Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38205 | |
Entity Registrant Name | ZAI LAB LIMITED | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1144595 | |
Entity Address, Address Line One | 4560 Jinke Road | |
Entity Address, Address Line Two | Bldg. 1, Fourth Floor, Pudong | |
Entity Address, City or Town | Shanghai | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 201210 | |
City Area Code | 86 21 | |
Local Phone Number | 6163 2588 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001704292 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
American Depositary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | American Depositary Shares, each representing 10 Ordinary Shares, par value $0.000006 per share | |
Trading Symbol | ZLAB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 758,101,320 | |
Ordinary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Ordinary Shares, par value $0.000006 per share | |
Trading Symbol | 9688 | |
Entity Common Stock, Shares Outstanding | 992,087,430 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 650,780 | $ 790,151 |
Restricted cash, current | 100,000 | 0 |
Short-term investments | 0 | 16,300 |
Accounts receivable (net of allowance for credit losses of $18 and $17 as of March 31, 2024 and December 31, 2023, respectively) | 60,422 | 59,199 |
Notes receivable | 15,363 | 6,134 |
Inventories, net | 37,851 | 44,827 |
Prepayments and other current assets | 24,224 | 22,995 |
Total current assets | 888,640 | 939,606 |
Restricted cash, non-current | 1,114 | 1,113 |
Long term investments | 14,109 | 9,220 |
Prepayments for equipment | 89 | 111 |
Property and equipment, net | 52,386 | 53,734 |
Operating lease right-of-use assets | 15,187 | 14,844 |
Land use rights, net | 3,034 | 3,069 |
Intangible assets, net | 12,398 | 13,389 |
Long-term deposits | 1,480 | 1,209 |
Total assets | 988,437 | 1,036,295 |
Current liabilities | ||
Accounts payable | 88,121 | 112,991 |
Current operating lease liabilities | 7,536 | 7,104 |
Short-term debts | 48,273 | 0 |
Other current liabilities | 48,176 | 82,972 |
Total current liabilities | 192,106 | 203,067 |
Deferred income | 26,297 | 28,738 |
Non-current operating lease liabilities | 7,540 | 8,047 |
Other non-current liabilities | 325 | 325 |
Total liabilities | 226,268 | 240,177 |
Commitments and contingencies (Note 15) | ||
Shareholders’ equity | ||
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized; 978,197,710 and 977,151,270 shares issued as of March 31, 2024 and December 31, 2023, respectively; 973,285,510 and 972,239,070 shares outstanding as of March 31, 2024 and December 31, 2023, respectively) | 6 | 6 |
Additional paid-in capital | 2,993,282 | 2,975,302 |
Accumulated deficit | (2,249,451) | (2,195,980) |
Accumulated other comprehensive income | 39,168 | 37,626 |
Treasury Stock (at cost, 4,912,200 shares as of both March 31, 2024 and December 31, 2023) | (20,836) | (20,836) |
Total shareholders’ equity | 762,169 | 796,118 |
Total liabilities and shareholders’ equity | $ 988,437 | $ 1,036,295 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 18 | $ 17 |
Ordinary shares, par value (in dollars per share) | $ 0.000006 | $ 0.000006 |
Ordinary shares, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Ordinary shares, shares issued (in shares) | 978,197,710 | 977,151,270 |
Ordinary shares, shares outstanding (in shares) | 973,285,510 | 972,239,070 |
Treasury Stock (in shares) | 4,912,200 | 4,912,200 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 87,149,000 | $ 62,797,000 |
Expenses | ||
Cost of sales | (33,619,000) | (21,337,000) |
Research and development | (54,645,000) | (48,472,000) |
Selling, general, and administrative | (69,194,000) | (62,510,000) |
Loss from operations | (70,309,000) | (69,522,000) |
Interest income | 9,658,000 | 10,232,000 |
Interest expenses | (113,000) | 0 |
Foreign currency (losses) gains | (2,068,000) | 8,912,000 |
Other income, net | 9,361,000 | 1,234,000 |
Loss before income tax | (53,471,000) | (49,144,000) |
Income tax expense | 0 | 0 |
Net loss | $ (53,471,000) | $ (49,144,000) |
Loss per share - basic (in dollars per share) | $ (0.05) | $ (0.05) |
Loss per share - diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Weighted-average shares used in calculating net loss per ordinary share - basic (in shares) | 973,145,760 | 961,444,780 |
Weighted-average shares used in calculating net loss per ordinary share - diluted (in shares) | 973,145,760 | 961,444,780 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (53,471) | $ (49,144) |
Other comprehensive income, net of tax of nil: | ||
Foreign currency translation adjustments | 1,542 | (8,413) |
Comprehensive loss | $ (51,929) | $ (57,557) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Other comprehensive (loss) income, tax | $ 0 | $ 0 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2022 | 962,455,850 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,045,595 | $ 6 | $ 2,893,120 | $ (1,861,360) | $ 25,685 | $ (11,856) |
Beginning balance (in shares) at Dec. 31, 2022 | (2,236,280) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of ordinary shares upon vesting of restricted shares (in shares) | 732,040 | |||||
Issuance of ordinary shares upon vesting of restricted shares | 0 | $ 0 | 0 | |||
Exercise of share options (in shares) | 4,009,460 | |||||
Exercise of share options | 1,673 | $ 0 | 1,673 | |||
Receipt of shares netted to satisfy tax withholding obligations related to share-based compensation (in shares) | (1,272,330) | |||||
Receipt of shares netted to satisfy tax withholding obligations related to share-based compensation | (5,130) | $ (5,130) | ||||
Share-based compensation | 16,661 | 16,661 | ||||
Net loss | (49,144) | (49,144) | ||||
Foreign currency translation | (8,413) | (8,413) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 967,197,350 | |||||
Ending balance at Mar. 31, 2023 | $ 1,001,242 | $ 6 | 2,911,454 | (1,910,504) | 17,272 | $ (16,986) |
Ending balance (in shares) at Mar. 31, 2023 | (3,508,610) | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 972,239,070 | 977,151,270 | ||||
Beginning balance at Dec. 31, 2023 | $ 796,118 | $ 6 | 2,975,302 | (2,195,980) | 37,626 | $ (20,836) |
Beginning balance (in shares) at Dec. 31, 2023 | (4,912,200) | (4,912,200) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of ordinary shares upon vesting of restricted shares (in shares) | 1,046,440 | |||||
Issuance of ordinary shares upon vesting of restricted shares | $ 0 | $ 0 | 0 | |||
Share-based compensation | 17,980 | 17,980 | ||||
Net loss | (53,471) | (53,471) | ||||
Foreign currency translation | $ 1,542 | 1,542 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 973,285,510 | 978,197,710 | ||||
Ending balance at Mar. 31, 2024 | $ 762,169 | $ 6 | $ 2,993,282 | $ (2,249,451) | $ 39,168 | $ (20,836) |
Ending balance (in shares) at Mar. 31, 2024 | (4,912,200) | (4,912,200) |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (53,471) | $ (49,144) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for credit losses | 1 | 1 |
Inventory write-down | 37 | 377 |
Depreciation and amortization expenses | 3,012 | 2,657 |
Amortization of deferred income | (840) | (582) |
Share-based compensation | 17,980 | 16,661 |
Gain from fair value changes of equity investment with readily determinable fair value | (4,889) | (441) |
Losses on disposal of property and equipment | 407 | 64 |
Noncash lease expenses | 2,069 | 2,464 |
Debt issuance costs | 700 | 0 |
Foreign currency remeasurement impact | 2,068 | (8,912) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,328) | (2,852) |
Notes receivable | (9,239) | (8,599) |
Inventories | 6,818 | (6,686) |
Prepayments and other current assets | (1,253) | (6,470) |
Long-term deposits | (271) | 72 |
Accounts payable | (13,370) | (327) |
Other current liabilities | (34,204) | (15,593) |
Operating lease liabilities | (2,783) | (2,141) |
Deferred income | (1,550) | 9,839 |
Other non-current liabilities | 0 | 325 |
Net cash used in operating activities | (90,106) | (69,287) |
Cash flows from investing activities | ||
Purchases of short-term investments | 0 | (100,000) |
Proceeds from maturity of short-term investment | 16,300 | 49,450 |
Purchases of property and equipment | (974) | (3,513) |
Proceeds from the sale of property and equipment | 0 | 112 |
Acquisition of intangible assets | (12,034) | (3) |
Net cash provided by (used in) investing activities | 3,292 | (53,954) |
Cash flows from financing activities | ||
Proceeds from short-term debts | 48,248 | 0 |
Payments of debt issuance costs | (700) | 0 |
Proceeds from exercises of stock options | 0 | 1,197 |
Taxes paid related to settlement of equity awards | 0 | (5,083) |
Net cash provided by (used in) financing activities | 47,548 | (3,886) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (104) | (1,299) |
Net decrease in cash, cash equivalents and restricted cash | (39,370) | (128,426) |
Cash, cash equivalents and restricted cash - beginning of period | 791,264 | 1,009,273 |
Cash, cash equivalents and restricted cash - end of period | 751,894 | 880,847 |
Supplemental disclosure on non-cash investing and financing activities | ||
Payables for purchase of property and equipment | 2,481 | 4,232 |
Payables for acquisition of intangible assets | 78 | 268 |
Receivables for stock option exercise under equity incentive plans | 0 | 476 |
Right-of-use asset acquired under operating leases | 2,395 | 2,662 |
Receivables for disposal of property and equipment | 0 | 10 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | $ 45 | $ 0 |
Organization and Principal Acti
Organization and Principal Activities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | Organization and Principal Activities Zai Lab Limited was incorporated on March 28, 2013 in the Cayman Islands as an exempted company with limited liability under the Companies Act of the Cayman Islands (as amended). Zai Lab Limited and its subsidiaries (collectively referred to as the “Company”) are focused on discovering, developing, and commercializing products that address medical conditions with significant unmet needs in the areas of oncology, autoimmune disorders, infectious disease, and neuroscience. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation and Significant Accounting Policies | Basis of Presentation and Consolidation and Significant Accounting Policies (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). The December 31, 2023 condensed consolidated balance sheet data included in this report were derived from the audited financial statements in the 2023 Annual Report. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the year ending December 31, 2024. (b) Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Zai Lab Limited and its subsidiaries, which are wholly owned. All intercompany transactions and balances are eliminated upon consolidation. (c) Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, 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, accrual of rebates, recognition of research and development expenses, fair value of share-based compensation expenses, and recoverability of deferred tax assets. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. (d) Fair Value Measurements Equity investments with readily determinable fair value are measured using level 1 inputs and were $14.1 million and $9.2 million as of March 31, 2024 and December 31, 2023, respectively. The unrealized gains from fair value changes are recognized in other income, net in the condensed consolidated statements of operations. Financial instruments of the Company primarily include cash and cash equivalents, current restricted cash, short-term investments, accounts receivable, notes receivable, prepayments and other current assets, non-current restricted cash, accounts payable, short-term debts, and other current liabilities. As of March 31, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, current restricted cash, short-term investments, accounts receivable, prepayments and other current assets, accounts payable, short-term debts, and other current liabilities approximated their fair values due to the short-term maturity of these instruments, and the carrying value of notes receivable and non-current restricted cash approximated their fair value based on the assessment of the ability to recover these amounts. (e) Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU requires all public entities, including public entities with a single reportable segment, to disclose the title and position of the Chief Operating Decision Maker (“CODM”) and the significant segment expenses and any additional measures of a segment’s profit or loss used by the CODM to allocate resources and assess performance. This ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and expects to adopt it for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. This ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in additional disclosure in the consolidated financial statements, once adopted. The Company is currently evaluating the impact of this ASU and expects to adopt it for the year ending December 31, 2025. The Company did not adopt any new accounting standards in the first quarter of 2024 that had a material impact on the Consolidated Financial Statements. For additional information on the Company’s significant accounting policies, refer to the notes to the consolidated financial statements in the 2023 Annual Report |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The following table presents the Company’s cash and cash equivalents ($ in thousands): March 31, 2024 December 31, 2023 Cash 649,666 789,051 Cash equivalents (i) 1,114 1,100 650,780 790,151 Denominated in: US$ 630,583 762,436 Renminbi (“RMB”) (ii) 17,878 25,093 Hong Kong dollar (“HK$”) 1,513 1,974 Australian dollar (“A$”) 557 587 Taiwan dollar (“TW$”) 249 61 650,780 790,151 (i) Cash equivalents represent short-term and highly liquid investments in a money market fund. (ii) |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net The following table presents the Company’s inventories, net ($ in thousands): March 31, 2024 December 31, 2023 Finished goods 19,076 22,702 Raw materials 16,675 17,655 Work in progress 2,100 4,470 Inventories, net 37,851 44,827 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table presents the components of the Company’s property and equipment, net ($ in thousands): March 31, 2024 December 31, 2023 Office equipment 1,046 1,047 Electronic equipment 9,315 9,161 Vehicle 198 199 Laboratory equipment 20,162 20,140 Manufacturing equipment 17,658 17,680 Leasehold improvements 11,361 11,371 Construction in progress 24,834 24,272 84,574 83,870 Less: accumulated depreciation (32,188) (30,136) Property and equipment, net 52,386 53,734 Depreciation expense was $2.2 million and $2.5 million in the first quarter of 2024 and 2023, respectively. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s revenue is derived from the sales of its commercial products primarily in mainland China. The table below presents the Company’s gross and net product revenue ($ in thousands): Three Months Ended March 31, 2024 2023 Product revenue - gross 93,112 71,212 Less: Rebates and sales returns (5,963) (8,415) Product revenue - net 87,149 62,797 Sales rebates are offered to distributors in mainland China, and the amounts are recorded as a reduction of revenue. Estimated rebates are determined based on contracted rates, sales volumes, and level of distributor inventories. The following table presents the Company’s net revenue by product ($ in thousands): Three Months Ended March 31, 2024 2023 ZEJULA 45,501 42,680 OPTUNE 12,480 13,342 QINLOCK 6,093 1,306 NUZYRA 9,913 5,469 VYVGART 13,162 — Product revenue - net 87,149 62,797 |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax No provision for income taxes has been required to be accrued because the Company is in a cumulative loss position for the periods presented. The Company recorded a full valuation allowance against deferred tax assets of all its consolidated entities because all entities were in a cumulative loss position as of March 31, 2024 and December 31, 2023. No unrecognized tax benefits and related interest and penalties were recorded in the periods presented. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The following table presents the computation of the basic and diluted net loss per share ($ in thousands, except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss (53,471) (49,144) Denominator: Weighted average number of ordinary shares - basic and diluted 973,145,760 961,444,780 Net loss per share - basic and diluted (0.05) (0.05) As a result of the Company’s net loss in the first quarter of 2024 and 2023, share options and non-vested restricted shares outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive. March 31, 2024 2023 Share options 104,244,590 86,242,060 Non-vested restricted shares 29,893,540 32,154,670 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings In February 2024, the Company entered into certain debt arrangements with the Bank of China, SPD Bank, and Ningbo Bank to support its working capital needs in mainland China. The following table presents the Company’s short-term debts as of March 31, 2024 ($ in thousands): Weighted average interest rate per annum March 31, 2024 Bank of China Working Capital Loan 2.95 % 34,179 SPD Bank Working Capital Loan 3.45 % 14,094 Total short-term debts 3.10 % 48,273 Bank of China Working Capital Loan Facility On February 5, 2024, the Company entered into an uncommitted facility letter with the Bank of China (Hong Kong) Limited (the “BOC HK”) pursuant to which the BOC HK will provide standby letters of credit for loans of up to $100.0 million for a term of one year. In connection with this agreement, the Company paid a one-time, non-refundable fee of $0.7 million. The Company also maintained restricted deposits of $100.0 million, which are presented as restricted cash-current on the condensed consolidated balance sheet, to secure the standby letters of credit. On February 6, 2024, upon the Company’s application, the BOC HK provided a standby letter of credit in favor of the Bank of China Pudong Development Zone Branch (the “BOC Pudong Branch”) for $50.0 million which are or may become payable by the Company’s wholly-owned subsidiary, Zai Lab (Shanghai) Co., Ltd. (“Zai Lab Shanghai”), and Zai Lab Shanghai subsequently entered into a working capital loan contract with the BOC Pudong Branch on February 7, 2024 for a loan of RMB340.0 million (approximately $47.8 million), of which an aggregate principal amount of RMB242.5 million (approximately $34.2 million) was withdrawn and outstanding as of March 31, 2024. Each working capital loan withdrawal has a one-year term and is subject to a floating interest rate of approximately 2.95% initially, and is subject to adjustment every six months. SPD Bank Working Capital Loan Facility On February 6, 2024, the Company entered into a maximum-amount guarantee contract with the Shanghai Pudong Development Bank Co., Ltd. Zhangjiang Hi-Tech Park Sub-branch (the “SPD Bank”) pursuant to which the Company will guarantee working capital loans of up to RMB300.0 million (approximately $42.0 million) from SPD Bank to Zai Lab Shanghai over a three-year period. In the first quarter of 2024, Zai Lab Shanghai has entered into working capital loan contracts with SPD Bank under this debt facility for an aggregate principal amount of RMB100.0 million (approximately $14.1 million). These working capital loans have one-year terms and are subject to a fixed interest rate of 3.45%. Ningbo Bank Working Capital Loan Facility On February 6, 2024, the Company’s wholly-owned subsidiary, Zai Lab (Suzhou) Co., Ltd. (“Zai Lab Suzhou”), entered into a maximum credit contract with Bank of Ningbo Co., Ltd. Suzhou Sub-branch (“Ningbo Bank”) as well as an Electronic Commercial Draft Discounting Master Agreement and Online Working Capital Loan Master Agreement (collectively, the “Ningbo Bank Agreements”). The Ningbo Bank Agreements permit Zai Lab Suzhou to utilize, including through discounting or working capital loan agreements and subject to the terms and conditions in related master agreements, up to RMB230.3 million (approximately $32.4 million), of which the Company is authorized to utilize up to RMB160.0 million (approximately $22.5 million). In connection with the arrangements described in the Ningbo Bank Agreements, Zai Lab Suzhou agreed to pledge interests in certain real property it owns in Suzhou. As of March 31, 2024, Zai Lab Suzhou has not entered into any discounting arrangements or working capital loans under this Ningbo Bank working capital loan facility. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities The following table presents the Company’s other current liabilities ($ in thousands): March 31, 2024 December 31, 2023 Accrued payroll 11,920 33,711 Accrued professional service fee 3,478 7,520 Payables for purchase of property and equipment 2,481 2,474 Accrued rebate to distributors 20,593 16,926 Tax payables 6,910 16,988 Other (i) 2,794 5,353 Total 48,176 82,972 (i) Other mainly includes accrued travel and business-related expenses. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation During the first quarter of 2024, the Company granted share options to purchase up to 398,000 ordinary shares and restricted shares representing 370,500 ordinary shares under the 2022 Plan. The share options granted have a contractual term of ten years. Share options granted since April 2023 generally vest ratably over a four-year period, and share options granted prior to April 2023 generally vest ratably over a five-year period, with 25% or 20% of the awards vesting on each anniversary of the grant date, respectively, subject to continued employment/service with the Company on the vesting date. The restricted shares granted generally vest ratably over a specified period on the anniversary of the grant date, subject to continued employment/service with the Company on the vesting date. For a description of the Company’s equity incentive plans and more details on the terms of the share-based awards, refer to Note 15 of the 2023 Annual Report . The following table presents the share-based compensation expense that has been reported in the Company’s condensed consolidated statements of operations and comprehensive loss as follows ($ in thousands): Three Months Ended March 31, 2024 2023 Selling, general and administrative 11,036 10,063 Research and development 6,944 6,598 Total 17,980 16,661 |
License and Collaboration Agree
License and Collaboration Agreements | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
License and Collaboration Agreements | License and Collaboration Agreements The Company has entered into various license and collaboration agreements with third parties to develop and commercialize product candidates. For a description of the material terms of the Company’s significant license and collaboration agreements, see Note 16 |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net The following table presents the Company’s other income, net ($ in thousands): Three Months Ended March 31, 2024 2023 Government grants 2,791 — Gain on equity investments with readily determinable fair value 4,889 441 Others miscellaneous gain 1,681 793 Total 9,361 1,234 |
Restricted Net Assets
Restricted Net Assets | 3 Months Ended |
Mar. 31, 2024 | |
Restricted net assets | |
Restricted Net Assets | Restricted Net Assets The Company’s ability to pay dividends may depend on the Company receiving distributions of funds from its Chinese subsidiaries. Relevant Chinese laws and regulations permit payments of dividends by the Company’s Chinese subsidiaries only out of its retained earnings, if any, as determined in accordance with Chinese accounting standards and regulations. The results of operations reflected in the unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s Chinese subsidiaries. In accordance with the Company Law of the People’s Republic of China, a domestic enterprise is required to provide statutory reserves of at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s Chinese statutory accounts. A domestic enterprise may provide discretionary surplus reserve, at the discretion of the Board of Directors, from the profits determined in accordance with the enterprise’s Chinese statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The Company’s Chinese subsidiaries were established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits. No appropriation to statutory reserves was made in the first quarter of 2024 and 2023 because the Chinese subsidiaries had substantial losses during such periods. As a result of these Chinese laws and regulations, subject to the limits discussed above that require annual appropriations of 10% of after-tax profit to be set aside, prior to payment of dividends, as a general reserve fund, the Company’s Chinese subsidiaries are restricted in their ability to transfer out a portion of their net assets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Purchase Commitments The Company’s commitments related to purchase of property and equipment contracted but not yet reflected in the unaudited condensed consolidated financial statements were $1.1 million as of March 31, 2024 and were expected to be incurred within one year. (b) Legal Proceedings The Company is not currently a party to any material legal proceedings. (c) Indemnifications |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (53,471) | $ (49,144) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
William Lis [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 23 , 2024, William Lis, one of the Company’s directors, adopted a new written Rule 10b5-1 trading arrangement for the disposition of up to 10,397 of the Company’s ADSs, each representing ten of the Company’s ordinary shares, to cover tax obligations in connection with the vesting of a previously granted restricted stock award . This Rule 10b5-1 trading arrangement is scheduled to terminate no later than July 31, 2024. |
Name | William Lis |
Title | director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 23, 2024 |
Arrangement Duration | 159 days |
Aggregate Available | 10,397 |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). The December 31, 2023 condensed consolidated balance sheet data included in this report were derived from the audited financial statements in the 2023 Annual Report. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the year ending December 31, 2024. |
Principles of Consolidation | The unaudited condensed consolidated financial statements include the accounts of Zai Lab Limited and its subsidiaries, which are wholly owned. All intercompany transactions and balances are eliminated upon consolidation. |
Use of Estimates | The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, 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, accrual of rebates, recognition of research and development expenses, fair value of share-based compensation expenses, and recoverability of deferred tax assets. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. |
Fair Value Measurements | The unrealized gains from fair value changes are recognized in other income, net in the condensed consolidated statements of operations. Financial instruments of the Company primarily include cash and cash equivalents, current restricted cash, short-term investments, accounts receivable, notes receivable, prepayments and other current assets, non-current restricted cash, accounts payable, short-term debts, and other current liabilities. As of March 31, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, current restricted cash, short-term investments, accounts receivable, prepayments and other current assets, accounts payable, short-term debts, and other current liabilities approximated their fair values due to the short-term maturity of these instruments, and the carrying value of notes receivable and non-current restricted cash approximated their fair value based on the assessment of the ability to recover these amounts. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU requires all public entities, including public entities with a single reportable segment, to disclose the title and position of the Chief Operating Decision Maker (“CODM”) and the significant segment expenses and any additional measures of a segment’s profit or loss used by the CODM to allocate resources and assess performance. This ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and expects to adopt it for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. This ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in additional disclosure in the consolidated financial statements, once adopted. The Company is currently evaluating the impact of this ASU and expects to adopt it for the year ending December 31, 2025. The Company did not adopt any new accounting standards in the first quarter of 2024 that had a material impact on the Consolidated Financial Statements. For additional information on the Company’s significant accounting policies, refer to the notes to the consolidated financial statements in the 2023 Annual Report |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table presents the Company’s cash and cash equivalents ($ in thousands): March 31, 2024 December 31, 2023 Cash 649,666 789,051 Cash equivalents (i) 1,114 1,100 650,780 790,151 Denominated in: US$ 630,583 762,436 Renminbi (“RMB”) (ii) 17,878 25,093 Hong Kong dollar (“HK$”) 1,513 1,974 Australian dollar (“A$”) 557 587 Taiwan dollar (“TW$”) 249 61 650,780 790,151 (i) Cash equivalents represent short-term and highly liquid investments in a money market fund. (ii) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | The following table presents the Company’s inventories, net ($ in thousands): March 31, 2024 December 31, 2023 Finished goods 19,076 22,702 Raw materials 16,675 17,655 Work in progress 2,100 4,470 Inventories, net 37,851 44,827 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table presents the components of the Company’s property and equipment, net ($ in thousands): March 31, 2024 December 31, 2023 Office equipment 1,046 1,047 Electronic equipment 9,315 9,161 Vehicle 198 199 Laboratory equipment 20,162 20,140 Manufacturing equipment 17,658 17,680 Leasehold improvements 11,361 11,371 Construction in progress 24,834 24,272 84,574 83,870 Less: accumulated depreciation (32,188) (30,136) Property and equipment, net 52,386 53,734 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Product Revenue | The table below presents the Company’s gross and net product revenue ($ in thousands): Three Months Ended March 31, 2024 2023 Product revenue - gross 93,112 71,212 Less: Rebates and sales returns (5,963) (8,415) Product revenue - net 87,149 62,797 |
Schedule of Disaggregation of Net Revenue | The following table presents the Company’s net revenue by product ($ in thousands): Three Months Ended March 31, 2024 2023 ZEJULA 45,501 42,680 OPTUNE 12,480 13,342 QINLOCK 6,093 1,306 NUZYRA 9,913 5,469 VYVGART 13,162 — Product revenue - net 87,149 62,797 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Share | The following table presents the computation of the basic and diluted net loss per share ($ in thousands, except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net loss (53,471) (49,144) Denominator: Weighted average number of ordinary shares - basic and diluted 973,145,760 961,444,780 Net loss per share - basic and diluted (0.05) (0.05) |
Summary of Anti-Dilutive Shares Excluded from Calculation of Diluted Loss Per Share | As a result of the Company’s net loss in the first quarter of 2024 and 2023, share options and non-vested restricted shares outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive. March 31, 2024 2023 Share options 104,244,590 86,242,060 Non-vested restricted shares 29,893,540 32,154,670 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | The following table presents the Company’s short-term debts as of March 31, 2024 ($ in thousands): Weighted average interest rate per annum March 31, 2024 Bank of China Working Capital Loan 2.95 % 34,179 SPD Bank Working Capital Loan 3.45 % 14,094 Total short-term debts 3.10 % 48,273 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other Current Liabilities | The following table presents the Company’s other current liabilities ($ in thousands): March 31, 2024 December 31, 2023 Accrued payroll 11,920 33,711 Accrued professional service fee 3,478 7,520 Payables for purchase of property and equipment 2,481 2,474 Accrued rebate to distributors 20,593 16,926 Tax payables 6,910 16,988 Other (i) 2,794 5,353 Total 48,176 82,972 (i) Other mainly includes accrued travel and business-related expenses. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation expense | The following table presents the share-based compensation expense that has been reported in the Company’s condensed consolidated statements of operations and comprehensive loss as follows ($ in thousands): Three Months Ended March 31, 2024 2023 Selling, general and administrative 11,036 10,063 Research and development 6,944 6,598 Total 17,980 16,661 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | The following table presents the Company’s other income, net ($ in thousands): Three Months Ended March 31, 2024 2023 Government grants 2,791 — Gain on equity investments with readily determinable fair value 4,889 441 Others miscellaneous gain 1,681 793 Total 9,361 1,234 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments with readily determinable fair value | $ 14.1 | $ 9.2 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Cash And Cash Equivalents [Line Items] | ||
Cash | $ 649,666 | $ 789,051 |
Cash equivalents | 1,114 | 1,100 |
Cash and cash equivalents | 650,780 | 790,151 |
US$ | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 630,583 | 762,436 |
Renminbi (“RMB”) | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 17,878 | 25,093 |
Hong Kong dollar (“HK$”) | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 1,513 | 1,974 |
Australian dollar (“A$”) | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 557 | 587 |
Taiwan dollar (“TW$”) | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 249 | $ 61 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 19,076 | $ 22,702 |
Raw materials | 16,675 | 17,655 |
Work in progress | 2,100 | 4,470 |
Inventories, net | $ 37,851 | $ 44,827 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | ||
Inventory write-down | $ 0 | $ 0.4 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property Plant And Equipment | ||
Property and equipment, gross | $ 84,574 | $ 83,870 |
Less: accumulated depreciation | (32,188) | (30,136) |
Property and equipment, net | 52,386 | 53,734 |
Office equipment | ||
Property Plant And Equipment | ||
Property and equipment, gross | 1,046 | 1,047 |
Electronic equipment | ||
Property Plant And Equipment | ||
Property and equipment, gross | 9,315 | 9,161 |
Vehicle | ||
Property Plant And Equipment | ||
Property and equipment, gross | 198 | 199 |
Laboratory equipment | ||
Property Plant And Equipment | ||
Property and equipment, gross | 20,162 | 20,140 |
Manufacturing equipment | ||
Property Plant And Equipment | ||
Property and equipment, gross | 17,658 | 17,680 |
Leasehold improvements | ||
Property Plant And Equipment | ||
Property and equipment, gross | 11,361 | 11,371 |
Construction in progress | ||
Property Plant And Equipment | ||
Property and equipment, gross | $ 24,834 | $ 24,272 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2.2 | $ 2.5 |
Revenue - Summary of Product Re
Revenue - Summary of Product Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Product revenue - gross | $ 93,112 | $ 71,212 |
Less: Rebates and sales returns | (5,963) | (8,415) |
Product revenue - net | $ 87,149 | $ 62,797 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | $ 87,149 | $ 62,797 |
ZEJULA | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | 45,501 | 42,680 |
OPTUNE | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | 12,480 | 13,342 |
QINLOCK | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | 6,093 | 1,306 |
NUZYRA | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | 9,913 | 5,469 |
VYVGART | ||
Disaggregation of Revenue [Line Items] | ||
Product revenue - net | $ 13,162 | $ 0 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 0 | $ 0 | |
Unrecognized tax benefits | 0 | $ 0 | |
Unrecognized tax benefits, interest and penalties | $ 0 | $ 0 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss | $ (53,471) | $ (49,144) |
Denominator: | ||
Weighted average number of ordinary shares - basic (in shares) | 973,145,760 | 961,444,780 |
Weighted average number of ordinary shares - diluted (in shares) | 973,145,760 | 961,444,780 |
Net loss per share - basic (in dollars per share) | $ (0.05) | $ (0.05) |
Net loss per share - diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Loss Per Share - Summary of Ant
Loss Per Share - Summary of Anti-Dilutive Shares Excluded from Calculation of Diluted Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from calculation of diluted loss per share | 104,244,590 | 86,242,060 |
Non-vested restricted shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from calculation of diluted loss per share | 29,893,540 | 32,154,670 |
Borrowings - Summary of Short-T
Borrowings - Summary of Short-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Short-Term Debt [Line Items] | ||
Weighted average interest rate per annum | 3.10% | |
Total short-term debts | $ 48,273 | $ 0 |
Loans Payable | Bank of China Working Capital Loan | ||
Short-Term Debt [Line Items] | ||
Weighted average interest rate per annum | 2.95% | |
Total short-term debts | $ 34,179 | |
Loans Payable | SPD Bank Working Capital Loan | ||
Short-Term Debt [Line Items] | ||
Weighted average interest rate per annum | 3.45% | |
Total short-term debts | $ 14,094 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) $ in Thousands, ¥ in Millions | Feb. 07, 2024 USD ($) | Feb. 06, 2024 USD ($) | Feb. 05, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 CNY (¥) | Feb. 07, 2024 CNY (¥) | Feb. 06, 2024 CNY (¥) | Dec. 31, 2023 USD ($) |
Short-Term Debt [Line Items] | ||||||||
Restricted cash, current | $ 100,000 | $ 0 | ||||||
Short-term debts | $ 48,273 | $ 0 | ||||||
Weighted average interest rate per annum | 3.10% | 3.10% | ||||||
Maximum guarantor obligation | $ 42,000 | ¥ 300 | ||||||
Guarantor obligation term | 3 years | |||||||
Bank of China Working Capital Loan | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument fee | $ 700 | |||||||
Ningbo Bank Working Capital Loan Facility | Loans Payable | ||||||||
Short-Term Debt [Line Items] | ||||||||
Maximum borrowing capacity | $ 22,500 | 160 | ||||||
Ningbo Bank Working Capital Loan Facility | Zai Lab Suzhou Company Limited | Loans Payable | ||||||||
Short-Term Debt [Line Items] | ||||||||
Maximum borrowing capacity | $ 32,400 | ¥ 230.3 | ||||||
Loans Payable | Bank of China Working Capital Loan | ||||||||
Short-Term Debt [Line Items] | ||||||||
Short-term debts | $ 34,179 | |||||||
Weighted average interest rate per annum | 2.95% | 2.95% | ||||||
Loans Payable | Bank of China Working Capital Loan | Zai Lab (Shanghai) Co., Ltd. | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument term | 1 year | |||||||
Loan face amount | $ 47,800 | ¥ 340 | ||||||
Short-term debts | $ 34,200 | ¥ 242.5 | ||||||
Weighted average interest rate per annum | 2.95% | 2.95% | ||||||
Floating interest rate adjustment period | 6 months | |||||||
Loans Payable | SPD Bank Working Capital Loan | ||||||||
Short-Term Debt [Line Items] | ||||||||
Short-term debts | $ 14,094 | |||||||
Weighted average interest rate per annum | 3.45% | 3.45% | ||||||
Loans Payable | SPD Bank Working Capital Loan | Zai Lab (Shanghai) Co., Ltd. | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt instrument term | 1 year | |||||||
Loan face amount | $ 14,100 | ¥ 100 | ||||||
Fixed interest rate | 3.45% | 3.45% | ||||||
Standby Letters of Credit | Bank of China Working Capital Loan | ||||||||
Short-Term Debt [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000 | |||||||
Debt instrument term | 1 year | |||||||
Letters of credit outstanding | $ 50,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Accrued payroll | $ 11,920 | $ 33,711 |
Accrued professional service fee | 3,478 | 7,520 |
Payables for purchase of property and equipment | 2,481 | 2,474 |
Accrued rebate to distributors | 20,593 | 16,926 |
Tax payables | 6,910 | 16,988 |
Other | 2,794 | 5,353 |
Total | $ 48,176 | $ 82,972 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Share options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Contractual term | 10 years |
Unrecognized share-based compensation expense related to unvested share options granted | $ | $ 93.2 |
Recognized over a weighted-average period | 2 years 10 months 20 days |
Share options | Since April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 4 years |
Share options | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 5 years |
Share options | Tranche one | Since April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 25% |
Share options | Tranche one | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 20% |
Share options | Tranche two | Since April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 25% |
Share options | Tranche two | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 20% |
Share options | Tranche three | Since April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 25% |
Share options | Tranche three | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 20% |
Share options | Tranche four | Since April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 25% |
Share options | Tranche four | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 20% |
Share options | Tranche five | Prior to April 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting percentage | 20% |
Non-vested restricted shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized share-based compensation expense related to unvested restricted shares | $ | $ 92 |
Recognized over a weighted-average period | 2 years 6 months 14 days |
2022 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options granted (in shares) | shares | 398,000 |
2022 Plan | Non-vested restricted shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-option awards granted (in shares) | shares | 370,500 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 17,980 | $ 16,661 |
Selling, general and administrative | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 11,036 | 10,063 |
Research and development | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 6,944 | $ 6,598 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Government grants | $ 2,791 | $ 0 |
Gain on equity investments with readily determinable fair value | 4,889 | 441 |
Others miscellaneous gain | 1,681 | 793 |
Total | $ 9,361 | $ 1,234 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - PRC - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restricted net assets | |||
Statutory reserves | $ 0 | $ 0 | |
Restricted amount by subsidiaries | $ 506,000,000 | $ 506,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Property and Equipment | |
Loss Contingencies [Line Items] | |
Purchase obligation to be incurred within on year | $ 1.1 |