BeiGene (ONC) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information
Entity Registrant Name	BeiGene, Ltd.
Entity Central Index Key	1,651,308
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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		518,902,349
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 97,750	$ 87,514
Short-term investments	229,726	280,660
Prepaid expenses and other current assets	8,702	6,225
Total current assets	336,178	374,399
Property and equipment, net	30,723	25,977
Deferred tax assets	2,928	768
Other non-current assets	6,900	4,669
Total non-current assets	40,551	31,414
Total assets	376,729	405,813
Current liabilities:
Accounts payable	20,482	11,957
Accrued expenses and other payables	24,463	22,297
Short-term loan	2,470
Tax payable	2,570	804
Total current liabilities	49,985	35,058
Non-current liabilities:
Long-term bank loan	17,434	17,284
Other long-term liabilities	893	564
Total non-current liabilities	18,327	17,848
Total liabilities	68,312	52,906
Commitments and contingencies
Shareholders' equity:
Ordinary shares (par value of US$0.0001 per share; 9,500,000,000 shares authorized; 518,602,349 shares issued and outstanding as of March 31, 2017 (December 31, 2016: 9,500,000,000 shares authorized; 515,833,609 shares issued and outstanding)	52	52
Additional paid-in capital	597,268	591,213
Accumulated other comprehensive loss	(868)	(946)
Accumulated deficit	(288,035)	(237,412)
Total shareholders' equity	308,417	352,907
Total liabilities and shareholders' equity	$ 376,729	$ 405,813

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	518,602,349	515,833,609
Ordinary shares, shares outstanding	518,602,349	515,833,609

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue
Collaboration revenue		$ 677
Total revenue		677
Operating expenses:
Research and development	$ (42,773)	(17,877)
General and administrative	(8,769)	(3,134)
Total operating expenses	(51,542)	(21,011)
Loss from operations	(51,542)	(20,334)
Interest income, net	186	290
Changes in fair value of financial instruments		(1,514)
Gain/(loss) on sale of available-for-sale securities	8	(712)
Other income, net	905	313
Loss before income tax expense	(50,443)	(21,957)
Income tax expense	(180)	(44)
Net loss	$ (50,623)	$ (22,001)
Loss per share
Basic and diluted (in dollars per share)	$ (0.10)	$ (0.07)
Weighted-average number of ordinary shares used in net loss per share calculation
Basic and diluted (in shares)	516,437,707	294,042,572
Loss per ADS
Basic and diluted (in dollars per share)	$ (1.27)	$ (0.97)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (50,623)	$ (22,001)
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments	90	97
Unrealized holding (loss)/gain, net	(12)	461
Comprehensive loss	$ (50,545)	$ (21,443)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (50,623)	$ (22,001)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	864	439
Share-based compensation expense	5,992	2,614
Loss on disposal of property and equipment	7
Changes in fair value of financial instruments		1,514
(Gain)/loss on sale of available-for-sale securities	(8)	712
Interest expense		93
Deferred income tax benefits	(2,160)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(2,477)	(406)
Other non-current assets	(41)	(47)
Accounts payable	8,474	(5,322)
Advances from customers		(677)
Accrued expenses and other payables	2,166	3,222
Tax payable	1,766	33
Other long-term liabilities	329	(15)
Net cash used in operating activities	(35,711)	(19,841)
Investing activities
Purchases of property and equipment	(5,068)	(3,303)
Payment for land auction deposit	(2,319)
Purchase of available-for-sale securities	(14,683)
Proceeds from sale or maturity of available-for-sale securities	65,613	43,646
Net cash provided by investing activities	43,543	40,343
Financing activities
Proceeds from issuance of ordinary shares, net of underwriter discount		169,409
Payment of initial public offering cost		(1,478)
Proceeds from short-term loan	2,470
Proceeds from exercise of warrants and options	63	2,118
Net cash provided by financing activities	2,533	170,049
Effect of foreign exchange rate changes, net	(129)	86
Net increase in cash and cash equivalents	10,236	190,637
Cash and cash equivalents at beginning of period	87,514	17,869
Cash and cash equivalents at end of period	97,750	208,506
Supplemental cash flow disclosures:
Income taxes paid	76	25
Interest expense paid	305	108
Non-cash activities:
Conversion of Senior Promissory Note		14,693
Conversion of deferred rental		980
Conversion of convertible preferred shares		176,084
Exercise of warrants and options		3,687
Initial public offering costs accrued in accrued expenses and other payables		166
Acquisitions of equipment included in accounts payable	$ 2,204	$ 91

Organization

Organization	3 Months Ended
	Mar. 31, 2017
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. Initial public offering On February 8, 2016, the Company completed its initial public offering (“IPO”) on the NASDAQ Global Select Market. 6,600,000 ADSs representing 85,800,000 ordinary shares were sold at $24.00 per ADS, or $1.85 per ordinary share (the “IPO Price”). Additionally, the underwriters exercised their options to purchase an additional 990,000 ADSs representing 12,870,000 ordinary shares from the Company. Net proceeds from the IPO including underwriter options after deducting underwriting discount and offering expenses were $166,197. The deferred IPO costs of $15,963 were recorded as a reduction of the proceeds received from the IPO in shareholders’ equity. Follow-on public offering On November 23, 2016, the Company completed a follow-on public offering at a price of $32.00 per ADS, or $2.46 per ordinary share. In this offering, the Company sold 5,781,250 ADSs representing 75,156,250 ordinary shares. Additionally, the underwriters exercised their options to purchase an additional 850,000 ADSs representing 11,050,000 ordinary shares from the Company. The selling shareholders sold 468,750 ADSs representing 6,093,750 ordinary shares. Net proceeds from this offering including underwriter options after deducting the underwriting discount and offering expenses were $198,625. The Company did not receive any proceeds from the sale of the shares by the selling shareholders. The deferred follow-on public offering costs of $13,575 were recorded as a reduction of the proceeds received from the offering in shareholders’ equity. As at March 31, 2017, the Company’s subsidiaries are as follows: Name of Company Place of Date of Percentage of Principal Activities BeiGene (Hong Kong) Co., Limited.(“BeiGene HK”) 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 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.(“BeiGene (USA)”) United States July 8, 2015 % Clinical trial activities BeiGene (Shanghai) Co., Ltd. (“BeiGene (Shanghai)”) PRC September 11, 2015 % Medical and pharmaceutical research BeiGene Biologics Co., Ltd. (“BeiGene Biologics”) PRC January 25, 2017 % Biologics manufacturing BeiGene Guangzhou Biologics Manufacturing Co., Ltd. (“BeiGene Guangzhou Factory”) PRC March 3, 2017 % Biologics manufacturing Manufacturing Facility in Guangzhou On March 7, 2017, BeiGene HK, a wholly owned subsidiary of the Company, and Guangzhou GET Technology Development Co., Ltd. (“GET”), entered into a definitive agreement to establish a commercial scale biologics manufacturing facility in Guangzhou, Guangdong Province, PRC. Under the terms of the Equity Joint Venture Contract (the “JV Agreement”), BeiGene HK will make 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 will provide a cash capital contribution of RMB100,000 to BeiGene Biologics representing a 5% equity interest in BeiGene Biologics. GET will also provide a shareholder loan (the “Shareholder Loan”) of RMB900,000 to BeiGene Biologics. The term of the Shareholder Loan is 72 calendar months, commencing from the actual draw down date. Interest accrues at 8% per annum. No accrued interest is due and payable prior to the repayment of the principal or the debt-to-equity conversion. The Shareholder Loan may be repaid or converted in full or partially into a mid-single digit percentage equity interest in BeiGene Biologics prior to its maturity date pursuant to the terms of the JV Agreement upon the achievement of certain regulatory milestones. The Shareholder Loan can only be used for BeiGene Biologics, including the construction and operation of the biologics manufacturing facility and research and development and clinical trials to be carried out by BeiGene Biologics. If BeiGene Biologics does not use the Shareholder Loan proceeds for the specified purposes, GET may be entitled to certain liquidated damages. In the event of an early termination of the JV Agreement, the Shareholder Loan will become due and payable at the time of termination of the JV Agreement.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2017
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, 2017, the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2017 and 2016, the condensed consolidated statements of cash flows for the three months ended March 31, 2017 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 consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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, 2017 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 subsidiaries, which are all wholly-owned by the Company as of March 31, 2017. All significant intercompany transactions and balances between the Company and its 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 of 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 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. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with an original maturity date of three months or less at the date of purchase to be cash equivalents. Cash equivalents which consist primarily of money market funds are stated at fair value. Fair value measurements Fair value of financial instruments Financial instruments of the Company primarily include cash and cash equivalents, short-term investments, short-term loan, long-term bank loan, and accounts payable. As of March 31, 2017 and December 31, 2016, the carrying values of cash and cash equivalents, accounts payable and short-term loan 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 or 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 instruments of comparable maturities. The warrants in connection with the convertible promissory notes and the option to purchase shares by rental deferral were exercised in January 2016 and February 2016. The Company determined the exercise date fair value of the warrants and option 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 March 31, 2017 and December 31, 2016: As of March 31, 2017 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — — As of December 31, 2016 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — — Recent accounting pronouncements In August 2015, the FASB issued Accounting Standards Update (“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 ASU No. 2014-09, Revenue from Contracts with Customers , (“ASU 2014-09”), 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. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers — Principal versus Agent Considerations (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers — Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarify guidance related to identifying performance obligations and licensing implementation guidance contained in ASU No. 2014-09. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers — Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which addresses narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition and provides practical expedients for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date for the amendment in ASU 2016-08, ASU 2016-10 and ASU 2016-12 are the same as the effective date of ASU No. 2014-09. The Company will adopt the new standard under the modified retrospective approach, effective January 1, 2018, and is in the process of evaluating its collaboration agreements with Merck KGaA, Darmstadt Germany to determine the impact the adoption of these ASUs has on its consolidated financial statements, if any. 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 financial statement impact of adoption.

Short-term investments

Short-term investments	3 Months Ended
	Mar. 31, 2017
Short-term investments
Short-term investments	3. Short-term investments Short-term investments as of March 31, 2017 consisted of the following available-for-sale debt securities: Amortized Gross Gross Fair Value $ $ $ $ U.S. Treasury securities — Total — Short-term investments as of December 31, 2016 consisted of the following available-for-sale debt securities: Amortized Gross Gross Fair Value $ $ $ $ U.S. Treasury securities — Total — Contractual maturities of all debt securities as of March 31, 2017 were within one year. The Company does not intend to sell its investments in U.S. Treasury securities 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 U.S. Treasury securities to be other-than-temporarily impaired at March 31, 2017. The cost of securities sold is based on the specific identification method.

Property and equipment

Property and equipment	3 Months Ended
	Mar. 31, 2017
Property and equipment
Property and equipment	4. Property and equipment Property and equipment consisted of the following: As of March 31, December 31, $ $ 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 Construction in progress as of March 31, 2017 and December 31, 2016 of $18,470 and $15,055, respectively, primarily relates to BeiGene (Suzhou)’s manufacturing facility and laboratory that are still under construction. Depreciation expense for the three months ended March 31, 2017 and 2016 was $864 and $439, respectively.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2017
Income taxes
Income taxes	5. Income taxes Income tax expense was $180 and $44, respectively, for the three months ended March 31, 2017 and 2016. Income tax expense is attributable to BeiGene (USA), a wholly owned subsidiary, which was established in July 2015 and provides general management services and strategic advisory services to the Company. The Company and its other subsidiaries were in cumulative loss positions for the three months ended March 31, 2017 and 2016. The Company has recorded a full valuation allowance against deferred tax assets related to net operating losses and other deductible temporary differences in all of its subsidiaries, with the exception of BeiGene (USA). As of March 31, 2017, deferred tax assets of $2,928 were primarily related to deductible temporary differences on share-based compensation expense, depreciation and accruals. In the three months ended March 31, 2017, tax expense was comprised of a deferred tax benefit of $2,160 and tax expense of $2,340. Taxes payable totaled $2,570 and $804 as of March 31, 2017 and December 31, 2016, respectively. No material 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, 2017
Accrued expenses and other payables
Accrued expenses and other payables	6. Accrued expenses and other payables Accrued expenses and other payables consisted of the following: As of March 31, December 31, $ $ Compensation related External research and development activities related Others Total accrued expenses and other payables

Warrants and option liabilities

Warrants and option liabilities	3 Months Ended
	Mar. 31, 2017
Warrants and option liabilities
Warrants and option liabilities	7. Warrants and option liabilities 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 was a freestanding instrument and was 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 the Option of $2,540 was determined based on its intrinsic value, which equals to the difference between the share price at the IPO closing date and the exercise price of such purchased ordinary shares. During the three months ended March 31, 2016, the Company recognized a loss from the increase in fair value of the Option of $1,151. Warrants in connection with the promissory notes During the years ended December 31, 2012 to 2014, the Company entered into agreements with several investors to issue convertible promissory notes, and related warrants to purchase the Company’s preferred 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 2016 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 the warrants of $1,148 was determined based on the intrinsic value, which equaled the difference between the share price at the IPO closing date and the exercise price of the issued warrants. For the three months ended March 31, 2016, the Company recognized a loss from the increase in fair value of the warrants of $363.

Short-term loan

Short-term loan	3 Months Ended
	Mar. 31, 2017
Short-term loan
Short-term loan	8. Short-term loan On March 28, 2017, BeiGene Biologics borrowed a RMB denominated short-term loan with a principal amount of $2,470 from GET. The loan was interest-free and was a temporary borrowing for the payment of a land auction deposit. The land was expected to be acquired for building the biologics manufacturing facility in Guangzhou. On April 14, 2017, the short-term loan was fully settled.

Long-term bank loan

Long-term bank loan	3 Months Ended
	Mar. 31, 2017
Long-term bank loan
Long-term bank loan	9. Long-term bank loan On September 2, 2015, BeiGene (Suzhou) entered into a loan agreement with Suzhou Industrial Park Biotech Development Co., Ltd. and China Construction Bank, to borrow $17,434 at a 7% fixed annual interest rate. As of March 31, 2017, the Company has drawn down $17,434, which is secured by BeiGene (Suzhou)’s equipment with a carrying amount of $22,486 and the Company’s rights to a PRC patent on a drug candidate. The loan principal amounts of $8,717 and $8,717 are repayable on September 30, 2018 and 2019, respectively. Interest expense recognized for the three months ended March 31, 2017 and 2016 amounted to $305 and $108, respectively.

Related party balances and tran

Related party balances and transactions	3 Months Ended
	Mar. 31, 2017
Related party balances and transactions
Related party balances and transactions	10. Related party balances and transactions During the three months ended March 31, 2017 and 2016, a shareholder, who is also 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, 2017
Research and development collaborative arrangements
Research and development collaborative arrangements	11. Research and development collaborative arrangements To date, the Company’s revenue has consisted of upfront license fees, reimbursed research and development expenses and milestone payments from its collaboration agreements with Merck KGaA, Darmstadt Germany on BGB-290 and BGB-283. The Company did not enter into any new collaborative arrangements during the three months ended March 31, 2017 and 2016. In March 2017, the Company regained the worldwide rights to BGB-283 after Merck KGaA, Darmstadt Germany informed the Company that it would not exercise a continuation option under the agreement, and thus, the ex-PRC BRAF Agreement has terminated in its entirety, except for certain provisions that will survive the termination. Revenue recognized in the three months ended March 31, 2016, related to Phase 1 research and development fees from the Company’s BRAF inhibitor, in accordance with the collaboration agreement with Merck KGaA Darmstadt Germany. Phase 1 services were completed by mid-2016 and as a result, all of the advance payments received from the collaboration to date have been recognized. The following table summarizes total collaboration revenue recognized for the three months ended March 31, 2017 and 2016: Three Months Ended 2017 2016 $ $ Research and development revenue — Total — For more information on our collaboration agreements with Merck KGaA, Darmstadt Germany, see “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Revenue” of this Quarterly Report on Form 10-Q.

Loss per share

Loss per share	3 Months Ended
	Mar. 31, 2017
Loss per share
Loss per share	12. Loss per share Loss per share was calculated as follows: Three Months Ended 2017 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, 2017 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 share options and restricted 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, 2017. 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, 2016.

Share-based compensation

Share-based compensation	3 Months Ended
	Mar. 31, 2017
Share-based compensation
Share-based compensation	13. Share-based compensation 2016 share option and incentive plan On January 14, 2016, in connection with the IPO, the board of directors and shareholders of the Company approved the 2016 Share Option and Incentive Plan (the “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 Option Plan, or 2011 Plan, and not subject to any outstanding options as of the effective date of the 2016 Plan. The 2016 Plan provides for an annual increase in the shares available for issuance thereunder, to be added on the first day of each fiscal year, beginning with the year ending December 31, 2017 and continuing until the expiration of the 2016 Plan, equal to the lesser of (i) five percent (5%) of the outstanding shares of the Company’s common stock on the last day of the immediately preceding fiscal year or (ii) such number of shares determined by the board of director 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, options cancelled or forfeited under the 2011 Plan will also be available for issuance under the 2016 Plan. During the three months ended March 31, 2017, the Company granted an aggregate of 11,973,000 options to employees under the 2016 Plan, with exercise price per ordinary share equal to 1/13 of the closing price of the Company’s ADS quoted on the NASDAQ Stock Exchange on the applicable grant date. During the three months ended March 31, 2017 and 2016, no grants to employees and non-employees were made outside of the Company’s 2011 Plan and 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. Restricted shares vest over a four-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 yearly basis thereafter. Modification Upon the completion of the Company’s IPO on February 8, 2016, a consultant became a member of the Company’s board of directors. Under the terms of the original option agreement, the individual retains the option grants on a change in status; hence, there is no modification to account for. The fair value of the options granted by the Company to the consultant has been re-measured as of February 8, 2016 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 all the periods presented. The following table summarizes total share-based compensation expense recognized for the three months ended March 31, 2017 and 2016: Three Months Ended 2017 2016 $ $ Research and development General and administrative Total

Accumulated other comprehensive

Accumulated other comprehensive loss	3 Months Ended
	Mar. 31, 2017
Accumulated other comprehensive loss
Accumulated other comprehensive loss	14. Accumulated other comprehensive loss The movement of accumulated other comprehensive loss was as follows: Foreign Currency Unrealized Total $ $ $ Balance as of December 31, 2016 ) ) ) Other comprehensive income/(loss) before reclassifications ) Amounts reclassified from accumulated other comprehensive income — ) ) Net-current period other comprehensive income/(loss) ) Balance as of March 31, 2017 ) ) )

Shareholders' equity

Shareholders' equity	3 Months Ended
	Mar. 31, 2017
Shareholders' equity
Shareholders' equity	15. Shareholders’ equity Conversion of Preferred Shares and Senior Promissory Note Upon completion of the IPO in 2016, 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 in 2016. Exercise of warrants and option In January 2016 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 were converted into 621,637 ordinary shares. On the IPO closing date, (i) the Company’s landlord exercised its option to purchase 1,451,586 ordinary shares of the Company; (ii) Baker Bros. exercised their warrants to purchase 2,592,593 ordinary shares at an exercise price of $0.68 per share; and (iii) a senior executive exercised warrants to purchase 57,777 Preferred Shares at an exercise price of $0.68 per share, which were converted into 57,777 ordinary shares. Upon the exercise of the aforementioned option and warrants, except for Baker Bros.’ warrants, which were initially classified in equity, the related carrying value totaling $3,687 was reclassified from current liabilities to shareholders’ equity in 2016.

Restricted net assets

Restricted net assets	3 Months Ended
	Mar. 31, 2017
Restricted net assets
Restricted net assets	16. 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 March 31, 2017 and December 31, 2016, amounts restricted were the net assets of the Company’s PRC subsidiaries, which amounted to $6,711 and $9,955, respectively.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and contingencies
Commitments and contingencies	17. Commitments and contingencies Operating lease commitments The Company leases office and manufacturing facilities under non-cancelable operating leases expiring on different dates in the United States and China. Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. There are no restrictions placed upon the Company by entering into these leases. Total expenses under these operating leases were $696 and $316 for the three months ended March 31, 2017 and 2016, respectively. Future minimum payments under non-cancelable operating leases consist of the following as of March 31, 2017: $ Nine months ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 and thereafter — Total Capital commitments The Company had capital commitments amounting to $2,121 for the acquisition of property, plant and equipment as of March 31, 2017, which was mainly for building BeiGene (Suzhou)’s manufacturing facility in Suzhou, China.

Subsequent event

Subsequent event	3 Months Ended
	Mar. 31, 2017
Subsequent event
Subsequent event	18. Subsequent event On April 11, 2017, BeiGene HK, GET and BeiGene Biologics amended the JV Agreement and the capital contribution agreement, among other things, to adjust the capital contribution schedules and adjust the initial term of the governing bodies and certain management position. Additionally, on April 13, 2017 and April 14, 2017, BeiGene HK and GET made cash capital contributions of RMB137,830 and RMB100,000, respectively, into BeiGene Biologics. On April 14, 2017, BeiGene Biologics drew down the Shareholder Loan of RMB900,000 from GET. BeiGene Biologics will establish a biologics manufacturing facility in Guangzhou (the “Factory”) through a wholly-owned subsidiary (the “Factory Sub”, or “BeiGene Guangzhou Factory”) to manufacture biologics, with a registered capital of RMB1,000,000. On April 20, 2017, BeiGene Biologics injected a cash capital contribution of RMB200,000 into BeiGene Guangzhou Factory. BeiGene Guangzhou Factory expects to: (i) acquire at least 100,000 square meters of land for the Factory in the Sino-Singapore Guangzhou Knowledge City, (ii) borrow additional capital in the form of a commercial bank loan for the purpose of the construction and operation of the Factory, and (iii) receive certain interest subsidies for commercial loan interest payment(s), subject to limitation. To date, the commercial bank loan and related interest subsidies have not yet occurred.

Summary of significant accoun25

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2017
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, 2017, the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2017 and 2016, the condensed consolidated statements of cash flows for the three months ended March 31, 2017 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 consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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, 2017 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 subsidiaries, which are all wholly-owned by the Company as of March 31, 2017. All significant intercompany transactions and balances between the Company and its 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 of 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 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.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with an original maturity date of three months or less at the date of purchase to be cash equivalents. Cash equivalents which consist primarily of money market funds are stated at fair value.
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 loan, long-term bank loan, and accounts payable. As of March 31, 2017 and December 31, 2016, the carrying values of cash and cash equivalents, accounts payable and short-term loan 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 or 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 instruments of comparable maturities. The warrants in connection with the convertible promissory notes and the option to purchase shares by rental deferral were exercised in January 2016 and February 2016. The Company determined the exercise date fair value of the warrants and option 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 March 31, 2017 and December 31, 2016: As of March 31, 2017 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — — As of December 31, 2016 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — —
Recent accounting pronouncements	Recent accounting pronouncements In August 2015, the FASB issued Accounting Standards Update (“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 ASU No. 2014-09, Revenue from Contracts with Customers , (“ASU 2014-09”), 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. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers — Principal versus Agent Considerations (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers — Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarify guidance related to identifying performance obligations and licensing implementation guidance contained in ASU No. 2014-09. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers — Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which addresses narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition and provides practical expedients for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date for the amendment in ASU 2016-08, ASU 2016-10 and ASU 2016-12 are the same as the effective date of ASU No. 2014-09. The Company will adopt the new standard under the modified retrospective approach, effective January 1, 2018, and is in the process of evaluating its collaboration agreements with Merck KGaA, Darmstadt Germany to determine the impact the adoption of these ASUs has on its consolidated financial statements, if any. 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 financial statement impact of adoption.

Organization (Tables)

Organization (Tables)	3 Months Ended
	Mar. 31, 2017
Organization
Schedule of the Company's subsidiaries	As at March 31, 2017, the Company’s subsidiaries are as follows: Name of Company Place of Date of Percentage of Principal Activities BeiGene (Hong Kong) Co., Limited.(“BeiGene HK”) 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 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.(“BeiGene (USA)”) United States July 8, 2015 % Clinical trial activities BeiGene (Shanghai) Co., Ltd. (“BeiGene (Shanghai)”) PRC September 11, 2015 % Medical and pharmaceutical research BeiGene Biologics Co., Ltd. (“BeiGene Biologics”) PRC January 25, 2017 % Biologics manufacturing BeiGene Guangzhou Biologics Manufacturing Co., Ltd. (“BeiGene Guangzhou Factory”) PRC March 3, 2017 % Biologics manufacturing

Summary of significant accoun27

Summary of significant accounting policies (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of significant accounting policies
Summary of assets and liabilities measured at fair value on a recurring basis	As of March 31, 2017 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — — As of December 31, 2016 Quoted Price Significant Significant $ $ $ Available-for-sale securities (note 3): U.S. Treasury securities — — Cash equivalents Money market funds — —

Short-term investments (Tables)

Short-term investments (Tables)	3 Months Ended
	Mar. 31, 2017
Short-term investments
Schedule of short-term investments	Short-term investments as of March 31, 2017 consisted of the following available-for-sale debt securities: Amortized Gross Gross Fair Value $ $ $ $ U.S. Treasury securities — Total — Short-term investments as of December 31, 2016 consisted of the following available-for-sale debt securities: Amortized Gross Gross Fair Value $ $ $ $ U.S. Treasury securities — Total —

Property and equipment (Tables)

Property and equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property and equipment
Schedule of components of property and equipment	As of March 31, December 31, $ $ 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 pa30

Accrued expenses and other payables (Tables)	3 Months Ended
	Mar. 31, 2017
Accrued expenses and other payables
Schedule of accrued expenses and other payables	As of March 31, December 31, $ $ Compensation related External research and development activities related Others Total accrued expenses and other payables

Research and development coll31

Research and development collaborative arrangements (Tables)	3 Months Ended
	Mar. 31, 2017
Research and development collaborative arrangements
Schedule of total collaboration revenue recognized	Three Months Ended 2017 2016 $ $ Research and development revenue — Total —

Loss per share (Tables)

Loss per share (Tables)	3 Months Ended
	Mar. 31, 2017
Loss per share
Schedule of the calculation of basic and diluted net loss per ordinary share	Three Months Ended 2017 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, 2017
Share-based compensation
Summary of total compensation cost recognized	Three Months Ended 2017 2016 $ $ Research and development General and administrative Total

Accumulated other comprehensi34

Accumulated other comprehensive loss (Tables)	3 Months Ended
	Mar. 31, 2017
Accumulated other comprehensive loss
Schedule of accumulated other comprehensive loss	Foreign Currency Unrealized Total $ $ $ Balance as of December 31, 2016 ) ) ) Other comprehensive income/(loss) before reclassifications ) Amounts reclassified from accumulated other comprehensive income — ) ) Net-current period other comprehensive income/(loss) ) Balance as of March 31, 2017 ) ) )

Commitments and contingencies (

Commitments and contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and contingencies
Schedule of future minimum payments under non-cancelable operating leases	Future minimum payments under non-cancelable operating leases consist of the following as of March 31, 2017: $ Nine months ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 and thereafter — Total

Organization - Closing of Initi

Organization - Closing of Initial Public Offering and Follow-on Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 23, 2016	Feb. 08, 2016	Mar. 31, 2017
Initial public offering
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 shares offering		$ 166,197
Deferred IPO costs			$ 15,963
Follow-on public offering
Organization
Shares issued, American Depository Shares (in shares)	5,781,250
Shares issued (in shares)	75,156,250
Share price, American Depository Shares (in dollars per share)	$ 32
Share price (in dollars per share)	$ 2.46
Proceeds from shares offering	$ 198,625
Deferred IPO costs			$ 13,575
Follow-on public offering | Selling shareholders
Organization
Shares issued, American Depository Shares (in shares)	468,750
Shares issued (in shares)	6,093,750
Over-Allotment Option
Organization
Shares issued, American Depository Shares (in shares)	850,000	990,000
Shares issued (in shares)	11,050,000	12,870,000

Organization - Wholly-owned Sub

Organization - Wholly-owned Subsidiaries (Details)	Mar. 31, 2017
BeiGene (Hong Kong) Co., Limited.("BeiGene HK")
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
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.("BeiGene (USA)")
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%
BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Organization
Percentage of Ownership by the Company (as a percent)	100.00%
BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory")
Organization
Percentage of Ownership by the Company (as a percent)	100.00%

Organization - Manufacturing Fa

Organization - Manufacturing Facility in Guangzhou (Details) ¥ in Thousands, $ in Thousands	Mar. 07, 2017CNY (¥)item	Mar. 31, 2017USD ($)
Organization
Payment for land auction deposit | $		$ 2,319
BeiGene HK | BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Organization
Cash capital contribution	¥ 200,000
Minimum number of biologics assets to be contributed | item	1
Equity interest in joint venture (as a percent)	95.00%
GET | BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Organization
Cash capital contribution	¥ 100,000
Equity interest in joint venture (as a percent)	5.00%
Shareholder loan to provide	¥ 900,000
Debt instrument term (in years)	72 months
Shareholder loan interest rate (as a percent)	8.00%

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, 2017	Dec. 31, 2016
Assets and liabilities measured at fair value on a recurring basis
Available-for-sale securities	$ 229,726	$ 280,660
U.S. Treasury securities
Assets and liabilities measured at fair value on a recurring basis
Available-for-sale securities	229,726	280,660
Recurring basis | Level 1 | Money market funds
Assets and liabilities measured at fair value on a recurring basis
Cash equivalents	44,342	44,052
Recurring basis | Level 1 | U.S. Treasury securities
Assets and liabilities measured at fair value on a recurring basis
Available-for-sale securities	$ 229,726	$ 280,660

Short-term investments (Details

Short-term investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Short-term investments
Amortized Cost	$ 229,837	$ 280,757
Gross Unrealized Losses	111	97
Fair Value (Net Carrying Amount)	229,726	280,660
Contractual maturities of debt securities within one year
Contractual maturities of debt securities within one year	229,726
U.S. Treasury securities
Short-term investments
Amortized Cost	229,837	280,757
Gross Unrealized Losses	111	97
Fair Value (Net Carrying Amount)	$ 229,726	$ 280,660

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property and equipment
Property and equipment, at cost	$ 20,645		$ 18,395
Less accumulated depreciation and amortization	(8,392)		(7,473)
Construction in progress	18,470		15,055
Property and equipment, net	30,723		25,977
Depreciation expense	864	$ 439
Office Equipment
Property and equipment
Property and equipment, at cost	528		449
Electronic Equipment
Property and equipment
Property and equipment, at cost	776		647
Laboratory Equipment
Property and equipment
Property and equipment, at cost	8,343		7,536
Computer Software
Property and equipment
Property and equipment, at cost	328		317
Leasehold Improvements
Property and equipment
Property and equipment, at cost	10,670		9,446
BeiGene (Suzhou) Co., Ltd. ("BeiGene (Suzhou)")
Property and equipment
Construction in progress	$ 18,470		$ 15,055

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income taxes
Income tax expense	$ (180)	$ (44)
Deferred tax assets	2,928
Deferred tax benefit	2,160
Income tax expense	(2,340)
Total tax payable	$ 2,570		$ 804

Accrued expenses and other pa43

Accrued expenses and other payables (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued expenses and other payables
Compensation related	$ 2,894	$ 3,980
External research and development activities related	17,012	14,198
Others	4,557	4,119
Total accrued expenses and other payables	$ 24,463	$ 22,297

Warrants and option liabiliti44

Warrants and option liabilities - Option to Purchase Shares by Rental Deferral (Details) - USD ($) $ in Thousands	Feb. 08, 2016	Sep. 01, 2012	Mar. 31, 2016
Option to purchase shares by rental deferral
Loss from the increase in fair value of the option or warrants			$ 1,514
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
Option to purchase shares by rental deferral	$ 2,540
Loss from the increase in fair value of the option or warrants			$ 1,151

Warrants and option liabiliti45

Warrants and option liabilities - Warrants in Connection with the Promissory Notes (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended
	Feb. 29, 2016	Mar. 31, 2016	Dec. 31, 2014
Warrants in connection with the promissory notes
Loss from the increase in fair value of the option or warrants		$ 1,514
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
Warrants in connection with the convertible promissory notes	$ 1,148
Loss from the increase in fair value of the option or warrants		$ 363

Short-term loan (Details)

Short-term loan (Details) $ in Thousands	Mar. 28, 2017USD ($)
BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Short-term loan
Principal amount	$ 2,470

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, 2017	Mar. 31, 2016	Sep. 02, 2015
Long-term bank loan
Maximum borrowing capacity			$ 17,434
Fixed annual interest rate (as a percent)			7.00%
Amount borrowed	$ 17,434
Loan security	22,486
Loan amount repayable on September 30, 2018	8,717
Loan amount repayable on September 30, 2019	8,717
Interest expense	$ 305	$ 108

Related party balances and tr48

Related party balances and transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Related party balances and transactions
Consulting service fee paid to shareholder	$ 25	$ 25

Research and development coll49

Research and development collaborative arrangements - Collaboration Revenue Recognized (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Research and development collaborative arrangements
Research and development revenue	$ 677
Total	$ 677

Loss per share (Details)

Loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss attributable to ordinary shareholders for computing basic and diluted loss per ordinary share	$ (50,623)	$ (22,001)
Denominator:
Weighted average number of ordinary shares outstanding for computing basic and diluted loss per ordinary share	516,437,707	294,042,572
Basic and diluted net loss per share	$ (0.10)	$ (0.07)

Share-based compensation - Shar

Share-based compensation - Share Options and Incentive Plan (Details)	3 Months Ended
	Mar. 31, 2017shares	Jan. 14, 2016shares
Share options
Share-based compensation
Contractual term of award (in years)	10 years
Restricted Stock
Share-based compensation
Vesting period of award (in years)	4 years
2016 Plan | Share options
Share-based compensation
Awards that maybe granted		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%
2016 Plan | Employee Stock Option
Share-based compensation
Granted (in shares)	11,973,000
Exercise price ratio	0.07692
First tranche | Share options
Share-based compensation
Vesting period of award (in years)	1 year
First tranche | Restricted Stock
Share-based compensation
Vesting period of award (in years)	1 year
Minimum | Share options
Share-based compensation
Vesting period of award (in years)	3 years
Maximum | Share options
Share-based compensation
Vesting period of award (in years)	5 years

Share-based compensation - Sh52

Share-based compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based compensation
Compensation expense	$ 5,992	$ 2,614
Research and development
Share-based compensation
Compensation expense	4,529	2,299
General and administrative
Share-based compensation
Compensation expense	$ 1,463	$ 315

Accumulated other comprehensi53

Accumulated other comprehensive loss (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Movement in accumulated other comprehensive loss
Balance at beginning of period	$ 352,907
Balance at end of period	308,417
Accumulated Other Comprehensive Loss
Movement in accumulated other comprehensive loss
Balance at beginning of period	(946)
Other comprehensive income/(loss) before reclassifications	86
Amounts reclassified from accumulated other comprehensive income	(8)
Net-current period other comprehensive income/(loss)	78
Balance at end of period	(868)
Foreign Currency Translation Adjustments
Movement in accumulated other comprehensive loss
Balance at beginning of period	(847)
Other comprehensive income/(loss) before reclassifications	90
Net-current period other comprehensive income/(loss)	90
Balance at end of period	(757)
Unrealized Losses on available-for-sale securities
Movement in accumulated other comprehensive loss
Balance at beginning of period	(99)
Other comprehensive income/(loss) before reclassifications	(4)
Amounts reclassified from accumulated other comprehensive income	(8)
Net-current period other comprehensive income/(loss)	(12)
Balance at end of period	$ (111)

Shareholders' equity - Conversi

Shareholders' equity - Conversion of Preferred Shares and Senior Promissory Note (Details) $ / shares in Units, $ in Thousands	Feb. 08, 2016USD ($)$ / sharesshares
Initial public offering
Shareholders' equity
Share price (in dollars per share) | $ / shares	$ 1.85
Initial public offering | Senior Notes | Senior Promissory Note, February 2, 2011
Shareholders' equity
Share price (in dollars per share) | $ / shares	$ 1.85
Ordinary Shares
Shareholders' equity
Shares issued upon conversion of preferred shares | shares	199,990,641
Amount reclassified from mezzanine equity to stockholders' equity | $	$ 176,084
Ordinary Shares | Senior Notes | Senior Promissory Note, February 2, 2011
Shareholders' equity
Shares converted from debt (in shares) | shares	7,942,314
Amount reclassified from current liability to shareholders' equity | $	$ 14,693

Shareholders' equity -Exercise

Shareholders' equity -Exercise of Warrants and Option (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 08, 2016	Feb. 29, 2016
Shareholders' equity
Carrying value and the Option and Warrants reclassified from current liability to shareholders' equity		$ 3,687
Warrants to purchase convertible preferred shares in connection with the promissory notes
Warrants in connection with the promissory notes
Preferred shares issued upon warrant exercise (in shares)		621,637
Preferred shares converted to ordinary shares (in shares)		621,637
Shareholders' equity
Preferred shares issued upon warrant exercise (in shares)		621,637
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
Baker Bros | Warrants to purchase ordinary shares
Shareholders' equity
Ordinary shares issued upon exercise of warrants (in shares)	2,592,593
Exercise price (in dollars per share)	$ 0.68
Executive Officer | Warrants to purchase convertible preferred shares
Warrants in connection with the promissory notes
Preferred shares converted to ordinary shares (in shares)	57,777
Shareholders' equity
Exercise price (in dollars per share)	$ 0.68

Restricted net assets (Details)

Restricted net assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
PRC | Subsidiaries
Restricted net assets
Restricted net assets	$ 6,711	$ 9,955

Commitments and contingencies -

Commitments and contingencies - Expense and Future Payment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and contingencies
Total expense under operating leases	$ 696	$ 316
Future minimum payments under non-cancelable operating leases
Nine months ending December 31, 2017	2,222
Year ending December 31, 2018	2,740
Year ending December 31, 2019	1,820
Year ending December 31, 2020	1,616
Year ending December 31, 2021	461
Total	$ 8,859

Commitments and contingencies58

Commitments and contingencies - Capital Commitments (Details) $ in Thousands	Mar. 31, 2017USD ($)
Capital Addition Purchase Commitments
Capital commitments
Capital commitments for the acquisition of property, plant and equipment	$ 2,121

Subsequent event (Details)

Subsequent event (Details) - Subsequent event ¥ in Thousands	Apr. 20, 2017CNY (¥)	Apr. 14, 2017CNY (¥)	Apr. 13, 2017CNY (¥)	Apr. 11, 2017CNY (¥)m²
BeiGene HK | BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Subsequent event
Cash capital contribution			¥ 137,830
GET | BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Subsequent event
Cash capital contribution		¥ 100,000
BeiGene Biologics Co., Ltd. ("BeiGene Biologics")
Subsequent event
Amount of loan drawn		¥ 900,000
BeiGene Biologics Co., Ltd. ("BeiGene Biologics") | BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory")
Subsequent event
Cash capital contribution	¥ 200,000
BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory")
Subsequent event
Registered capital				¥ 1,000,000
BeiGene Guangzhou Biologics Manufacturing Co., Ltd. ("BeiGene Guangzhou Factory") | Forecast | Minimum
Subsequent event
Land area to acquire | m²				100,000