BeiGene, Ltd. (BGNE)·Q3 2024 Earnings Summary

Executive Summary

• Total revenue reached $1.00B (+28% YoY) on strong BRUKINSA performance; product revenue rose 67% to $993M; GAAP operating loss narrowed to $120M and non-GAAP operating income was positive for a second consecutive quarter at $66M .
• BRUKINSA global sales were $690M with continued U.S. CLL share gains; TEVIMBRA sales were $163M with expanding U.S./EU launches and new approvals across multiple countries .
• Gross margin (GAAP) was 83% (down 1 pt YoY) due to $17M accelerated depreciation tied to upgrading tislelizumab manufacturing; adjusted gross margin improved to 85% on higher BRUKINSA mix .
• Catalysts: ASH 2024 data readouts (SEQUOIA 5-year follow-up; BOVen uMRD durability), CELESTIAL Phase 3 enrollment completion (Q1’25), and multiple Phase 3 starts (1H’25) in hematology .

What Went Well and What Went Wrong

• What Went Well

  • BRUKINSA momentum: U.S. sales $504M (+87% YoY) with share gains in CLL new patient starts; Europe BRUKINSA sales $97M (+217% YoY) on broad market share gains .
  • Profitability progress: non-GAAP operating income of $66M (vs. $(16)M) and positive operating cash flow of $188M; SG&A as % of product sales improved to 46% (from 61%) as leverage builds .
  • CEO tone: “Our exceptional third-quarter results underscore the Company’s global oncology leadership… BRUKINSA… is now the leader in new patient starts in both frontline and R/R CLL…” .

• What Went Wrong

  • GAAP gross margin contracted 1 pt YoY due to $17M accelerated depreciation during tislelizumab line transition; similar cost expected in Q4 .
  • GAAP bottom line remained a net loss of $121M, partly reflecting a very strong prior-year non-operating gain from the BMS arbitration and deferred Novartis revenue recognized in Q3’23 (tough comp) .
  • R&D and SG&A (GAAP) increased 9% and 24% YoY, respectively, as BeiGene invests in late-stage programs and global launches (though leverage improved vs sales) .

Financial Results

Revenue, EPS, margins vs prior periods

Segment and brand highlights

KPIs and efficiency

Notes:

• Q3 GM% decline reflects $17M accelerated depreciation on tislelizumab line upgrade; adjusted GM rose to 85% on favorable BRUKINSA mix .
• Q3 operating cash flow improved on non-GAAP operating profitability and working capital seasonality .

Guidance Changes

BeiGene did not provide numerical financial guidance in the Q3 2024 press release. Pipeline timing updates are summarized below.

Earnings Call Themes & Trends

(Transcript for Q3 2024 was not available in the document search; themes below reflect cross-quarter disclosures from press releases.)

Management Commentary

• “Our exceptional third-quarter results underscore the Company’s global oncology leadership… BRUKINSA… is now the leader in new patient starts in both frontline and relapsed/refractory (R/R) CLL… We are laying the foundation for future franchises in breast, lung, and gastrointestinal cancers across three signature platform technologies including multi-specific antibodies, protein degraders, and antibody-drug conjugates.” — John V. Oyler, Co-Founder, Chairman and CEO .
• “Gross margin… decreased on a GAAP basis due to accelerated depreciation expense of $17 million… The adjusted gross margin percentage… increased primarily due to proportionally higher sales mix of global BRUKINSA…” .

Q&A Highlights

• The Q3 2024 earnings call transcript was not available in the document repository at time of analysis. BeiGene’s IR site lists Q3 2024 earnings materials; we will update Q&A themes once the transcript is accessible .

Estimates Context

• Wall Street consensus (S&P Global) for Q3 2024 revenue and EPS was unavailable due to a CIQ mapping issue in our S&P Global feed; as a result, we cannot provide a beat/miss analysis vs. consensus at this time. We searched for “Revenue Consensus Mean” and “Primary EPS Consensus Mean” for Q3 2024 but could not retrieve data via S&P Global due to the mapping error. We will refresh and provide comparisons upon resolution.
• Press release context: Q3 total revenue was $1.00B, product revenue $993M, with positive non-GAAP operating income; GAAP net loss was $121M .

Key Takeaways for Investors

• BRUKINSA is the primary growth engine with durable CLL leadership; $690M global in Q3 and strong U.S./EU momentum underpin continued top-line expansion .
• Operating leverage is materializing: second straight quarter of positive non-GAAP operating income and improved SG&A intensity; watch for sustained non-GAAP profitability and cash generation as the revenue base scales .
• Near-term gross margin headwind from accelerated depreciation is transitory; adjusted GM improvement highlights favorable mix (BRUKINSA) .
• TEVIMBRA is broadening geographically with incremental approvals and launches; continued execution here diversifies revenue beyond hematology .
• 2024 is a pivotal pipeline year: four NMEs entered the clinic in Q3 (eight YTD), on track for 10+ by year-end; expansive platforms (ADC, degraders, multispecifics) support multi-franchise ambition .
• Upcoming catalysts: ASH 2024 long-term BRUKINSA datasets; CELESTIAL enrollment completion in Q1’25; multiple Phase 3 starts in 1H’25 (R/R CLL, R/R MCL) .
• Trading lens: Focus on ASH quality/read-through to CLL share, sequential non-GAAP profitability, and cadence of EU/US launches; resolution of temporary GM headwinds and sustained CFO strength would be stock-supportive .

Sources:

• Q3 2024 8-K and press release: revenues, P&L, cash flow, GM %, product and regional disclosures, pipeline/catalysts .
• Q2 2024 press release: revenues, brand/geography, GM %, operating expenses, narrative .
• Q1 2024 press release: revenues, brand/geography, GM %, operating leverage progress .
• Business Wire distribution of Q3 2024 press release .
• IR events page for Q3 2024 materials .