BGNE - BeiGene's Aggressive Expansion Brings Revenue Jolt | Benzinga
Key Takeaways:
- BeiGene made progress in taking its key monoclonal antibody drug Tislelizumab overseas in the first quarter, with a U.S. debut expected in the second half of the year
- At a time when its peers are cutting staff, the company added 1,400 employees over the last year, bringing its total to 10,600
By Molly Wen
In a crowded field of Chinese innovative drug makers, BeiGene Ltd. (NASDAQ: BGNE) stands out as a special case. On the one hand, it has blockbuster drugs that are helping it earn more than $1 billion in annual revenue, which continues to reach new highs each year. On the other, it also has the most generous R&D budget among its peers, which has kept it mired in red ink since its inception. The day when it can turn a profit – if ever – remains a big question mark overshadowing the company.
There’s no doubt that day could be moving closer, which was evident in the company’s latest financial results that showed strong double-digit revenue growth and narrowing losses in this year’s first quarter.
BeiGene’s latest report, released earlier this month, showed its revenue jumped 68% in the first quarter to $752 million. Revenue from product sales, which made up the big majority, rose by an even bigger 82% to $747 million. The company continued to lose money to the tune of a $251 million net loss for the period. But that was 28% narrower than its $348 million loss a year earlier. The report lifted BeiGene’s U.S.-traded shares by a combined 5% over the next two trading days, suggesting investors liked the general direction.
In terms of revenue breakdown, BeiGene’s star product, Zanubrutinib, maintained strong sales growth, and is now considered a best-in class BTK inhibitor, a class of drugs used to treat certain cancers. After reporting more than $1 billion in revenue last year, the drug’s sales reached $489 million in the first quarter, putting it on pace to potentially top $2 billion for the year. The U.S. market ...