Chinese biotech company BeiGene Ltd. (Nasdaq: BGNE; HKEX: 6160) posted better-than-expected results for the second quarter.
The commercial-stage drug developer, with headquarters in Cambridge, Massachusetts, and Beijing, said revenue in the three months through June was $65.6 million, down 73% year-over-year. BeiGene attributed the decline to the ended collaboration with Celgene and decreased sales of abraxane after the suspension by China’s National Medical Products Administration.
The majority of BeiGene’s revenues came from the sales of tislelizumab in China, launched in March 2020, as well as the sales of revlimid and vidaza. Sales of brukinsa in the U.S. and China generated $7 million, according to the report.
Expenses for the trimester reached $424.51 million, of which the majority were R&D expenses. Net loss jumped nearly fourfold year-over-year to $335.20 million, or $4.31 per American depositary share, BeiGene said.
The results, however dim, still beat analysts’ forecasts for the quarter. BeiGene posted its financials for the second trimester Thursday after markets closed. Friday in Hong Kong, its shares ended 2% lower, at HK$133.60 per share. In New York, BGNE stock traded 1% lower, at $222.77 per American depositary share early.
As of today, BGNE enjoys a 36% growth in its stock value. In early January, it traded near $165 per ADS in New York and dipped to $121 per share in late March during the Covid-19 outbreak. Unlike some of its biopharma peers who delved into the development of a cure against the global epidemic, BeiGene remained focused on its pipeline and has reached some milestones in the second quarter.
John V. Oyler, co-founder, chief executive officer, and chairman of BeiGene, highlighted in the company statement the approvals for tislelizumab and brukinsa for three indications in China, as well as eight accepted new drug applications for tislelizumab, brukinsa, and pamiparib in China, the European Union, Australia, and Israel.
Oyler also said, “In the remainder of 2020 and 2021, we look forward to key clinical readouts, as well as expanded commercial opportunities for our products through approvals in additional indications and geographic markets and by growing our commercial-stage portfolio to up to 11 products.”
Recently, the company raised $2.07 billion in a direct offering to speed up its development pipeline and expand its drug portfolio.
In early July, BeiGene announced the appointment of Angus Grant, Ph.D., as its chief business executive. Grant comes from Celgene, and had earlier served at Novartis, Merck Group, Rhone Poulanc-Rohrer, SmithKline Beecham, and the U.S. Food and Drug Administration’s Center for Biologics.
Among 17 analysts surveyed by CNN Business, the median 12-month price target for BGNE was $213 per share, with a high estimate of $281.73 and a low of $135.25 per share.