Understanding BeiGene’s Operational Performance

Operating expenses

In its most recent quarter, BeiGene’s (BGNE) selling, general, and administrative expenses rose YoY (year-over-year) to $48.82 million from $15.64 million primarily due to an increased head count.

Meanwhile, its R&D (research and development) expenses rose YoY to $147.59 million from $87.66 million due to higher external as well as internal R&D expenses. Its R&D expenses are expected to be $582.56 million and $660.79 million, respectively, in 2018 and 2019 compared to $269.02 million in 2017.

Understanding BeiGene’s Operational Performance

In comparison, peers Amgen (AMGN), bluebird bio (BLUE), and Incyte (INCY) are expected to incur 2018 R&D expenses of $3.52 billion, $449.71 million, and $1.11 billion, respectively. In the third quarter, BeiGene’s total operating expenses rose YoY to $205.3 million from $105.31 million. Its operating income was -$151.1 million in the third quarter. BeiGene generated an operating income of $114.9 million in the comparable period in 2017.

BeiGene’s bottom line

In the third quarter, BeiGene’s income tax benefit reduced YoY to $472,000 from $3.06 million.

The company’s net income was -$144.03 million in the third quarter. In the comparable period in 2017, BeiGene generated net income of $117.39 million. BeiGene’s net EPS were -$0.19 in the third quarter compared to $0.20 in the previous year’s period.

Next, we’ll look at analysts’ views on BeiGene stock.