BeOne Medicines Ltd 10-Q for FY2024 Q1

BeOne Medicines Ltd. (ONC)

10-Q 2024-05-08 For: 2024-03-31

Added on April 06, 2026

About this 10-Q

BeOne Medicines Ltd filed this 10-Q on May 8, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $751.65M; up 67.9% from $447.8M a year earlier
Net loss: $251.15M; compared with a net loss of $348.43M a year earlier
Diluted EPS: -$0.19; compared with -$0.26 a year earlier

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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)


		Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37

Item 4.	Controls and Procedures	38

PART II.	OTHER INFORMATION	39

Item 1.	Legal Proceedings	39

Item 1A.	Risk Factors	39

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	91

Item 3.	Defaults Upon Senior Securities	91

Item 4.	Mine Safety Disclosures	91

Item 5.	Other Information	91

Item 6.	Exhibits	91

SIGNATURES		93


		Three Months Ended
		March 31,
	Note	2024	2023
		$	$
Revenues
Product revenue, net	11	746,918	410,291
Collaboration revenue	3	4,734	37,510
Total revenues		751,652	447,801
Cost of sales - product		124,935	81,789
Gross profit		626,717	366,012
Operating expenses
Research and development		460,638	408,584
Selling, general and administrative		427,427	328,499
Amortization of intangible assets		—	187
Total operating expenses		888,065	737,270
Loss from operations		(261,348)	(371,258)
Interest income, net		16,160	16,016
Other income, net		1,762	18,303
Loss before income taxes		(243,426)	(336,939)
Income tax expense	8	7,724	11,492
Net loss		(251,150)	(348,431)




Net loss per share, basic and diluted	12	(0.19)	(0.26)

Weighted-average shares outstanding—basic and diluted		1,355,547,626	1,354,164,760



Net loss per American Depositary Share (“ADS”), basic and diluted	12	(2.41)	(3.34)

Weighted-average ADSs outstanding—basic and diluted		104,272,894	104,166,520


	Three Months Ended
	March 31,
	2024	2023
	$	$
Net loss	(251,150)	(348,431)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments	(32,163)	13,347

Unrealized holding income (loss), net	(35)	5,056
Comprehensive loss	(283,348)	(330,028)


		As of
		March 31,	December 31,
	Note	2024	2023
		$	$
		(unaudited)	(audited)
Assets
Current assets:
Cash and cash equivalents		2,793,370	3,171,800

Short-term investments	4	—	2,600
Accounts receivable, net		435,294	358,027
Inventories, net	5	447,345	416,122
Prepaid expenses and other current assets	9	231,741	254,865
Total current assets		3,907,750	4,203,414

Property, plant and equipment, net	6	1,417,992	1,324,154
Operating lease right-of-use assets		87,747	95,207
Intangible assets, net	7	55,171	57,138

Other non-current assets	9	199,021	125,362
Total non-current assets		1,759,931	1,601,861
Total assets		5,667,681	5,805,275
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable		356,575	315,111
Accrued expenses and other payables	9	569,438	693,731
Tax payable	8	27,324	22,951
Operating lease liabilities, current portion		19,401	21,950
Research and development cost share liability, current portion	3	81,986	68,004
Short-term debt	10	826,965	688,366
Total current liabilities		1,881,689	1,810,113
Non-current liabilities:
Long-term bank loans	10	199,027	197,618
Operating lease liabilities, non-current portion		17,722	22,251
Deferred tax liabilities	8	16,437	16,494
Research and development cost share liability, non-current portion	3	143,544	170,662
Other long-term liabilities	9	48,901	50,810
Total non-current liabilities		425,631	457,835
Total liabilities		2,307,320	2,267,948
Commitments and contingencies	17
Shareholders’ equity:
Ordinary shares, $0.0001 par value per share; 9,500,000,000 shares authorized; 1,359,524,369 and 1,359,513,224 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively		136	135
Additional paid-in capital		11,705,069	11,598,688
Accumulated other comprehensive loss	14	(131,644)	(99,446)
Accumulated deficit		(8,213,200)	(7,962,050)
Total shareholders’ equity		3,360,361	3,537,327
Total liabilities and shareholders’ equity		5,667,681	5,805,275


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Three Months Ended March 31,
	Note	2024	2023
		$	$
Operating activities:
Net loss		(251,150)	(348,431)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		25,293	20,011
Share-based compensation expenses	13	88,667	75,322


Gain on deconsolidation of a subsidiary		(3,735)	—
Amortization of research and development cost share liability	3	(13,136)	(17,398)



Other items, net		848	780
Changes in operating assets and liabilities:
Accounts receivable		(80,025)	(136,487)
Inventories		(37,264)	(13,027)
Other assets		(4,401)	(50,408)
Accounts payable		46,300	(22,589)
Accrued expenses and other payables		(79,309)	(38,681)

Deferred revenue		—	(33,066)
Other liabilities		(660)	197

Net cash used in operating activities		(308,572)	(563,777)
Investing activities:
Purchases of property, plant and equipment		(156,578)	(125,585)
Purchase of intangible asset		(4,674)	—


Proceeds from sale or maturity of investments		2,655	376,962
Purchase of in-process research and development		(31,800)	—
Other investing activities		(19,434)	(10,314)
Net cash (used in) provided by investing activities		(209,831)	241,063
Financing activities:



Proceeds from long-term loan	10	9,053	—
Repayment of long-term loan	10	(3,579)	(1,457)
Proceeds from short-term loans	10	142,028	—
Repayment of short-term loans	10	—	(50,000)
Proceeds from option exercises and employee share purchase plan		14,791	31,589
Net cash provided by (used in) financing activities		162,293	(19,868)
Effect of foreign exchange rate changes, net		(22,438)	11,311
Net decrease in cash, cash equivalents, and restricted cash		(378,548)	(331,271)
Cash, cash equivalents, and restricted cash at beginning of period		3,185,984	3,875,037
Cash, cash equivalents, and restricted cash at end of period		2,807,436	3,543,766
Supplemental cash flow information:
Cash and cash equivalents		2,793,370	3,538,644
Short-term restricted cash		11,445	159
Long-term restricted cash		2,621	4,963
Income taxes paid		2,490	7,616
Interest expense paid		11,440	5,017
Supplemental non-cash information:
Capital expenditures included in accounts payable and accrued expenses		100,473	64,013
Increase in equity investment from deconsolidation of a subsidiary		40,798	—



	Ordinary Shares		Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
	Shares	Amount
		$		$	$	$	$
Balance at December 31, 2023	1,359,513,224	135		11,598,688	(99,446)	(7,962,050)	3,537,327

Use of shares reserved for share option exercises	(3,634,952)	—		—	—	—	—
Exercise of options, ESPP and release of RSUs	3,646,097	1		15,662	—	—	15,663
Share-based compensation	—	—		88,667	—	—	88,667
Deconsolidation of a subsidiary	—	—		2,052	—	—	2,052
Other comprehensive loss	—	—		—	(32,198)	—	(32,198)
Net loss	—	—		—	—	(251,150)	(251,150)
Balance at March 31, 2024	1,359,524,369	136		11,705,069	(131,644)	(8,213,200)	3,360,361















Balance at December 31, 2022	1,356,140,180	135		11,540,979	(77,417)	(7,080,342)	4,383,355
Use of shares reserved for share option exercises	(98,774)	—		—	—	—	—
Exercise of options, ESPP and release of RSUs	6,610,695	1		28,656	—	—	28,657
Share-based compensation	—	—		75,322	—	—	75,322
Other comprehensive income	—	—		—	18,403	—	18,403
Net loss	—	—		—	—	(348,431)	(348,431)
Balance at March 31, 2023	1,362,652,101	136		11,644,957	(59,014)	(7,428,773)	4,157,306


	Quoted Price in Active Market for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
As of March 31, 2024	(Level 1)	(Level 2)	(Level 3)
	$	$	$
Cash equivalents
Money market funds	803,170	—	—
Time deposits	42,861	—	—


Prepaid expenses and other current assets:
Convertible debt instrument	—	—	4,668
Other non-current assets (Note 4):
Equity securities with readily determinable fair values	1,954	222	—
Convertible debt instrument	—	—	4,603
Total	847,985	222	9,271


	As of
	March 31, 2024			December 31, 2023
	Gross			Gross
	carrying	Accumulated	Intangible	carrying	Accumulated	Intangible
	amount	amortization	assets, net	amount	amortization	assets, net
	$	$	$	$	$	$
Finite-lived intangible assets:
Developed products	63,413	(8,913)	54,500	64,274	(7,807)	56,467
Other	8,987	(8,316)	671	8,987	(8,316)	671
Total finite-lived intangible assets	72,400	(17,229)	55,171	73,261	(16,123)	57,138


Year Ending December 31,	Cost of Sales - Product	Operating Expenses	Total
	$	$	$
2024 (remainder of year)	3,533	67	3,600
2025	4,710	67	4,777
2026	4,710	67	4,777
2027	4,710	67	4,777
2028	4,710	67	4,777
2029 and thereafter	32,127	336	32,463
Total	54,500	671	55,171


Lender	Agreement Date	Line of Credit	Term	Maturity Date	Interest Rate	As of
						March 31, 2024		December 31, 2023
						$	RMB	$	RMB
China Construction Bank	April 4, 2018	RMB580,000	9-year	April 4, 2027	(1)	13,850	100,000	14,089	100,000
China Merchants Bank	January 22, 2020	RMB350,000	9-year	January 20, 2029	(2)	8,706	62,857	8,856	62,857
China Merchants Bank	November 9, 2020	RMB378,000	9-year	November 8, 2029	(3)	6,220	44,910	5,636	40,000
China Merchants Bank	July 28, 2023	$380,000	1-year	December 25, 2024	(4)	300,000	2,166,065	300,000	2,129,321
China Minsheng Bank	December 20, 2023	$150,000	1-year	December 19, 2024	7.3%	150,000	1,083,032	150,000	1,064,660
China Industrial Bank	March 21, 2024	RMB 675,000	364-day	March 27, 2025	(5)	93,488	675,000	—	—
China Merchants Bank	June 5, 2023	RMB 400,000	1-year	June 4, 2024	3.2%	55,400	400,000	56,356	400,000
HSBC Bank	May 4, 2023	RMB 340,000	1-year	May 3, 2024	(6)	47,090	340,000	47,903	340,000
China Industrial Bank	May 30, 2023	RMB 200,000	1-year	May 29, 2024	2.8%	27,699	200,000	28,177	200,000
Shanghai Pudong Development Bank	November 14, 2023	RMB 700,000	1-year	(7)	2.9%	96,950	700,000	49,312	350,000
Other short-term debt (8)						27,562	199,000	28,037	199,000
Total short-term debt						826,965	5,970,864	688,366	4,885,838

China Construction Bank	April 4, 2018	RMB580,000	9-year	April 4, 2027	(1)	58,170	420,000	59,174	420,000
China Merchants Bank	January 22, 2020	RMB350,000	9-year	January 20, 2029	(2)	34,823	251,429	37,638	267,143
China Merchants Bank	November 9, 2020	RMB378,000	9-year	November 8, 2029	(3)	39,554	285,590	42,337	300,500
China CITIC Bank	July 29, 2022	RMB480,000	10-year	July 28, 2032	(9)	66,480	480,000	58,469	415,000
Total long-term bank loans						199,027	1,437,019	197,618	1,402,643


		Market Price1				Purchase Price2
Issuance Date	Number of Ordinary Shares Issued	ADS		Ordinary		ADS		Ordinary		Proceeds
February 29, 2024	1,021,397	$	165.65	$	12.74	$	140.80	$	10.83	$	11,063
August 31, 2023	794,144	$	207.55	$	15.97	$	176.42	$	13.57	$	10,777
February 28, 2023	930,582	$	171.10	$	13.16	$	145.44	$	11.19	$	10,414


		Unrealized
	Foreign Currency	Gains/(Losses) on	Pension
	Translation	Available-for-Sale	Liability
	Adjustments	Securities	Adjustments	Total
	$	$	$	$
Balance as of December 31, 2023	(87,987)	35	(11,494)	(99,446)
Other comprehensive (loss) income before reclassifications	(32,163)	(35)	—	(32,198)

Net-current period other comprehensive (loss) income	(32,163)	(35)	—	(32,198)
Balance as of March 31, 2024	(120,150)	—	(11,494)	(131,644)


	As of
	March 31,	December 31,
	2024	2023
	$	$
Raw materials	157,735	148,772
Work in process	49,365	39,098
Finished goods	240,245	228,252
Total inventories, net	447,345	416,122


	As of
	March 31,	December 31,
	2024	2023
	$	$
Land	65,485	65,485
Building	281,424	231,656
Manufacturing equipment	216,564	186,856
Laboratory equipment	210,513	205,349
Leasehold improvement	59,425	60,124
Software, electronics and office equipment	66,726	83,281
Property, plant and equipment, at cost	900,137	832,751
Less: accumulated depreciation	(265,002)	(249,212)
Construction in progress	782,857	740,615
Property, plant and equipment, net	1,417,992	1,324,154


	Three Months Ended
	March 31,
	2024	2023
	$	$
BRUKINSA®	488,515	211,382
Tislelizumab	145,277	114,850
XGEVA®	43,381	20,197
POBEVCY®	16,633	14,326
BLINCYTO®	14,366	10,946
KYPROLIS®	14,111	4,943
REVLIMID®	12,233	23,158
Other	12,402	10,489
Total product revenue – net	746,918	410,291


	Three Months Ended
	March 31,				Change
	2024		2023		$		%
	(dollars in thousands)
Revenues
Product revenue, net	$	746,918	$	410,291	$	336,627	82.0	%
Collaboration revenue	4,734		37,510		(32,776)		(87.4)	%
Total revenues	751,652		447,801		303,851		67.9	%
Cost of sales - product	124,935		81,789		43,146		52.8	%
Gross profit	626,717		366,012		260,705		71.2	%
Operating expenses
Research and development	460,638		408,584		52,054		12.7	%
Selling, general and administrative	427,427		328,499		98,928		30.1	%
Amortization of intangible assets	—		187		(187)		(100.0)	%
Total operating expenses	888,065		737,270		150,795		20.5	%
Loss from operations	(261,348)		(371,258)		109,910		(29.6)	%
Interest income, net	16,160		16,016		144		0.9	%
Other income, net	1,762		18,303		(16,541)		(90.4)	%
Loss before income taxes	(243,426)		(336,939)		93,513		(27.8)	%
Income tax expense	7,724		11,492		(3,768)		(32.8)	%
Net loss	$	(251,150)	$	(348,431)	$	97,281	(27.9)	%


	Three Months Ended
	March 31,				Changes
	2024		2023		$		%
	(dollars in thousands)
Product revenue	$	746,918	$	410,291	$	336,627	82.0	%
Collaboration revenue:

Research and development service revenue	—		6,817		(6,817)		(100.0)	%
Right to access intellectual property revenue	—		26,249		(26,249)		(100.0)	%
Other	4,734		4,444		290		6.5	%
Total collaboration revenue	4,734		37,510		(32,776)		(87.4)	%
Total Revenue	$	751,652	$	447,801	$	303,851	67.9	%


	Three Months Ended March 31,
	2024		2023

	(dollars in thousands)
Cash, cash equivalents and restricted cash at beginning of period	$	3,185,984	$	3,875,037
Net cash used in operating activities	(308,572)		(563,777)
Net cash (used in) provided by investing activities	(209,831)		241,063
Net cash provided by (used in) financing activities	162,293		(19,868)
Net effect of foreign exchange rate changes	(22,438)		11,311
Net decrease in cash, cash equivalents, and restricted cash	(378,548)		(331,271)
Cash, cash equivalents and restricted cash at end of period	$	2,807,436	$	3,543,766


	Payments Due by Period
	Total		Short Term		Long Term
	(dollars in thousands)
Contractual obligations
Operating lease commitments	$	43,314	$	18,390	$	24,924
Purchase commitments	93,511		64,474		29,037
Debt obligations	1,025,992		826,965		199,027
Interest on debt	60,456		38,134		22,322
Co-development funding commitment	457,031		120,562		336,469
Funding commitment	8,905		2,213		6,692

Capital commitments	61,577		61,577		—
Total	$	1,750,786	$	1,132,315	$	618,471


	BEIGENE, LTD.

Date: May 8, 2024	By:	/s/ John V. Oyler
	John V. Oyler
	Chief Executive Officer and Chairman
	(Principal Executive Officer)

Date: May 8, 2024	By:	/s/ Julia Wang
	Julia Wang
	Chief Financial Officer
	(Principal Financial Officer)


BEIGENE, LTD.


By: /s/ JOHN V. OYLER			Date: January 23, 2024
Name: John V. Oyler
Title: Chairman & CEO



THOMAS MALLEY
/s/ THOMAS MALLEY			Date: January 23, 2024