☒ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Cayman Islands | 98-1144595 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
4560 Jinke Road Bldg. 1, Fourth Floor Pudong Shanghai, China | 201210 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
American Depositary Shares, each representing 1 Ordinary Share, par value $0.00006 per share | ZLAB | The Nasdaq Global Market | ||
Ordinary Shares, par value $0.00006 per share* | 9688 | The Stock Exchange of Hong Kong Limited |
* | Included in connection with the registration of the American Depositary Shares with the Securities and Exchange Commission. The ordinary shares are not registered or listed for trading in the United States but are listed for trading on |
Large accelerated filer | ☒ | Accelerated Filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | ||||
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183 | ||||
expenses and could materially affect our business. Our failure to comply with such laws and regulations could lead to government enforcement actions and significant penalties against us, materially and adversely impacting our operating results; |
Product | Indications | Regulatory Status | Commercial Rights | Partner | ||||
1 st line ovarian cancer maintenance treatment | Launched in mainland China, Hong Kong, and Macau | mainland China, Hong Kong, and Macau | ||||||
Newly diagnosed Recurrent GBM | Launched in mainland China, Hong Kong, and Macau | mainland China, Hong Kong, Macau, and Taiwan | ||||||
4 th line gastrointestinal stromal tumors (GIST) | mainland China, Hong Kong, Macau, and Taiwan | |||||||
Acute bacterial skin and skin structure Community-acquired bacterial pneumonia (CABP) | mainland China, Hong Kong, Macau, and Taiwan |
By Function | Number of employees | |||
Research and Development | ||||
Commercial | ||||
Manufacturing | ||||
General and Administrative* | ||||
Total |
* | Includes finance, legal, human resources, |
9/21/17 | 9/30/17 | 12/31/17 | 3/31/18 | 6/30/18 | 9/30/18 | 12/31/18 | 3/31/19 | 6/30/19 | 9/30/19 | |||||||||||||||||||||||||||||||
Zai Lab Limited | $ | 100.00 | $ | 95.81 | $ | 75.34 | $ | 75.76 | $ | 82.51 | $ | 69.13 | $ | 82.40 | $ | 104.72 | $ | 123.74 | $ | 114.80 | ||||||||||||||||||||
NASDAQ Composite | $ | 100.00 | $ | 100.73 | $ | 107.05 | $ | 109.54 | $ | 116.46 | $ | 124.78 | $ | 102.90 | $ | 119.86 | $ | 124.16 | $ | 124.05 | ||||||||||||||||||||
NASDAQ Biotechnology | $ | 100.00 | $ | 100.45 | $ | 96.52 | $ | 96.46 | $ | 99.31 | $ | 110.29 | $ | 87.52 | $ | 101.00 | $ | 98.58 | $ | 89.94 |
12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | ||||||||||||||||||||||||||||
Zai Lab Limited | $ | 147.59 | $ | 182.68 | $ | 291.45 | $ | 295.14 | $ | 480.27 | $ | 473.49 | $ | 628.07 | $ | 373.99 | $ | 223.03 | ||||||||||||||||||
NASDAQ Composite | $ | 139.14 | $ | 119.41 | $ | 155.98 | $ | 173.18 | $ | 199.86 | $ | 205.42 | $ | 224.92 | $ | 224.06 | $ | 242.61 | ||||||||||||||||||
NASDAQ Biotechnology | $ | 108.89 | $ | 97.55 | $ | 123.58 | $ | 122.41 | $ | 136.85 | $ | 135.87 | $ | 148.03 | $ | 146.23 | $ | 135.99 |
(i) | the primary location of the day-to-day |
(ii) | decisions relating to the enterprise’s financial and human resource matters are made or are subject to approval by organizations or personnel in mainland China; |
(iii) | the enterprise’s primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in mainland China; and |
(iv) | at least 50% of voting board members or senior executives habitually reside in mainland China. |
As of December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 442,859 | $ | 76,442 | $ | 62,952 | $ | 229,600 | $ | 83,949 | ||||||||||
Short-term investments (1) | $ | 744,676 | $ | 200,000 | $ | 200,350 | $ | — | $ | — | ||||||||||
Total assets | $ | 1,297,638 | $ | 355,153 | $ | 301,987 | $ | 249,634 | $ | 88,907 | ||||||||||
Total mezzanine equity and shareholders’ equity | $ | 1,169,345 | $ | 294,660 | $ | 251,081 | $ | 235,171 | $ | (82,956 | ) | |||||||||
Total current liabilities | $ | 98,043 | $ | 46,635 | $ | 48,842 | $ | 12,069 | $ | 5,173 | ||||||||||
Total non-current liabilities | $ | 30,250 | $ | 13,858 | $ | 2,064 | $ | 2,394 | $ | 778 | ||||||||||
(1) The short-term investment primarily comprises of the time deposits with original maturities between three months and one year. |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||
Consolidated statements of operations data: | ||||||||||||||||||||
Revenue | $ | 48,958 | $ | 12,985 | $ | 129 | $ | — | $ | — | ||||||||||
Expenses: | ||||||||||||||||||||
Cost of sales | (16,736 | ) | (3,749 | ) | (43 | ) | — | — | ||||||||||||
Research and development | (222,711 | ) | (142,221 | ) | (120,278 | ) | (39,342 | ) | (32,149 | ) | ||||||||||
Selling, general and administrative | (111,312 | ) | (70,211 | ) | (21,576 | ) | (12,049 | ) | (6,380 | ) | ||||||||||
Loss from operations | $ | (301,801 | ) | $ | (203,196 | ) | $ | (141,768 | ) | $ | (51,391 | ) | $ | (38,529 | ) | |||||
Interest income | 5,120 | 8,232 | 3,261 | 527 | 403 | |||||||||||||||
Interest expenses | (181 | ) | (293 | ) | (40 | ) | — | — | ||||||||||||
Changes in fair value of warrants | — | — | — | 200 | (1,920 | ) | ||||||||||||||
Other income, net | 29,076 | 938 | 59 | 530 | 2,534 | |||||||||||||||
Loss before income tax and share of loss from equity method investment | $ | (267,786 | ) | $ | (194,319 | ) | $ | (138,488 | ) | $ | (50,134 | ) | $ | (37,512 | ) | |||||
Income tax expense | — | — | — | — | — | |||||||||||||||
Share of loss from equity method investment | (1,119 | ) | (752 | ) | (587 | ) | (250 | ) | — | |||||||||||
Net loss | $ | (268,905 | ) | $ | (195,071 | ) | $ | (139,075 | ) | $ | (50,384 | ) | $ | (37,512 | ) | |||||
Weighted-average shares used in calculating net loss per ordinary share, basic and diluted (1) | 77,667,743 | 64,369,490 | 52,609,810 | 21,752,757 | 9,439,028 | |||||||||||||||
Loss per share, basic and diluted (1) | (3.46 | ) | (3.03 | ) | (2.64 | ) | (2.32 | ) | (3.97 | ) | ||||||||||
(1) See Note 2 to our audited consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K for a description of the method used to calculate basic and diluted net loss per share. |
A. | Operating Results. |
(in thousands, except share and per share data) | Year ended December 31, | |||||||||||
2020 | 2019 | 2018 | ||||||||||
Comprehensive Loss Data: | ||||||||||||
Revenue | $ | 48,958 | $ | 12,985 | $ | 129 | ||||||
Expenses: | ||||||||||||
Cost of sales | (16,736 | ) | (3,749 | ) | (43 | ) | ||||||
Research and development | (222,711 | ) | (142,221 | ) | (120,278 | ) | ||||||
Selling, general and administrative | (111,312 | ) | (70,211 | ) | (21,576 | ) | ||||||
Loss from operations | $ | (301,801 | ) | $ | (203,196 | ) | $ | (141,768 | ) | |||
Interest income | 5,120 | 8,232 | 3,261 | |||||||||
Interest expenses | (181 | ) | (293 | ) | (40 | ) | ||||||
Other income, net | 29,076 | 938 | 59 | |||||||||
Loss before income tax and share of loss from equity method investment | $ | (267,786 | ) | $ | (194,319 | ) | $ | (138,488 | ) | |||
Income tax expense | — | — | — | |||||||||
Share of loss from equity method investment | (1,119 | ) | (752 | ) | (587 | ) | ||||||
Net loss attributable to ordinary shareholders | $ | (268,905 | ) | $ | (195,071 | ) | $ | (139,075 | ) | |||
Weighted-average shares used in calculating net loss per ordinary share, basic and diluted | 77,667,743 | 64,369,490 | 52,609,810 | |||||||||
Net loss per share, basic and diluted | $ | (3.46 | ) | $ | (3.03 | ) | $ | (2.64 | ) |
(in thousands) | Year ended December 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Revenues: | ||||||||||||||||
Product revenue, net | $ | 144,105 | 99.9 | $ | 48,958 | 100.0 | ||||||||||
Collaboration revenue | 207 | 0.1 | — | 0.0 | ||||||||||||
Total | $ | 144,312 | 100.0 | $ | 48,958 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Product revenue, net: | ||||||||||||||||
ZEJULA | $ | 93,579 | 64.9 | $ | 32,138 | 65.7 | ||||||||||
Optune | 38,903 | 27.0 | 16,418 | 33.5 | ||||||||||||
QINLOCK | 11,620 | 8.1 | 402 | 0.8 | ||||||||||||
NUZYRA | 3 | 0.0 | — | — | ||||||||||||
Total | $ | 144,105 | 100.0 | $ | 48,958 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 77,227 | 13.5 | $ | 40,257 | 18.1 | ||||||||||
Licensing fees | 384,104 | 67.0 | 108,169 | 48.6 | ||||||||||||
Payment to CROs/CMOs/Investigators | 82,571 | 14.4 | 53,275 | 23.9 | ||||||||||||
Other costs | 29,404 | 5.1 | 21,010 | 9.4 | ||||||||||||
Total | $ | 573,306 | 100.0 | $ | 222,711 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Clinical programs | $ | 433,021 | 75.5 | $ | 160,674 | 72.1 | ||||||||||
Pre-clinical programs | 47,768 | 8.3 | 10,598 | 4.8 | ||||||||||||
Unallocated research and development expenses | 92,517 | 16.2 | 51,439 | 23.1 | ||||||||||||
Total | $ | 573,306 | 100.0 | $ | 222,711 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Selling, General and Administrative Expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 124,675 | 57.0 | $ | 63,010 | 56.6 | ||||||||||
Professional service fees | 22,901 | 10.5 | 12,751 | 11.5 | ||||||||||||
Other costs | 71,255 | 32.5 | 35,551 | 31.9 | ||||||||||||
Total | $ | 218,831 | 100.0 | $ | 111,312 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||
2020 | % | 2019 | % | 2020 | % | 2019 | % | |||||||||||||||||||||||||
Product revenue, net: | ||||||||||||||||||||||||||||||||
ZEJULA | $ | 32,138 | 65.7 | $ | 6,625 | 51.0 | $ | 32,138 | 65.7 | $ | 6,625 | 51.0 | ||||||||||||||||||||
Optune | 16,418 | 33.5 | 6,360 | 49.0 | 16,418 | 33.5 | 6,360 | 49.0 | ||||||||||||||||||||||||
Others | 402 | 0.8 | — | 0.0 | ||||||||||||||||||||||||||||
QINLOCK | 402 | 0.8 | — | 0.0 | ||||||||||||||||||||||||||||
Total product revenue—Net | $ | 48,958 | 100.0 | $ | 12,985 | 100.0 | ||||||||||||||||||||||||||
Total | $ | 48,958 | 100.0 | $ | 12,985 | 100.0 | ||||||||||||||||||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2020 | % | 2019 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 40,257 | 18.1 | $ | 30,820 | 21.6 | ||||||||||
Licensing fees | 108,169 | 48.6 | 58,682 | 41.3 | ||||||||||||
Payment to CROs/CMOs/Investigators | 53,275 | 23.9 | 36,814 | 25.9 | ||||||||||||
Other costs | 21,010 | 9.4 | 15,905 | 11.2 | ||||||||||||
Total | $ | 222,711 | 100.0 | $ | 142,221 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2020 | % | 2019 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Clinical programs | $ | 160,674 | 72.1 | $ | 96,442 | 67.8 | ||||||||||
Pre-clinical programs | 10,598 | 4.8 | 8,268 | 5.8 | ||||||||||||
Unallocated research and development expenses | 51,439 | 23.1 | 37,511 | 26.4 | ||||||||||||
Total | $ | 222,711 | 100.0 | $ | 142,221 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2020 | % | 2019 | % | |||||||||||||
Selling, General and Administrative Expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 63,010 | 56.6 | $ | 43,572 | 62.1 | ||||||||||
Professional service fees | 12,751 | 11.5 | 2,887 | 4.1 | ||||||||||||
Other costs | 35,551 | 31.9 | 23,752 | 33.8 | ||||||||||||
Total | $ | 111,312 | 100.0 | $ | 70,211 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2019 | % | 2018 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 30,820 | 21.6 | $ | 16,755 | 13.9 | ||||||||||
Licensing fees | 58,682 | 41.3 | 59,152 | 49.2 | ||||||||||||
Payment to CROs/CMOs/Investigators | 36,814 | 25.9 | 32,282 | 26.8 | ||||||||||||
Other costs | 15,905 | 11.2 | 12,089 | 10.1 | ||||||||||||
Total | $ | 142,221 | 100.0 | $ | 120,278 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2019 | % | 2018 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Clinical programs | $ | 96,442 | 67.8 | $ | 89,556 | 74.5 | ||||||||||
Pre-clinical programs | 8,268 | 5.8 | 8,102 | 6.7 | ||||||||||||
Unallocated research and development expenses | 37,511 | 26.4 | 22,620 | 18.8 | ||||||||||||
Total | $ | 142,221 | 100.0 | $ | 120,278 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||
2019 | % | 2018 | % | |||||||||||||
Selling, General and Administrative Expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 43,572 | 62.1 | $ | 13,410 | 62.2 | ||||||||||
Professional service fees | 2,887 | 4.1 | 3,266 | 15.1 | ||||||||||||
Other costs | 23,752 | 33.8 | 4,900 | 22.7 | ||||||||||||
Total | $ | 70,211 | 100.0 | $ | 21,576 | 100.0 | ||||||||||
(in thousands) | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||
Net cash used in operating activities | $ | (216,055 | ) | $ | (191,011 | ) | $ | (97,538 | ) | $ | (191,011 | ) | $ | (216,055 | ) | $ | (549,231 | ) | ||||||
Net cash used in investing activities | (554,830 | ) | (14,892 | ) | (212,554 | ) | ||||||||||||||||||
Net cash provided by (used in) investing activities | (14,892 | ) | (554,830 | ) | 249,957 | |||||||||||||||||||
Net cash provided by financing activities | 1,132,440 | 219,302 | 144,147 | 219,302 | 1,132,440 | 820,202 | ||||||||||||||||||
Effect of foreign exchange rate changes | 4,862 | 91 | (763 | ) | 91 | 4,862 | 1,116 | |||||||||||||||||
Net increases(decrease) in cash, cash equivalents and restricted cash | $ | 366,417 | $ | 13,490 | $ | (166,708 | ) | |||||||||||||||||
Net increases in cash, cash equivalents and restricted cash | $ | 13,490 | $ | 366,417 | $ | 522,044 | ||||||||||||||||||
(in thousands) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||
Purchase Obligations | $ | 4,505 | $ | 4,143 | $ | 362 | $ | — | $ | — | ||||||||||
Operating Lease Obligations | 19,237 | 5,434 | 6,763 | 4,430 | 2,610 |
(a) | Disclosure Controls and Procedures |
(b) | Management’s Annual Report on Internal Control |
(c) | Report of Registered |
(d) | Changes in Internal Control over Financial Reporting |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definitions Linkbase Document | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith |
** | Furnished herewith |
# | Management contract or compensatory plan |
+ | Confidential treatment has been granted as to certain portions, which portions have been omitted and submitted separately to the Securities and Exchange Commission. |
^ | Certain confidential information contained in this exhibit has been omitted because it (i) is not material and (ii) would be competitively harmful if publicly disclosed. |
Signature | Title | Date | ||
/s/ Samantha (Ying) Du Samantha (Ying) Du | Chief Executive Officer and Chairwoman (Principal Executive Officer) | March 1, 2022 | ||
/s/ Billy Cho Billy Cho | Chief Financial Officer (Principal Financial and Accounting Officer) | March 1, 2022 | ||
/s/ John Diekman John Diekman | Director | March 1, 2022 | ||
/s/ Kai-Xian Chen Kai-Xian Chen | Director | March 1, 2022 | ||
/s/ Nisa Leung Nisa Leung | Director | March 1, 2022 | ||
/s/ William Lis William Lis | Director | March 1, 2022 | ||
/s/ Leon O. Moulder, Jr. Leon O. Moulder, Jr. | Director | March 1, 2022 | ||
/s/ Peter Wirth Peter Wirth | Director | March 1, 2022 | ||
/s/ Richard Gaynor Richard Gaynor | Director | March 1, 2022 | ||
/s/ Scott Morrison Scott Morrison | Director | March 1, 2022 |
ZAI LAB LIMITED | ||||
Date: March 1, | By: | /s/ Samantha (Ying) Du | ||
Name: | Samantha (Ying) Du | |||
Title: | Chief Executive Officer |
Page | ||||
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F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 | ||||
F-11 | ||||
F-47 |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
Notes | $ | $ | Notes | $ | $ | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 3 | 75,932 | 442,116 | 3 | 442,116 | 964,100 | ||||||||||||||||||
Short-term investments | 5 | 200,000 | 744,676 | 5 | 744,676 | 445,000 | ||||||||||||||||||
Accounts receivable (net of allowance of NaN and $1 as of December 31, 2019 and 2020, respectively) | 6 | 3,791 | 5,165 | |||||||||||||||||||||
Accounts receivable (net of allowance for credit loss of $1 and $11 as of December 31, 2020 and 2021, respectively) | 6 | 5,165 | 47,474 | |||||||||||||||||||||
Notes receivable | 0 | 7,335 | ||||||||||||||||||||||
Inventories | 7 | 6,005 | 13,144 | 7 | 13,144 | 18,951 | ||||||||||||||||||
Prepayments and other current assets | 6,736 | 10,935 | 10,935 | 18,021 | ||||||||||||||||||||
Total current assets | 292,464 | 1,216,036 | 1,216,036 | 1,500,881 | ||||||||||||||||||||
Restricted cash, non-current | 4 | 510 | 743 | 4 | 743 | 803 | ||||||||||||||||||
Investments in equity investees | 8 | 2,398 | 1,279 | |||||||||||||||||||||
Long-term investments (including the fair value measured investment of NaN and $15,383 as of December 31, 2020 and 2021, respectively) | 8 | 1,279 | 15,605 | |||||||||||||||||||||
Prepayments for equipment | 440 | 274 | 274 | 989 | ||||||||||||||||||||
Property and equipment, net | 9 | 21,353 | 29,162 | 9 | 29,162 | 43,102 | ||||||||||||||||||
Operating lease right-of-use | 10 | 15,071 | 17,701 | 10 | 17,701 | 14,189 | ||||||||||||||||||
Land use rights, net | 7,655 | 7,908 | 7,908 | 7,811 | ||||||||||||||||||||
Intangible assets, net | 1,148 | 1,532 | 1,532 | 1,848 | ||||||||||||||||||||
Long term deposits | 377 | 862 | ||||||||||||||||||||||
Long-term deposits | 862 | 870 | ||||||||||||||||||||||
Value added tax recoverable | 13,737 | 22,141 | 22,141 | 23,858 | ||||||||||||||||||||
Total assets | 355,153 | 1,297,638 | 1,297,638 | 1,609,956 | ||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Short-term borrowings | 13 | 6,450 | — | |||||||||||||||||||||
Accounts payable | 22,660 | 62,641 | 62,641 | 126,163 | ||||||||||||||||||||
Current operating lease liabilities | 10 | 4,351 | 5,206 | 10 | 5,206 | 5,927 | ||||||||||||||||||
Other current liabilities | 14 | 13,174 | 30,196 | 13 | 30,196 | 60,811 | ||||||||||||||||||
Total current liabilities | 46,635 | 98,043 | 98,043 | 192,901 | ||||||||||||||||||||
Deferred income | 2,881 | 16,858 | 16,858 | 27,486 | ||||||||||||||||||||
Non-current operating lease liabilities | 10 | 10,977 | 13,392 | 10 | 13,392 | 9,613 | ||||||||||||||||||
Total liabilities | 60,493 | 128,293 | 128,293 | 230,000 | ||||||||||||||||||||
Commitments and contingencies (Note 22) | 0 | 0 | ||||||||||||||||||||||
Commitments and contingencies (Note 20) | 0 | 0 | ||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Ordinary shares (par value of $0.00006 per share; 500,000,000 shares authorized, 68,237,247 and 87,811,026 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 4 | 5 | ||||||||||||||||||||||
Ordinary shares (par value of $0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 5 | 6 | ||||||||||||||||||||||
Additional paid-in capital | 734,734 | 1,897,467 | 1,897,467 | 2,825,948 | ||||||||||||||||||||
Accumulated deficit | (444,698 | ) | (713,603 | ) | (713,603 | ) | (1,418,074 | ) | ||||||||||||||||
Accumulated other comprehensive income (loss) | 18 | 4,620 | (14,524 | ) | ||||||||||||||||||||
Accumulated other comprehensive loss | (14,524 | ) | (23,645 | ) | ||||||||||||||||||||
Treasury s toc (at cost, NaN and 38,293 shares as of December 31, 2020 and 2021, respectively)k | 0 | (4,279 | ) | |||||||||||||||||||||
Total shareholders’ equity | 294,660 | 1,169,345 | 1,169,345 | 1,379,956 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | 355,153 | 1,297,638 | 1,297,638 | 1,609,956 | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
Notes | $ | $ | $ | |||||||||||||
Revenue | 11 | 129 | 12,985 | 48,958 | ||||||||||||
Expenses: | ||||||||||||||||
Cost of sales | (43 | ) | (3,749 | ) | (16,736 | ) | ||||||||||
Research and development | (120,278 | ) | (142,221 | ) | (222,711 | ) | ||||||||||
Selling, general and administrative | (21,576 | ) | (70,211 | ) | (111,312 | ) | ||||||||||
Loss from operations | (141,768 | ) | (203,196 | ) | (301,801 | ) | ||||||||||
Interest income | 3,261 | 8,232 | 5,120 | |||||||||||||
Interest expenses | (40 | ) | (293 | ) | (181 | ) | ||||||||||
Other income, net | 59 | 938 | 29,076 | |||||||||||||
Loss before income tax and share of loss from equity method investment | (138,488 | ) | (194,319 | ) | (267,786 | ) | ||||||||||
Income tax expense | 12 | 0— | 0— | 0— | ||||||||||||
Share of loss from equity method investment | (587 | ) | (752 | ) | (1,119 | ) | ||||||||||
Net loss | (139,075 | ) | (195,071 | ) | (268,905 | ) | ||||||||||
Net loss attributable to ordinary shareholders | (139,075 | ) | (195,071 | ) | (268,905 | ) | ||||||||||
Loss per share — basic and diluted | 15 | (2.64 | ) | (3.03 | ) | (3.46 | ) | |||||||||
Weighted-average shares used in calculating net loss per ordinary share — basic and diluted | 52,609,810 | 64,369,490 | 77,667,743 |
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
Notes | $ | $ | $ | |||||||||||||
Revenues: | ||||||||||||||||
Product revenue, net | 11 | 12,985 | 48,958 | 144,105 | ||||||||||||
Collaboration revenue | 0 | 0 | 207 | |||||||||||||
Total revenues | 12,985 | 48,958 | 144,312 | |||||||||||||
Expenses: | ||||||||||||||||
Cost of sales | (3,749 | ) | (16,736 | ) | (52,239 | ) | ||||||||||
Research and development | (142,221 | ) | (222,711 | ) | (573,306 | ) | ||||||||||
Selling, general and administrative | (70,211 | ) | (111,312 | ) | (218,831 | ) | ||||||||||
Loss from operations | (203,196 | ) | (301,801 | ) | (700,064 | ) | ||||||||||
Interest income | 8,232 | 5,120 | 2,190 | |||||||||||||
Interest expenses | (293 | ) | (181 | ) | 0 | |||||||||||
Other income (expenses), net | 938 | 29,076 | (5,540 | ) | ||||||||||||
Loss before income tax and share of loss from equity method investment | (194,319 | ) | (267,786 | ) | (703,414 | ) | ||||||||||
Income tax expense | 12 | 0— | 0— | 0— | ||||||||||||
Share of loss from equity method investment | (752 | ) | (1,119 | ) | (1,057 | ) | ||||||||||
Net loss | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||||||
Net loss attributable to ordinary shareholders | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||||||
Loss per share — basic and diluted | 14 | (3.03 | ) | (3.46 | ) | (7.58 | ) | |||||||||
Weighted-average shares used in calculating net loss per ordinary share — basic and diluted | 64,369,490 | 77,667,743 | 92,992,112 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Net loss | (139,075 | ) | (195,071 | ) | (268,905 | ) | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||||||||
Other comprehensive income (loss), net of tax of NaN: | ||||||||||||||||||||||||
Foreign currency translation adjustments | 2,212 | 1,958 | (19,144 | ) | 1,958 | (19,144 | ) | (9,121 | ) | |||||||||||||||
Comprehensive loss | (136,863 | ) | (193,113 | ) | (288,049 | ) | (193,113 | ) | (288,049 | ) | (713,592 | ) | ||||||||||||
Ordinary shares | Additional paid in capital | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||||||
Number of Shares | Amount | Subscription receivable | Accumulated deficit | Total | ||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Balance at January 1, 2018 | 49,912,570 | 3 | 345,270 | 0 | (110,552 | ) | 450 | 235,171 | ||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 338,332 | 0 | 0 | 0 | — | — | — | |||||||||||||||||||||
Exercise of shares option | 256,065 | 0 | 196 | — | — | — | 196 | |||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $652 | 7,500,000 | 0 | 140,348 | — | — | — | 140,348 | |||||||||||||||||||||
Share-based compensation | — | — | 12,229 | — | — | — | 12,229 | |||||||||||||||||||||
Net loss | — | — | — | — | (139,075 | ) | — | (139,075 | ) | |||||||||||||||||||
Foreign currency translation | — | — | — | — | — | 2,212 | 2,212 | |||||||||||||||||||||
Balance at December 31, 2018 | 58,006,967 | 3 | 498,043 | — | (249,627 | ) | 2,662 | 251,081 | ||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 539,733 | 0 | 0 | — | — | — | — | |||||||||||||||||||||
Exercise of shares option | 670,939 | 0 | 1,055 | — | — | — | 1,055 | |||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $854 | 9,019,608 | 1 | 215,345 | — | — | — | 215,346 | |||||||||||||||||||||
Share-based compensation | — | — | 20,291 | — | — | — | 20,291 | |||||||||||||||||||||
Net loss | — | — | — | — | (195,071 | ) | — | (195,071 | ) | |||||||||||||||||||
Foreign currency translation | — | — | — | — | — | 1,958 | 1,958 | |||||||||||||||||||||
Balance at December 31, 2019 | 68,237,247 | 4 | 734,734 | — | (444,698 | ) | 4,620 | 294,660 | ||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 225,768 | 0 | 0 | — | — | — | — | |||||||||||||||||||||
Exercise of shares option | 899,361 | 0 | 6,664 | — | — | — | 6,664 | |||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $746 | 6,300,000 | 0 | 280,549 | — | — | — | 280,549 | |||||||||||||||||||||
Issuance of ordinary shares upon secondary listing , net of issuance cost of $ 5,698 | 12,148,650 | 1 | 850,690 | — | — | — | 850,691 | |||||||||||||||||||||
Share-based compensation | — | — | 24,830 | — | — | — | 24,830 | |||||||||||||||||||||
Net loss | — | — | — | — | (268,905 | ) | — | (268,905 | ) | |||||||||||||||||||
Foreign currency translation | — | — | — | — | — | (19,144 | ) | (19,144 | ) | |||||||||||||||||||
Balance at December 31, 2020 | 87,811,026 | 5 | 1,897,467 | — | (713,603 | ) | (14,524 | ) | 1,169,345 | |||||||||||||||||||
Ordinary shares | Additional paid in capital | Accumulated other comprehensive income (loss) | Treasury Stock | |||||||||||||||||||||||||||||
Number of Shares | Amount | Accumulated deficit | Number of Shares | Amount | Total | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Balance at January 1, 2019 | 58,006,967 | 3 | 498,043 | (249,627 | ) | 2,662 | — | — | 251,081 | |||||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 539,733 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||
Exercise of shares option | 670,939 | 0 | 1,055 | — | — | — | — | 1,055 | ||||||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $854 | 9,019,608 | 1 | 215,345 | — | — | — | — | 215,346 | ||||||||||||||||||||||||
Share-based compensation | — | — | 20,291 | — | — | — | — | 20,291 | ||||||||||||||||||||||||
Net loss | — | — | — | (195,071 | ) | — | — | — | (195,071 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 1,958 | — | — | 1,958 | ||||||||||||||||||||||||
Balance at December 31, 2019 | 68,237,247 | 4 | 734,734 | (444,698 | ) | 4,620 | — | — | 294,660 | |||||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 225,768 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||
Exercise of shares option | 899,361 | 0 | 6,664 | — | — | — | — | 6,664 | ||||||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $746 | 6,300,000 | 0 | 280,549 | — | — | — | — | 280,549 | ||||||||||||||||||||||||
Issuance of ordinary shares upon secondary listing, net of issuance cost of $5,698 | 12,148,650 | 1 | 850,690 | — | — | — | — | 850,691 | ||||||||||||||||||||||||
Share-based compensation | — | — | 24,830 | — | — | — | — | 24,830 | ||||||||||||||||||||||||
Net loss | — | — | — | (268,905 | ) | — | — | — | (268,905 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (19,144 | ) | — | — | (19,144 | ) | ||||||||||||||||||||||
Balance at December 31, 2020 | 87,811,026 | 5 | 1,897,467 | (713,603 | ) | (14,524 | ) | — | — | 1,169,345 | ||||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 205,450 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||
Exercise of shares option | 1,235,340 | 0 | 7,417 | — | — | — | — | 7,417 | ||||||||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $839 | 5,716,400 | 1 | 818,035 | — | — | — | — | 818,036 | ||||||||||||||||||||||||
Issuance of ordinary shares in connection with collaboration and license arrangement (Note 17) | 568,182 | 0 | 62,250 | — | — | — | — | 62,250 | ||||||||||||||||||||||||
Issuance cost adjustment for secondary listing | — | — | 65 | — | — | — | — | 65 | ||||||||||||||||||||||||
Receipt of employees’ shares to satisfy tax withholding obligations related to share-based compensation | — | — | — | — | — | (38,293 | ) | (4,279 | ) | (4,279 | ) | |||||||||||||||||||||
Share-based compensation | — | — | 40,714 | — | — | — | — | 40,714 | ||||||||||||||||||||||||
Net loss | — | — | — | (704,471 | ) | — | — | — | (704,471 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (9,121 | ) | — | — | (9,121 | ) | ||||||||||||||||||||||
Balance at December 31, 2021 | 95,536,398 | 6 | 2,825,948 | (1,418,074 | ) | (23,645 | ) | (38,293 | ) | (4,279 | ) | 1,379,956 | ||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net loss | (139,075 | ) | (195,071 | ) | (268,905 | ) | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||
Allowance for doubtful accounts | — | — | 1 | |||||||||||||||||||||
Allowance for credit loss | — | 1 | 10 | |||||||||||||||||||||
Inventory write-down | — | — | 29 | — | 29 | 1,368 | ||||||||||||||||||
Depreciation and amortization expenses | 1,650 | 3,766 | 4,640 | 3,766 | 4,640 | 6,487 | ||||||||||||||||||
Amortization of deferred income | (312 | ) | (312 | ) | (312 | ) | (312 | ) | (312 | ) | (521 | ) | ||||||||||||
Share-based compensation | 12,229 | 20,291 | 24,830 | 20,291 | 24,830 | 40,714 | ||||||||||||||||||
Noncash research and development expenses | — | — | 62,250 | |||||||||||||||||||||
Share of loss from equity method investment | 587 | 752 | 1,119 | 752 | 1,119 | 1,057 | ||||||||||||||||||
Loss from fair value changes of equity investment with readily determinable fair value | — | — | 14,617 | |||||||||||||||||||||
Loss (gain) on disposal of property and equipment | 1 | 15 | (21 | ) | 15 | (21 | ) | 29 | ||||||||||||||||
Noncash lease expenses | — | 2,831 | 4,318 | 2,831 | 4,318 | 6,119 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | (90 | ) | (3,701 | ) | (1,375 | ) | (3,701 | ) | (1,375 | ) | (42,319 | ) | ||||||||||||
Notes receivable | — | — | (7,335 | ) | ||||||||||||||||||||
Inventories | (4 | ) | (6,001 | ) | (7,168 | ) | (6,001 | ) | (7,168 | ) | (7,174 | ) | ||||||||||||
Prepayments and other current assets | (4,794 | ) | (1,125 | ) | (4,199 | ) | (1,125 | ) | (4,199 | ) | (7,086 | ) | ||||||||||||
Long term deposits | (250 | ) | 180 | (485 | ) | |||||||||||||||||||
Long-term deposits | 180 | (485 | ) | (8 | ) | |||||||||||||||||||
Value added tax recoverable | (2,982 | ) | (5,693 | ) | (8,404 | ) | (5,693 | ) | (8,404 | ) | (1,717 | ) | ||||||||||||
Accounts payable | 28,464 | (14,772 | ) | 39,981 | (14,772 | ) | 39,981 | 63,522 | ||||||||||||||||
Other current liabilities | 7,056 | 9,136 | (10,977 | ) | 9,136 | (10,977 | ) | 19,463 | ||||||||||||||||
Operating lease liabilities | — | (2,436 | ) | (3,416 | ) | (2,436 | ) | (3,416 | ) | (5,385 | ) | |||||||||||||
Deferred income | (18 | ) | 1,129 | 14,289 | 1,129 | 14,289 | 11,149 | |||||||||||||||||
Net cash used in operating activities | (97,538 | ) | (191,011 | ) | (216,055 | ) | (191,011 | ) | (216,055 | ) | (549,231 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of short-term investments | (200,350 | ) | (277,640 | ) | (949,161 | ) | (277,640 | ) | (949,161 | ) | (445,000 | ) | ||||||||||||
Proceeds from maturity of short-term investments | — | 277,990 | 405,000 | 277,990 | 405,000 | 743,902 | ||||||||||||||||||
Purchase of equity method investment | (2,086 | ) | — | — | ||||||||||||||||||||
Purchase of investment in equity investee | — | — | (30,000 | ) | ||||||||||||||||||||
Purchase of property and equipment | (10,015 | ) | (6,035 | ) | (10,130 | ) | (6,035 | ) | (10,130 | ) | (18,295 | ) | ||||||||||||
Disposal of property and equipment | — | — | 3 | |||||||||||||||||||||
Purchase of land use rights | — | (7,836 | ) | — | (7,836 | ) | — | — | ||||||||||||||||
Purchase of intangible assets | (103 | ) | (1,371 | ) | (539 | ) | (1,371 | ) | (539 | ) | (653 | ) | ||||||||||||
Net cash used in investing activities | (212,554 | ) | (14,892 | ) | (554,830 | ) | ||||||||||||||||||
Net cash provided by ( used in) investing activities | (14,892 | ) | (554,830 | ) | 249,957 | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Proceed s from short-term borrowings | 3,643 | 7,252 | — | |||||||||||||||||||||
Proceeds from short-term borrowings | 7,252 | — | — | |||||||||||||||||||||
Repayment of short-term borrowings | — | (4,351 | ) | (6,527 | ) | (4,351 | ) | (6,527 | ) | — | ||||||||||||||
Proceeds from exercises of stock options | 196 | 1,055 | 6,664 | 1,055 | 6,664 | 7,417 | ||||||||||||||||||
Proceeds from issuance of ordinary shares upon public offerings | 141,000 | 216,200 | 1,137,683 | 216,200 | 1,137,683 | 818,875 | ||||||||||||||||||
Payment of public offering costs | (692 | ) | (854 | ) | (5,380 | ) | (854 | ) | (5,380 | ) | (1,837 | ) | ||||||||||||
Employee taxes paid related to settlement of equity awards | — | — | (4,253 | ) | ||||||||||||||||||||
Net cash provided by financing activities | 144,147 | 219,302 | 1,132,440 | 219,302 | 1,132,440 | 820,202 | ||||||||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (763 | ) | 91 | 4,862 | ||||||||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (166,708 | ) | 13,490 | 366,417 | ||||||||||||||||||||
Cash, cash equivalents and restricted cash — beginning of the year | 229,660 | 62,952 | 76,442 | |||||||||||||||||||||
Cash, cash equivalents and restricted cash — end of the year | 62,952 | 76,442 | 442,859 | |||||||||||||||||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Supplemental disclosure on non-cash investing and financing activities: | ||||||||||||
Payables for purchase of property and equipment | 1,709 | 416 | 788 | |||||||||
Payables for intangible assets | 225 | — | 70 | |||||||||
Payables for public offering costs | — | — | 1,063 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash and cash equivalents | 62,952 | 75,932 | 442,116 | |||||||||
Restricted cash, non-current | — | 510 | 743 | |||||||||
Total cash and cash equivalents and restricted cas h | 62,952 | 76,442 | 442,859 | |||||||||
Interest paid | 36 | 288 | 189 |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 91 | 4,862 | 1,116 | |||||||||
Net increase in cash, cash equivalents and restricted cash | 13,490 | 366,417 | 522,044 | |||||||||
Cash, cash equivalents and restricted cash — beginning of the year | 62,952 | 76,442 | 442,859 | |||||||||
Cash, cash equivalents and restricted cash — end of the year | 76,442 | 442,859 | 964,903 | |||||||||
Supplemental disclosure on non-cash investing and financing activities: | ||||||||||||
Payables for purchase of property and equipment | 416 | 788 | 2,568 | |||||||||
Payables for intangible assets | — | 70 | 191 | |||||||||
Payables for public offering costs | — | 1,063 | — | |||||||||
Payables for treasury stock | — | — | 26 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash and cash equivalents | 75,932 | 442,116 | 964,100 | |||||||||
Restricted cash, non-current | 510 | 743 | 803 | |||||||||
Total cash and cash equivalents and restricted cash | 76,442 | 442,859 | 964,903 | |||||||||
Interest paid | 288 | 189 | 0 |
1. | Organization and principal activities |
Name of company | Place of incorporation | Date of incorporation | Percentage of ownership | Principal activities | ||||
Zai Lab (Hong Kong) Limited | Hong Kong | April 29, 2013 | 100% | Operating company for business development and R&D activities and commercialization of innovative medicines and device | ||||
Zai Lab (Shanghai) Co., Ltd. | China | January 6, 2014 | 100% | Development and commercialization of innovative medicines and devices | ||||
Zai Lab (AUST) Pty., Ltd. | Australia | December 10, 2014 | 100% | Clinical trial activities | ||||
Zai Lab (Suzhou) Co., Ltd. | China | November 30, 2015 | 100% | Development and commercialization of innovative medicines | ||||
Zai Biopharmaceutical (Suzhou) Co., Ltd. | China | June 15, 2017 | 100% | Development and commercialization of innovative medicines | ||||
Zai Lab (US) LLC | States | April 21, 2017 | 100% | Operating company for business development, | ||||
Zai Lab International Trading (Shanghai) Co., Ltd. | China | November 6, 2019 | 100% | Commercialization of innovative medicines and devices | ||||
Zai Auto Immune (Hong Kong) Limited | Hong Kong | November 4, 2020 | 100% | Operating company for business development and R&D activities | ||||
Zai Lab (Taiwan) Limited | Taiwan | December 10, 2020 | 100% | Commercialization of innovative medicines and devices |
2. | Summary of significant accounting policies |
Useful life | ||
Office equipment | 3 years | |
Electronic equipment | 1.25-3 years | |
4 years | ||
Laboratory equipment | 5 years | |
Manufacturing equipment | 10 years | |
Leasehold improvements | lesser of useful life or lease term |
Description | Fair Value as of December 31, 2021 | Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
US$ | US$ | |||||||
Equity Investments with Readily Determinable Fair Value | 15,383 | 15,383 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
A | 51 | 5,397 | * | 5,397 | * | * | ||||||||||||||||||
B | 34 | * | * | 4,682 | * | * | ||||||||||||||||||
C | 14 | * | * | * | 15,774 | 40,634 | ||||||||||||||||||
D | * | 4,682 | * | |||||||||||||||||||||
E | * | * | 15,774 |
* | Represents less than 10% of revenue for the years ended December 31, |
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
A | 25,515 | * | * | |||||||||
B | 14,664 | * | * | |||||||||
C | * | 27,966 | * | |||||||||
D | * | 18,362 | * | |||||||||
E | * | * | 33,564 | |||||||||
F | * | * | 26,710 |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
F | 27,966 | * | * | |||||||||
G | 18,362 | * | * | |||||||||
H | * | 33,564 | * | |||||||||
I | * | 26,710 | * | |||||||||
J | * | * | 165,431 | |||||||||
K | * | * | 66,650 |
* | Represents less than 10% of research and development expenses and the inventory purchases for the years ended December 31, |
As of December 31, | ||||||||
2020 | 2021 | |||||||
$ | $ | |||||||
C | 2,070 | 10,293 | ||||||
D | 726 | * | ||||||
E | * | 10,979 |
* | Represents less than 10% of accounts receivable as of December 31, 2020 and 2021. |
3. | Cash and cash equivalents |
As of December 31, | ||||||||
2020 | 2021 | |||||||
$ | $ | |||||||
Cash at bank and in hand | 441,283 | 663,472 | ||||||
Cash equivalents (note (i)) | 833 | 300,628 | ||||||
442,116 | 964,100 | |||||||
Denominated in: | ||||||||
US$ | 297,813 | 932,888 | ||||||
RMB (note (ii)) | 23,898 | 23,791 | ||||||
Hong Kong dollar (“HK$” ) | 119,695 | 6,674 | ||||||
Australian dollar (“A$”) | 710 | 475 | ||||||
Taiwan dollar (“TW$”) | 0 | 272 | ||||||
442,116 | 964,100 | |||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
$ | $ | |||||||
Cash at bank and in hand | 75,111 | 441,283 | ||||||
Cash equivalents | 821 | 833 | ||||||
75,932 | 442,116 | |||||||
Denominated in: | ||||||||
US$ | 62,478 | 297,813 | ||||||
RMB (note (i)) | 6,761 | 23,898 | ||||||
Hong Kong dollar (“HK$”) | 5,948 | 119,695 | ||||||
Australian dollar (“A$”) | 745 | 710 | ||||||
75,932 | 442,116 | |||||||
(i) | Cash equivalents represent short-term and highly liquid investments in a money market fund. |
(ii) | Certain cash and bank balances denominated in RMB were deposited with banks in mainland China. The conversion of these RMB denominated balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the Chi government.nese |
4. | Restricted cash, non-current |
5. | Short-term investments |
6. | Accounts receivable |
Allowance for Credit Losses | ||||
$ | ||||
Balance as of December 31, | ||||
Current period provision for expected credit losses | ||||
Amounts written-off | — | |||
Recoveries of amounts previously written-off | — | |||
Balance as of December 31, | ||||
7. | Inventories |
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Finished goods | 593 | 3,041 | 3,041 | 5,632 | ||||||||||||
Raw materials | 5,412 | 10,103 | 10,103 | 13,231 | ||||||||||||
Work in progress | — | 88 | ||||||||||||||
Inventories | 6,005 | 13,144 | 13,144 | 18,951 | ||||||||||||
8. | Long-term investments |
9. | Property and equipment, net |
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Office equipment | 397 | 430 | 430 | 836 | ||||||||||||
Electronic equipment | 1,482 | 2,646 | 2,646 | 5,036 | ||||||||||||
Vehicle | 76 | 143 | 143 | 220 | ||||||||||||
Laboratory equipment | 5,854 | 11,933 | 11,933 | 17,069 | ||||||||||||
Manufacturing equipment | 11,049 | 12,198 | 12,198 | 14,600 | ||||||||||||
Leasehold improvements | 7,528 | 9,641 | 9,641 | 10,432 | ||||||||||||
Construction in progress | 428 | 2,423 | 2,423 | 11,334 | ||||||||||||
26,814 | 39,414 | 39,414 | 59,527 | |||||||||||||
Less: accumulated depreciation | (5,461 | ) | (10,252 | ) | (10,252 | ) | (16,425 | ) | ||||||||
Property and equipment, net | 21,353 | 29,162 | 29,162 | 43,102 | ||||||||||||
10. | Lease |
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
$ | $ | |||||||
Operating fixed lease cost | 3,245 | 4,539 |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Operating fixed lease cost | 3,245 | 4,539 | 6,263 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||
2019 | 2020 | 2019 | 2020 | 2021 | ||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||
Cash paid for amounts included in measurement of lease liabilities | 2,778 | 4,056 | 2,778 | 4,056 | 5,840 | |||||||||||||||
Non-cash operating lease liabilities arising fromright-of-use | 10,876 | 6,393 | 10,876 | 6,393 | 2,183 |
Year ended December 31 | Year ended December 31 | |||||||
$ | $ | |||||||
2021 | 5,434 | |||||||
2022 | 4,362 | 6,153 | ||||||
2023 | 2,401 | 2,571 | ||||||
2024 | 2,238 | 2,240 | ||||||
2025 | 2,192 | 2,186 | ||||||
2026 | 1,638 | |||||||
Thereafter | 2,610 | 1,213 | ||||||
Total lease payments | 19,237 | 16,001 | ||||||
Less: imputed interest | (639 | ) | (461 | ) | ||||
Present value of minimum operating lease payments | 18,598 | 15,540 | ||||||
Year ended December 31, | ||||||||
2019 | 2020 | |||||||
Weighted-average remaining lease term | 4.4 years | 5.0 years | ||||||
Weighted-average discount rate | 3.1 | % | 2.3 | % |
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Product revenue — gross | 129 | 12,985 | 57,355 | |||||||||
Less: Rebate and sales return | — | — | (8,397 | ) | ||||||||
Product revenue — net | 129 | 12,985 | 48,958 | |||||||||
Year ended December 31, | ||||||||
2020 | 2021 | |||||||
Weighted-average remaining lease term | 5.0 years | 4.2 years | ||||||
Weighted-average discount rate | 2.3 | % | 2.3 | % |
11. | Product revenue, net |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Product revenue — gross | 12,985 | 57,355 | 190,180 | |||||||||
Less: Rebate and sales return | — | (8,397 | ) | (46,075 | ) | |||||||
Product revenue — net | 12,985 | 48,958 | 144,105 | |||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
ZEJULA | 129 | 6,625 | 32,138 | 6,625 | 32,138 | 93,579 | ||||||||||||||||||
Optune | — | 6,360 | 16,418 | 6,360 | 16,418 | 38,903 | ||||||||||||||||||
Others | — | — | 402 | |||||||||||||||||||||
QINLOCK | — | 402 | 11,620 | |||||||||||||||||||||
NUZYRA | — | — | 3 | |||||||||||||||||||||
Total product revenue — net | 129 | 12,985 | 48,958 | 12,985 | 48,958 | 144,105 | ||||||||||||||||||
12. | Income Tax |
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Cayman | 1,218 | (3,241 | ) | 2,612 | ||||||||
BVI | 2 | 2 | 3 | |||||||||
PRC | 127,711 | 185,239 | 220,813 | |||||||||
HK | 7,778 | 3,271 | 20,022 | |||||||||
US | 2,351 | 9,786 | 24,616 | |||||||||
AUST | 15 | 14 | 839 | |||||||||
139,075 | 195,071 | 268,905 | ||||||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Cayman | (3,241 | ) | 2,612 | 28,401 | ||||||||
BVI | 2 | 3 | 2 | |||||||||
Mainland China | 185,239 | 220,813 | 340,865 | |||||||||
HK | 3,271 | 20,022 | 243,400 | |||||||||
US | 9,786 | 24,616 | 89,374 | |||||||||
AUST | 14 | 839 | 1,758 | |||||||||
TW | — | — | 671 | |||||||||
195,071 | 268,905 | 704,471 | ||||||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Statutory income tax rate | 25 | % | 25 | % | 25 | % | ||||||
Share-based compensations | (1.51 | %) | (1.36 | %) | (0.92 | %) | ||||||
Non-deductible expenses | (0.39 | %) | (1.17 | %) | (5.78 | %) | ||||||
Prior year tax filing adjustment | 1.93 | % | 1.78 | % | 1.50 | % | ||||||
Effect of different tax rate of subsidiary operation in other jurisdictions | 0.07 | % | (1.04 | %) | (4.60 | %) | ||||||
Preferential tax rate | (9.14 | %) | (7.48 | %) | (4.30 | %) | ||||||
Effect of change in tax rate | (9.15 | %) | — | — | ||||||||
Changes in valuation allowance | (6.81 | %) | (15.73 | %) | (10.90 | %) | ||||||
Effective income tax rate | — | — | — | |||||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Statutory income tax rate | 25 | % | 25 | % | 25 | % | ||||||
Share-based compensations | (1.93 | %) | (1.51 | %) | (1.36 | %) | ||||||
Non-deductible expenses | (0.38 | %) | (0.39 | %) | (1.17 | %) | ||||||
Prior year tax filing adjustment | 1.55 | % | 1.93 | % | 1.78 | % | ||||||
Effect of different tax rate of subsidiary operation in other jurisdictions | (0.76 | %) | 0.07 | % | (1.04 | %) | ||||||
Preferential tax rate | — | (9.14 | %) | (7.48 | %) | |||||||
Effect of change in tax rate | — | (9.15 | %) | — | ||||||||
Changes in valuation allowance | (23.48 | %) | (6.81 | %) | (15.73 | %) | ||||||
Effective income tax rate | 0 | 0 | 0 | |||||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Deferred tax assets: | ||||||||||||
Depreciation of property and equipment, net | 15 | 57 | 84 | |||||||||
Government grants | 187 | 325 | 400 | |||||||||
Deferred revenue | — | — | 2,069 | |||||||||
Public welfare donations | — | — | 7,627 | |||||||||
Net operating loss carry forwards | 49,726 | 62,833 | 94,954 | |||||||||
Less: valuation allowance | (49,928 | ) | (63,215 | ) | (105,134 | ) | ||||||
Deferred tax assets, net | 0 | 0 | 0 | |||||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Deferred tax assets: | ||||||||||||
Depreciation of property and equipment, net | 57 | 84 | 108 | |||||||||
Government grants | 325 | 400 | 496 | |||||||||
Deferred revenue | — | 2,069 | 3,733 | |||||||||
Public welfare donations | — | 7,627 | 10,246 | |||||||||
Net operating loss carry forwards | 62,833 | 94,954 | 175,101 | |||||||||
Less: valuation allowance | (63,215 | ) | (105,134 | ) | (189,684 | ) | ||||||
Deferred tax assets, net | — | — | — | |||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Balance as of January 1, | (49,928 | ) | (63,215 | ) | (63,215 | ) | (105,134 | ) | ||||||||
Additions | (13,287 | ) | (41,919 | ) | (41,919 | ) | (84,550 | ) | ||||||||
Balance as of December 31, | (63,215 | ) | (105,134 | ) | (105,134 | ) | (189,684 | ) | ||||||||
Other current liabilities |
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Payroll | 9,590 | 13,694 | 13,694 | 25,685 | ||||||||||||
Professional service fee | 774 | 3,128 | ||||||||||||||
Accrued professional service fee | 3,128 | 4,319 | ||||||||||||||
Payables for purchase of property and equipment | 416 | 788 | 788 | 2,568 | ||||||||||||
Payables for purchase of intangible assets | — | 70 | ||||||||||||||
Accrued rebate to distributors | — | 7,067 | 7,067 | 15,001 | ||||||||||||
Tax payables | 952 | 8,817 | ||||||||||||||
Others (note (i)) | 2,394 | 5,449 | 4,567 | 4,421 | ||||||||||||
Total | 13,174 | 30,196 | 30,196 | 60,811 | ||||||||||||
(i) | Others are mainly |
Loss per share |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net loss attributable to ordinary shareholders | (139,075 | ) | (195,071 | ) | (268,905 | ) | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average number of ordinary shares- basic and diluted | 52,609,810 | 64,369,490 | 77,667,743 | 64,369,490 | 77,667,743 | 92,992,112 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Net loss per share-basic and diluted | (2.64 | ) | (3.03 | ) | (3.46 | ) | (3.03 | ) | (3.46 | ) | (7.58 | ) | ||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Share options | 8,761,735 | 9,122,980 | 8,755,920 | 9,122,980 | 8,755,920 | 8,101,559 | ||||||||||||||||||
Non-vested restricted shares | 1,112,001 | 743,268 | 541,750 | 743,268 | 541,750 | 956,736 |
Related party transactions |
Company Name | Relationship with the Company | |
MEDx (Suzhou) Translational Medicine Co., Ltd. | Significant influence held by Samantha |
Share-based compensation |
2018 | 2019 | 2020 | ||||
Risk-free rate of return | 2.7%-3.2 % | 1.6%-2.5 % | 0.4%-0.8 % | |||
Contractual life of option | 10 years | 10 years | 10 years | |||
Expected term | 6.5 years | 6 or 6.5 years | 6 or 6.5 years | |||
Estimated volatility rate | 70% | 70% | 70% | |||
Expected dividend yield | 0% | 0% | 0% | |||
Fair value of underlying ordinary shares | $17.60-$24.58 | $27.23-$41.59 | $44.94-$128.72 |
Number of options | Weighted average exercise price | Weighted average remaining contractual term | Aggregate intrinsic value | |||||||||||||
$ | Years | $ | ||||||||||||||
Outstanding at January 1, 2018 | 6,548,377 | 1.28 | 8.06 | 130,669 | ||||||||||||
Granted | 2,759,750 | 21.15 | — | — | ||||||||||||
Exercised | (256,065 | ) | 0.76 | — | — | |||||||||||
Forfeited | (290,327 | ) | 3.73 | — | — | |||||||||||
Outstanding at December 31, 2018 | 8,761,735 | 7.47 | 7.80 | 138,010 | ||||||||||||
Granted | 1,067,385 | 32.22 | — | — | ||||||||||||
Exercised | (670,939 | ) | 1.57 | — | — | |||||||||||
Forfeited | (35,201 | ) | 25.99 | — | — | |||||||||||
Outstanding at December 31, 2019 | 9,122,980 | 10.73 | 7.16 | 281,562 | ||||||||||||
Granted | 1,220,177 | 63.98 | — | — | ||||||||||||
Exercised | (899,361 | ) | 7.41 | — | — | |||||||||||
Forfeited | (687,876 | ) | 26.37 | — | — | |||||||||||
Outstanding at December 31, 2020 | 8,755,920 | 17.26 | 6.53 | 1,033,899 | ||||||||||||
Vested and exercisable as of December 31, 2020 | 5,073,001 | 4.90 | 5.47 | 661,708 | ||||||||||||
Vested or expected to vest as of December 31, 2020 | 8,755,920 | 17.26 | 6.53 | 1,033,899 |
2019 | 2020 | 2021 | ||||
Risk-free rate of return | 1.6%-2.5% | 0.4%-0.8% | 0.9%-1.4% | |||
Contractual life of option | 10 years | 10 years | 10 years | |||
Expected term | 6 or 6.5 years | 6 or 6.5 years | 6, 6.25 or 6.5 years | |||
Estimated volatility rate | 70% | 70% | 65% | |||
Expected dividend yield | 0% | 0% | 0% | |||
Fair value of underlying ordinary shares | $27.23-$41.59 | $44.94-$128.72 | $66.92-$180.00 |
Number of options | Weighted average exercise price | Weighted average remaining contractual term | Aggregate intrinsic value | |||||||||||||
$ | Years | $ | ||||||||||||||
Outstanding at December 31, 2020 | 8,755,920 | 17.26 | 6.53 | 1,033,899 | ||||||||||||
Granted | 733,893 | 126.02 | — | — | ||||||||||||
Exercised | (1,235,340 | ) | 6.00 | — | — | |||||||||||
Forfeited | (152,914 | ) | 64.22 | — | — | |||||||||||
Outstanding at December 31, 2021 | 8,101,559 | 27.94 | 5.98 | 339,570 | ||||||||||||
Vested and exercisable as of December 31, 2021 | 5,174,961 | 9.25 | 4.89 | 279,783 | ||||||||||||
Vested or expected to vest as of December 31, 2021 | 8,101,559 | 27.94 | 5.98 | 339,570 |
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Selling, general and administrative | 6,931 | 11,492 | 15,568 | |||||||||
Research and development | 7,994 | 7,203 | 11,626 | |||||||||
Total | 14,925 | 18,695 | 27,194 | |||||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Selling, general and administrative | 4,428 | 6,931 | 11,492 | |||||||||
Research and development | 4,975 | 7,994 | 7,203 | |||||||||
Total | 9,403 | 14,925 | 18,695 | |||||||||
Numbers of non-vested restricted shares | Weighted average grant date fair value | |||||||
$ | ||||||||
Non-vested as of January 1, 2019 | 1,112,001 | 15.13 | ||||||
Granted | 171,000 | 27.55 | ||||||
Vested | (539,733 | ) | 8.97 | |||||
Non-vested as of December 31, 2019 | 743,268 | 22.45 | ||||||
Granted | 159,250 | 74.55 | ||||||
Vested | (225,768 | ) | 22.98 | |||||
Forfeited | (135,000 | ) | 23.20 | |||||
Non-vested as of December 31, 2020 | 541,750 | 37.36 | ||||||
Year ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
$ | $ | $ | ||||||||||
Selling, general and administrative | 2,206 | 3,643 | 4,226 | |||||||||
Research and development | 620 | 1,723 | 1,909 | |||||||||
Total | 2,826 | 5,366 | 6,135 | |||||||||
Numbers of non-vested restricted shares | Weighted average grant date fair value | |||||||
$ | ||||||||
Non-vested as of December 31, 2020 | 541,750 | 37.36 | ||||||
Granted | 656,399 | 105.54 | ||||||
Vested | (205,450 | ) | 37.17 | |||||
Forfeited | (35,963 | ) | 74.82 | |||||
Non-vested as of December 31, 2021 | 956,736 | 82.62 | ||||||
Year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Selling, general and administrative | 3,643 | 4,226 | 7,626 | |||||||||
Research and development | 1,723 | 1,909 | 5,894 | |||||||||
Total | 5,366 | 6,135 | 13,520 | |||||||||
Licenses and collaborative arrangement |
Restricted net assets |
Employee defined contribution plan |
Commitments and Contingencies |
(a) | Purchase commitments |
(b) | Contingencies |
21. | Selected quarterly financial data (unaudited) |
Quarter Ended, | ||||||||||||||||
2021 | March 31, | June 30, | September 30, | December 31, | ||||||||||||
$ | $ | $ | $ | |||||||||||||
Product revenue, net | 20,103 | 36,935 | 43,103 | 43,964 | ||||||||||||
Collaboration revenue | 0 | 0 | 0 | 207 | ||||||||||||
Loss from operations | (227,092 | ) | (170,571 | ) | (83,205 | ) | (219,196 | ) | ||||||||
Net loss | (232,910 | ) | (163,324 | ) | (96,412 | ) | (211,825 | ) | ||||||||
Net loss attributable to ordinary shareholders | (232,910 | ) | (163,324 | ) | (96,412 | ) | (211,825 | ) | ||||||||
Basic and diluted net loss per share | (2.64 | ) | (1.76 | ) | (1.01 | ) | (2.22 | ) |
Quarter Ended, | ||||||||||||||||
2020 | March 31, | June 30, | September 30, | December 31, | ||||||||||||
$ | $ | $ | $ | |||||||||||||
Product revenue, net | 8,218 | 10,995 | 14,651 | 15,094 | ||||||||||||
Loss from operations | (46,322 | ) | (83,966 | ) | (76,257 | ) | (95,256 | ) | ||||||||
Net loss | (47,988 | ) | (80,629 | ) | (63,741 | ) | (76,547 | ) | ||||||||
Net loss attributable to ordinary shareholders | (47,988 | ) | (80,629 | ) | (63,741 | ) | (76,547 | ) | ||||||||
Basic and diluted net loss per share | (0.66 | ) | (1.08 | ) | (0.84 | ) | (0.88 | ) |
22. | Subsequent events |
As of December 31, | ||||||||
2020 | 2021 | |||||||
$ | $ | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 397,608 | 591,842 | ||||||
Short-term investments | 744,676 | 445,000 | ||||||
Prepayments and other current assets | 1,926 | 2,364 | ||||||
Total current assets | 1,144,210 | 1,039,206 | ||||||
Investment in subsidiaries | 28,090 | 341,980 | ||||||
Total assets | 1,172,300 | 1,381,186 | ||||||
Liabilities and shareholders’ equity | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Other current liabilities | 2,410 | 996 | ||||||
Total current liabilities | 2,410 | 996 | ||||||
Deferred income | 546 | 234 | ||||||
Total liabilities | 2,956 | 1,230 | ||||||
Shareholders’ equity | ||||||||
Ordinary shares (par value of US$0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 5 | 6 | ||||||
Additional paid-in capital | 1,897,467 | 2,825,948 | ||||||
Accumulated deficit | (713,603 | ) | (1,418,074 | ) | ||||
Additional other comprehensive income | (14,525 | ) | (23,645 | ) | ||||
Treasury stock | — | (4,279 | ) | |||||
Total shareholders’ equity | 1,169,344 | 1,379,956 | ||||||
Total liabilities and shareholders’ equity | 1,172,300 | 1,381,186 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Operating Expenses: | ||||||||||||
Research and development | (101 | ) | (437 | ) | (6 | ) | ||||||
General and administrative | (4,864 | ) | (7,345 | ) | (12,074 | ) | ||||||
Loss from operations | (4,965 | ) | (7,782 | ) | (12,080 | ) | ||||||
Interest income | 7,987 | 4,899 | 1,881 | |||||||||
Other income (expenses), net | 311 | 312 | (18,173 | ) | ||||||||
Profit ( Loss) before income tax and equity in loss of subsidiaries | 3,333 | (2,571 | ) | (28,372 | ) | |||||||
Equity in loss of subsidiaries | (198,404 | ) | (266,334 | ) | (676,099 | ) | ||||||
Income tax expense | 0 | 0 | 0 | |||||||||
Net loss attributable to Zai Lab Limited | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||
Net loss | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||
Other comprehensive income (loss) , net of tax of nil: | ||||||||||||
Foreign currency translation adjustment | 1,958 | (19,144 | ) | (9,121 | ) | |||||||
Comprehensive loss | (193,113 | ) | (288,049 | ) | (713,592 | ) | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
$ | $ | $ | ||||||||||
Cash flows from Operating activities: | ||||||||||||
Net loss | (195,071 | ) | (268,905 | ) | (704,471 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Amortization of deferred income | (312 | ) | (312 | ) | (312 | ) | ||||||
Share based compensation | 2,013 | 3,025 | 3,435 | |||||||||
Equity in loss of subsidiaries | 198,404 | 266,334 | 676,099 | |||||||||
Loss from fair value changes of equity investment of readily determinable fair value | — | — | 14,617 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepayments and other current assets | (1,267 | ) | 2,253 | (439 | ) | |||||||
Other current liabilities | 102 | 738 | (376 | ) | ||||||||
Net cash provided by (used in) operating activities | 3,869 | 3,133 | (11,447 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of short-term investments | (277,640 | ) | (949,161 | ) | (445,000 | ) | ||||||
Proceeds from maturity of short-term investments | 277,990 | 405,000 | 743,902 | |||||||||
Purchase of investment in equity investee | — | — | (30,000 | ) | ||||||||
Investment in subsidiaries | (165,924 | ) | (256,097 | ) | (884,342 | ) | ||||||
Net cash used in investing activities | (165,574 | ) | (800,258 | ) | (615,440 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercises of stock options | 1,055 | 6,664 | 7,418 | |||||||||
Proceeds from issuance of ordinary shares upon public offerings | 216,200 | 1,137,683 | 818,875 | |||||||||
Payment of public offering costs | (854 | ) | (4,541 | ) | (1,692 | ) | ||||||
Employee taxes paid related to settlement of equity awards | — | — | (4,253 | ) | ||||||||
Net cash provided by financing activities | 216,401 | 1,139,806 | 820,348 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalent | — | (515 | ) | 774 | ||||||||
Net increase in cash and cash equivalents | 54,696 | 342,166 | 194,234 | |||||||||
Cash and cash equivalents-beginning of the year | 746 | 55,442 | 397,608 | |||||||||
Cash and cash equivalents-end of the year | 55,442 | 397,608 | 591,842 | |||||||||