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BeiGene’s Q2 2018 Earnings: Reports Revenue Growth

Mike Benson - Author
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Aug. 18 2020, Updated 4:40 a.m. ET

A look at BeiGene’s earnings

BeiGene (BGNE) released its second-quarter earnings on August 9. The company surpassed Wall Street analysts’ estimates for revenues but missed its EPS estimates. BeiGene reported adjusted EPS of -$2.92 on revenues of $52.8 million, compared to its estimated EPS of -$2.06 on revenues of $22.5 million. The chart below compares BeiGene’s revenues and EPS since the first quarter of 2017.

BeiGene (BGNE) is a clinical-stage biopharmaceutical company that develops molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene also markets the drugs Abraxane, Revlimid, and Vidaza in China under its licensing agreement with Celgene (CELG)

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Q2 2018 performance

BeiGene (BGNE) reported second-quarter revenues of $52.8 million. In the second quarter of 2017, the company reported zero revenues. Its product revenues originated from the sales of Abraxane, Revlimid, and Vidaza in the Chinese markets, which totaled $31.4 million during the second quarter.

BeiGene’s collaboration revenues represent the company’s R&D (research and development) reimbursement revenues and deferred upfront fees. The company’s collaboration revenues totaled ~$21.4 million during the second quarter. 

These revenues include ~$18.2 million received from Celgene toward R&D reimbursement and $170.0 million from the deferred recognition of upfront fees. The company received a milestone payment of $1.5 million from Merck KGaA for the collaboration agreement for pamiparib.

Profitability

BeiGene (BGNE) reported the cost of these sales as ~$6.3 million during the second quarter, compared to zero costs during the second quarter of 2017. This category represents the costs involved in acquiring Abraxane, Revlimid, and Vidaza from Celgene for distribution in China.

The iShares NASDAQ Biotechnology ETF (IBB) holds 0.8% of its total portfolio in BeiGene (BGNE), 8.7% in Biogen (BIIB), 8.6% in Gilead Sciences (GILD), and 8.2% in Amgen (AMGN).

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