Flash | | Price (07 May 25 16:00) | US$232.25 | | --- | --- | | Target price | US$345.00 | | Expected share price return | 48.5% | | Expected dividend yield | 0.0% | | Expected total return | 48.5% | | Market Cap | US$23,004M | Yigal Nochomovitz, Ph.D.AC +1-212-816-1441 yigal.nochomovitz@citi.com 07 May 2025 22:56:30 ET │ 10 pages BeiGene (ONC.O) Well-Positioned for The Long Game. Brukinsa Surpasses Calquence & Imbruvica in US Qtrly Sales, Reiterate Buy CITI'S TAKE The transformation to a global, Swiss-domi ...

Financial Performance - Total revenues for the first quarter of 2025 increased by 48.6% to $1.117 billion, compared to $751.7 million in the same period of 2024[92] - BRUKINSA global sales reached $792 million, reflecting a 62% increase year-over-year, with U.S. sales growing by 60.2% to $563.2 million[96] - TEVIMBRA revenue increased by 17.8% to $171.2 million in the first quarter of 2025[97] - Gross margin on global product sales improved to 85.1% for the first quarter of 2025, up from 83.3% in the prior year[98] - The company achieved GAAP profitability in the first quarter of 2025, marking a significant turnaround from a loss of $251.2 million in the prior year[92] - GAAP net income improved to $1.3 million for the first quarter of 2025, compared to a loss of $251.2 million in the prior-year period[109] - Basic and diluted earnings per share for the first quarter of 2025 were $0.00 and $0.01 per American Depositary Share, respectively, compared to a basic loss of $0.19 per share in the prior-year period[108] - Adjusted earnings per share - basic improved to $0.10 for the first quarter of 2025, compared to a loss of $0.11 in the prior-year period[110] Expenses and Costs - Operating expenses increased by 6% to $941.2 million, with research and development expenses rising by 4.6%[93] - Research and development expense increased by $21.2 million, or 4.6%, to $481.9 million for the three months ended March 31, 2025, compared to $460.6 million for the same period in 2024[99] - External research and development expenses rose by $19.4 million, or 11.3%, to $190.8 million, driven by increased costs in development programs[99] - Selling, general and administrative expenses increased by $31.9 million, or 7.5%, to $459.3 million for the three months ended March 31, 2025, from $427.4 million in the prior-year period[104] Cash Flow and Debt - Cash, cash equivalents, and restricted cash totaled $2.53 billion as of March 31, 2025, down from $2.64 billion at the end of 2024[111] - Total debt decreased to $923.6 million as of March 31, 2025, from $1.02 billion at the end of 2024, with $97.1 million paid down in the first quarter[111] - Cash provided by operating activities improved by $352.7 million in Q1 2025 compared to Q1 2024, driven by significantly improved revenue and a $325.6 million increase in gross margin[114] - Net cash used in investing activities decreased to $121.9 million in Q1 2025 from $209.8 million in Q1 2024, primarily due to a reduction in capital expenditures[115] - Financing activities used $33.8 million in cash in Q1 2025, a significant decrease from $162.3 million provided in Q1 2024, mainly due to a net reduction in short-term debt borrowings[116] - The company expects to repay approximately $763.5 million of loans in the next 12 months, with refinancing dependent on prevailing interest rates and credit spreads[117] - As of March 31, 2025, total debt obligations due in the next twelve months amount to $763.5 million, with long-term debt obligations at $160.2 million[124] Collaborations and Strategic Developments - Collaboration revenue rose by 84.8% to $8.7 million, primarily from agreements with Novartis and Amgen[94] - The company secured shareholder approval to rename itself to BeOne Medicines Ltd. and to redomicile to Switzerland[92] - The company has a remaining co-development funding commitment of $295.1 million under the Amgen collaboration for oncology pipeline assets[126] Market and Economic Factors - The U.S. Patent and Trademark Office invalidated claims of Pharmacyclics LLC's patent, benefiting the company's competitive position[89] - A 100-basis point increase in interest rates would increase annual pre-tax interest expense by approximately $6.2 million, given $624.9 million of outstanding floating rate debt[132] - The RMB appreciated approximately 0.6% against the U.S. dollar in Q1 2025, while it depreciated approximately 2.8% in the year ended December 31, 2024[133] Future Outlook - The company plans to host an Investor R&D Day on June 26, 2025, to discuss advancements in its late-stage hematology and solid tumor pipelines[92]

Financial Reporting - BeiGene, Ltd. filed its 2024 Annual Report with the STAR Market of the Shanghai Stock Exchange on April 28, 2025[5]. - The STAR Annual Report includes financial information for the year ended December 31, 2024, prepared in accordance with PRC GAAP[6]. - Financial information prepared under U.S. GAAP is also available, highlighting differences from PRC GAAP[6]. - The financial information includes production, sales, and inventory stock units for the reporting period[6]. Report Content - The report contains details on gross profit margin ratio and R&D expenses allocated by key products[6]. - The filing does not include any new product launches or market expansion strategies[8]. - No specific performance guidance or future outlook was provided in the report[8]. - The report was signed by Chan Lee, Senior Vice President and General Counsel[16]. Accessibility - The STAR Annual Report is publicly available in Chinese on the Shanghai Stock Exchange's website[7]. - The report is not deemed filed with the U.S. Securities and Exchange Commission[7].