BeiGene (ONC) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	BeiGene, Ltd.
Entity Central Index Key	1,651,308
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		427,443,931
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 208,506	$ 17,869
Short-term investments	38,720	82,617
Prepaid expenses and other current assets	4,556	5,783
Total current assets	251,782	106,269
Property and equipment, net	7,702	6,612
Other non-current assets	5,744	3,883
Total non-current assets	13,446	10,495
Total assets	265,228	116,764
Current liabilities:
Accounts payable	3,823	8,980
Advances from customers	393	1,070
Accrued expenses and other payables	11,577	8,351
Senior Promissory Note		14,598
Warrant and option liabilities	0	2,173
Taxes payable	33
Total current liabilities	15,826	35,172
Non-current liabilities:
Long-term bank loan	6,214	6,188
Deferred rental		980
Other long-term liabilities	89	105
Total non-current liabilities	6,303	7,273
Total liabilities	$ 22,129	$ 42,445
Commitments and contingencies
Convertible preferred shares / Total mezzanine equity - Series A (par value US $0.0001 per share; 120,000,000 shares authorized; 116,785,517 shares issued and outstanding as of March 31, 2016 December 31, 2015: 116,785,517 shares) and Series A-2 (par value US $0.0001 per share; 100,000,000 shares authorized; 83,205,124 shares issued and outstanding as of March 31, 2016 December 31, 2015: 83,205,124))		$ 176,084
Shareholders' deficit:
Ordinary shares (par value of US$0.0001 per share; 9,500,000,000 shares authorized; 427,443,931 shares issued and outstanding as of March 31, 2016 (December 31, 2015: 116,174,094 shares))	$ 43	12
Additional paid-in capital	384,502	18,227
Accumulated other comprehensive income (loss)	(1,251)	(1,809)
Accumulated deficit	(140,195)	(118,195)
Total shareholders' (deficit) equity	243,099	(101,765)
Total liabilities, mezzanine equity and shareholders' (deficit) equity	$ 265,228	$ 116,764

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Ordinary shares
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	9,500,000,000	9,500,000,000
Ordinary shares, shares issued	427,443,931	116,174,094
Ordinary shares, shares outstanding	427,443,931	116,174,094
Series A Preferred Shares
Convertible preferred shares
Convertible preferred shares, par value (in dollars per share)		$ 0.0001
Convertible preferred shares, shares authorized		120,000,000
Convertible preferred shares, shares issued		116,785,517
Convertible preferred shares, shares outstanding		116,785,517
Series A-2 Preferred Shares
Convertible preferred shares
Convertible preferred shares, par value (in dollars per share)		$ 0.0001
Convertible preferred shares, shares authorized		100,000,000
Convertible preferred shares, shares issued		83,205,124
Convertible preferred shares, shares outstanding		83,205,124

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue
Collaboration revenue	$ 677	$ 1,379
Total revenue	677	1,379
Operating expenses:
Research and development	(17,877)	(10,059)
General and administrative	(3,134)	(1,132)
Total operating expenses	(21,011)	(11,191)
Loss from operations	(20,334)	(9,812)
Interest income	494	117
Interest expense	(204)	(267)
Changes in fair value of financial instruments	(1,514)	(188)
Disposal loss on available-for-sale securities	(712)	(13)
Other income	315
Other expense	(2)	(49)
Loss before income tax expense	(21,957)	(10,212)
Income tax expense	(44)	0
Net loss	$ (22,001)	$ (10,212)
Loss per share
Basic and diluted (in dollars per share)	$ (0.07)	$ (0.09)
Weighted-average number of ordinary shares used in net loss per share calculation
Basic and diluted (in dollars per share)	294,042,572	108,497,428
Loss per ADS
Basic and diluted (in dollars per share)	$ (0.97)	$ (1.22)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (22,001)	$ (10,212)
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments	97	(50)
Unrealized holding (loss) gain, net	461	(55)
Comprehensive loss	$ (21,443)	$ (10,317)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other comprehensive (loss) income, tax
Foreign currency translation adjustments, tax	$ 0	$ 0
Unrealized holding (loss) gain, tax	0	0
Comprehensive loss, tax	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (22,001)	$ (10,212)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation expenses	439	352
Share-based compensation expenses	2,614	2,314
Changes in fair value of financial instruments	1,514	188
Disposal loss on available-for-sale securities	712	13
Interest expense	93	261
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(406)	1,675
Other non-current assets	(47)	2,857
Accounts payable	(5,322)	(628)
Advances from customers	(677)	(1,380)
Accrued expenses and other payables	3,222	862
Tax payable	33
Deferred rental		12
Other long-term liabilities	(15)	(25)
Net cash used in operating activities	(19,841)	(3,711)
Investing activities
Purchases of property and equipment	(3,303)	(3,232)
Purchase of available-for-sale securities		(3,996)
Proceeds from disposal of available-for-sale securities	43,646	10,459
Net cash provided by investing activities	40,343	3,231
Financing activities
Proceeds from issuance of ordinary shares, net of initial public offering costs	167,931
Proceeds from exercise of warrants	2,118
Net cash provided by financing activities	170,049
Effect of foreign exchange rate changes, net	86	(51)
Net increase in cash and cash equivalents	190,637	(531)
Cash and cash equivalents at beginning of period	17,869	13,898
Cash and cash equivalents at end of period	208,506	13,367
Supplemental cash flow disclosures:
Income taxes paid	25
Interest expense paid	108	6
Non-cash activities:
Conversion of Senior Promissory Note	14,693
Conversion of deferred rental	980
Conversion of convertible preferred shares	176,084
Conversion of warrant and option liabilities	3,687
Initial public offering costs accrued for in accrued expenses and other payables	166
Acquisitions of equipment included in accounts payable	$ 91	$ 150

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization
Organization	1. Organization BeiGene, Ltd. (the “Company”) is a globally focused, clinical-stage biopharmaceutical company with the goal of becoming a leader in the discovery and development of innovative, molecularly targeted and immuno-oncology drugs for the treatment of cancer. The Company’s development strategy is based on a novel translational platform that combines its unique access to internal patient-derived biopsies with strong oncology biology. The Company was incorporated under the laws of the Cayman Islands as an exempted company with limited liability on October 28, 2010. On February 8, 2016, the Company completed its initial public offering (“ IPO ”) on the NASDAQ Global Select Market. 6,600,000 ADS s representing 85,800,000 ordinary shares were sold at $24.00 per ADS, or $1.85 per share (the “IPO Price”). Additionally, the underwriters exercised their options to purchase an additional 12,870,000 ordinary shares in the form of 990,000 ADSs. Net proceeds from the IPO including underwriter options after deducting underwriting discount and offering expenses were $ 166,197 . The deferred IPO costs were recorded as a reduction of the proceeds received from the IPO in the shareholders’ equity. As at March 31, 2016, the Company’s wholly-owned subsidiaries are as follows: Name of Company Place of Incorporation Date of Incorporation Percentage of Ownership by the Company Principal Activities BeiGene (Hong Kong) Co., Limited. Hong Kong November 22, 2010 % Investment holding BeiGene (Beijing) Co., Ltd. (“BeiGene Beijing”) The People’s Republic of China (“PRC” or “China”) January 24, 2011 %* Medical and pharmaceutical research BeiGene AUS Pty Ltd. Australia July 15, 2013 % Clinical trial activities BeiGene 101 Ltd. Cayman Islands August 30, 2012 % Medical and pharmaceutical research BeiGene (Suzhou) Co., Ltd. (“BeiGene (Suzhou)”) PRC April 9, 2015 % Medical and pharmaceutical research BeiGene USA, Inc. United States July 8, 2015 % Clinical trial activities BeiGene (Shanghai) Co., Ltd. (“BeiGene (Shanghai)”) PRC September 11, 2015 % Medical and pharmaceutical research *BeiGene Beijing became a wholly-owned subsidiary of the Company as of December 19, 2014.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2016
Summary of significant accounting policies
Summary of significant accounting policies	2. Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying condensed consolidated balance sheet as of March 31, 2016, and the condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2015 and 2016, and the related footnote disclosures are unaudited. The accompanying unaudited interim 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 condensed consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The unaudited 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, 2016 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period. The condensed consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances between the Company and its wholly-owned subsidiaries are eliminated upon consolidation. Use of estimates The preparation of the condensed 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, identifying separate accounting units and estimating the best estimate selling price of each deliverable in the Company’s revenue arrangements, assessing the impairment of long-lived assets, share-based compensation expenses, realizability of deferred tax assets and the fair value of the financial instruments. Management bases the estimates on historical experience 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. Fair value measurements Fair value of financial instruments Financial instruments of the Company primarily include cash and cash equivalents, short-term investments, short-term bank loan, long-term bank loan, accounts payable, S enior P romissory N ote, convertible preferred shares, and warrant and option liabilities. As of December 31, 2015 and March 31, 2016, the carrying values of cash and cash equivalents, short-term bank loan and accounts payable approximated their fair values due to the short-term maturity of these instruments. The short-term investments represented the available-for-sale debt securities which are recorded at fair value based on quoted prices in active markets with unrealized gain or loss recorded in other comprehensive income/loss. The long-term bank loan approximates its fair value due to the fact that the related interest rate approximates the rate currently offered by financial institutions for similar debt instrument s of comparable maturities. The warrant and option liabilities were recorded at fair value as determined on the respective issuance dates and subsequently adjusted to the fair value at each reporting date. The S enior P romissory N ote and convertible preferred shares were initially recorded at issue price net of issuance costs. Prior to the exercise dates, the Company determined the fair values of the warrant and option liabilities with the assistance of an independent third party valuation firm. On the exercise dates, the Company determined the fair values of the warrant and option liabilities using the intrinsic value, which equals to the difference between the share price at the IPO closing date and the exercise price, as the exercise dates were immediately prior to or very close to the IPO closing date. The Company applies ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments measured at fair value on a recurring basis The following tables set forth assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and March 31, 2016: As of December 31, 2015 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — U.S. treasury securities — — Municipal Bonds — — Option to purchase shares by rental deferral (note 7) — — Warrants in connection with the convertible promissory notes (note 7) — — As of March 31, 2016 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — Municipal Bonds — — The Company has measured the option to purchase shares by rental deferral and the warrants in connection with the convertible promissory notes at fair values on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2015. The option and warrants have been exercised as of March 31, 2016. The Company determined the exercise date fair value of the warrants and option using significant other observable inputs (Level 2). The following table presents a reconciliation of the option and warrant liabilities for the three months ended March 31, 2016. Warrant and Option Liabilities $ Balance as of December 31, 2015 Recognized — Unrealized loss Settlement ) Balance as of March 31, 2016 — The amount of total unrealized loss for the three months ended March 31, 2016 included in losses ) Realized and unrealized gain or loss for the three months ended March 31, 2015 and 2016 was recorded as “Changes in fair value of financial instruments” in the condensed consolidated statements of operations . Recent accounting pronouncements In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers-Deferral of the effective date (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued in May 2014. According to the amendments in ASU 2015-14, the new revenue guidance ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the method of adoption to be utilized and it cannot currently estimate the financial statement impact of adoption. In February, 2016, the FASB issued ASU No. 2016-02, Leases , which requires lessees to recognize assets and liabilities related to lease arrangements longer than 12 months on the balance sheet. This standard also requires additional disclosures by lessees and contains targeted changes to accounting by lessors. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The Company is currently evaluating the impact on its condensed consolidated financial statements of adopting this guidance.

Short-term investments

Short-term investments	3 Months Ended
	Mar. 31, 2016
Short-term investments
Short-term investments	3. Short-term investments Short-term investments as of December 31, 2015 consist ed of the following available-for-sale exchange-traded debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) $ $ $ $ Corporate fixed income bonds — U.S. treasury securities — Municipal Bonds — Total Short-term investments as of March 31, 2016 consist ed of the following available-for-sale exchange-traded debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) $ $ $ $ Corporate fixed income bonds — Municipal Bonds — Total — During the three months ended March 31, 2015 and 2016, the Company recognized unrealized holding loss on available-for-sale securities in other comprehensive loss total ing $ 55 and unrealized holding gain on available-for-sale securities in other comprehensive income totaling $ 461 , respectively. Contractual maturities of all debt securities as of March 31, 2016 were within one year. The Company does not intend to sell the investment in corporate fixed income bonds and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity. Therefore, the Company does not consider the investment in corporate fixed income bonds to be other-than-temporarily impaired at March 31, 2016.

Property and equipment

Property and equipment	3 Months Ended
	Mar. 31, 2016
Property and equipment
Property and equipment	4. Property and equipment Property and equipment consist ed of the following as of December 31, 2015 and March 31, 2016: As of December 31 2015 March 31, 2016 $ $ Office equipment Electronic equipment Laboratory equipment Computer software Leasehold improvements Property and equipment, at cost Less accumulated depreciation and amortization ) ) Construction in progress — Property and equipment, net Depreciation expenses for the three months ended March 31, 2015 and 2016 were $ 352 and $ 439 , respectively.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2016
Income taxes
Income taxes	5. Income taxes Income tax expense was $44 for the three months ended March 31, 2016 compared with nil for the three months ended March 31, 2015. Current year income tax expense was attributable to BeiGene USA, Inc., a wholly owned subsidiary, which was established in July 2015 and provided general management services and strategic advisory services to the Company. The Company and its other subsidiaries were in a cumulative loss position for the three months ended March 31, 2015 and 2016. The Company recorded a full valuation allowance against deferred tax assets for all periods presented. No unrecognized tax benefits and related interest and penalties were recorded in any of the periods presented.

Accrued expenses and other paya

Accrued expenses and other payables	3 Months Ended
	Mar. 31, 2016
Accrued expenses and other payables
Accrued expenses and other payables	6. Accrued expenses and other payables As of December 31, 2015 March 31, 2016 $ $ Payroll payables Accrued operating expenses Other payables Total accrued expenses and other payables

Warrant and option liabilities

Warrant and option liabilities	3 Months Ended
	Mar. 31, 2016
Warrant and option liabilities
Warrant and option liabilities	7 . Warrant and option liabilities As of December 31, 2015 March 31, 2016 $ $ Option to purchase shares by rental deferral — Warrants in connection with the promissory notes — Total — Option to purchase shares by rental deferral On September 1, 2012, in conjunction with a lease agreement of one of its premises, the Company granted the landlord an option to purchase the Company’s ordinary shares (the “Option”) in exchange for the deferral of the payment of one year’s rental expense. The Option is a freestanding instrument and is recorded as liability in accordance with ASC480, Distinguishing Liabilities from Equity . The Option was initially recognized at fair value with subsequent changes in fair value recorded in losses. Prior to the Company’s IPO, the Company determined the fair value of the Option with the assistance of an independent third party valuation firm. On February 8, 2016, immediately prior to the Company’s IPO, the landlord exercised the Option to purchase 1,451,586 ordinary shares of the Company. As the exercise date was the IPO closing date, the exercise date fair value of $ 1.750 was determined based on the intrinsic value, which equals to the difference between the share price at the IPO closing date and the exercise price . During the three months ended March 31, 2015 and 2016, the Company recognized a loss from the increase in fair value of $ 106 and $ 1,151 , respectively. Warrants in connection with the promissory notes During the years ended December 31, 2012 and 2014, the Company entered into agreements with several investors to issue convertible promissory notes, and related warrants to purchase the Company’s preference shares up to 10% of the convertible promissory notes’ principal amount concurrently for an aggregate principal amount of $2,410. The warrants were freestanding instruments and were recorded as liabilities in accordance with ASC480. The warrants were initially recognized at fair value with subsequent changes in fair value recorded in losses. In January and February , 2016, the warrants issued in connection with the promissory notes were exercised for 621,637 Preferred Shares, which shares were converted into 621,637 ordinary shares . As the exercise dates were very close to the IPO closing date, the respective exercise date fair value of $ 1.750 per share w as determined based on the intrinsic value, which equals to the difference between the share price at the IPO closing date and the exercise price. For the three months ended March 31, 2015 and 2016, the Company recognized loss from the increase in fair value of $ 82 and $363 , respectively.

Long-term bank loan

Long-term bank loan	3 Months Ended
	Mar. 31, 2016
Line of Credit | Long-term Bank Loan, September 2, 2015
Long-term bank loan
Long-term bank loan	8 . Long-term bank loan On September 2, 2015, BeiGene Suzhou entered into a loan agreement with Suzhou Industrial Park and China Construction Bank, to borrow $18,885 at a 7% fixed annual interest rate. Fifty percent of the loan will be repaid on September 30, 2018, and the remaining balance will be repaid on September 30, 2019. As of March 31, 2016, the Company has drawn down $6, 203 which is secured by BeiGene Suzhou’s future equipment purchases and the Company’s rights to a PRC patent on a drug candidate. Interest expense recognized for the three months ended March 31, 2016 amounted to $ 108 .

Senior Promissory Note

Senior Promissory Note	3 Months Ended
	Mar. 31, 2016
Senior Notes | Senior Promissory Note, February 2, 2011
Senior Promissory Note
Senior Promissory Note	9 . Senior P romissory N ote On January 26, 2016, the Company entered into a note amendment and exchange agreement with Merck Sharp & Dohme Research GmbH (“MSD”), pursuant to which, the maturity date of the Senior Promissory Note was extended to May 2, 2016 from February 2, 2016. In addition, if the IPO occurs on or prior to May 2, 2016, subject to certain limitations, the outstanding unpaid principal and interest of the Senior Promissory Note as of the effectiveness date of the Company’s IPO (the “Exchanged Balance”), w ould be automatically exchanged, effective immediately prior to the closing of the IPO, into up to a number of the Company’s ordinary shares equal to the quotient of (1) the Exchanged Balance divided by (2) the per ordinary share public offering price in the IPO. The amendments and subsequent extinguishment of the Senior Promissory Note did not result in any gain or loss since the conversion rate wa s set at the IPO Price. On February 8, 2016, the outstanding unpaid principal and interest of the Senior Promissory Note were exchanged into 7,942,314 ordinary shares, computed at the IPO Price of $1.85 per ordinary share.

Convertible preferred shares

Convertible preferred shares	3 Months Ended
	Mar. 31, 2016
Convertible preferred shares
Convertible preferred shares	1 0 . Convertible preferred shares In October 2014, the Company issued 52,592,590 Series A convertible preferred shares (the “Series A Preferred Shares”) with a par value of $0.0001 per share for cash consideration of $35,500 or $0.68 per share. At the same time, the previously issued subordinated convertible promissory note, convertible promissory notes, secured guaranteed convertible promissory notes, advances and convertible promissory notes due to a related party were automatically converted into 64,192,927 Series A Preferred Shares in aggregate. On April 21, 2015, the Company issued 83,205,124 Series A-2 convertible preferred shares (the “Series A-2 Preferred Shares”) with a par value of $0.0001 per share for cash consideration of $97,350 or $1.17 per share. The Series A Preferred Shares and the Series A-2 Preferred Shares are collectively referred to as the “Preferred Shares.” The significant terms of the Preferred Shares are summarized below. Dividends The holders of the Preferred Shares shall be entitled to receive dividends accruing at the rate of 8% per annum. In addition, holders of the Preferred Shares shall also be entitled to dividends on the Company’s ordinary shares on an as if converted basis. Voting rights Each holder of Preferred Shares shall have the right to vote the number of votes per ordinary share into which their Preferred Shares could be converted, and shall vote along with the ordinary shares, on all matters in respect to which the holders of ordinary shares are entitled to vote. Liquidation preference In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or any deemed liquidation event as defined in the Preferred Shares agreements (“Liquidation Transaction”), the holders of Preferred Shares then outstanding are entitled to be paid out of the assets of the Company available for distribution to its members before any payment shall be made to the holders of any other class of s hares by reason of their ownership thereof, an amount per share equal to the greater of (i) the original issue price, plus accrued but unpaid dividends; or (ii) such amount per share as would have been payable had all Preferred Shares been converted into ordinary shares immediately prior to such liquidation, dissolution, winding up or deemed liquidation event. Conversion rights (i) Optional conversion: Each Preferred Share shall be convertible into the Company’s ordinary shares at the option of the holder at any time after the issuance date by dividing the original issue price by the conversion price, which is initially equal to the original issue price. Upon conversion of the Preferred Shares, all unpaid, cumulative dividends on the Preferred Shares shall no longer be payable. (ii) Automatic conversion: All outstanding Preferred Shares shall automatically be converted into ordinary shares at the then effective Preferred Shares conversion price upon (i) the closing of a Qualified IPO; or (ii) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 80.63% of the then outstanding Preferred Shares. Upon conversion of the Preferred Shares, all unpaid cumulative dividends on the Preferred Shares shall no longer be payable. Drag-along right In the event that each of (i) (A) e ntities affiliated with Baker Bros. Advisors LP (collectively, “Baker Bros.”) or (B) Hillhouse BGN Holdings Limited (“Hillhouse”) and CB Biotech Investment Limited (“CITIC PE”) jointly; (ii) a majority of the Board of Directors; and (iii) the holders of more than 66.66% of the then-outstanding ordinary shares (other than those issued or issuable upon conversion of the Preferred Shares and any other derivative securities) approve a sale of the Company in writing, then each preferred shareholder agrees to certain joint actions to be taken to ensure such sale of the Company could be completed. Accounting for p referred s hares The Preferred Shares are classified as mezzanine equity as these convertible preferred shares are redeemable upon the occurrence of a conditional event (i.e. a Liquidation Transaction). The holders of the Preferred Shares have a liquidation preference and will not receive the same form of consideration upon the occurrence of the conditional event as the holders of the ordinary shares would. The initial carrying amount of the Series A Preferred Shares of $78,809 is the issue price at the date of issuance of $78,889 net of issuance costs of $80. The initial carrying amount of the Series A-2 Preferred Shares of $97,275 is the issue price at the date of issuance of $97,350 net of issuance costs of $75.The holders of the Preferred Shares have the ability to convert the instrument into the Company’s ordinary shares. The conversion option of the convertible preferred shares do not qualify for bifurcation accounting because the conversion option is clearly and closely related to the host instrument and the underlying ordinary shares are not publicly traded nor readily convertible into cash. The contingent redemption options of the convertible preferred shares do not qualify for bifurcation accounting because the underlying ordinary shares are neither publicly traded nor readily convertible into cash. There are no other embedded derivatives that are required to be bifurcated. Beneficial conversion features exist when the conversion price of the convertible preferred shares is lower than the fair value of the ordinary shares at the commitment date, which is the issuance date in the Company’s case. When a beneficial conversion feature exists as of the commitment date, its intrinsic value is bifurcated from the carrying value of the convertible preferred shares as a contribution to additional paid-in capital. On the commitment date of Series A Preferred Shares and Series A-2 Preferred Shares, the most favorable conversion price used to measure the beneficial conversion feature were $0.68 and $1.17, respectively. No beneficial conversion feature was recognized for the Series A Preferred Shares and Series A-2 Preferred Shares as the fair value per ordinary share at the commitment date were $0.28 and $0.47, respectively, which was less than the most favorable conversion price. The Company determined the fair value of ordinary shares with the assistance of an independent third party valuation firm. The Company concluded that the Preferred Shares were not redeemable, and it was not probable that the Preferred Shares w ould become redeemable because the likelihood of a Liquidation Transaction was remote. Therefore, no adjustment has been made to the initial carrying amount of the Preferred Shares. On February 8, 2016, in connection with the completion of the IPO, all outstanding Preferred Shares were converted into 199,990,641 ordinary shares.

Related party balances and tran

Related party balances and transactions	3 Months Ended
	Mar. 31, 2016
Related party balances and transactions
Related party balances and transactions	1 1 . Related party balances and transactions During the three months ended March 31, 2015 and 2016, a shareholder , and for the three months ended March 31, 2016 a director, provided consulting services to the Company at a fee of $ 25 and $ 25 , respectively.

Research and development collab

Research and development collaborative arrangements	3 Months Ended
	Mar. 31, 2016
Research and development collaborative arrangements
Research and development collaborative arrangements	1 2 . Research and development collaborative arrangements The Company did not enter into any new collaborative arrangements during the three months ended March 3 1 , 2015 and 201 6 . License revenue was nil and nil, while research and development revenue was $ 1,379 and $677 of the collaboration revenue under historical collaborative arrangements, for the three months ended March 31, 2015 and 2016 , respectively . The Company recorded advances from customers related to the collaboration of approximately $1,070 and $ 393 at December 31, 2015 and March 31, 2016, respectively.

Loss per share

Loss per share	3 Months Ended
	Mar. 31, 2016
Loss per share
Loss per share	1 3 . Loss per share Loss per share was calculated as follows: Three Months Ended March 31, 2015 2016 $ $ Numerator: Net loss attributable to ordinary shareholders for computing basic and diluted loss per ordinary share ) ) Denominator: Weighted average number of ordinary shares outstanding for computing basic and diluted loss per ordinary share Basic and diluted loss per share ) ) For the three months ended March 31, 2015 and 2016, the computation of basic loss per share using the two-class method was not applicable as the Company was in a net loss position. The effects of all convertible preferred shares, share options, restricted shares , warrants and option to purchase ordinary or preferred shares were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive during the three months ended March 31, 2015 and 2016.

Share-based compensation

Share-based compensation	3 Months Ended
	Mar. 31, 2016
Share-based compensation
Share-based compensation	1 4 . Share-based compensation 2016 s hare option and i ncentive p lan On January 14, 2016, in connection with the IPO, the board of directors and shareholders of the Company approved a new equity compensation plan, the 2016 Share Option and Incentive Plan, or 2016 Plan, which became effective on February 2, 2016. The Company initially reserved 65,029,595 ordinary shares for the issuance of awards under the 2016 Plan plus any shares available under the 2011 Plan and not subject to any outstanding options as of the effective date of the 2016 Plan. The 2016 Plan provides that the number of ordinary shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2017, by 5% of the outstanding number of ordinary shares on the immediately preceding December 31 or such lesser number of ordinary shares as determined by the board of directors or the compensation committee. This number is subject to adjustment in the event of a share split, share dividend or other change in the Company’s capitalization. In addition, shares not needed to fulfill any obligations under the 2011 Plan will also be available for issuance under the 2016 Plan. In January 2016, the Company granted 2,417,152 options with an exercise price of $1.85 per ordinary share, under the 2011 Plan. On February 8, 2016, the Company granted 460,626 options with an exercise price of $2.43 per ordinary share, under the 2016 Plan. Generally, options have a contractual term of 10 years and vest over a three- to five- year period, with the first tranche vesting one calendar year after the grant date or the service relationship start date and the remainder of the awards vesting on a monthly basis thereafter. Modification Upon the completion of the Company’s IPO on February 8, 2016 (“Date of the Change in Employment Status”), a consultant (the “Consultant”) became a member of the Company’s board of directors and his compensation is now treated as employee compensation. The fair value of the options granted by the Company to the Consultant has been re-measured as of the Date of the Change in Employment Status and compensation charges have been accounted for prospectively over the remaining vesting period. There were no other modifications to the Company’s share option arrangements for the periods presented. The following table summarizes total share-based compensation expense recognized for the three months ended March 31, 2015 and 2016: Three Months Ended March 31, 2015 2016 $ $ Research and development General and administrative Total

Accumulated other comprehensive

Accumulated other comprehensive loss	3 Months Ended
	Mar. 31, 2016
Accumulated other comprehensive loss
Accumulated other comprehensive loss	1 5 . Accumulated other comprehensive loss The movement of accumulated other comprehensive loss was as follows: Foreign Currency Translation Adjustments Unrealized Gains (Losses) Total $ $ $ Balance as of December 31, 2015 ) ) ) Other comprehensive income before reclassifications ) ) Amounts reclassified from accumulated other comprehensive loss — Net-current period other comprehensive loss Balance as of March 31, 2016 ) ) )

Shareholders' equity

Shareholders' equity	3 Months Ended
	Mar. 31, 2016
Shareholders' equity
Shareholders' equity	1 6 . Shareholders’ equity Conversion of p referred s hares and S enior P romissory N ote Upon completion of the IPO, all outstanding Preferred Shares were converted into 199,990,641 ordinary shares and the related carrying value of $ 176,084 was reclassified from mezzanine equity to shareholders’ equity. The outstanding unpaid principal and interest of the Senior Promissory Note were converted into 7,942,314 ordinary shares, computed at the initial public offering price of $1.85 per ordinary share and the related carrying value of $ 14,693 was reclassified from current liability to shareholders’ equity. Exercise of the o ption and w arrants In January and February 2016, certain warrants in connection with the convertible promissory notes and short term notes were exercised to purchase 621,637 Preferred Shares, which shares were converted into 621,637 ordinary shares. On the IPO closing date, (i) the Company’s l andlord exercised its o ption to purchase 1,451,586 ordinary shares of the Company ; (ii) Baker Bros. exercised their warrants to purchase 2,592, 5 93 ordinary shares at an exercise price of $0.6 8 per share ; and (iii) a senior executive exercised warrants to purchase 57,777 P referred S hares at an exercise price of $0.6 8 per share, which were converted into 57,777 ordinary shares. Upon the exercise of the aforementioned o ption and w arrants, except for Baker Bros . ’ warrants , which were initially classified in equity , the related carrying value totaling $ 3,687 was reclassified from current liabilit ies to shareholders’ equity.

Restricted net assets

Restricted net assets	3 Months Ended
	Mar. 31, 2016
Restricted net assets
Restricted net assets	1 7 . Restricted net assets As a result of PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 201 5 and March 3 1 , 201 6 , amounts restricted were the net assets of the Company’s PRC subsidiaries, which amounted to $ 3,383 and $ 3,778 , respectively.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and contingencies
Commitments and contingencies	18 . Commitments and c ontingencies Operating lease commitments The Company leases office facilities under non-cancelable operating leases expiring on different dates. Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases, and the terms of the leases do not contain rent escalation, contingent rent, renewal, or purchase options. There are no restrictions placed upon the Company by entering into these leases. Total expenses under these operating leases were $ 288 and $ 316 for the three months ended March 31, 2015 and 2016, respectively. Future minimum payments under non-cancelable operating leases consist of the following as of March 31, 2016 $ Nine month ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 and thereafter Total Capital commitments The Company had capital commitments amounting to $2,284 for the acquisition of property, plant and equipment as of March 31, 2016 .

Summary of significant accoun26

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of significant accounting policies
Basis of presentation and principles of consolidation	Basis of presentation and principles of consolidation The accompanying condensed consolidated balance sheet as of March 31, 2016, and the condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2015 and 2016, and the related footnote disclosures are unaudited. The accompanying unaudited interim 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 condensed consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The unaudited 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, 2016 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period. The condensed consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances between the Company and its wholly-owned subsidiaries are eliminated upon consolidation.
Use of estimates	Use of estimates The preparation of the condensed 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, identifying separate accounting units and estimating the best estimate selling price of each deliverable in the Company’s revenue arrangements, assessing the impairment of long-lived assets, share-based compensation expenses, realizability of deferred tax assets and the fair value of the financial instruments. Management bases the estimates on historical experience 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.
Fair value measurements	Fair value measurements Fair value of financial instruments Financial instruments of the Company primarily include cash and cash equivalents, short-term investments, short-term bank loan, long-term bank loan, accounts payable, S enior P romissory N ote, convertible preferred shares, and warrant and option liabilities. As of December 31, 2015 and March 31, 2016, the carrying values of cash and cash equivalents, short-term bank loan and accounts payable approximated their fair values due to the short-term maturity of these instruments. The short-term investments represented the available-for-sale debt securities which are recorded at fair value based on quoted prices in active markets with unrealized gain or loss recorded in other comprehensive income/loss. The long-term bank loan approximates its fair value due to the fact that the related interest rate approximates the rate currently offered by financial institutions for similar debt instrument s of comparable maturities. The warrant and option liabilities were recorded at fair value as determined on the respective issuance dates and subsequently adjusted to the fair value at each reporting date. The S enior P romissory N ote and convertible preferred shares were initially recorded at issue price net of issuance costs. Prior to the exercise dates, the Company determined the fair values of the warrant and option liabilities with the assistance of an independent third party valuation firm. On the exercise dates, the Company determined the fair values of the warrant and option liabilities using the intrinsic value, which equals to the difference between the share price at the IPO closing date and the exercise price, as the exercise dates were immediately prior to or very close to the IPO closing date. The Company applies ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments measured at fair value on a recurring basis The following tables set forth assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and March 31, 2016: As of December 31, 2015 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — U.S. treasury securities — — Municipal Bonds — — Option to purchase shares by rental deferral (note 7) — — Warrants in connection with the convertible promissory notes (note 7) — — As of March 31, 2016 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — Municipal Bonds — — The Company has measured the option to purchase shares by rental deferral and the warrants in connection with the convertible promissory notes at fair values on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2015. The option and warrants have been exercised as of March 31, 2016. The Company determined the exercise date fair value of the warrants and option using significant other observable inputs (Level 2). The following table presents a reconciliation of the option and warrant liabilities for the three months ended March 31, 2016. Warrant and Option Liabilities $ Balance as of December 31, 2015 Recognized — Unrealized loss Settlement ) Balance as of March 31, 2016 — The amount of total unrealized loss for the three months ended March 31, 2016 included in losses ) Realized and unrealized gain or loss for the three months ended March 31, 2015 and 2016 was recorded as “Changes in fair value of financial instruments” in the condensed consolidated statements of operations .
Recent accounting pronouncements	Recent accounting pronouncements In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers-Deferral of the effective date (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued in May 2014. According to the amendments in ASU 2015-14, the new revenue guidance ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the method of adoption to be utilized and it cannot currently estimate the financial statement impact of adoption. In February, 2016, the FASB issued ASU No. 2016-02, Leases , which requires lessees to recognize assets and liabilities related to lease arrangements longer than 12 months on the balance sheet. This standard also requires additional disclosures by lessees and contains targeted changes to accounting by lessors. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The Company is currently evaluating the impact on its condensed consolidated financial statements of adopting this guidance.

Organization (Tables)

Organization (Tables)	3 Months Ended
	Mar. 31, 2016
Organization
Schedule of the Company's subsidiaries	As at March 31, 2016, the Company’s wholly-owned subsidiaries are as follows: Name of Company Place of Incorporation Date of Incorporation Percentage of Ownership by the Company Principal Activities BeiGene (Hong Kong) Co., Limited. Hong Kong November 22, 2010 % Investment holding BeiGene (Beijing) Co., Ltd. (“BeiGene Beijing”) The People’s Republic of China (“PRC” or “China”) January 24, 2011 %* Medical and pharmaceutical research BeiGene AUS Pty Ltd. Australia July 15, 2013 % Clinical trial activities BeiGene 101 Ltd. Cayman Islands August 30, 2012 % Medical and pharmaceutical research BeiGene (Suzhou) Co., Ltd. (“BeiGene (Suzhou)”) PRC April 9, 2015 % Medical and pharmaceutical research BeiGene USA, Inc. United States July 8, 2015 % Clinical trial activities BeiGene (Shanghai) Co., Ltd. (“BeiGene (Shanghai)”) PRC September 11, 2015 % Medical and pharmaceutical research *BeiGene Beijing became a wholly-owned subsidiary of the Company as of December 19, 2014.

Summary of significant accoun28

Summary of significant accounting policies (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of significant accounting policies
Summary of assets and liabilities measured at fair value on a recurring basis	As of December 31, 2015 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — U.S. treasury securities — — Municipal Bonds — — Option to purchase shares by rental deferral (note 7) — — Warrants in connection with the convertible promissory notes (note 7) — — As of March 31, 2016 Quoted Price in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) $ $ $ Available-for-sale securities (note 3): Corporate fixed income bonds — — Municipal Bonds — —
Schedule of reconciliation of option and warrant liabilities	Warrant and Option Liabilities $ Balance as of December 31, 2015 Recognized — Unrealized loss Settlement ) Balance as of March 31, 2016 — The amount of total unrealized loss for the three months ended March 31, 2016 included in losses )

Short-term investments (Tables)

Short-term investments (Tables)	3 Months Ended
	Mar. 31, 2016
Short-term investments
Schedule of short-term investments	Short-term investments as of December 31, 2015 consist ed of the following available-for-sale exchange-traded debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) $ $ $ $ Corporate fixed income bonds — U.S. treasury securities — Municipal Bonds — Total Short-term investments as of March 31, 2016 consist ed of the following available-for-sale exchange-traded debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Net Carrying Amount) $ $ $ $ Corporate fixed income bonds — Municipal Bonds — Total —

Property and equipment (Tables)

Property and equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property and equipment
Schedule of components of property and equipment	As of December 31 2015 March 31, 2016 $ $ Office equipment Electronic equipment Laboratory equipment Computer software Leasehold improvements Property and equipment, at cost Less accumulated depreciation and amortization ) ) Construction in progress — Property and equipment, net

Accrued expenses and other pa31

Accrued expenses and other payables (Tables)	3 Months Ended
	Mar. 31, 2016
Accrued expenses and other payables
Schedule of accrued expenses and other payables	As of December 31, 2015 March 31, 2016 $ $ Payroll payables Accrued operating expenses Other payables Total accrued expenses and other payables

Warrant and option liabilities

Warrant and option liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Warrant and option liabilities
Summary of outstanding warrant and option liabilities	As of December 31, 2015 March 31, 2016 $ $ Option to purchase shares by rental deferral — Warrants in connection with the promissory notes — Total —

Loss per share (Tables)

Loss per share (Tables)	3 Months Ended
	Mar. 31, 2016
Loss per share
Schedule of the calculation of basic and diluted net loss per ordinary share	Three Months Ended March 31, 2015 2016 $ $ Numerator: Net loss attributable to ordinary shareholders for computing basic and diluted loss per ordinary share ) ) Denominator: Weighted average number of ordinary shares outstanding for computing basic and diluted loss per ordinary share Basic and diluted loss per share ) )

Share-based compensation (Table

Share-based compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based compensation
Schedule of share-based compensation expense recognized	Three Months Ended March 31, 2015 2016 $ $ Research and development General and administrative Total

Accumulated other comprehensi35

Accumulated other comprehensive loss (Tables)	3 Months Ended
	Mar. 31, 2016
Accumulated other comprehensive loss
Schedule of accumulated other comprehensive loss	Foreign Currency Translation Adjustments Unrealized Gains (Losses) Total $ $ $ Balance as of December 31, 2015 ) ) ) Other comprehensive income before reclassifications ) ) Amounts reclassified from accumulated other comprehensive loss — Net-current period other comprehensive loss Balance as of March 31, 2016 ) ) )

Commitments and contingencies (

Commitments and contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and contingencies
Future minimum payments under non-cancelable operating leases	Future minimum payments under non-cancelable operating leases consist of the following as of March 31, 2016 $ Nine month ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 and thereafter Total

Organization - Closing of Initi

Organization - Closing of Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 08, 2016	Mar. 31, 2016
Organization
Proceeds from initial public offering		$ 167,931
IPO
Organization
Shares issued, American Depository Shares (in shares)	6,600,000
Shares issued (in shares)	85,800,000
Share price, American Depository Shares (in dollars per share)	$ 24
Share price (in dollars per share)	$ 1.85
Proceeds from initial public offering	$ 166,197
Over-Allotment Option
Organization
Shares issued, American Depository Shares (in shares)	990,000
Shares issued (in shares)	12,870,000

Organization - Wholly-owned Sub

Organization - Wholly-owned Subsidiaries (Details)	3 Months Ended
	Mar. 31, 2016
BeiGene (Hong Kong) Co., Limited
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene (Beijing) Co., Ltd. ("BeiGene Beijing")
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene AUS Pty Ltd.
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene 101 Ltd.
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene (Suzhou) Co., Ltd. ("BeiGene (Suzhou)")
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene USA, Inc.
Organization
Percentage of ownership by the Company (as a percent)	100.00%
BeiGene (Shanghai) Co., Ltd. ("BeiGene (Shanghai)")
Organization
Percentage of ownership by the Company (as a percent)	100.00%

Summary of significant accoun39

Summary of significant accounting policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets and liabilities measured at fair value on a recurring basis
Short-term investments	$ 38,720	$ 82,617
Option to purchase shares by rental deferral	0	1,388
Warrants in connection with the promissory notes	0	785
Corporate fixed income bonds
Assets and liabilities measured at fair value on a recurring basis
Short-term investments	33,386	69,255
U.S. treasury securities
Assets and liabilities measured at fair value on a recurring basis
Short-term investments		8,000
Municipal Bonds
Assets and liabilities measured at fair value on a recurring basis
Short-term investments	5,334	5,362
Recurring basis | Level 1 | Corporate fixed income bonds
Assets and liabilities measured at fair value on a recurring basis
Short-term investments	33,386	69,255
Recurring basis | Level 1 | U.S. treasury securities
Assets and liabilities measured at fair value on a recurring basis
Short-term investments		8,000
Recurring basis | Level 1 | Municipal Bonds
Assets and liabilities measured at fair value on a recurring basis
Short-term investments	$ 5,334	5,362
Recurring basis | Level 3
Assets and liabilities measured at fair value on a recurring basis
Option to purchase shares by rental deferral		1,388
Warrants in connection with the promissory notes		$ 785

Summary of significant accoun40

Summary of significant accounting policies - Reconciliation of Option and Warrant Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Reconciliation of the option and warrant liabilities
Beginning balance	$ 2,173
Recognized	0
Unrealized loss	1,514
Settlement	(3,687)
Ending balance	0
The amount of total unrealized loss included in losses	$ (1,514)

Short-term investments - Tabula

Short-term investments - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Short-term investments
Amortized Cost	$ 39,464	$ 83,823
Gross Unrealized Gains		1
Gross Unrealized Losses	744	1,207
Fair Value (Net Carrying Amount)	38,720	82,617
Corporate fixed income bonds
Short-term investments
Amortized Cost	34,023	70,383
Gross Unrealized Losses	637	1,128
Fair Value (Net Carrying Amount)	33,386	69,255
U.S. treasury securities
Short-term investments
Amortized Cost		7,999
Gross Unrealized Gains		1
Fair Value (Net Carrying Amount)		8,000
Municipal Bonds
Short-term investments
Amortized Cost	5,441	5,441
Gross Unrealized Losses	107	79
Fair Value (Net Carrying Amount)	$ 5,334	$ 5,362

Short-term investments - Additi

Short-term investments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Unrealized holding gain/loss on available-for-sale securities in the consolidated statements of operations
Unrealized holding gain/loss on available-for-sale securities in the consolidated statements of operations	$ 461	$ (55)
Contractual maturities of debt securities within one year
Contractual maturities of debt securities within one year	$ 38,720

Property and equipment - Tabula

Property and equipment - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property and equipment
Property and equipment, at cost	$ 14,061	$ 12,696
Less accumulated depreciation and amortization	(6,557)	(6,084)
Construction in progress	198
Property and equipment, net	7,702	6,612
Office Equipment
Property and equipment
Property and equipment, at cost	214	213
Electronic equipment
Property and equipment
Property and equipment, at cost	565	424
Laboratory equipment
Property and equipment
Property and equipment, at cost	7,070	5,919
Computer software
Property and equipment
Property and equipment, at cost	200	186
Leasehold improvements
Property and equipment
Property and equipment, at cost	$ 6,012	$ 5,954

Property and equipment - Deprec

Property and equipment - Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property and equipment
Depreciation expenses	$ 439	$ 352

Income taxes - Provision for In

Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income taxes
Income tax expense	$ 44	$ 0

Income taxes - Unrecognized Tax

Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income taxes
Unrecognized tax benefits	$ 0	$ 0

Accrued expenses and other pa47

Accrued expenses and other payables (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued expenses and other payables
Payroll payables	$ 435	$ 275
Accrued operating expenses	8,542	5,513
Other payables	2,600	2,563
Total accrued expenses and other payables	$ 11,577	$ 8,351

Warrant and option liabilitie48

Warrant and option liabilities - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Warrant and option liabilities
Option to purchase shares by rental deferral	$ 0	$ 1,388
Warrants in connection with the promissory notes	0	785
Total	$ 0	$ 2,173

Warrant and option liabilitie49

Warrant and option liabilities - Option to Purchase Shares by Rental Deferral (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 08, 2016	Sep. 01, 2012	Mar. 31, 2016	Mar. 31, 2015
Option to purchase shares by rental deferral
Gain (loss) from the decrease (increase) in fair value			$ (1,514)	$ (188)
Option to purchase shares by rental deferral
Option to purchase shares by rental deferral
Rental expense deferral period (in years)		1 year
Number of shares purchased upon exercise (in shares)	1,451,586
Exercise date fair value (in dollars per share)	$ 1.750
Gain (loss) from the decrease (increase) in fair value			$ (1,151)	$ (106)

Warrant and option liabilitie50

Warrant and option liabilities - Warrants in Connection with the Promissory Notes (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 08, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014
Warrants in connection with the promissory notes
Gain (loss) from the decrease (increase) in fair value		$ (1,514)	$ (188)
Warrants to purchase convertible preferred shares in connection with the promissory notes
Warrants in connection with the promissory notes
Percentage of convertible promissory notes' principal amount that my be purchased with warrants (as a percent)				10.00%
Aggregate principal amount				$ 2,410
Preferred shares issued upon warrant exercise (in shares)	621,637
Shares converted to ordinary shares (in shares)	621,637
Exercise date fair value (in dollars per share)	$ 1.750
Gain (loss) from the decrease (increase) in fair value		$ (363)	$ (82)

Long-term bank loan (Details)

Long-term bank loan (Details) - Long-term Bank Loan, September 2, 2015 - Line of Credit - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 02, 2015
Long-term bank loan
Maximum borrowing capacity				$ 18,885
Stated interest rate (as a percent)				7.00%
Repayment percentage (as a percent)		50.00%	50.00%
Amount borrowed	$ 6,203
Interest expense	$ 108

Senior Promissory Note (Details

Senior Promissory Note (Details)	Feb. 08, 2016$ / sharesshares
Senior Promissory Note, February 2, 2011 | Senior Notes
Senior Promissory Note
Ordinary shares converted from debt (in shares) | shares	7,942,314
IPO
Senior Promissory Note
Share price (in dollars per share) | $ / shares	$ 1.85

Convertible preferred shares -

Convertible preferred shares - Series A Preferred Shares (Details) - Series A Preferred Shares - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Oct. 31, 2014	Dec. 31, 2015
Convertible preferred shares
Shares issued (in shares)	52,592,590
Par value (in dollars per share)	$ 0.0001	$ 0.0001
Proceeds from issuance of convertible preferred shares	$ 35,500
Issue price (in dollars per share)	$ 0.68
Ordinary shares converted from debt (in shares)	64,192,927

Convertible preferred shares 54

Convertible preferred shares - Series A-2 Preferred Shares (Details) - Series A-2 Preferred Shares - USD ($) $ / shares in Units, $ in Thousands	Apr. 21, 2015	Dec. 31, 2015
Convertible preferred shares
Shares issued (in shares)	83,205,124
Par value (in dollars per share)	$ 0.0001	$ 0.0001
Proceeds from issuance of convertible preferred shares	$ 97,350
Issue price (in dollars per share)	$ 1.17

Convertible preferred shares 55

Convertible preferred shares - Dividends (Details)	Feb. 07, 2016
Convertible preferred shares
Dividend rate (as a percent)	8.00%

Convertible preferred shares 56

Convertible preferred shares - Conversion Rights (Details)	Feb. 07, 2016
Convertible preferred shares
Percentage of the then outstanding Preferred Shares held by holders (as a percent)	80.63%

Convertible preferred shares 57

Convertible preferred shares - Drag-along Right (Details)	Feb. 07, 2016
Convertible preferred shares
Percentage of the then-outstanding ordinary shares held by holders (as a percent)	66.66%

Convertible preferred shares 58

Convertible preferred shares - Accounting for Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 08, 2016	Apr. 21, 2015	Oct. 31, 2014
Convertible preferred shares
Shares converted to ordinary shares (in shares)	199,990,641
Series A Preferred Shares
Convertible preferred shares
Carrying value, net			$ 78,809
Carrying value			78,889
Issuance costs			$ 80
Conversion price (in dollars per share)			$ 0.68
Share price (in dollars per share)			$ 0.28
Series A-2 Preferred Shares
Convertible preferred shares
Carrying value, net		$ 97,275
Carrying value		97,350
Issuance costs		$ 75
Conversion price (in dollars per share)		$ 1.17
Share price (in dollars per share)		$ 0.47

Related party balances and tr59

Related party balances and transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related party balances and transactions
Consulting services provided by shareholders	$ 25	$ 25

Research and development coll60

Research and development collaborative arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Research and development collaborative arrangements
Advances from customers	$ 393		$ 1,070
Collaborative arrangement
Research and development collaborative arrangements
License revenue	0	$ 0
Research and development revenue	677	$ 1,379
Advances from customers	$ 393		$ 1,070

Loss per share (Details)

Loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net loss attributable to ordinary shareholders for computing basic and diluted loss per ordinary share	$ (22,001)	$ (10,212)
Denominator:
Weighted average number of ordinary shares outstanding for computing basic and diluted loss per ordinary share	294,042,572	108,497,428
Basic and diluted loss per share	$ (0.07)	$ (0.09)

Share-based compensation - 2016

Share-based compensation - 2016 Share Option and Incentive Plan (Details) - 2016 Plan - Share options - shares	Mar. 31, 2016	Jan. 14, 2016
Share-based compensation
Number of shares reserved and available for issuance (in shares)		65,029,595
Automatic annual increase in shares reserved and available for issuance as a percentage to outstanding number of shares (as a percent)	5.00%

Share-based compensation - Gene

Share-based compensation - General Information (Details) - Share options - $ / shares	Feb. 08, 2016	Jan. 31, 2016	Mar. 31, 2016
Share-based compensation
Contractual term of award (in years)			10 years
Minimum
Share-based compensation
Vesting period of award (in years)			3 years
Maximum
Share-based compensation
Vesting period of award (in years)			5 years
First tranche
Share-based compensation
Vesting period of award (in years)			1 year
2011 Plan
Share-based compensation
Granted (in shares)		2,417,152
Exercise price (in dollars per share)		$ 1.85
2016 Plan
Share-based compensation
Granted (in shares)	460,626
Exercise price (in dollars per share)	$ 2.43

Share-based compensation - Shar

Share-based compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based compensation
Compensation expense	$ 2,614	$ 2,314
Research and development expenses
Share-based compensation
Compensation expense	2,299	2,295
General and administrative
Share-based compensation
Compensation expense	$ 315	$ 19

Accumulated other comprehensi65

Accumulated other comprehensive loss (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Movement in accumulated other comprehensive loss
Balance at beginning of period	$ (101,765)
Balance at end of period	243,099
AOCI Attributable to Parent
Movement in accumulated other comprehensive loss
Balance at beginning of period	(1,809)
Other comprehensive income before reclassifications	(154)
Amounts reclassified from accumulated other comprehensive loss	712
Net-current period other comprehensive loss	558
Balance at end of period	(1,251)
Foreign Currency Translation Adjustments
Movement in accumulated other comprehensive loss
Balance at beginning of period	(602)
Other comprehensive income before reclassifications	97
Net-current period other comprehensive loss	97
Balance at end of period	(505)
Unrealized Gains (Losses)
Movement in accumulated other comprehensive loss
Balance at beginning of period	(1,207)
Other comprehensive income before reclassifications	(251)
Amounts reclassified from accumulated other comprehensive loss	712
Net-current period other comprehensive loss	461
Balance at end of period	$ (746)

Shareholders' equity - Conversi

Shareholders' equity - Conversion of Preferred Shares (Details) $ in Thousands	Feb. 08, 2016USD ($)shares
Shareholders' equity
Shares converted to ordinary shares (in shares) | shares	199,990,641
Amount reclassified from mezzanine equity to stockholders' equity | $	$ 176,084

Shareholders' equity - Conver67

Shareholders' equity - Conversion of Senior Promissory Note (Details) $ / shares in Units, $ in Thousands	Feb. 08, 2016USD ($)$ / sharesshares
Shareholders' equity
Amount reclassified from current liability to shareholders' equity | $	$ 14,693
Senior Notes | Senior Promissory Note, February 2, 2011
Shareholders' equity
Ordinary shares converted from debt (in shares) | shares	7,942,314
IPO
Shareholders' equity
Share price (in dollars per share) | $ / shares	$ 1.85

Shareholders' equity - Exercise

Shareholders' equity - Exercise of the Option and Warrants - Warrants in Connection with the Convertible Promissory Notes (Details) - Warrants to purchase convertible preferred shares in connection with the promissory notes	Feb. 08, 2016shares
Warrants in connection with the promissory notes
Preferred shares issued upon warrant exercise (in shares)	621,637
Shares converted to ordinary shares (in shares)	621,637

Shareholders' equity - Exerci69

Shareholders' equity - Exercise of the Option and Warrants - Option to Purchase Shares by Rental Deferral (Details)	Feb. 08, 2016shares
Option to purchase shares by rental deferral
Option to purchase shares by rental deferral
Number of shares purchased upon exercise (in shares)	1,451,586

Shareholders' equity - Exerci70

Shareholders' equity - Exercise of the Option and Warrants - Other Warrant Exercises (Details)	1 Months Ended
	Feb. 29, 2016$ / sharesshares
Warrants to purchase ordinary shares | Baker Bros.
Shareholders' equity
Ordinary shares issued upon exercise of warrants (in shares)	2,592,593
Exercise price (in dollars per share) | $ / shares	$ 0.68
Warrants to purchase convertible preferred shares | Executive Officer
Shareholders' equity
Preferred shares issued upon warrant exercise (in shares)	57,777
Exercise price (in dollars per share) | $ / shares	$ 0.68
Shares converted to ordinary shares (in shares)	57,777

Shareholders' equity - Exerci71

Shareholders' equity - Exercise of the Option and Warrants - Amount Reclassified from Current Liabilities to Shareholders' Equity (Details) $ in Thousands	1 Months Ended
	Feb. 29, 2016USD ($)
Shareholders' equity
Carrying value and the Option and Warrants reclassified from current liability to shareholders' equity	$ 3,687

Restricted net assets (Details)

Restricted net assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CHINA | Subsidiaries
Restricted net assets
Restricted net assets	$ 3,778	$ 3,383

Commitments and contingencies -

Commitments and contingencies - Expenses under Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Commitments and contingencies
Total expense under operating leases	$ 316	$ 288

Commitments and contingencies74

Commitments and contingencies - Future Minimum Payments (Details) $ in Thousands	Mar. 31, 2016USD ($)
Future minimum payments under non-cancelable operating leases
Nine Month Ending December 31, 2016	$ 1,091
Year Ending December 31, 2017	1,299
Year Ending December 31, 2018	1,295
Year Ending December 31, 2019	1,183
Year Ending December 31, 2020	1,164
Year Ending December 31, 2021 and thereafter	188
Total	$ 6,220

Commitments and contingencies75

Commitments and contingencies - Capital Commitments (Details) $ in Thousands	Mar. 31, 2016USD ($)
Capital Addition Purchase Commitments
Capital commitments
Capital commitments for the acquisition of property, plant and equipment	$ 2,284