2024-08-07 10:07Financial Performance - Total revenues for Q2 2024 reached $929 million, a 56% increase from $595 million in Q2 2023[120] - Product revenue, net, was $921 million, reflecting a 66.3% increase from $554 million in the prior year[124] - Global BRUKINSA revenues amounted to $637 million, a 107% increase compared to the same period last year[120] - GAAP operating loss was reduced to $107 million, a 66.4% improvement from a loss of $319 million in Q2 2023[124] - Non-GAAP operating income was achieved, indicating improved operational efficiency[120] - Total revenue increased to $1,680.8 million, or 61.1%, for the six months ended June 30, 2024, from $1,043.1 million for the same period in 2023[138] - The company reported a net loss of $371.6 million for the six months ended June 30, 2024, compared to a net loss of $729.6 million for the same period in 2023[158] - Cash used in operating activities was $404.2 million for the six months ended June 30, 2024, primarily due to the net loss and an increase in net operating assets and liabilities of $268.8 million[163] Revenue Breakdown - Collaboration revenue decreased by 80.7% to $8 million, primarily due to the termination of the Novartis collaborations[125] - U.S. sales of BRUKINSA totaled $479.4 million in the second quarter, representing growth of 114.4%[128] - BRUKINSA sales in Europe totaled $148.2 million in the six months ended June 30, 2024, representing growth of 223.5% compared to the prior-year period[142] - Sales of tislelizumab in China reached $303.5 million for the six months ended June 30, 2024, a 14.8% increase from $264.3 million in the prior-year period[143] - Sales of Amgen products in China totaled $162.0 million for the six months ended June 30, 2024, compared to $85.7 million in the prior-year period, driven primarily by increased XGEVA sales volume[143] Expenses - Research and development expenses increased by 7.5% to $454 million, reflecting ongoing investment in innovative therapies[124] - Selling, general and administrative expenses increased by $48.7 million, or 12.3%, to $443.7 million for the three months ended June 30, 2024[134] - Research and development expenses rose by $83.8 million, or 10.1%, to $915.1 million for the six months ended June 30, 2024, compared to $831.3 million in the prior-year period[146] - Selling, general and administrative expenses increased by $147.6 million, or 20.4%, to $871.2 million for the six months ended June 30, 2024, from $723.5 million in the prior-year period[148] Cash and Debt - As of June 30, 2024, total cash and cash equivalents were $2,617.9 million, down from $3,186.0 million as of December 31, 2023[156] - As of June 30, 2024, the company had cash and cash equivalents of $2.6 billion, down from $3.4 billion at the end of June 2023, reflecting a net decrease of $568.1 million in cash during the six months[162][163] - Total debt obligations due within the next 12 months amount to $851.7 million, with total long-term debt obligations at $185.3 million[179] - The company has a co-development funding commitment of $412.6 million related to the Amgen collaboration, with a total cap of $1.25 billion for global development costs[181] Foreign Exchange and Inflation - The impact of foreign currency exchange rates negatively affected cash by $28.3 million in the first half of 2024, compared to a negative impact of $50.9 million in the prior-year period[170] - The RMB depreciated approximately 2.2% against the U.S. dollar in the six months ended June 30, 2024, and approximately 2.8% in the year ended December 31, 2023[186] - The company is exposed to foreign exchange risk due to operating transactions and assets in currencies other than the U.S. dollar[185] - Inflation has not had a material effect on the company's results of operations during the six months ended June 30, 2024[189] - The company has not experienced significant impacts from inflation on labor and clinical trial costs during the reporting period[189] Operational Developments - A new U.S. facility was opened in Hopewell, New Jersey, enhancing manufacturing and clinical research capabilities[121] - The innovative solid tumor pipeline includes over 15 investigational molecules targeting various cancer types[120] - The company advanced pivotal programs for BCL2 inhibitor sonrotoclax and BTK-targeted degrader BGB-16673[120] Interest Income and Other Financials - Interest income, net decreased by $1.8 million, or 12.2%, to $13.2 million for the three months ended June 30, 2024[135] - Interest income decreased by $1.7 million, or 5.5%, to $29.4 million for the six months ended June 30, 2024, due to lower interest rates on cash and cash equivalents[150] - Other expense, net decreased to $10.2 million for the six months ended June 30, 2024, from $45.5 million in the prior-year period, primarily due to foreign exchange losses[151] - Income tax expense decreased to $22.2 million for the six months ended June 30, 2024, from $25.2 million in the prior-year period[152]