ZLAB - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, ladies and gentlemen. Thank you for standing by and welcome to Zai Lab’s Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, today’s call is being recorded. It is now my pleasure to turn the floor over to Billy Cho, Chief Financial Officer of Zai Lab, who will make introductory comments.

Billy Cho

Thank you, operator. everyone. welcome, and morning Good well After the release results issued press XXXX Zai the update. and closed the details yesterday, as XX, providing June financial quarter Lab product of highlights second corporate a ended market as the for company’s website is corporate ir.zailaboratory.com. press the release Relations of in available The Investor the section company’s at Today’s be led call by will Dr. Samantha Executive Officer. Du, Zai Lab’s Founder, Chairperson and Chief and provide commercial Fu, more by be Tao Chief with Strategy the who along joined pipeline on details will progress. product portfolio, She’ll Officer, conclude will our results I comments with financial in on the quarter. Dr. Development, Alan Head of Sandler, President, Oncology; Global Dr. and Harald Business Diseases; Reinhart, Chief available the Medical Officer also call. will of Jonathan for to of Autoimmune Head portion questions during Infectious Q&A Wang, be answer and Development, the

and Lab’s over Samantha At Zai discussed Dr. results call time, it we Chairperson this SEC discussion to Executive actual actual to will trials, my those could forward-looking that therefore the guarantees and statements materially is from to of Act factors and statements applications be differ making commercial that As reminder, business to differ risk including of success regulatory a are today. certain what should meaning Litigation Reform risks subject materially the not the Lab These within you to pleasure cause Private filings our of turn numerous future Securities XXXX, and timing our and plans expect. to you of Du. uncertainties refer upon from a put I our undue during today’s launches. them. and results our objectives reliance not Zai for of Officer, forward-looking cause Founder, could Chief These clinical performance are statements call, and

Samantha Du

we in quality highlights record, past last all record in our what second Hello, QINLOCK the Billy. thank Zai latest and in world to continues our to organization become discuss execute remainder QINLOCK of the with quarter this On you, our is XX accomplish track Thank China in during Consistent call, XXXX. update to the gastric second and I to the will successfully expect the for franchise. for launched joining provide launch expect from class product cancer and you we months us. Lab same the product time. first over commercial our what across a oncology to quarter. We third everyone

We have generate pipeline products, in and three pipeline. disease our first more area Zai continue breakthrough globally respectively, into revenue therapy innovative the discuss strengthen Alan designation. detail. global ZEJULA been growth in this and which from Billy our and Mirati, our and are in We strong and will late-stage continue to X with our and products stronghold received we collaborations the have to and our development, XX steepen two breadth of MacroGenics to Schrödinger, entered depth U.S. and grow. and Optune strategic further assets of achievement XX Notably, now quality, approved have pipeline already FDA will

trials. worldwide significant XX to We now validated just In including addition, success early-stage X in broad our clinical global innovative programs, achieve achieved pipeline X with within includes years. for portfolio growing rights sales

internal will to with through We excellence pipeline greatly leverage operating R&D. our innovative partnerships our and to expand strategic continue products and scale

We XXXX. product expect exciting remainder to achieve across of our the throughout many platform milestones

community-acquired NMPA. bacterial the bacterial skin skin of pneumonia structure approval by and commercial and infection acute product, our expect We fourth for NUZYRA,

regulatory also progress We additional continue activities. on make and to filings

product candidates GIST, for in cancer for lung in strategy gastric non-small-cell We second of other future. for anticipate NMPA in global cancer, on non-small-cell margetuximab numerous this have CLN-XXX readouts the gastric efgartigimod the in QINLOCK in year a filing with for and expect data cancer, discussion our rest the TPX-XXXX during line platform. near We to and the in for for

continue We our invest and in optimization worldwide facilities. to

we During business meantime, Bay to our We will strong position We In in a a in a continue come leading will infrastructure the and the as clinical September, And company U.S. Area expect grow. discuss opportunities grown San committed the Tao development our by well. ever R&D growth and from area as a the medical biopharmaceutical patients and for firmly both medicines X in in our Francisco you substantially doing China Tao? great as China detail. since in shareholders Zai understanding biopharma We our offering are what now depth portfolio, We build Massachusetts existing has ever global growth centers an capture portfolio. need comprehensive opportunity our a this with ecosystem. I with in to expand benefit stronghold to a tap we R&D opportunities and accomplish will away have of best-in-class we the that, mission, with abundance world. Cambridge, future. performance unmet we the Zai. Day believe years presence in Zai highlight into business more facility by ask Lab fundamental of inception more foundation to this will trajectory. we decided ago. we of our doing in what the current Boston in generation innovative of our in around to potential early addressing to to to our once global the growing in and we perspective to hope first pipelines September and/or And a a to into our growth growth with With are develop in U.S. to and deep still and dive is that remain given have believe disease the and see, take stage of we our strongly the in the hold on XX believe breadth the

Tao Fu

Thank you, Samantha.

franchises: lung launch very perform disorders diseases. the we well cancer, disease continued the main significant on have and gastric commercial autoimmune we revenue three sequential infection products ZEJULA second made on growth. cancer, in comment our in quarter hematology, and the to of our quarter Our achieved in performance and progress

second-line first cancer the the approved line. approved and As PARP China reminder, first in is in monotherapy ovarian a all-comers inhibitor for ZEJULA for and is only

So, major this provided ZEJULA is PARP year from provides for March successful of implementation the ZEJULA for from momentum launch a inhibitors. The of One inclusion leading this NRDL in other the and differentiation significant NRDL indicator starting hospital listing. launch. key

will has with XXXX. differentiated on the represents prior NRDL implementation than market from listings is Our to has China, strong in the the second PARP been growth June We just lays year for foundation going our over strategy ovarian a in as laser asset the sevenfold that beyond. in more successful inhibitor and hospital team the cancer leading ZEJULA of XXX time, listed increase China. well. ZEJULA and volume XXXX, confident hospitals market Optune Similarly, focused which label, the XX, in in launch than of half been more become Combined remain the in March of increasing

device As XXXX. in is by has first and in innovative June China insurance since health insurance launch medical a Optune commercial in supported reminder, its plans covered XX the also supplemental been

we education and held received we During quarter, adoption campaigns multidiscipline feedback pleased brand increase physician the with from were extensive the treatment specialists. we to second

year. medical partner, readouts to forward large working to We with side, need indications ovarian and this are clinical treating lung, and our data in in areas look tumor China. pleural of next brain on extend globally continue malignant pancreatic, fields with few target of metastasis for additional liver Importantly, the and arrays Novocure years. high-intensity fields unmet we cancers, later we a in mesothelioma over glioblastoma development in treating filing in And the of to tumor

As were XX NDA another only Samantha treatment achieved another XXXX track approval NMPA months of the example Society approval months. important for July, advanced our QINLOCK is in mentioned, May, acceptance. was X great included of regulatory GIST and months Clinical in to approval and able X Oncology an for of launching in as the in in diagnosis second-line our QINLOCK QINLOCK Chinese of products. last commercial for milestone QINLOCK NDA GIST China in file for gastrointestinal tumors of we China stromal In received after launch option guidelines innovative after record patients. treatment accelerating in the fourth-line oncology filing oncology third and We we successfully FDA

are initial performance forward look through updating progress our and year. by with We you the launch encouraged remainder to our of the

TPX-XXXX. clinical following product entered second-line in right Mirati for We and best-in-class in cancer second cancer, Let’s Starting where great and also build franchise colorectal progress China lung X mutation our complements in trials global XXXX. including non-small-cell first-in-class best-in-class who with support adagrasib systemic important trials lung potential has develop, the lung pipeline. treating a promising GXXC manufacture collaboration in potential for and announced molecule Adagrasib file potential accelerated repotrectinib, to designation harbor to product adagrasib cancer Adagrasib registration-enabling In currently being we treatment to will Mirati cancer GXXC continue a category. in small China. aim FDA June, therapy strategic CLN-XXX to move are in cancer, in tumor a in clinical the non-small-cell the commercialize products developed on ongoing of our with this into we of an and and patients, Greater it cancer. non-small-cell there received obtain key inhibitor patients in make lung to Zai and intention therapy. cancer KRAS lung KRAS no currently fields, other exclusively cancer in enrollment where disease their stronghold June byproducts KRAS the clinical believe for to research, addition in GXXC development. we the lung U.S. has including half is breakthrough of adagrasib will adagrasib, prior

of Zai the for X the brain China X initiated For in pivotal LUNAR the treating and non-small-cell METIS tumor Phase trial lung trial cancer. portion metastasis pivotal fields, Phase

follow-up of approved more a announced You reducing FDA shortening the accelerating about a will XX patient in and the enrollment by to requirement months LUNAR, trial supplement May, Novocure a than that months, the required half that from by XX completion year. potentially IDE recall for their

data For demonstrate lung CLM-XXX, encouraging and its best-in-class cancer continues safety potential Phase in CLN-XXX to exon-XX X/Xa June, activity EGFR announced Zai’s and partner interim with non-small-cell Cullinan patients. good in tolerability.

to currently including and QINLOCK demurocizumab. move gastric development, a in products Zai X stronghold clinical Let’s with on cancer, disease

orphan Point X lymphoma. junction drug INVICTUS of adenocarcinoma resumed by We Phase Regeneron INTRIGUE junction Turning our our this partner, May bema, gastric the an in generated As the for June, patients modified versus designation involving potentially by to entered second-line Deciphera, the we launching of other treatment odronextamab earlier, announced Since enrollment to monoclonal earnings pipeline. also two quarter, and strategic X with XXXX, the to study. FDA Zai’s granted adenocarcinoma. our follicular combination compelling with made have franchise, breakthrough and GIST. initiating the of locally into trial molecules. cancer granted I look that to the second In data QINLOCK fourth-line and also X gastric for bolster Zai’s the FGFRXb. gastroesophageal significant the partner development MacroGenics agreement was two supported June, data the lymphoma hematology and in In for pivotal negative actively important our was in year, patients including Zai from receive exclusive Phase license and trial by research clinical this April mentioned designation diffuse partner overexpressing a in Other In global TPX-XXXX trial antibody against expect up GIST FDA FGFRXb therapy half in from products B-cell advanced QINLOCK collaboration Zai’s in first-line clinical and cancer, entered sunitinib we China. are forward in metastatic gastric Amgen in call, the large gastroesophageal progress XXXX, partner last In as with companies including FOLFOX. In immunooncology bema collaboration into oncology in HERX

The the solid in research molecule binds program MacroGenics and expressed collaboration multiple DART first tumors. that an is to covers CDX in lead undisclosed platform incorporates that target

be designated by The to second the covers target MacroGenics. program

research option molecules, to and in China, an arrangement the a both and lead Japan rights clinical profit program upon Zai XX-XX convert sharing into received Korea a global For predefined commercial Greater achieving obtains milestone.

for Zai discovery. the early-stage will molecules, autoimmune such drug in discovery our rights response Zai the announced our pipeline will pemphigoid announced Schrödinger global key damage on within initiative leader have ZEJULA Lab and oncology. and in is The using damage myositis DNA in two providing PARP our has combinatorial potential by indications at and commercialization efgartigimod collaboration a commercialization efgar trial been July, filed industry additional Zai discovery, global as novel its approaches a commercial as two commercial jointly research on an target pathway clinical This For month, in company development hitting and inhibitor, all with this Lab R&D all exclusive teams see, complement in argenx, Schrödinger operations efforts With partner, Lab for scientific approved. the in of this focused cylinders. development Earlier Lab’s new platforms can DNA applications by response and bolus be program ZL-XXXX. for and a and research Day. franchise, pathway, addition to are two Zai existing development Today, Zai globally. interest five exclusive computational conducted products development In progress, Zai’s have you rights. will Zai as and

with look to throughout we will our discuss very and progress an sharing quarter. year. Billy the have in now, And We the further opportunities of financial you abundance much our growth forward results

Billy Cho

Tao. Thank you,

We strong XXXX respectively. Revenues mode growth expectations. and summarize were financial and million are our business. reflect our XXXX, the I as with year-to-date for in and both for as our quarter progress results internal second will results $XX.X our second remain year-to-date which to quarter well briefly line in million across Today, financial high continue the $XX

Over revenues million and the were same respectively. $XX period last million year, $XX.X

we were $XX of still the year-to-date successful cycle, our sales are ZEJULA for respectively. and ramp We million, so quarter early products. sales three trajectory oncology pleased the second revenue are million with first launches XXXX the and $XX.X in very and

Optune ZEJULA $X.X $X.X million million for Optune year-to-date were and XXXX year, second sales were $XX.X last $XX.X over sales last and the same and $X.X and period year, quarter same million million $X.X sales respectively. And the million Over respectively. the were respectively. million period

to As XXXX. for R&D X million payment additional The compared revenue MacroGenics. and for to million same QINLOCK payment we $XXX.X primarily a of successfully for and strategic in and $XX our ended million expenses achieved a $X Mirati the development period headcount and $XX.X XX XXXX related $XX to months were million expenses on pay upfront ongoing expenses million and to the newly to attributable to initiated to the and launched May increase partnerships, in million increase to general June including XXXX. was Expenses payroll $XX.X for upfront in quarter. and Research expenses third the $XX.X product increased expenses months from XXXX The additional X trials, ended for XX, Zai the payroll-related Lab same period late-stage in and June was and activities administrative for and Selling, headcount. commercial were clinical China. expand payroll-related XX, compared primarily R&D commercial increased due continued its operations from commercial million update,

million to attributable a Lab X in stockholders attributable $XX.X for to XXXX. Zai reasons $XXX.X months the XX, net of share expenses strategic same loss The the $X.XX or increase a For reported partnerships, attributable a mentioned. increased XXXX, or million SG&A per ended net of of loss per to June loss common just was in loss net compared additional loss share $X.XX common of the and for R&D to I shareholders period a primarily

to XXXX, turn open As XXXX. investments back of June to to – totaled now compared $X.XX over for cash and billion We restricted the equivalents, as operator billion and cash XX, Operator? cash the like XX, line to of $X.XX December questions. June call would short-term the

Operator

go coming of Citigroup. first – ahead. Michael the Instructions] from line coming have a [Operator Yigal first line Nochomovitz we We Yee of the question from have from question the Please

Yigal Nochomovitz

much Hi, for the question. very great. taking Thank you

are development three way approved rich through clinical pipeline So and in-licensed assets you their very of products. making now that have a

that the into focus new as bring still pipeline Thanks. sufficiently assets you bought? on focused you the in you or to on will company So BD assets do have effort already developing more a believe are rich and you’ve the

Samantha Du

Thank morning. let you, to will Yigal. This Samantha. question. I Good is the Jonathan address

Jonathan Wang

follows that has us. strategy And the been Yigal. Zai’s for Hi, I think Look, for evolutionary Thank the always current strategy. company’s question. really you this

China. we’ve positioned plan the as of think been really choice I ourselves in

pipeline So it assets are oncology, deals. looking that, and on execute complement diseases. globally within transformative beyond But I infectious I bringing also we within our think within continue into think to best-in-class first-in-class, to autoimmune for

deals. opportunities go with like with have Schrodinger done the in the general think we looking assets do what are our areas, that, with I done with We past for just existing also think continue I to beyond we recently have to therapeutic the And efgar, the even beyond will MacroGenics, we that. like

think, assets. I discovery to support going

I always think for And is BD the of company. is growth I the think evolving. multi-dimensional it’s

Yigal Nochomovitz

Jonathan. And Okay, had follow-up. one I thanks, just

in you have your approved. I already portfolio oncology So XX believe two count, products by my with

So the within possibility your that investigating combination strategies portfolio. of opens up

So that to in the combination sense be trials you which make in I’d tumor types? curious believe and what know being do clinical evaluate would said, to products most

Samantha Du

Thanks, Development, questions. our the Oncology of Yigal. Alan, President please take

Alan Sandler

I question. the ones number of in at that additional advantages assets given the is for the we large you here forthcoming. great Sorry, of portfolio Zai was on mute. the this And one have Thank yes, and

I think and in we that think, interestingly with given and exist gastric that opportunities number there which we the lung franchise would franchise, in have. there I targeted are assets our approach our in have the – of broad particular,

gastric also of in met be PD-X, we’re various available, may associated LAG, KRAS, with lung different the are combinations looking a at etcetera. with agent, a also that So that combinations number HERX including combination in and

that areas addressed with give I of a we question? think your you hint Have the I looking. would which So of are some

Yigal Nochomovitz

you. thank Yes,

Alan Sandler

you. Thank

Operator

Thank you.

Jefferies. the of Michael your coming Yee have question. go after We is the next from ahead This question. line Please from

Michael Yee

morning, good evening. good Hi,

broadly R&D more an other it instead global more that? question in-license strategically, comment in programs to have of rather and And rather deal, deals more One two and more bring of and an in bringing should your around own recent think How that we therapeutic developing globally. the on do than internally with intention to are we That’s questions. programs developed developing you two areas. should your about going that rights just We was of anticipate Schrodinger one. a based so do question expanding internal outside is on

Thanks very to have expand areas the well think expect oncology, etcetera. I to could That’s oncology known. you focus so beyond you idea just should we so and a or we’re Can not other maybe on surprised? strong much. what pretty go anticipate upon

Samantha Du

do you and Tao, Michael. you, the Thank to deal? AI on Schrodinger want comment

Tao Fu

much thank your Yes, you very questions. sure, Samantha. for Mike,

Schrodinger a is new So partnership collaboration us. yes, exciting pretty the for

As chemistry industry computational in you may strong record. have know, they the a very physics-based track are leader and platform existing really

So Lab, we disclose Zai area key will a have very pathway R&D this on collaboration later. with the really repair of target, them, focused DNA which damage for interest we a on interesting

So to global and on of the companies this Zai Yes. rights both leverage really Lab obviously get target. capabilities trying particular

So promising new area a the AI is area.

edge. cutting try will stay the to We on

to to discovery. really We’re AI collaboration our as in use trying existing such external complement areas capabilities

Samantha Du

Yes.

just drug China I for discovery said you Thank needs, for unmet you. is to what for pipeline. discovery technology is see medical think we to effect elaborate is or do we very complement [indiscernible] discovery well, continuously depreciation will we that development. so, platforms and mentioned, But what the whether have which The done on global having existing saying. based way expand the we on see global to us a our do internal Michael, discovery capabilities technology our Tao platform to were collaboration for us

For question number one. Go ahead.

Michael Yee

important. could the then Both Yes, idea expanding comment interest? areas therapeutically, are on both important. what of of Makes sense. are And could be sense. you Makes

Samantha Du

who for of done from and have inbound opportunities, partnerships. what Yes. us lot really have for many customers the a more We interest have credit actually potential give more we

with expand this actively horizontally. new And into want area. We really we’re to access expand so looking. enter therapeutic We

into opportunity. as for to So which an example, the a collaboration pipeline offers expand have with that efgartigimod, has we argenx with such product

horizontally that’s still rely you expansion for. the So, kind of vertically. That may sorry, are looking –

opportunities looking pipeline. our for always complement We’re more existing to

Michael Yee

Thank you.

Operator

question. coming of next Seamus from is Please Fernandez from This line We the go ahead. have Guggenheim the Securities.

Seamus Fernandez

question. the Great. Thank for

volatility been if Chinese just investor concerns and where biotech areas. maybe questions in regard around shares cover in gotten just So could focus that and to in dynamics have some strategically certain raised China the fits we’ve of on terms with the we the of that government’s

how data collaboration the we a the about that and manufacturing that and set, we that? one for continued uniquely things concerns. see could data opportunities? company’s But other that comment pipeline you is major well with companies to we so your to think, And XXXX about a CTF of importance maybe particularly just China. be Obviously, I outside of has series question, it you’re us address either thinking potential you to LUNAR those payments help or then sense growth have its do understand of sets biotech executed, well the see that. one of of Novocure, on very guys positioned partners are been the growth how concerns of you China just the for And been in in regard thinking some relates XXXX, industry strategic much. second the accounting Thanks to and local us positioning could robust context meaningful Samantha, question, the just hoping like and the should the raised the forward, as hope Zai to was final importance should give partner, I how Billy, milestones capabilities then and to of come in other with given

Samantha Du

Thank Seamus. you,

The question me you sector. actually, is, And do first we since about to the speak asked agree.

listed volatility around have on is China seen NASDAQ. [indiscernible] of We concept, company lots

– Zai also, we with and – Lab and Lab. companies evidence, times of discuss And like agencies so myself had are a course, to lot Lab’s like the some with of there – some companies quite biotech also, Zai in Zai

Chinese and from of caused diligence, I unrelated price due volatility am And I business. we bodies. our doing and So we including – harmonization. am are honestly, at global regulated. on are course, also renewed recent to recent But supported ICH plan And you which shows the the a sure the one actions status, the But particular the government looking really very market – X-year from XXth also commitment any very in we representing the that the CBE that biotech not their and X for also of sector in heavily understanding our is government events, biotechs, And considered biotech [indiscernible] from oncology [indiscernible] helpful sectors instead drugs portfolios boost on case example, July development. innovative strong innovation are support very focus for focusing the promote China’s continues actually is strong pillar of innovation the drug capabilities salary new And industry are product recently issued to with for with these guideline continued the on for if with harmonization companies integration bar as focus or and innovation and differentiated guidelines and other quite the and first on really industry. to big best-in-class profit and China believe membership economical already biotech side. pharmaceutical

alternative for these seeing the details like So minor Shanghai including involved, we really reduction plans sectors also are all some from type Pudong. activities in

many are positive So there news.

only now we Lab’s fundamental hidden are those so we very have far, Zai but on what confident course, to growth. are Of perhaps seen the public,

you second do Bill, address So want the question? to

Billy Cho

Seamus, the and Yes. Sure. question. Hi, second third take I’ll

related type milestone upcoming of the to So payments. question

or don’t the let’s figures. we that immaterial guidance rest Seamus, know, say, kicked to, commercialization. actual give portion guidance upfront after the But on you royalty assured, in forward-looking – As it’s those the compared

certain compared of announced terms a Turning which right, materiality, because ZIP in it’s achieved sort milestone. of something regulatory Point you that did we and million upfront made payment development at is disclose the achieved. sense, or $X we at end. that when a development royalty, And So along then upfront you have But way. a can some can know of back and would notable of they expect get milestone code yesterday, kind that along limited Seamus, quite have a one-time kind the you the I to seen we disclosures the

Treating and right. In question of your of for terms manufacturing additional Fields, any kind up what of in capabilities the I’ll ramping that let mean, on Tumor yes, you’re Tao volume comments. of means and But terms sort I add

if discussions Your observation data these especially these at successful with level are – is LUNAR leverage operating opportunities that about the to at right next we’ve – questions is scale a taking final we’re X are partner. there of different that year, talking out our other in Phase scale, China drive that and been with we’re scale. trial And that having

Seamus Fernandez

Okay, thank you.

Operator

you. Thank

next question. have We the

next JPM. have Rama Please of from We question from ahead. the line the Anupam go

Anupam Rama

little talk there. in for PCAOB your the for more a your broader can Hey, here going into rules guys. A region Chinese Thanks bit sort China about a regulators then, what broader digging oncology Maybe following question, developments much for on the on of so the headlines comments couple been specifically, are implication question. And in on taking up lot But sort on is the question. pipeline. and of macro Samantha, the last what’s on there auditing trials. of of you proposed

long-term? not the of strategically situation of financials, PCAOB have XX-K Thanks guys how risk. You addressing are and your kind thinking it the about you much. sort reviewing so this – What over

Samantha Du

question? elaborate Anupam, are about question, that the the on first, to you First of for is first all, Xnd guideline, the asking so you July thank

Anupam Rama

On Yes. proposed the – oncology

Samantha Du

Right, right.

Okay.

And CPA the And So development. the still for that for show and FDA need as the instead innovation I is patients is, we all, industry, needs. mentioned bar should medical so oncology We products instead continue China differentiation address for standard of placebo include gold number approved input. first think guidance – to already will to secondly, when to and who standard to not trying as helpful is respond earlier, guidance been of not established, we that all if that there if doesn’t many, you exposed really oncology, the it’s it, it’s worse, [indiscernible] from what And have for not already right. studies are PD-X closer really actually be are which secondly, that that not continues many arm. many have angles, emphasize to – only placebo has really one, support exposed to for – unmet we comparator trials. And industry you really through do think of [indiscernible] know, to reach to it many I means think PD-X

the fundamental that pipeline. particular on that’s think I

and long that, the the opportunities those balance be educational equal debated our entering with Zai to which we provide those believe billion the have little fits And That’s tender overall also population, has having terms the very of And about new. at honestly, Lab’s debated, develop class. country’s industries long not Zai with been time. internally to in to also been and the first very in we do strategy positioned. policy. or it’s mainly to balance shows I the pipeline. have well any day And am how to even the class been activity well want how and a seen So, market right, They or X.X XXXX. to [indiscernible] that we bit reacted structure, actually, one, And issue, overall, the to to kind governmental see whether perhaps years. the how use of that criteria. Lab, government over new fast surprised with policies, again, it growth we This a the global about regulate sector different And direction how in And in not expertise. China said has overall products. our of the to That’s but externally, are those control we X the have population, since how for allowed this area last very really because from are

companies for to especially China, continuously the Lab’s companies continually growth are – opportunity China Billy, pace, already global from a And of it’s that believe generation Zai but directions a think complement want instead at us trajectory, this really just China growth Zai we are exposure, that a gives China those for So, very and on the I Lab. do else? to strong to global future anything positive taking, we also the that’s for global strong expanding had U.S. in you see – biopharmaceutical along of continue

Billy Cho

Samantha. Thanks, asked about Yes, you sure. PCOB. Anupam,

points. I going mention So, just am quick two to broad

has we reporting that but you enterprise are No And VIE privately a never to, with GAAP filings. a quarterly accordance in historically domestic a XXX% know, financial a are will. U.S. with want why just with as structure. on here standards have, I continues to very issue legal PCAOB simple call which First, our been never everyone we and as a now, owned remind quarterly and be having basis is

kind filings we published towards going available details, U.S. also full well. eight world, completed the XX-Q is our we look a course, as guess, publicly that, the infrastructure broad do we but in And do can the I I to And far. us have we in ongoing. also of thanks where, on of to We info make plan that for second But soft that’s for limit been significantly point without And have additional and statement starting to well so to making risk have offices you the have the and historically as options are those. China, your around can investments that question.

Operator

you. Thank

from ahead. question next go our SVB coming Chang from have which We Jonathan Leerink. Please is

Jonathan Chang

Hi questions. for taking guys. Thanks my

question, the biopharma or vulnerable there could spaces certain that future? landscape be less to in regulatory Chinese changes within First subsectors in more are or the

Samantha Du

medical medications Zai think focusing on said, innovation, I I like on focusing Well, need companies globally. of right, for unmet patients Lab, as

personally time. the I sector think best believe we are in in I right

Jonathan Chang

color sense ZEJULA of additional just a second be how question. Got ZEJULA. investors around any on is you revenues, to – metrics Are give half it. can should Thank Can competitor to provide relative to And us provide how maybe specific the you. thinking additional second maybe a performing about you programs? there

Samantha Du

Billy?

Billy Cho

sure. Yes,

Jonathan. thanks, So

are the seeing market share gains. are we quite pleased and nice sales a far year-to-date. momentum volume We We obviously so saw uptake that with

to our Xx to implementation, actually which more fast XXX. start, the off from while to increased and listing it’s by starting a June, release about sevenfold, hospital siding that implementation press you until saw NRDL close March or of of of the actually early, number of we end to XXX the Our is kind closer a date X over

momentum are with of the the quite well, of confident. half look on for are so pretty of year course, the as forward and back implementation happy building to, So, going far we we and the kind

our actually are hit that goals. very confident will internal We

are see but maybe So sales some full guidance around giving yet, you just kind yet year of hospital we not listings. Jonathan, can shared that statistics we

as expanding also in we is our and over coverage hospital well, have Our coverage. now X,XXX hospitals

Jonathan Chang

for questions. Thanks taking it. the Got

Operator

Please coming from next This is Ziyi Sachs. ahead. Chen from the question. We have go Goldman

Ziyi Chen

opportunity Sure. XX the XX Phase lead about the at about this in projects in the actually, pipeline, now optimization out which identification me specifically look of have targeting X to for we projects studies. giving and range I left Thank questions. R&D You raise to time, we the counted internal pipeline,

regarding in AI discovery couple one, with back So, number not Lab I in-house Schrödinger, questions with couple only team a also of is is the but collaboration of see actually a there AlphaMa. a Zai is companies up March, strategy,

pretty PARP of being to NRDL the including time, of are am get or have towards competitors, the of about some see we to think Henry pipeline, the think are Lab strong collaboration to the Zai competition, building discovery trying very autoimmune. right second side they in are so also to can up start that there I discovery know based XX% be the aggressive products. half big line, understand quarter building following of Zai of target I more And in a will it’s of Lab. XX% of of year, work building of in-house on If to I selection, in still how the this PARP going in in third-line probably be instead marketing to – course, terms question terms the on their first market. are pretty oncology first of bit drivers already well, we the Lab one second trying share indication line. But terms external a But on? major a good team end on pipeline, within will in So, got local particularly a terms we sense second any the get indication. market And the terms in target picking same into in-house you you a number, for particularly, team. chance the Medicine, this Beijing of is our to specific is about My year, at the Zai track, But strategy covering – still a the is now the for first-line

market share the we So Thank years should get X if time? to years guys you in at you. indication, X be first-line looking kind what of

Samantha Du

Thank you, Ziyi.

first Your question related to our in-house discovery.

in release, think internal discovery rights. our you platform news as I see we the platform of with announced global can

so to we talked a in platforms, audience, we discovery like is is X earlier in not discovery, not in Schrödinger to did discovery company. internal we XX And have remind MacroGenics other with say talk working old trying well And the investing internal to which universities, it’s our am years, but – would so, as having about am I or increasingly said fact, really in-house But very as also elaborate. years to with internal I the and pleased this years like just the expansion bispecific materially we to feels efforts. about what X extend with I platforms,

expanding. team Shanghai, We now have small team the is in started every

give more in sense values in Bay future Our Francisco Shanghai, Area. San in

to and of treatment soon opening focusing all more on and development going very of focus at our global margetuximab on also trial also are We business kinds activities. fast of amongst

I I think, that’s want thing the to say. So, first

no technologies different company we of phase all. drug which longer think The cannot and [indiscernible], consumer have it development. are as with we in working we, I Secondly, are one because a

AI to that, collaborate with with capabilities. understand And we need that so we companies have

also have is some what to platforms. going say or going not want we mean our our the complement technology am the to our pipeline. not look capability bispecific we and fix I continue are for will we technology But works which do continue to are So discovery, between our this, or first-in-class not licensing companies China of it, unmet as we we we and/or – more platforms intention computation involved need to doesn’t internal companies What continue only continue with complement but and do company. accelerate which but have will add continue you we will internally which have forward, saying, that to global all strong to And mature collaborations, have, best for not assets model. see will now we strong pipeline, continue also medical more

now those people scale, As this Thank Zai details, going. day, R&D of terms want is this question I where this capacity, regarding... we for targets, we to Lab specific we time we we you Day. do the this of upcoming have hopefully, is and we in But think have in Ziyi. the are And the the of the on convert because side you, about – talk or can Billy, can

Billy Cho

Yes.

ZEJULA take other in and will in question about I Ziyi, you domestic competition and referenced NRDL some So, to second Henry companies. your relation that

that’s monotherapy, reiterate, ZEJULA cross to safety been line has have already profile various best-in-class the the to first – all And second believe PARP we NRDL. it in only for positioned we we and actually a approved barrier is setting. for PARP just in It and patients. So, as the the the types all-comers the the line blood-brain once-daily of already is excellent for ability strongly

off you like in volume kind what of line, it market next look year picking terms like the of to I first also mentioned with potentially So, also does share.

market we that they line. the say I also confident XX% you heard some have in While be share we ex-China share. now. we in has would that. Japan, we by have in statistics know guidance, like can right market XX% the stick us first and don’t I are give share point you that historically to And U.S. leader, market ZEJUVA towards

progress that are the ovarian for very in list, is are PARP inhibitor, and So think again, And year. firmly review right, on of ZEJULA strategy – but giving we a to this good published negotiation NRDL not drugs that actually towards how for have that we the July, the is are ZEJULA it as we establish NHSA the for robust of eligible best-in-class also we are And end. percentage very making NRDL we and kind the exact cancer, end on China, included. the for first-line at negotiation for – a eligible

we leave your that. you question. it So for will at Thank

Samantha Du

advisable next and in correctly China NRDL first are line approved commerce for inclusion monotherapy Yes. – Yes, we I only only with think year. you pointed Ziyi the out also for

Ziyi Chen

Samantha Thank Yes. and you, Billy.

Operator

next The Suisse. comes you. Please question Yang Huang from ahead. Thank go from Credit

Yang Huang

nice commercial two and in second Thanks congrats progress I quarter. in the have the for management China questions.

Treating China. Field in Tumor landscape First, competitive

a and starting to in last the in device domestic those in China clinical to going the from potentially studies. Treating are see – conducting companies few see few China starting trial years, China So we year, we their data next Tumor clinical are Field

terms long-term in want comments I So, That’s competitive in first the in of landscape devices have to question. my tumor just China. management’s treating on

Samantha Du

Yes.

you asked. good a that’s I think question

indication couple clinical we First as all, narrow of you do come on of still know stage out focus and not a it’s how the correctly development in will is the that years. which very local results in next mentioned, and still a company

We will see.

us So, trials X, have whether Phase say it’s are expanding. many too lot already other indications, you some as early into for And a any is large we also seen, to indications. Phase ongoing, there because passed competition and X we have of going

this but there whether going our any it’s or stage whether ever it’s in-licensed. this own whether very be be in confidence – then, strong will any we in even in [indiscernible] at have have are areas since it’s foresee. in on qualified So, to footprint even we data. going treatment There we with are people we our opportunity particular the come opportunity. to working am have are Zai very welcome it’s options. strong we if in successful. by I comfortable been to the And drugs, words proven sure And up, And – we very

We very approval guidance. clinical quick have the got into

patients already – guidance basically have treatment So, put into guidelines. – doctors this

see, So, we we very optimistic. but are will

Yang Huang

color. that all about track. second KRAS question our for Thanks my Great. is And

plan our KRAS release, from our the Mirati. noticed did So, press in of for license I clinical kind with mention not we

that? comment can on So, you

Samantha Du

want you to cover do Alan, that?

Alan Sandler

question. Sure. Thanks, the for thanks Samantha, and

to trials. and molecule is combo couple of oncologist KRAS. having a in to be this And in spent of former opportunity as exciting. KRAS, – something come very Zai XX our over years to are the comments. thoracic up trying mono global the excited wonderful extremely we extremely One, on Mirati with had this all interesting for We with participate and So partnering

to local potential exploratory the PD-X, We also as studies assets the etcetera. such have with pipeline run LAG-X within PD-X and and own our

do. comment combination along. bit be studies I studies. local is we global But move to And more be there Mirati – we will a on it’s what will would And global their participating comment further with so like to would to emphasize that what in early as

Yang Huang

Okay. Thanks.

Alan Sandler

Thank you. Thank questions. for the you

Operator

like Thank our to you. any would today. for conference now That remarks. concludes our over I to the session hand question-and-answer for host ending

Alan Sandler

but… Samantha maybe think on I mute, is

Samantha Du

are with So Q&A. done we basically the

Alan Sandler

Yes, done, Q&A Samantha. is

Samantha Du

for and Thank progress sorry – throughout all. am support I And periodically you for look We I to I taking that today. forward operator. the you, the everyone time thank you, this join us on Thank call. Okay. appreciate to now updating was you Thank operator. on mute. want you, call disconnect year. on our to the may Operator,

Operator

today. all gentlemen, and your concludes for for call that Ladies you participation. conference our Certainly. Thank

disconnect may now. You

Zai Lab Limited (ZLAB) 10 Aug 212021 Q2 Earnings call transcript