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J Capital Research Shorts BeiGene

Short seller J Capital Research has announced a short position in BeiGene, a pharmaceutical company. The firm claims that its research shows that BeiGene "has invented over $154 mln in revenues since Q4 2017, when it took over sales of Celgene drugs in China, an overstatement of 133%" and that BeiGene has "clear evidence that the company is faking sales in order to persuade investors that it can develop a successful platform in China."

Other observations J Capital makes to support its story include what it says is a BeiGene subsidiary with no address or operations that shows $69.8 mln in costs, a "suspicious" real estate deal to buy a building it had a 10 year lease on, and "no commercialized IP assets of its own".

"We cannot find value in this speculative bubble of a company and blame market frenzy for driving the company “valuation” to $8.5 bln" J Capital Research said in conclusion.