language

China’s BeiGene Sinks to USD434.3 Million First-Quarter Loss After Collaboration Revenue Plunges
Xu Wei
DATE:  May 06 2022
/ SOURCE:  Yicai
China’s BeiGene Sinks to USD434.3 Million First-Quarter Loss After Collaboration Revenue Plunges China’s BeiGene Sinks to USD434.3 Million First-Quarter Loss After Collaboration Revenue Plunges

(Yicai Global) May 6 -- BeiGene swung to a loss in the first quarter of the year mainly because the Chinese biotech company’s income from collaborations slumped.

The net loss was USD434.3 million in the three months ended March 31, compared with net income of USD66.5 million a year earlier, the Beijing-based firm said in an earnings report released yesterday. Revenue halved to USD306.6 million.

Collaboration revenue plunged 91 percent to USD45.1 million in the quarter, from USD499.8 million in the same period of last year. In 2021, Swiss pharmaceuticals giant Novartis International penned licensing agreements with BeiGene for two cancer drugs, Tislelizumab and Ociperlimab, paying a total of USD950 million upfront.

Shares of BeiGene [SHA: 688235; HKG: 6160] dipped 0.2 percent today to close at CNY91.67 (USD13.76) in Shanghai and HKD98.15 (USD12.50) in Hong Kong. The Shanghai Composite Index came off 2.2 percent, while the Hang Seng Index retreated by 3.8 percent.

First-quarter product revenue jumped 146 percent to USD261.6 million, the earnings report showed. Revenue growth in BeiGene's commercial portfolio and geographies was led by internally developed medicines while the momentum is expected to continue based on approvals and upcoming milestones, said Chief Financial Officer Julia Wang.

BeiGene has made progress abroad. The first Chinese cancer drug approved in the United States, Brukinsa, has been reaching more patients. Sales of the Bruton's tyrosine kinase inhibitor jumped almost five times to USD104.3 million in the quarter.  The medicine has been approved in 47 markets, including the European Union, the United Kingdom, Canada, and Australia.

The firm has been doubling down on drug development. Its research and development costs jumped 22 percent to USD389.9 million over the reporting period due to increases in headcount and expenses related to product discovery.

In the current quarter, the ongoing global Covid-19 pandemic is expected to weigh on the company's operations. BeiGene strives to minimize delays and disruptions and has protocols in place to execute its commercial and regulatory goals globally, it said.

Editor: Emmi Laine, Xiao Yi

Follow Yicai Global on
Keywords:   BeiGene,Statements