BeiGene(BGNE) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 increased by 48.6% to $1.117 billion compared to$751.7 million in Q1 2024[94] - BRUKINSA global sales rose by 62.1% to $791.7 million, with U.S. sales growing by 60.2$563.2 million[95] - TEVIMBRA revenue increased by 17.8% to $171.2 million in Q1 2025 compared to$145.3 million in the prior-year period[96] - The company achieved GAAP profitability in Q1 2025, marking a significant turnaround from a net loss of $251.2 million in Q1 2024[92] - GAAP net income improved to$1.3 million in Q1 2025, compared to a loss of $251.2 million in the prior-year period[107] - Adjusted earnings per share (basic) for Q1 2025 was$0.10, compared to a loss of $0.11 in Q1 2024[108] Expenses and Costs - Operating expenses rose by 6.0$941.2 million, with R&D expenses increasing by 4.6% to $481.9 million[93] - Selling, general and administrative expenses increased by$31.9 million, or 7.5%, to $459.3 million for Q1 2025, primarily due to global commercial expansion efforts[103] - Selling, general and administrative expenses as a percentage of product sales decreased to 41.4$21.2 million, or 4.6%, to $481.9 million for Q1 2025 from$460.6 million in Q1 2024[98] - External research and development expenses rose by $19.4 million, or 11.3$190.8 million in Q1 2025, driven by advancing preclinical and early clinical programs[100] Cash and Debt Management - 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[110] - 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 Q1 2025[110] - 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[116] - As of March 31, 2025, total debt obligations due in the next twelve months are $763.5 million, with long-term debt obligations at$160.2 million[123] - The company had $461.6 million in cash remaining related to the STAR Offering proceeds as of March 31, 2025[111] Revenue Sources - Collaboration revenue increased by 84.8$8.7 million in Q1 2025, driven by agreements with Novartis and Amgen[96] Operational Highlights - Gross margin on global product sales improved to 85.1% in Q1 2025, up from 83.3% in the same period last year[97] - 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[113] - Net cash used in investing activities decreased to $121.9 million in Q1 2025 from$209.8 million in Q1 2024, primarily due to reduced capital expenditures[114] - 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[115] Strategic Initiatives - The company plans to host an Investor R&D Day on June 26, 2025, to discuss advancements in its late-stage pipelines[92] - The company secured shareholder approval to rename itself to BeOne Medicines Ltd. and to redomicile to Switzerland[92] Legal and Regulatory Developments - The U.S. Patent and Trademark Office invalidated all claims of Pharmacyclics LLC's U.S. Patent No. 11,672,803, benefiting the company's competitive position[89] Foreign Exchange Impact - 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[132] - A hypothetical 10% appreciation in the U.S. dollar against the RMB would have resulted in an increase in foreign exchange loss of approximately $14.8 million as of March 31, 2025[133]