0001651308false12/312021Q1P5YP2Y00016513082021-01-012021-03-31xbrli:shares00016513082021-04-30iso4217:USD00016513082021-03-3100016513082020-12-31iso4217:USDxbrli:shares0001651308us-gaap:ProductMember2021-01-012021-03-310001651308us-gaap:ProductMember2020-01-012020-03-310001651308bgne:CollaborationMember2021-01-012021-03-310001651308bgne:CollaborationMember2020-01-012020-03-3100016513082020-01-012020-03-3100016513082019-12-3100016513082020-03-310001651308us-gaap:CommonStockMember2020-12-310001651308us-gaap:AdditionalPaidInCapitalMember2020-12-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001651308us-gaap:RetainedEarningsMember2020-12-310001651308us-gaap:ParentMember2020-12-310001651308us-gaap:NoncontrollingInterestMember2020-12-310001651308us-gaap:CommonStockMember2021-01-012021-03-310001651308us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001651308us-gaap:ParentMember2021-01-012021-03-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001651308us-gaap:RetainedEarningsMember2021-01-012021-03-310001651308us-gaap:CommonStockMember2021-03-310001651308us-gaap:AdditionalPaidInCapitalMember2021-03-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001651308us-gaap:RetainedEarningsMember2021-03-310001651308us-gaap:ParentMember2021-03-310001651308us-gaap:NoncontrollingInterestMember2021-03-310001651308us-gaap:CommonStockMember2019-12-310001651308us-gaap:AdditionalPaidInCapitalMember2019-12-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001651308us-gaap:RetainedEarningsMember2019-12-310001651308us-gaap:ParentMember2019-12-310001651308us-gaap:NoncontrollingInterestMember2019-12-310001651308us-gaap:CommonStockMemberbgne:CollaborationMember2020-01-012020-03-310001651308bgne:CollaborationMemberus-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001651308bgne:CollaborationMemberus-gaap:ParentMember2020-01-012020-03-310001651308bgne:CollaborationMember2020-01-012020-03-310001651308us-gaap:CommonStockMember2020-01-012020-03-310001651308us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001651308us-gaap:ParentMember2020-01-012020-03-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001651308us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001651308us-gaap:RetainedEarningsMember2020-01-012020-03-310001651308us-gaap:CommonStockMember2020-03-310001651308us-gaap:AdditionalPaidInCapitalMember2020-03-310001651308us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001651308us-gaap:RetainedEarningsMember2020-03-310001651308us-gaap:ParentMember2020-03-310001651308us-gaap:NoncontrollingInterestMember2020-03-31bgne:moleculebgne:peoplebgne:trial0001651308srt:MinimumMember2021-03-31bgne:productbgne:patient0001651308bgne:ApprovedMedicinesMember2021-03-310001651308bgne:ApprovedMember2021-03-310001651308bgne:ClinicalDevelopmentMember2021-03-31bgne:employeebgne:country0001651308us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-03-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-03-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-03-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001651308us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310001651308us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2020-12-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001651308us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001651308us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001651308us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001651308us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001651308us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001651308us-gaap:LicenseMember2021-01-012021-03-310001651308us-gaap:LicenseMember2020-01-012020-03-310001651308bgne:CollaborationResearchAndDevelopmentServiceMember2021-01-012021-03-310001651308bgne:CollaborationResearchAndDevelopmentServiceMember2020-01-012020-03-310001651308bgne:NovartisMemberus-gaap:CollaborativeArrangementMember2021-01-012021-01-310001651308bgne:NovartisMemberus-gaap:CollaborativeArrangementMember2021-01-310001651308bgne:NovartisMemberus-gaap:CollaborativeArrangementMemberbgne:LicensingAgreementsAndTrademarksMember2021-01-310001651308bgne:NovartisMemberbgne:CollaborationResearchAndDevelopmentServiceMemberus-gaap:CollaborativeArrangementMember2021-01-012021-01-310001651308bgne:NovartisMemberus-gaap:CollaborativeArrangementMemberus-gaap:LicenseMember2021-01-012021-01-310001651308bgne:NovartisMemberbgne:CollaborationResearchAndDevelopmentServiceMember2021-01-012021-03-310001651308bgne:AmgenIncMembersrt:MinimumMember2021-01-012021-03-310001651308srt:MaximumMemberbgne:AmgenIncMember2021-01-012021-03-310001651308us-gaap:ResearchAndDevelopmentArrangementMemberbgne:AmgenIncMember2021-03-31xbrli:pure0001651308bgne:AmgenIncMemberus-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-01-012021-03-310001651308bgne:AmgenIncMember2020-01-012020-01-310001651308bgne:AmgenIncMember2020-01-310001651308bgne:AmgenIncMemberbgne:BeigeneLtdMember2020-01-310001651308us-gaap:CommonStockMember2020-01-020001651308us-gaap:CommonStockMember2020-01-022020-01-020001651308bgne:AmgenIncMember2020-01-020001651308bgne:AmgenIncMember2020-01-022020-01-020001651308bgne:AmgenIncMember2021-01-012021-03-310001651308bgne:AmgenIncMember2020-01-012020-03-310001651308bgne:AmgenIncMember2021-03-310001651308bgne:AmgenIncMember2020-12-310001651308us-gaap:CostOfSalesMember2021-01-012021-03-310001651308us-gaap:CostOfSalesMember2020-01-012020-03-310001651308us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001651308us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-03-310001651308us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310001651308us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-03-310001651308us-gaap:USTreasurySecuritiesMember2021-03-310001651308us-gaap:USTreasurySecuritiesMember2020-12-310001651308bgne:LeapTherapeuticIncMemberus-gaap:SeriesBPreferredStockMember2020-01-012020-01-310001651308bgne:LeapTherapeuticIncMember2021-03-310001651308bgne:LeapTherapeuticIncMember2021-01-012021-03-310001651308bgne:LeapTherapeuticIncMember2020-01-012020-03-310001651308bgne:LeapTherapeuticIncMemberus-gaap:CommonStockMember2021-03-310001651308bgne:LeapTherapeuticIncMemberus-gaap:CommonStockMember2020-12-310001651308bgne:LeapTherapeuticIncMemberus-gaap:WarrantsAndRightsSubjectToMandatoryRedemptionMember2021-03-310001651308bgne:LeapTherapeuticIncMemberus-gaap:WarrantsAndRightsSubjectToMandatoryRedemptionMember2020-12-310001651308us-gaap:SeriesAPreferredStockMemberbgne:MapKureMember2019-06-300001651308bgne:MapKureMember2019-06-300001651308us-gaap:SeriesAPreferredStockMemberbgne:SpringWorksMemberbgne:MapKureMember2019-06-012019-06-300001651308bgne:SpringWorksMemberbgne:MapKureMember2019-06-300001651308us-gaap:SeriesAPreferredStockMemberbgne:TwoIndividualsMemberbgne:MapKureMember2019-06-012019-06-300001651308bgne:TwoIndividualsMemberbgne:MapKureMember2019-06-300001651308bgne:MapKureMember2020-06-300001651308us-gaap:SeriesAPreferredStockMember2020-06-300001651308bgne:MapKureMember2020-06-012020-06-300001651308bgne:MapKureMember2020-06-080001651308bgne:MapKureMember2021-01-012021-03-310001651308bgne:MapKureMember2021-03-310001651308bgne:MapKureMember2020-12-310001651308bgne:BeigeneGuangzhouCoLtdMember2020-07-23iso4217:CNYbgne:application0001651308bgne:GETBiomedicalIndustryInvestmentFundManagementCoLtdMember2020-07-230001651308bgne:GETBiomedicalIndustryInvestmentFundManagementCoLtdMember2020-07-232020-07-23bgne:member0001651308bgne:GETBiomedicalIndustryInvestmentFundManagementCoLtdMember2021-01-012021-03-310001651308bgne:GETBiomedicalIndustryInvestmentFundManagementCoLtdMember2021-03-310001651308bgne:GETBiomedicalIndustryInvestmentFundManagementCoLtdMember2020-12-310001651308bgne:LaboratoryEquipmentMember2021-03-310001651308bgne:LaboratoryEquipmentMember2020-12-310001651308us-gaap:LeaseholdImprovementsMember2021-03-310001651308us-gaap:LeaseholdImprovementsMember2020-12-310001651308us-gaap:BuildingMember2021-03-310001651308us-gaap:BuildingMember2020-12-310001651308us-gaap:MachineryAndEquipmentMember2021-03-310001651308us-gaap:MachineryAndEquipmentMember2020-12-310001651308us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-03-310001651308us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-12-310001651308us-gaap:ConstructionInProgressMember2021-03-310001651308us-gaap:ConstructionInProgressMember2020-12-310001651308bgne:BeigeneHongKongCoLimitedMember2017-03-31bgne:asset0001651308bgne:BeigeneHongKongCoLimitedMember2017-03-012017-03-310001651308bgne:BeigeneHongKongCoLimitedMemberbgne:BeigeneBiologicsCoLtdMember2017-03-012017-03-310001651308bgne:GuangzhouGetTechnologyDevelopmentCoLtdMember2017-03-310001651308bgne:GuangzhouGetTechnologyDevelopmentCoLtdMemberbgne:BeigeneBiologicsCoLtdMember2017-03-310001651308us-gaap:InvestorMemberbgne:ShareholderLoanMemberbgne:BeigeneBiologicsCoLtdMemberus-gaap:ConvertibleDebtMember2017-03-070001651308bgne:GuangzhouGetTechnologyDevelopmentCoLtdMemberbgne:BeigeneBiologicsCoLtdMember2020-09-300001651308bgne:BeigeneHongKongCoLimitedMemberbgne:BeigeneBiologicsCoLtdMember2020-09-012020-09-300001651308bgne:BeigeneHongKongCoLimitedMemberbgne:BeigeneBiologicsCoLtdMember2020-09-300001651308bgne:BeigeneHongKongCoLimitedMemberbgne:BeigeneBiologicsCoLtdMember2021-03-310001651308bgne:BeigeneHongKongCoLimitedMember2020-09-300001651308bgne:ShareholderLoanMemberbgne:BeigeneBiologicsCoLtdMemberus-gaap:ConvertibleDebtMember2020-09-280001651308us-gaap:SeniorNotesMemberbgne:SeniorLoanMemberbgne:ChinaMinshengBankMember2021-03-310001651308us-gaap:SeniorNotesMemberbgne:SeniorLoanReservedForJVPurchaseMemberbgne:ChinaMinshengBankMember2021-03-310001651308us-gaap:SeniorNotesMemberbgne:WorkingCapitalMemberbgne:ChinaMinshengBankMember2021-03-31bgne:option0001651308bgne:SeniorLoanMemberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:SeniorLoanMemberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-01-012021-03-310001651308bgne:WorkingCapitalMemberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:JVShareRepurchaseMemberbgne:AcquisitionFacilityMemberus-gaap:LoansPayableMember2020-10-090001651308bgne:RelatedPartyLoanMemberbgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberus-gaap:SeniorSubordinatedNotesMember2021-03-310001651308bgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberbgne:JuniorLoanGeneralCorporateUseMember2021-03-310001651308bgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberbgne:JuniorLoanGeneralCorporateUseMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:RelatedPartyLoanMemberbgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMember2021-03-310001651308us-gaap:DistributionRightsMember2021-03-310001651308us-gaap:DistributionRightsMember2020-12-310001651308us-gaap:LicensingAgreementsMember2021-03-310001651308us-gaap:LicensingAgreementsMember2020-12-310001651308us-gaap:DistributionRightsMember2021-01-012021-03-310001651308bgne:ChinaConstructionBankMemberbgne:ShortTermBankLoanDatedApril42018Memberus-gaap:LoansPayableMember2021-03-310001651308bgne:ChinaConstructionBankMemberbgne:ShortTermBankLoanDatedApril42018Memberus-gaap:LoansPayableMember2021-01-012021-03-310001651308bgne:ChinaConstructionBankMemberbgne:ShortTermBankLoanDatedApril42018Memberus-gaap:LoansPayableMember2020-12-310001651308bgne:ChinaMerchantsBankMemberbgne:ShortTermBankLoanDatedJanuary222020Memberus-gaap:LoansPayableMember2021-01-012021-03-310001651308bgne:ChinaMerchantsBankMemberbgne:ShortTermBankLoanDatedJanuary222020Memberus-gaap:LoansPayableMember2021-03-310001651308bgne:ChinaMerchantsBankMemberbgne:ShortTermBankLoanDatedJanuary222020Memberus-gaap:LoansPayableMember2020-12-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-01-012021-03-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2020-12-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberus-gaap:LoansPayableMember2021-03-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberus-gaap:LoansPayableMember2021-01-012021-03-310001651308bgne:ShortTermBankLoanDatedSeptember242020Memberbgne:ZhuhaiHillhouseZhaohuiEquityInvestmentPartnershipMemberus-gaap:LoansPayableMember2020-12-310001651308us-gaap:LoansPayableMember2021-03-310001651308us-gaap:LoansPayableMember2020-12-310001651308bgne:ChinaConstructionBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanApril42018Member2021-03-310001651308bgne:ChinaConstructionBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanApril42018Member2021-01-012021-03-310001651308bgne:ChinaConstructionBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanApril42018Member2020-12-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedJanuary222020Member2021-01-012021-03-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedJanuary222020Member2021-03-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedJanuary222020Member2020-12-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedNovember92020Member2021-03-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedNovember92020Member2021-01-012021-03-310001651308bgne:ChinaMerchantsBankMemberus-gaap:LoansPayableMemberbgne:LongTermBankLoanDatedNovember92020Member2020-12-310001651308bgne:ChinaMerchantsBankMemberbgne:ShortTermBankLoanDatedJanuary222020Memberus-gaap:LoansPayableMember2020-01-222020-01-220001651308bgne:ChinaMerchantsBankMemberbgne:ShortTermBankLoanDatedJanuary222020Memberus-gaap:LoansPayableMember2020-01-220001651308bgne:SeniorLoanReservedForJVPurchaseMemberbgne:ChinaMinshengBankMemberus-gaap:LoansPayableMember2021-03-310001651308us-gaap:LoansPayableMemberbgne:ChinaIndustrialBankMember2020-12-310001651308us-gaap:LoansPayableMemberbgne:ChinaIndustrialBankMember2021-01-012021-03-310001651308bgne:WorkingCapitalFacilityMemberbgne:BeijingInnerwayBiotechCo.LtdMemberus-gaap:LoansPayableMemberbgne:ChinaIndustrialBankMember2021-03-310001651308bgne:TislelizumabMemberus-gaap:ProductMember2021-01-012021-03-310001651308bgne:TislelizumabMemberus-gaap:ProductMember2020-01-012020-03-310001651308us-gaap:ProductMemberbgne:BrukinsaMember2021-01-012021-03-310001651308us-gaap:ProductMemberbgne:BrukinsaMember2020-01-012020-03-310001651308us-gaap:ProductMemberbgne:RevlimidMember2021-01-012021-03-310001651308us-gaap:ProductMemberbgne:RevlimidMember2020-01-012020-03-310001651308us-gaap:ProductMemberbgne:VidazaMember2021-01-012021-03-310001651308us-gaap:ProductMemberbgne:VidazaMember2020-01-012020-03-310001651308bgne:AbraxaneMemberus-gaap:ProductMember2021-01-012021-03-310001651308bgne:AbraxaneMemberus-gaap:ProductMember2020-01-012020-03-310001651308us-gaap:ProductMemberbgne:XgevaMember2021-01-012021-03-310001651308us-gaap:ProductMemberbgne:XgevaMember2020-01-012020-03-310001651308us-gaap:ProductMemberbgne:OtherMember2021-01-012021-03-310001651308us-gaap:ProductMemberbgne:OtherMember2020-01-012020-03-310001651308us-gaap:ProductMember2020-12-310001651308us-gaap:ProductMember2019-12-310001651308us-gaap:ProductMember2021-03-310001651308us-gaap:ProductMember2020-03-310001651308bgne:TislelizumabBrukinsaAndXgevaMember2021-03-310001651308bgne:ShareOptionAndIncentivePlan2016Member2016-01-310001651308bgne:ShareIncentivePlan2011Member2021-01-012021-03-310001651308bgne:ShareOptionAndIncentivePlan2016Member2018-12-012018-12-310001651308bgne:ShareOptionAndIncentivePlan2016Member2020-06-012020-06-300001651308bgne:EmployeeAndNonemployeeStockOptionMemberbgne:ShareOptionAndIncentivePlan2016Member2021-01-012021-03-310001651308us-gaap:RestrictedStockUnitsRSUMemberbgne:ShareOptionAndIncentivePlan2016Member2021-01-012021-03-310001651308bgne:EmployeeAndNonemployeeStockOptionMemberbgne:ShareOptionAndIncentivePlan2016Member2021-03-310001651308us-gaap:RestrictedStockUnitsRSUMemberbgne:ShareOptionAndIncentivePlan2016Member2021-03-310001651308bgne:InducementEquityPlan2018Member2018-06-300001651308bgne:InducementEquityPlan2018Memberbgne:EmployeeAndNonemployeeStockOptionMember2021-03-310001651308us-gaap:RestrictedStockUnitsRSUMemberbgne:InducementEquityPlan2018Member2021-03-310001651308bgne:EmployeeSharePurchasePlan2018Member2018-06-300001651308bgne:EmployeeSharePurchasePlan2018Member2018-12-012018-12-310001651308bgne:EmployeeSharePurchasePlan2018Member2018-12-310001651308bgne:EmployeeSharePurchasePlan2018Member2019-06-012019-06-300001651308bgne:EmployeeSharePurchasePlan2018Member2019-06-300001651308bgne:EmployeeSharePurchasePlan2018Member2021-02-262021-02-260001651308bgne:EmployeeSharePurchasePlan2018Member2021-02-260001651308bgne:EmployeeSharePurchasePlan2018Member2020-08-312020-08-310001651308bgne:EmployeeSharePurchasePlan2018Member2020-08-310001651308bgne:EmployeeSharePurchasePlan2018Member2020-02-282020-02-280001651308bgne:EmployeeSharePurchasePlan2018Member2020-02-280001651308us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001651308us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-03-310001651308us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001651308us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001651308us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001651308us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001651308us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310001651308us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310001651308us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001651308us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001651308us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310001651308country:CN2021-03-310001651308country:CN2020-12-310001651308bgne:MinimumPurchaseCommitmentsForSupplyPurchasedMember2021-01-012021-03-310001651308us-gaap:InventoriesMember2021-01-012021-03-310001651308us-gaap:CapitalAdditionsMember2021-03-310001651308bgne:InvestmentsFundingCommitmentMember2021-03-310001651308bgne:PensionCommitmentMember2021-03-31bgne:segment0001651308country:CN2021-01-012021-03-310001651308country:CN2020-01-012020-03-310001651308country:US2021-01-012021-03-310001651308country:US2020-01-012020-03-310001651308bgne:AllOtherCountriesExceptChinaAndUnitedStatesOfAmericaMember2021-01-012021-03-310001651308bgne:AllOtherCountriesExceptChinaAndUnitedStatesOfAmericaMember2020-01-012020-03-310001651308country:USbgne:CollaborationMember2021-01-012021-03-310001651308country:USus-gaap:ProductMemberbgne:BrukinsaMember2021-01-012021-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________
FORM 10-Q
___________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission File Number: 001-37686
___________________________________________________________
BEIGENE, LTD.
(Exact name of registrant as specified in its charter)
___________________________________________________________
Cayman Islands98-1209416
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
c/o Mourant Governance Services (Cayman) Limited
94 Solaris Avenue, Camana Bay
Grand Cayman
Cayman IslandsKY1-1108
(Address of principal executive offices)
(Zip Code)
+1 (345) 949-4123
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
American Depositary Shares, each representing 13 Ordinary Shares, par value $0.0001 per shareBGNEThe NASDAQ Global Select Market
Ordinary Shares, par value $0.0001 per share*06160The Stock Exchange of Hong Kong Limited
*Included in connection with the registration of the American Depositary Shares with the Securities and Exchange Commission. The ordinary shares are not registered or listed for trading in the United States but are listed for trading on The Stock Exchange of Hong Kong Limited.
As of April 30, 2021, 1,197,609,020 ordinary shares, par value $0.0001 per share, were outstanding, of which 973,810,305 ordinary shares were held in the form of 74,908,485 American Depositary Shares, each representing 13 ordinary shares.
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes      No   
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes     No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐     No  


Table of Contents

BeiGene, Ltd.
Quarterly Report on Form 10-Q
TABLE OF CONTENTS
  Page
   
   
   
   
  
  
  
  
  
  
  
  
  
  

2

Table of Contents

Summary of Risk Factors
Below is a summary of the principal factors that make an investment in our American Depositary Shares (“ADSs”) or ordinary shares speculative or risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, are summarized in “Part II – Item 1A – Risk Factors” and should be carefully considered, together with other information in this Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), before making an investment decision regarding our ADSs or ordinary shares.
Our medicines may fail to achieve and maintain the degree of market acceptance by physicians, patients, third-party payors, and others in the medical community necessary for commercial success.
We have limited experience in launching and marketing our internally developed and in-licensed medicines. If we are unable to further develop marketing and sales capabilities or enter into agreements with third parties to market and sell our medicines, we may not be able to generate substantial product sales revenue.
We face substantial competition, which may result in others discovering, developing, or commercializing competing medicines before or more successfully than we do.
The market opportunities for our medicines may be limited to those patients who are ineligible for or have failed prior treatments and may be small.
If we are not able to continue to obtain, or experience delays in obtaining, required regulatory approvals, we will not be able to commercialize our medicines and drug candidates, and our ability to generate revenue will be materially impaired.
We have limited manufacturing capability and must rely on third-party manufacturers to manufacture some of our commercial products and clinical supplies, and if they fail to meet their obligations, the development and commercialization of our medicines and drug candidates could be adversely affected.
If we or any third parties with which we may collaborate to market and sell our medicines are unable to achieve and maintain coverage and adequate level of reimbursement, our commercial success and business operations could be adversely affected.
We depend substantially on the success of the clinical development of our medicines and drug candidates. If we are unable to successfully complete clinical development, obtain regulatory approvals and commercialize our medicines and drug candidates, or experience significant delays in doing so, our business will be materially harmed.
Clinical development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results.
If clinical trials of our drug candidates fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities or do not otherwise produce positive results, we may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our drug candidates.
If we encounter difficulties enrolling patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.
All material aspects of the research, development, manufacturing and commercialization of pharmaceutical products are heavily regulated, and we may face difficulties in complying with or be unable to comply with such regulations, which could have a material adverse effect on our business.
The approval processes of regulatory authorities in the United States, China, Europe and other comparable regulatory authorities are lengthy, time consuming and inherently unpredictable. If we are ultimately unable to obtain regulatory approval for our drug candidates, our business will be substantially harmed.
Our medicines and any future approved drug candidates will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our medicines and drug candidates.
Even if we are able to commercialize our medicines and any approved drug candidates, the medicines may become subject to unfavorable pricing regulations or third-party reimbursement practices or healthcare reform initiatives, which could harm our business.
3

Table of Contents

We have incurred significant net losses since our inception and anticipate that we will continue to incur net losses for the foreseeable future and may not become profitable.
We have limited experience in obtaining regulatory approvals and commercializing pharmaceutical products, which may make it difficult to evaluate our current business and predict our future performance.
We may need to obtain additional financing to fund our operations, and if we are unable to obtain such financing, we may be unable to complete the development of our drug candidates or achieve profitability.
If we are unable to obtain and maintain patent protection for our medicines and drug candidates through intellectual property rights, or if the scope of such intellectual property rights is not sufficiently broad, third parties may compete against us.
If we fail to maintain an effective distribution channel for our medicines, our business and sales could be adversely affected.
We rely on third parties to manufacture some of our commercial and clinical drug supplies. Our business could be harmed if those third parties fail to provide us with sufficient quantities of product or fail to do so at acceptable quality levels or prices.
If third-party manufacturers fail to comply with manufacturing regulations, our financial results and financial condition could be adversely affected.
We have entered into licensing and collaboration arrangements and may enter into additional collaborations, licensing arrangements, or strategic alliances in the future, and we may not realize the benefits of such arrangements.
If we are not able to successfully develop and/or commercialize Amgen’s oncology products, the expected benefits of the collaboration will not materialize.
We have significantly increased and expect to continue to increase our research, development, manufacturing, and commercial capabilities, and we may experience difficulties in managing our growth.
Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel.
Our business is subject to complex and evolving industry-specific laws and regulations regarding the collection and transfer of personal data. These laws and regulations can be complex and stringent, and many are subject to change and uncertain interpretation, which could result in claims, changes to our data and other business practices, significant penalties, increased cost of operations, or otherwise adversely impact our business.
We manufacture some of our medicines and intend to manufacture some of our drug candidates, if approved. Delays in completing and receiving regulatory approvals for our manufacturing facilities, or damage to, destruction of or interruption of production at such facilities, could delay our development plans or commercialization efforts.
Changes in the political and economic policies of the PRC government or in relations between China and the United States or other governments may materially and adversely affect our business, financial condition, and results of operations and may result in our inability to sustain our growth and expansion strategies.
The audit report included in our Annual Report on Form 10-K filed with the SEC is prepared by auditors who are not inspected fully by the Public Company Accounting Oversight Board, and as such, investors are deprived of the benefits of such inspection.
The trading prices of our ordinary shares and/or ADSs can be volatile, which could result in substantial losses to you.
4

Table of Contents

PART I.     FINANCIAL INFORMATION
Item 1.     Financial Statements
BEIGENE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
  As of
  March 31,December 31, 
 Note20212020
  $$
  (unaudited)(audited)
Assets   
Current assets:   
Cash and cash equivalents 1,901,819 1,381,950 
Short-term restricted cash4305 307 
Short-term investments42,910,472 3,268,725 
Accounts receivable, net1084,010 60,403 
Inventories572,974 89,293 
Prepaid expenses and other current assets10171,399 160,012 
Total current assets 5,140,979 4,960,690 
Long-term restricted cash48,282 7,748 
Property, plant and equipment, net6373,949 357,686 
Operating lease right-of-use assets86,946 90,581 
Intangible assets, net84,813 5,000 
Deferred tax assets978,215 65,962 
Other non-current assets10127,820 113,090 
Total non-current assets 680,025 640,067 
Total assets 5,821,004 5,600,757 
Liabilities and shareholders' equity 
Current liabilities: 
Accounts payable 146,923 231,957 
Accrued expenses and other payables10312,134 346,144 
Deferred revenue, current portion371,651  
Tax payable927,463 20,380 
Operating lease liabilities, current portion13,993 13,895 
Research and development cost share liability, current portion3135,333 127,808 
Short-term debt11405,045 335,015 
Total current liabilities 1,112,542 1,075,199 
Non-current liabilities: 
Long-term bank loans11193,017 183,637 
Deferred revenue, non-current portion378,594  
Operating lease liabilities, non-current portion26,565 29,417 
Deferred tax liabilities910,794 10,792 
Research and development cost share liability, non-current portion3340,585 375,040 
Other long-term liabilities1055,320 57,429 
Total non-current liabilities 704,875 656,315 
Total liabilities 1,817,417 1,731,514 
Commitments and contingencies18
Equity: 
Ordinary shares, US$0.0001 par value per share; 9,500,000,000 shares authorized; 1,197,322,617 and 1,190,821,941 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively
 119 118 
Additional paid-in capital 7,486,518 7,414,932 
Accumulated other comprehensive income153,204 6,942 
Accumulated deficit (3,486,254)(3,552,749)
Total equity4,003,587 3,869,243 
Total liabilities and equity 5,821,004 5,600,757 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

Table of Contents

BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
  Three Months Ended
  March 31,
 Note20212020
  
Revenues   
Product revenue, net12106,117 52,059 
Collaboration revenue3499,755  
Total revenues 605,872 52,059 
Expenses 
Cost of sales - product 32,685 14,149 
Research and development 320,726 304,302 
Selling, general and administrative 182,106 107,081 
Amortization of intangible assets 188 283 
Total expenses 535,705 425,815 
Income (loss) from operations 70,167 (373,756)
Interest (expense) income, net (4,179)6,690 
Other (expense) income, net (4,123)3,681 
Income (loss) before income taxes 61,865 (363,385)
Income tax (benefit) expense9(4,630)1,554 
Net income (loss) 66,495 (364,939)
Less: net loss attributable to noncontrolling interests  (1,204)
Net income (loss) attributable to BeiGene, Ltd. 66,495 (363,735)
Earnings (loss) per share attributable to BeiGene, Ltd.
Basic130.06 (0.36)
Diluted130.05 (0.36)
Weighted-average shares outstanding—basic1,188,943,726 1,005,347,581 
Weighted-average shares outstanding—diluted131,257,489,671 1,005,347,581 
Earnings (loss) per American Depositary Share ("ADS")
Basic0.73 (4.70)
Diluted0.69 (4.70)
Weighted-average ADSs outstanding—basic91,457,210 77,334,429 
Weighted-average ADSs outstanding—diluted96,729,975 77,334,429 
 The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Table of Contents

BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
 Three Months Ended
 March 31,
 20212020
 $$
Net income (loss)66,495 (364,939)
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments(3,762)(4,349)
Pension liability adjustments497  
Unrealized holding (loss) gain, net(473)5,698 
Comprehensive income (loss)62,757 (363,590)
Less: comprehensive loss attributable to noncontrolling interests (1,308)
Comprehensive income (loss) attributable to BeiGene, Ltd.62,757 (362,282)
 The accompanying notes are an integral part of these condensed consolidated financial statements.
7

Table of Contents

BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
  Three months ended March 31,
 Note20212020
  $$
Operating activities:   
Net income (loss) 66,495 (364,939)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: 
Depreciation and amortization expense 9,632 7,750 
Share-based compensation expenses1445,833 38,255 
Unrealized gains on equity method investments43,327 (6,964)
Acquired in-process research and development8,500 43,000 
Amortization of research and development cost share liability3(26,930)(27,634)
Deferred income tax benefits (12,251)(206)
Other items, net 5,263 3,489 
Changes in operating assets and liabilities: 
Accounts receivable (23,656)3,236 
Inventories 16,319 (222)
Prepaid expenses and other current assets (11,453)(36,075)
Other non-current assets (6,495)(2,710)
Accounts payable (73,178)(21,450)
Accrued expenses and other payables (34,010)15,775 
Tax payable 7,149 6,080 
Deferred revenue 150,245  
Operating lease liabilities 1,215 1,927 
Other long-term liabilities(910)(1,256)
Net cash provided by (used in) operating activities 125,095 (341,944)
Investing activities: 
Purchases of property, plant and equipment (42,389)(21,533)
Purchases of investments (764,163)(1,307,179)
Proceeds from sale or maturity of investments 1,107,000 256,743 
Purchase of in-process research and development(8,500)(43,000)
Net cash provided by (used in) investing activities 291,948 (1,114,969)
Financing activities: 
Proceeds from sale of ordinary shares, net of cost16 2,162,407 
Proceeds from research and development cost share liability  616,834 
Proceeds from long-term loan1110,664  
Proceeds from short-term loans1171,001 11,298 
Proceeds from option exercises and employee share purchase plan 25,754 11,629 
Net cash provided by financing activities 107,419 2,802,168 
Effect of foreign exchange rate changes, net (4,061)(6,212)
Net increase in cash, cash equivalents, and restricted cash 520,401 1,339,043 
Cash, cash equivalents, and restricted cash at beginning of period 1,390,005 620,775 
Cash, cash equivalents, and restricted cash at end of period 1,910,406 1,959,818 
Supplemental cash flow information: 
Cash and cash equivalents 1,901,819 1,957,101 
Short-term restricted cash 305 282 
Long-term restricted cash8,282 2,435 
Income taxes paid 478 531 
Interest paid 6,927 1,136 
Supplemental non-cash information: 
Acquisitions of equipment included in accounts payable 30,906 26,412 
The accompanying notes are an integral part of these condensed consolidated financial statements.
8

Table of Contents

BEIGENE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)
(Unaudited)
 Attributable to BeiGene, Ltd.  
 Ordinary SharesAdditional
Paid-In
Capital
Accumulated
Other Comprehensive Income
Accumulated
Deficit
TotalNoncontrolling
Interests
 
 SharesAmountTotal
$$$$$$$
Balance at December 31, 20201,190,821,941 118 7,414,932 6,942 (3,552,749)3,869,243  3,869,243 
Use of shares reserved for share option exercises(123,097)— — — — — — — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs")6,623,773 1 25,753 — — 25,754 — 25,754 
Share-based compensation— — 45,833 — — 45,833 — 45,833 
Other comprehensive loss— — — (3,738)— (3,738)— (3,738)
Net income— — — — 66,495 66,495 — 66,495 
Balance at March 31, 20211,197,322,617 119 7,486,518 3,204 (3,486,254)4,003,587  4,003,587 
Balance at December 31, 2019801,340,698 79 2,925,970 (8,001)(1,955,843)962,205 16,150 978,355 
Issuance of ordinary shares in connection with collaboration206,635,013 21 2,162,386 — — 2,162,407 — 2,162,407 
Use of shares reserved for share option exercises(3,705,468)— — — — — — — 
Exercise of options, ESPP and release of Restricted Share Units ("RSUs")3,706,573 1 11,628 — — 11,629 — 11,629 
Share-based compensation— — 38,255 — — 38,255 — 38,255 
Other comprehensive income— — — 1,453 — 1,453 (104)1,349 
Net loss— — — — (363,735)(363,735)(1,204)(364,939)
Balance at March 31, 20201,007,976,816 101 5,138,239 (6,548)(2,319,578)2,812,214 14,842 2,827,056 
The accompanying notes are an integral part of these condensed consolidated financial statements.

9

Table of Contents

BEIGENE, LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands of U.S. Dollar (“$”) and Renminbi (“RMB”), except for number of shares and per share data)
(Unaudited)
1. Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies
Description of business
BeiGene, Ltd. (the "Company", "BeiGene", "it", "its") is a global, commercial-stage biotechnology company focused on discovering, developing, manufacturing, and commercializing innovative medicines to improve treatment outcomes and expand access for patients worldwide.
The Company has delivered ten molecules into the clinic in its first ten years, including its two lead commercial medicines, BRUKINSA®, a small molecule inhibitor of Bruton’s Tyrosine Kinase (“BTK”) for the treatment of various blood cancers, and tislelizumab, an anti-PD-1 antibody immunotherapy for the treatment of various solid tumor and blood cancers. The Company is marketing BRUKINSA® in the world’s two largest pharmaceutical markets, the United States and the People's Republic of China ("China" or the "PRC"), and tislelizumab in China, with an established, science-based commercial organization. The Company has built state-of-the-art biologic and small molecule manufacturing facilities in China to support the potential future demand of its medicines, and it also works with high quality contract manufacturing organizations (“CMOs”) to manufacture its internally developed clinical and commercial products.
The Company is a leader in China-inclusive global clinical development, which it believes can facilitate faster and more cost-effective development of innovative medicines. Its internal clinical development capabilities are deep, including a more than 1,600-person global clinical development team that is running more than 100 ongoing or planned clinical trials. This includes more than 25 pivotal or registration-enabling trials for three drug candidates that have enrolled more than 12,000 patients and healthy volunteers, of which approximately one-half have been outside of China, as of March 2021. The Company has over 45 medicines and drug candidates in commercial stage or clinical development, including 7 approved medicines, 5 pending approval, and over 30 in clinical development.
Supported by its development and commercial capabilities, the Company has entered into collaborations with world-leading biopharmaceutical companies such as Amgen and Novartis to develop and commercialize innovative medicines globally. Since its inception in 2010 in Beijing, the Company has become a fully integrated global organization of approximately 6,000 employees in 16 countries and regions, including China, the United States, Europe and Australia.
Basis of presentation and consolidation
The accompanying condensed consolidated balance sheet as of March 31, 2021, the condensed consolidated statements of operations and comprehensive income/(loss) for the three months ended March 31, 2021 and 2020, the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020, and the condensed consolidated statements of shareholders' equity for the three months ended March 31, 2021 and 2020, and the related footnote disclosures are unaudited. The accompanying unaudited interim condensed financial statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including guidance with respect to interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the "Annual Report").
The unaudited interim condensed consolidated interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all normal recurring adjustments, necessary to present a fair statement of the results for the interim periods presented. Results of the operations for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period.
The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.
Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries which are not attributable, directly or indirectly, to the controlling shareholders. For a portion of fiscal 2020, the Company consolidated its interests in its joint venture, BeiGene Biologics Co., Ltd. ("BeiGene Biologics") and MapKure, LLC ("MapKure"), under the voting model
10

Table of Contents

and recognized the minority shareholder's equity interest as a noncontrolling interest in its condensed consolidated financial statements. In June 2020, the Company deconsolidated MapKure and recorded an equity method investment for its remaining ownership interest in the joint venture (see Note 4). In November 2020, the Company acquired the remaining equity interest in BeiGene Biologics. Subsequent to the share purchase, BeiGene Biologics is a wholly-owned subsidiary of the Company (see Note 7).
Use of estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to, estimating the useful lives of long-lived assets, estimating variable consideration in product sales and collaboration revenue arrangements, identifying separate accounting units and determining the standalone selling price of each performance obligation in the Company’s revenue arrangements, estimating the fair value of net assets acquired in business combinations, assessing the impairment of long-lived assets, valuation and recognition of share-based compensation expenses, realizability of deferred tax assets, estimating uncertain tax positions, valuation of inventory, estimating the allowance for credit losses, determining defined benefit pension plan obligations, measurement of right-of-use assets and lease liabilities and the fair value of financial instruments. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.
Recent accounting pronouncements
New accounting standards which have been adopted
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB's overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. Certain amendments in this update should be applied retrospectively or modified retrospectively, and all other amendments should be applied prospectively. The Company adopted this standard on January 1, 2021. There was no material impact to the Company's financial position or results of operations upon adoption.
Significant accounting policies
For a more complete discussion of the Company’s significant accounting policies and other information, the unaudited interim condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report for the year ended December 31, 2020.
There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2021, as compared to the significant accounting policies described in the Annual Report.
2. Fair Value Measurements
The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in market with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and considers an inactive market to be one in which
11

Table of Contents

there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers.
The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of March 31, 2021 and December 31, 2020:
 Quoted Price  
 in ActiveSignificant 
 Market forOtherSignificant
 IdenticalObservableUnobservable
 AssetsInputsInputs
As of March 31, 2021(Level 1)(Level 2)(Level 3)
 $$$
Cash equivalents   
U.S. treasury securities652,519   
Money market funds268,697   
Short-term investment (Note 4):
U.S. Treasury securities2,910,472   
Other non-current assets (Note 4):
Equity securities with readily determinable fair values9,129 5,299  
Total3,840,817 5,299  
 
 Quoted Price  
 in ActiveSignificant 
 Market forOtherSignificant
 IdenticalObservableUnobservable
 AssetsInputsInputs
As of December 31, 2020(Level 1)(Level 2)(Level 3)
 $$$
Cash equivalents   
U.S. treasury securities286,072   
Money market funds80,838   
Short-term investment (Note 4):
U.S. Treasury securities3,268,725   
Other non-current assets (Note 4):
Equity securities with readily determinable fair values10,810 6,669  
Total3,646,445 6,669  
The Company's cash equivalents are highly liquid investments with original maturities of 3 months or less. Short-term investments represent the Company's investments in available-for-sale debt securities. The Company determines the fair value of cash equivalents and available-for-sale debt securities using a market approach based on quoted prices in active markets.
The Company's equity securities carried at fair value consist of holdings in common stock and warrants to purchase additional shares of common stock of Leap Therapeutics, Inc. ("Leap"), which were acquired in connection with a collaboration and license agreement entered into in January 2020. The common stock investment in Leap, a publicly-traded biotechnology company, is measured and carried at fair value and classified as Level 1. The warrants to purchase additional shares of common stock in Leap are classified as a Level 2 investment and are measured using the Black-Scholes option-pricing valuation model, which utilizes a constant maturity risk-free rate and reflects the term of the warrants, dividend yield and stock price volatility, that is based on the historical volatility of similar companies. Refer to Note 4, Restricted Cash and Investments for details of the determination of the carrying amount of private equity investments without readily determinable fair values and equity method investments.
As of March 31, 2021 or December 31, 2020, the fair values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and short-term debt approximated their carrying values due to their short-term nature. Long-term
12

Table of Contents

bank loans approximate their fair value due to the fact that the related interest rates approximate the rates currently offered by financial institutions for similar debt instrument of comparable maturities.
3. Collaborative Arrangements
The Company enters into collaborative arrangements for the research and development, manufacture and/or commercialization of medicines and drug candidates. To date, these collaborative arrangements have included out-licenses of internally developed products and drug candidates to other parties, in-licenses of products and drug candidates from other parties, and profit- and cost-sharing arrangements. These arrangements may include non-refundable upfront payments, contingent obligations for potential development, regulatory and commercial performance milestone payments, cost-sharing and reimbursement arrangements, royalty payments, and profit sharing.
Out-Licensing Arrangements
For the three months ended March 31, 2021, the Company’s collaboration revenue consisted entirely of revenue recognized under its out-licensing collaborative agreement with Novartis Pharma AG ("Novartis"). There was no collaboration revenue recognized for the three months ended March 31, 2020.
The following table summarizes total collaboration revenue recognized for the three months ended March 31, 2021 and 2020:
Three Months Ended
March 31,
20212020
Revenue from Collaborators$$
License revenue484,646 
Research and development service revenue15,109 
Total499,755 
Novartis
In January 2021, the Company entered into a collaboration and license agreement with Novartis, granting Novartis rights to develop, manufacture and commercialize tislelizumab in North America, Europe, and Japan (the "Novartis Territory"). The Company and Novartis have agreed to jointly develop tislelizumab in these licensed countries, with Novartis responsible for regulatory submissions after a transition period and for commercialization upon regulatory approvals. In addition, both companies may conduct clinical trials globally to explore combinations of tislelizumab with other cancer treatments, and the Company has an option to co-detail the product in North America, funded in part by Novartis.
Under the agreement the Company received an upfront cash payment of $650,000 from Novartis. The Company is eligible to receive up to $1,300,000 upon the achievement of regulatory milestones, $250,000 upon the achievement of sales milestones, and royalties on future sales of tislelizumab in the licensed territory. Under the terms of the agreement, the Company is responsible for funding ongoing clinical trials of tislelizumab, Novartis has agreed to fund new registrational, bridging, or post-marketing studies in its territory, and each party will be responsible for funding clinical trials evaluating tislelizumab in combination with its own or third party products. Each party retains the worldwide right to commercialize its propriety products in combination with tislelizumab.
The Company evaluated the Novartis agreement under ASC 606 as all the material units of account within the agreement represented transactions with a customer. The Company identified the following material components under the agreement: (1) exclusive license for Novartis to develop, manufacture, and commercialize tislelizumab in the Novartis Territory, transfer of know-how and use of the tislelizumab trademark; (2) conducting and completing ongoing trials of tislelizumab (“R&D services”); and (3) supplying Novartis with required quantities of the tislelizumab drug product, or drug substance, upon receipt of an order from Novartis.
The Company determined that the license, transfer of know-how and use of trademarks are not distinct from each other and represent a single performance obligation. The R&D services represent a material promise and were determined to be a separate performance obligation at the outset of the agreement as the promise is distinct and has standalone value to Novartis. The Company evaluated the supply component of the contract and noted the supply will not be provided at a significant incremental discount to Novartis. The Company concluded that, for the purpose of ASC 606, the provision related to providing clinical and commercial supply of tislelizumab in the Novartis Territory was an option but not a performance obligation of the Company at
13

Table of Contents

the outset of the Novartis collaboration agreement. A performance obligation for the clinical and commercial supply will be established as quantities of drug product or drug substance are ordered by Novartis.

The Company determined that the transaction price as of the outset of the arrangement was the upfront payment of $650,000. The potential milestone payments that the Company is eligible to receive were excluded from the transaction price, as all milestone amounts were fully constrained due to uncertainty of achievement. The transaction price was allocated to the two identified performance obligations based on a relative fair value basis. The standalone selling price of the license, transfer of know-how and use of trademarks performance obligation was determined using the adjusted market assessment approach. Based on the valuation performed by the Company, the standalone selling price of the license, transfer of know-how and use of trademarks was valued at $1,231,000. The standalone selling price of the R&D services was valued at $420,000 using a cost plus margin valuation approach. Based on the relative standalone selling prices of the two performance obligations, $484,646 of the total transaction price was allocated to the license and $165,354 was allocated to the R&D services.

The Company satisfied the license performance obligation at a point in time when the license was delivered and the transfer of know-how completed which occurred during the three months ended March 31, 2021. As such, the Company recognized the entire amount of the transaction price allocated to the license as collaboration revenue during the three months ended March 31, 2021. The portion of the transaction price allocated to the R&D services was deferred and is being recognized as collaboration revenue as the R&D services are performed using a percentage-of-completion method. Estimated costs to complete are reassessed on a periodic basis and any updates to the revenue earned are recognized on a prospective basis. The Company recognized R&D service revenue of $15,109 during the three months ended March 31, 2021.

In-Licensing Arrangements - Commercial
Amgen
In October 2019, the Company entered into a global strategic oncology collaboration with Amgen (the "Amgen Collaboration Agreement") for the commercialization and development in China, excluding Hong Kong, Taiwan and Macao, of Amgen’s XGEVA®, KYPROLIS®, and BLINCYTO®, and the joint global development of a portfolio of oncology assets in Amgen’s pipeline, with BeiGene responsible for development and commercialization in China. The agreement became effective on January 2, 2020, following approval by the Company's shareholders and satisfaction of other closing conditions.
Under the agreement, the Company is responsible for the commercialization of XGEVA®, KYPROLIS® and BLINCYTO® in China for five or seven years. Amgen is responsible for manufacturing the products globally and will supply the products to the Company at an agreed upon price. The Company and Amgen will share equally in the China commercial profits and losses during the commercialization period. Following the commercialization period, the Company has the right to retain one product and is entitled to receive royalties on sales in China for an additional five years on the products not retained. XGEVA® was approved in China in 2019 for patients with giant cell tumor of the bone and in November 2020 for the prevention of skeletal-related events in cancer patients with bone metastases. In July 2020, the Company began commercializing XGEVA® in China. In December 2020, BLINCYTO® was approved in China for injection for the treatment of adult patients with relapsed or refractory (R/R) B-cell precursor acute lymphoblastic leukemia (ALL). Additionally, a new drug application has been filed in China for KYPROLIS® as a treatment for patients with multiple myeloma.
Amgen and the Company are also jointly developing a portfolio of Amgen oncology pipeline assets under the collaboration. The Company is responsible for conducting clinical development activities in China and co-funding global development costs by contributing cash and development services up to a total cap of $1,250,000. Amgen is responsible for all development, regulatory and commercial activities outside of China. For each pipeline asset that is approved in China, the Company will receive commercial rights for seven years from approval. The Company has the right to retain approximately one out of every three approved pipeline assets, other than sotorasib (AMG 510), Amgen's investigational KRAS G12C inhibitor, for commercialization in China. The Company and Amgen will share equally in the China commercial profits and losses during the commercialization period. The Company is entitled to receive royalties from sales in China for pipeline assets returned to Amgen for five years after the seven-year commercialization period. The Company is also entitled to receive royalties from global sales of each product outside of China (with the exception of sotorasib).
The Amgen Collaboration Agreement is within the scope of ASC 808, as both parties are active participants and are exposed to the risks and rewards dependent on the commercial success of the activities performed under the agreement. The Company is the principal for product sales to customers in China during the commercialization period and recognizes 100% of net product revenue on these sales. Amounts due to Amgen for its portion of net product sales are recorded as cost of sales. Cost reimbursements due to or from Amgen under the profit share are recognized as incurred and recorded to cost of sales; selling, general and administrative expense; or research and development expense, based on the underlying nature of the related
14

Table of Contents

activity subject to reimbursement. Costs incurred for the Company's portion of the global co-development funding are recorded to research and development expense as incurred.
In connection with the Amgen Collaboration Agreement, a Share Purchase Agreement ("SPA") was entered into by the parties in October 2019. On January 2, 2020, the closing date of the transaction, Amgen purchased 15,895,001 of the Company's ADSs for $174.85 per ADS, representing a 20.5% ownership stake in the Company. Per the SPA, the cash proceeds shall be used as necessary to fund the Company's development obligations under the Amgen Collaboration Agreement. Pursuant to the SPA, Amgen also received the right to designate one member of the Company's board of directors, and Anthony Hooper joined the Company's board of directors as the Amgen designee in January 2020.
In determining the fair value of the common stock at closing, the Company considered the closing price of the common stock on the closing date of the transaction and included a lack of marketability discount because the shares are subject to certain restrictions. The fair value of the shares on the closing date was determined to be $132.74 per ADS, or $2,109,902 in the aggregate. The Company determined that the premium paid by Amgen on the share purchase represents a cost share liability due to the Company's co-development obligations. The fair value of the cost share liability on the closing date was determined to be $601,857 based on the Company's discounted estimated future cash flows related to the pipeline assets. The total cash proceeds of $2,779,241 were allocated based on the relative fair value method, with $2,162,407 recorded to equity and $616,834 recorded as a research and development cost share liability. The cost share liability is being amortized proportionately as the Company contributes cash and development services to its total co-development funding cap.
Amounts recorded related to the Company's portion of the co-development funding on the pipeline assets for the three months ended March 31, 2021 and 2020 were as follows:
 Three Months Ended
 March 31,
 20212020
 $$
Research and development expense27,643 28,366 
Amortization of research and development cost share liability26,930 27,634 
Total amount due to Amgen for BeiGene's portion of the development funding54,573 56,000 
As of
March 31,
2021
Remaining portion of development funding cap 964,437 
As of March 31, 2021 and December 31, 2020, the research and development cost share liability recorded in the Company's balance sheet was as follows:
 As of
 March 31,December 31,
 20212020
 $$
Research and development cost share liability, current portion135,333 127,808 
Research and development cost share liability, non-current portion340,585 375,040 
Total research and development cost share liability475,918 502,848 
The total reimbursement due under the commercial profit-sharing agreement for in-line product sales is classified in the income statement for the three months ended March 31, 2021 and 2020 as follows:
 Three Months Ended
 March 31,
 20212020
 $$
Cost of sales - product710  
Research and development(259) 
Selling, general and administrative(6,699) 
Total(6,248) 
15

Table of Contents


4. Restricted Cash and Investments
Restricted Cash
The Company’s restricted cash balance of $8,587 and $8,055 as of March 31, 2021 and December 31, 2020, respectively, primarily consists of RMB-denominated cash deposits held in designated bank accounts for collateral for letters of credit. The Company classifies restricted cash as current or non-current based on the term of the restriction.
Short-Term Investments
Short-term investments as of March 31, 2021 consisted of the following available-for-sale debt securities:
  GrossGrossFair Value
 AmortizedUnrealizedUnrealized(Net Carrying
 CostGainsLossesAmount)
 $$$$
U.S. treasury securities2,910,074 398  2,910,472 
Total2,910,074 398  2,910,472 
 Short-term investments as of December 31, 2020 consisted of the following available-for-sale debt securities:
  Gross Gross Fair Value
 AmortizedUnrealizedUnrealized(Net Carrying
 CostGainsLossesAmount)
 $$$$
U.S. treasury securities3,267,875 850  3,268,725 
Total3,267,875 850  3,268,725 
As of March 31, 2021, the Company's available-for-sale debt securities consisted entirely of short-term U.S. treasury securities, which were determined to have zero risk of expected credit loss. Accordingly, no allowance for credit loss was recorded as of March 31, 2021.
Equity Securities with Readily Determinable Fair Values
Leap
In January 2020, the Company purchased $5,000 of Series B mandatorily convertible, non-voting preferred stock of Leap in connection with a strategic collaboration and license agreement the Company entered into with Leap. The Series B shares were subsequently converted into shares of Leap common stock and warrants to purchase additional shares of common stock upon approval of Leap's shareholders in March 2020. As of March 31, 2021, the Company's ownership interest in the outstanding common stock of Leap was 8.1% based on information from Leap. Inclusive of the shares of common stock issuable upon the exercise of the currently exercisable warrants, the Company's interest is approximately 14.9% based on information from Leap. The Company measures the investment in the common stock and warrants at fair value, with changes in fair value recorded to other (expense) income, net. During the three months ended March 31, 2021 and 2020, the Company recorded an unrealized (loss)/gain of $(3,051) and $6,964, respectively, in the consolidated statements of operations. As of March 31, 2021 and December 31, 2020, the fair value of the common stock and warrants was as follows:
 As of
 March 31,December 31,
 20212020
 $$
Fair value of Leap common stock9,129 10,810 
Fair value of Leap warrants5,299 6,669 

Private Equity Securities without Readily Determinable Fair Values
The Company invests in equity securities of certain companies whose securities are not publicly traded and fair value is not readily determinable and where the Company has concluded it does not have significant influence based on its ownership
16

Table of Contents

percentage and other factors. These investments are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company held investments of $18,702 and $9,705 in equity securities without readily determinable fair values as of March 31, 2021 and December 31, 2020, respectively. There were no adjustments to the carrying values of these securities for the three months ended March 31, 2021.
Equity-Method Investments
MapKure
In June 2019, the Company announced the formation of MapKure, LLC ("MapKure"), an entity jointly owned by the Company and SpringWorks Therapeutics, Inc. ("SpringWorks"). The Company out-licensed to MapKure the Company's product candidate BGB-3245, an oral, selective small molecule inhibitor of monomer and dimer forms of activating B-RAF mutations including V600 BRAF mutations, non-V600 B-RAF mutations, and RAF fusions. The Company received 10,000,000 Series A preferred units of MapKure, or a 71.4% ownership interest in exchange for its contribution of the intellectual property. SpringWorks purchased 3,500,000 Series A preferred units, or a 25% ownership interest, and other investors purchased 250,000 Series A preferred units or 1.8% ownership each. Following the initial closing, the Company consolidated its interests in MapKure under the voting model due to its controlling financial interest.
In June 2020, MapKure held a second closing under the existing terms of the SPA in which it issued additional Series A preferred units to SpringWorks and the other investors that purchased units in the first closing (the "Second Closing"), and the Company's ownership interest decreased to 55.6%. As the requisite Series A voting requirements in MapKure's governing documents require 70% combined voting power for certain actions, the Company determined that it lost its controlling financial interest after the Second Closing. Therefore, the Company deconsolidated MapKure and recognized a gain of $11,307 for the excess of the fair value of its 55.6% ownership interest in MapKure and carrying amount of the prior non-controlling interest over the carrying amount of MapKure's net assets within other income during the year ended December 31, 2020.
Upon deconsolidation, the Company recorded an equity investment of $10,000, which represents the estimated fair value of its 55.6% ownership interest in MapKure. Effective June 8, 2020, the Company is accounting for the investment as an equity-method investment and records its portion of MapKure's earnings or losses within other (expense) income, net. The Company recognized losses of $236 for its portion of MapKure's net loss for the three months ended March 31, 2021. As of March 31, 2021 and December 31, 2020, the carrying amount of the Company's investment in MapKure was $9,273 and $9,509, respectively.
Guangzhou GET Phase I Biomedical Industry Investment Fund Partnership (Limited Partnership)
On July 23, 2020, BeiGene (Guangzhou) invested $11,782 (RMB80,000) in an existing investment fund, Guangzhou GET Phase I Biomedical Industry Investment Fund Partnership (Limited Partnership) (“GET Bio-fund”). The stated purpose of GET Bio-fund is to promote and upgrade the local industrial transformation in Guangzhou and it is committed to invest at least 60% of the total fund in the biotechnology, medical device, and medical information industries.
GET Bio-fund has four limited partners and one general partner, Guangzhou GET Biomedical Industry Investment Fund Management Co., Ltd. (“GET Bio-fund Management”). GET Bio-fund has an agreed duration for seven years, with the first five years as the investment period and the following two years as the projected payback period. The agreed upon duration may be extended for two additional years with the approval of all of the partners. BeiGene Guangzhou, as a limited partner, holds an ownership interest in the fund of 26.3%. The investment committee for the fund has seven members, and requires resolutions to be approved by at least five of the seven members. BeiGene Guangzhou holds one position on the investment committee and GET Bio-fund Management holds three positions. The Company determined that it has the ability to exercise significant influence over the fund due to the Company's ownership interest and involvement on the investment committee, and the investment represents an equity method investment. The Company recognized losses of $134 for its portion of the fund's net loss for the three months ended March 31, 2021. As of March 31, 2021 and December 31, 2020, the carrying amount of the Company's investment in the fund was $12,005 and $12,189, respectively. In addition to the GET Bio-fund Management investment, the Company also plans to enter into a cooperative investment agreement with GET to form a joint venture for the construction of a new research center in Guangzhou.
Other Equity-Method Investments
In addition to the equity-method investments mentioned above, the Company made additional equity-method investments during the year ended December 31, 2020 and the three months ended March 31, 2021 that it does not consider to be individually significant to its financial statements. The Company recognized the equity-method investments at cost and
17

Table of Contents

subsequently adjusted the basis based on the Company's share of the results of operations. The Company records its share of the investees' results of operations within other (expense) income, net.
5. Inventories
The Company’s inventory balance consisted of the following:
 As of
 March 31,December 31, 
 20212020
 $$
Raw materials26,894 19,330 
Work in process9,504 1,378 
Finished goods36,576 68,585 
Total inventories72,974 89,293 
6. Property, plant and equipment
Property, plant and equipment are recorded at cost and consisted of the following:
 As of
 March 31,December 31, 
 20212020
 $$
Laboratory equipment88,136 78,640 
Leasehold improvements38,357 37,643 
Building131,789 111,527 
Manufacturing equipment105,775 96,669 
Software, electronics and office equipment22,947 20,782 
Property, plant and equipment, at cost387,004 345,261 
Less accumulated depreciation(83,829)(73,354)
Construction in progress70,774 85,779 
Property, plant and equipment, net373,949 357,686 
 As of March 31, 2021 and December 31, 2020, construction in progress ("CIP") of $70,774 and $85,779, respectively, was primarily related to the buildout of additional capacity at the Guangzhou manufacturing facility and expansion of BeiGene (Guangzhou) Co., Ltd.'s ("BGC") research and development activities in Guangzhou, China. Subsequent phases of the Guangzhou factory buildout and BGC research and development expansion will continue to be recorded as CIP until they are placed into service.
Depreciation expense for the three months ended March 31, 2021 and 2020 was $9,444 and $7,467, respectively.
7. Guangzhou Biologics Business
In March 2017, BeiGene HK, a wholly owned subsidiary of the Company, and Guangzhou GET Technology Development Co., Ltd. (now Guangzhou High-tech Zone Technology Holding Group Co., Ltd.) ("GET"), entered into a definitive agreement to establish a commercial scale biologics manufacturing facility in Guangzhou, Guangdong Province, PRC. BeiGene HK and GET entered into an Equity Joint Venture Contract (the “JV Agreement”).
Under the terms of the JV Agreement, BeiGene HK made an initial cash capital contribution of RMB200,000 and a subsequent contribution of one or more biologics assets in exchange for a 95% equity interest in BeiGene Biologics. GET made a cash capital contribution of RMB100,000 to BeiGene Biologics, representing a 5% equity interest in BeiGene Biologics. In addition, on March 7, 2017, BeiGene Biologics entered into a contract with GET, under which GET agreed to provide a RMB900,000 loan (the “Shareholder Loan”) to BeiGene Biologics. In September 2019, BeiGene Biologics completed the first phase of construction of a biologics manufacturing facility in Guangzhou, through a wholly-owned subsidiary, BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory"), to manufacture biologics for the Company and its subsidiaries.
18

Table of Contents

In September 2020, BeiGene HK entered into a share purchase agreement (“JV Share Purchase Agreement”) with GET to acquire GET’s 5% equity interest in BeiGene Biologics for a total purchase price of $28,723 (RMB195,262). The transaction was finalized in November 2020 upon completion of the business registration filing. The share purchase was recorded as an equity transaction. The carrying amount of the noncontrolling interest balance of $9,116 was adjusted to nil to reflect the increase in BeiGene HK’s ownership interest to 100%, and the difference in the fair value of the consideration paid and the carrying amount of the noncontrolling interest of $19,599 was recorded to additional paid in capital. In conjunction with the JV Share Purchase Agreement, BeiGene Biologics repaid the outstanding principal of the shareholder loan of $132,061 (RMB900,000) and accrued interest of $36,558 (RMB249,140).
In connection with the JV share purchase, the Company entered into a loan agreement with China Minsheng Bank for a total loan facility of up to $200,000 ("Senior Loan"), of which $120,000 will be used to fund the JV share repurchase and repayment of the shareholder loan and $80,000 can be used for general working capital purposes. The Company may extend the original maturity date for up to two additional twelve month periods. In October 2020, the Company drew down $80,000 of the working capital facility and $118,320 of the acquisition facility to be used for the JV share repurchase. In addition, the Company entered into a loan agreement with Zhuhai Hillhouse Zhaohui Equity Investment Partnership ("Zhuhai Hillhouse") for a total loan facility of $73,640 (RMB500,000) ("Related Party Loan"), of which $14,728 (RMB100,000) can be used for general corporate purposes and $58,912 (RMB400,000) can only be applied towards the repayment of the Senior Loan facility, including principal, interest and fees. The Company has drawn down $14,728 (RMB100,000) of the Related Party Loan as of March 31, 2021. See Note 11 for further discussion of the loans.
8. Intangible Assets
Intangible assets as of March 31, 2021 and December 31, 2020 are summarized as follows:
 As of
 March 31, 2021December 31, 2020
 Gross  Gross  
 carryingAccumulatedIntangiblecarryingAccumulatedIntangible
 amountamortizationassets, netamountamortizationassets, net
 $$$$$$
Finite-lived intangible assets:      
Product distribution rights7,500 (2,687)4,813 7,500 (2,500)5,000 
Trading license816 (816) 816 (816) 
Total finite-lived intangible assets8,316 (3,503)4,813 8,316 (3,316)5,000 
 Product distribution rights consist of distribution rights on the approved cancer therapies licensed from BMS, REVLIMID®, VIDAZA®, and ABRAXANE®, acquired as part of the transaction with BMS (then Celgene) in 2017. The Company is amortizing the product distribution rights over a period of 10 years which is the term of the agreement. The trading license represents the Guangzhou drug distribution license acquired on September 21, 2018. The Company amortized the drug distribution trading license over the remainder of the initial license term through February 2020. The trading license has been renewed through February 2024.
Amortization expense of intangible assets for the three months ended March 31, 2021 and 2020 was $188 and $283, respectively.
As of March 31, 2021, expected amortization expense for the unamortized finite-lived intangible assets is approximately $563 for the remainder of 2021, $750 in 2022, $750 in 2023, $750 in 2024, and $2,000 in 2025 and thereafter.
9. Income Taxes
Income tax benefit was $4,630 for the three months ended March 31, 2021, compared to expense of $1,554 for the three months ended March 31, 2020. The income tax benefit for the three months ended March 31, 2021 was primarily attributable to the deferred tax benefit of U.S. stock-based compensation deductions in excess of tax expense on income reported in certain China subsidiaries as adjusted for certain non-deductible expenses. The income tax expense for the three months ended March 31, 2020 was primarily attributable to tax expense on income reported in certain China subsidiaries as adjusted for certain non-deductible expenses offset by the tax benefit of deferred U.S. stock-based compensation deductions.
19

Table of Contents

On a quarterly basis, the Company evaluates the realizability of deferred tax assets by jurisdiction and assesses the need for a valuation allowance. In assessing the realizability of deferred tax assets, the Company considers historical profitability, evaluation of scheduled reversals of deferred tax liabilities, projected future taxable income and tax-planning strategies. Valuation allowances have been provided on deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. After consideration of all positive and negative evidence, the Company believes that as of March 31, 2021, it is more likely than not that deferred tax assets will not be realized for the Company’s subsidiaries in Australia and Switzerland, for certain subsidiaries in China, and for all U.S. tax credit carryforwards.
As of March 31, 2021, the Company had gross unrecognized tax benefits of $7,727. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months. The Company’s reserve for uncertain tax positions increased by $604 in the three months ended March 31, 2021 primarily due to U.S. federal and state tax credits and incentives.
The Company has elected to record interest and penalties related to income taxes as a component of income tax expense. As of March 31, 2021 and December 31, 2020, the Company's accrued interest and penalties, where applicable, related to uncertain tax positions were not material.
The Company conducts business in a number of tax jurisdictions and, as such, is required to file income tax returns in multiple jurisdictions globally. As of March 31, 2021, Australia tax matters are open to examination for the years 2013 through 2021, China tax matters are open to examination for the years 2014 through 2021, Switzerland tax matters are open to examination for the years 2017 through 2021, and U.S. federal tax matters are open to examination for years 2015 through 2021. Various U.S. states and other non-US tax jurisdictions in which the Company files tax returns remain open to examination for 2010 through 2021.
10. Supplemental Balance Sheet Information
The roll-forward of the allowance for credit losses related to trade accounts receivable for the three months ended March 31, 2021 and 2020 consists of the following activity:
Three Months Ended
March 31,
20212020
$$
Balance at beginning of the period112  
Current period provision for expected credit losses 48 2,022 
Amounts written-off  
Exchange rate changes1  
Balance at end of the period161 2,022 


20

Table of Contents

Prepaid expenses and other current assets consist of the following:
 As of
 March 31,December 31, 
 20212020
 $$
Prepaid research and development costs69,382 71,341 
Prepaid taxes30,299 30,392 
Payroll tax receivable6,120 3,580 
Non-trade receivable2,974 4,464