, a major Asian hedge fund Hillhouse Capital Management Ltd., Singapore firm GIC Private Ltd., and Hong Kong-based Ally Bridge LB Healthcare Master Fund Ltd.
On its debut day in Hong Kong, BeiGene's stock closed 1 percent down from the offering price of HK$108 per ordinary share, or $178.90 per American depositary share. Each ADS represents 13 ordinary shares.
In a statement to the South China Morning Post, BeiGene's chief financial officer, Howard Liang, said, "Through the Hong Kong listing, we have met our main objectives of increasing our visibility and expanding our shareholder base in Asia, especially long-term investors."
In its prospectus, the company said the proceeds of the secondary listing would fund BeiGene's clinical trials for the launch and commercialization of several drugs, including specifically, zanubrutinib, tislelizumab, and pamiparib. The company also plans to expand its product portfolio in cancer and "potentially other therapeutic areas." The rest would be used for working capital and internal capabilities, the company said.