Thinly traded BeiGene (BGNE -5.5%) is down on slightly higher volume, a modest 273K shares, in apparent response to a report from J. Capital Research stating that the company may be “faking” 60% of its sales. Key points:
Company has invented over $154M in revenues since Q4 2017 when it took over sales of Celgene drugs in China.
Clinical trials for in-house candidates will not be completed by year-end so no new drugs will be on Chinese reimbursement lists.
A subsidiary with no disclosed address or operations showed $69.8M in “costs” which J. Capital believes was used to roundtrip sales.
Suspicious real estate transaction in 2018, buying a building for $38M despite having a 10-year lease on the property, appears to be a deal with a related party considering that the price was at least $10M too high.
Insiders have sold $322M of stock, including $189M by the founder.
