ZLAB - Earnings call transcript Q1 2022

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Operator

Hello, ladies and gentlemen. Thank you for standing by. Welcome to Zai Lab's First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

call recorded. today's reminder, a is being As It over Officer to my pleasure of the floor to turn comments. Billy introductory Lab, will is who now Zai make Cho, Chief Financial

Billy Cho

corporate who a evening operator. you, everyone. recently as the results company's Zai press The section Good well President and advances is of will President of good Neuroscience, for site quarter Officer. Oncology, who therapeutic our Development, and with and made comments about in and press Thank Development, XX, Diseases, the Today's and Head Dr. the be XXXX, market products update. She our providing Relations Head will release Dr. Alan Executive progress will conclude Infectious I company's Chairperson speak Harald as highlights Investor performance our discuss have Global first the led of the morning, results. Autoimmune product Zai financial and Chief discuss joined areas; welcome, Lab oncology on candidate; the call financial available details release by we will Web of issued and ir.zailaboratory.com. Global three Lab's with ended at by Reinhart, those in will corporate product and be Samantha of Sandler, Founder, March Dr. Du,

to during Q&A the available questions portion call. answer also be the Additional executives will of

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

Samantha Du

you, Billy. Thank and all today. you Hello, everyone, joining for thank us

developed proprietary internally at solid for of proof plaque Humabody Our global upon Building To foundation psoriasis, chronic progress key portfolio. the Annual marked four with like the of Zai's anti-IL-XXA AACR and consists execution, record recently I'd XXXX oncology year's five programs rights. highlight quarter, from Meeting. XX preclinical products first kickoff consistent results quarter which last and progress track reflect to of ZL-XXXX, across platforms the today's unveiled by achievement Zai were on made data entire for concept our

partnered study pipeline, With these are proprietary of studies, early clinical and its exciting numerous in-house expected to which and And assets just beginning advancements days XXXX. readouts pipeline we proof-of-concept within course, our demonstrating the in to commitment of enter later-stage research. complements throughout this produce discovery Zai's translational first-in-human pivotal to is the

pipeline advance rights, into global readout top in study R&D line from achieving bemarituzumab with data wave we mid-XXXX, full As ZL-XXXX and first-line continue for XXXX in for X am filing progress including established initiation by global trial aim to toward progress we these that efgartigimod of the to the you at including I in priorities in the investment quarter lead to say cancer of proprietary Greater position our a XXXX, registrational EMERGENT-X its China, development. this may NDA priorities, pleased recall, strategic China beginning Phase next Zai to for biopharma KarXT third in year, gastric to of moving toward innovation. continued

Importantly, marketed four products commercial Greater in to drive China. team our our with growth significant continues

our more to in call situation Before on Alan franchise in monitor oncology the certain potential continues comment China. in to ever-evolving to detail, the China. I'd make over Zai regions the impact turning COVID-XX discuss in a like brief to

best-in-class While not quarter business the impact the it our beyond. access on medicines current human Even have of despite so, the goal trends in improving to pursue China. China and underlying company. have pipeline, confident quarter, are at global in and our and China global and at situation in committed We in global which in Lab geopolitical of by in build further very has to The execution Lab Zai taken we markets, COVID-XX first fundamental value the COVID-XX headwinds. remain consistent first of did business impact a to have patients drivers macro capital presented of global team, a leading we a and modest facilitate our remain expanding overall bringing our the and significant difficulties talent to biopharmaceutical believe track strengthened Zai we growing in our to worldwide, leadership likely our to second health are record steps access the ever and

like I'd the Sandler. to turn call over Now, Alan Dr. to Alan?

Alan Sandler

productive quarter and a Zai franchise progress you, Lab's of and continued Thank busy we Samantha. to have in oncology expect remainder first XXXX. make the to

animal Annual of antibody ZL-XXXX an with ZL-XXXX expressed and in growing Tregs CCRX agent model, most is unveiled our combination in the CCRX mentioned, that solid within targeted ZL-XXXX. highlighted single the at initial antibody in resident the anti-PD-X. the targets on activity oncology tumors. on Zai the key a our receptor novel discovered both presentation, data an selectively data anti-tumor oral presented of AACR internally from company programs pipeline. we recently, Meeting As preclinical Samantha In

broad included XX.X-specific and which solid potential data AACR in cancer studied preclinical from internal two applications platform, R&D our potential our which anti-cancer goal inhibitor pancreatic a gastric CDXX at lymphomas presentations at IND poster per has has with in ZL-XXXX, ZL-XXXX, our antibody one ZL-XXXX, Additional being targeting forward. both which Claudin antibody and tumors, and least applications. advanced XXXX, from of is going submit to to selective plan small In our highly INDs filing year we molecule up DNA-PK

for accounts for globally programs in oncology global prior prior non-small with objective global efficacy two global In on for announced approximately ROSX lung of cancer. China patients those compared in cancer see confirmed to comparable and X/X platinum-based those non-small recently treated with these one cell patients in to significant development in a with sites. cancer. In data revealing in cancer and clinical for TKI for newly TKI The and site. every compared XX% XX% we all drug in China, line positive first lines best-in-class analysis non-small patients data rearrangements rate responses. trial China Notable numbers the XX% fronts TRIDENT-X treated progress efficacy Repotrectinib, patients candidate sites. study ROSX with is majority cell to quarter. late-stage lung global the those cases encouraging line cohorts results lung potentially data sites. ORR occur this Phase are was prior continued lung all to in was disease of make of with repotrectinib, in globally unmet TKI those advanced from and for to year in patients China, TKI-naïve global treated TKI-pretreated advanced non-small and XX% X% medical response diagnosed with one patients compared The from ORR XXX,XXX trials Our confirmed was clinical cancer in XX% lung ROSX XX% prior With XX% the XX% ORR positive for exploring cell line those in the representing a XX% of sites. chemotherapy comparative one was cell And to diagnosed China, over X% need. for It represent sites advanced the

advance Turning this cancer work cell world. to support and to in continue program non-small with patients will lung closely the help We around to China Point

study, XX.X we survival to Oncology of Moving longer results progression-free meeting niraparib as ZEJULA, treated the at patients significantly Phase months. placebo, months In compared versus the the PRIME maintenance ZEJULA this therapy median from of positive March Society PRIME X.X was X in with to Gynecologic year. annual presented for study

We PFS non-gBRCA XX.X only was versus the maintenance still data and months. treatment cut-off. favoring PFS patients. as for of status niraparib immature, patients, study mutated data Median at survival a although there that PARP inhibitor was the first months gBRCA line believe versus For patients X.X the further all-comer median the settings. reached the not globally for in underscores first as mutated the PRIME Overall, monotherapy trend months XX.X was approved was ZEJULA

an products, LUNAR neuroscience now, including X will best-in-class in areas. from clinical touching important to XXXX update be top to pivotal from abundance the potentially cohort registration-enabling Lab. and excited data Phase autoimmune on and X discuss pipeline non-small TTFields very turn of cancer And the Adagrasib pivotal another of study. KRYSTAL-X therapeutic floor Harald first-in-class readouts, Zai cell Phase progress Reinhart line we the clinical our to pipeline, I about our poised at oncology Dr. over our are the and Now, With the lung later-stage is Harald? productive data with trial year briefly data

Harald Reinhart

gravis, XX.X% of demonstrated the acetylcholine XX.X% ADAPT-SC compared irrespective efgartigimod positive IgG at entire to IgG were specifically Thank March In the Subq gMG. or amount formulation efgartigimod autoimmune study consistent the of in data from I'll efgartigimod top day reductions IV the marketed gMG Zai announced generalized reduction across you, Alan. mean receptor subcutaneous antibody for from same or partner line status. efgartigimod. diseases baseline its patients, total X subq in myasthenia argenx Phase as start Results treatment of XX IV with with VYVGART. XXXX, name efgartigimod evaluating achieved population, efgartigimod the of

argenx partner by FDA end Our XXXX. the to BLA a the of to plans submit

long-term with consistent the course. what weeks study with gMG. the long-term in a interim efficacy study, treatment data ongoing that profile ADAPT+ and suggest few repeated three-year of undiminished safety benefits for efgartigimod cycles announced efgartigimod from of was ago, adults provide a tolerability was extension Phase Just safety, each treatment program. These observed results treatment the X argenx The with pivotal with evaluating of

clinical Moving trial chronic we to our Last in skin IL-XX patients that proof-of-concept were ZL-XXXX, a with early show to we topical and antibody in psoriasis. benefit reported quarter, penetration plaque excited fragment. very monoclonal

provide Facing use. term the strong and affects disease. Psoriasis know, of chronic from of patients plaque significant. moderately which is severe and IL-XX approximately many directly with topical works effects. mild opportunity longer and rationale XX% lesion a ZL-XXXX on XX% patient that efficacy Current to XXX to these the to or of you topical have quite therapies suffer XX% and avoids to directive develop side therapy need limited worldwide, As psoriasis have formulation exposure issues people million systemic for safety with XX% market

hard option trial drug are to treatment bring filed support need possible. In for quickly X Phase production hydrogel, clinical topical dossier as We FDA. the product to activities to this XXXX, patients working drug as patent innovative March submitted ramped in pre-IND and a meeting we to substance a up

the We in to this Phase X are track second dose-finding start ZL-XXXX half trial of on of a year.

to the on Moving area. neuroscience

last Score effects. antagonist KarXT drug a peripheral And combination consisting Syndrome statistically than into with Greater tolerated that was or significant Therapeutics the positive incidence recall, score. and PANSS In rights subscores, trospium, central better and negative agreement and well the stimulates xanomeline in receptors in you KarXT an that an GI X system in in the Positive side PANSS China. meaningful a demonstrated alone. much entered KarXT of and also KarXT trial, total PANSS nervous the improvements clinically Negative xanomeline, muscarinic Phase EMERGENT-X Karuna agonist November, investigational of As to muscarinic is the we reduces MX/MX the for oral

from aka partner Phase top in line Our study, also expects known to Karuna report quarter X EMERGENT-X as third data XXXX. trial the pivotal

psychosis study expects with in mid XXXX. in addition, a In Karuna initiate to patients Alzheimer's

in key program part the a getting collaboration for a for pharmacokinetic Zai Chinese program, and XXXX. study to application mid clinical team clinical bridging ready a leaders with meeting opinion CDE of in As in the trial a submit with preparing trial designing the is China,

to two our Now switching antibiotic over programs.

both have regulatory of will these year. this interactions We for major

First, an drug for update on multidrug-resistant Acinetobacter Sulbactam-Durlobactam, infections. our

CDE for Our CMC to meeting Zai subtle pre-NDA requirements the U.S. and in last and course to partner mid with XXXX. on to discuss Entasis are Likewise, with differences the has it a U.S. hold FDA NDA meetings this China, the from will spring filing as the submission successful CDE meeting. they between and respond is queries

is Our a XXXX. for current fourth in quarter submission China plan the of

launched drug need breakthrough important new China in China. in high was China We partner designation expedited will and request Omadacycline, given NUZYRA, for ask with review [indiscernible]. just unmet the for this medical our

strong in expert commercial later with our discuss On the financial the are provider studies, see results. that in front, to States. both patient support and we meet United been approval same will and meet seen this to marketing post Billy will with which hope to expectations now, currently has about progress Zai CDE China uptake healthcare And year the regulatory efforts. input designing commercial with Billy? products and speak we to

Billy Cho

ending engagement of future improving Consistent U.S. KPMG's shareholders human into mention I outgrowth over the Zai year well reporting XX, future. view strategy, our KPMG announced to Kong Hong and global markets for filed to annual worldwide. vision to will actions accounting with States. facing in a KPMG our engagement as of forgot presence and our success Zai our our the as KPMG through December NASDAQ in Lab and auditor biopharmaceutical U.S. a a continue we liquidity United LLP, and capital our and financial Stock health financial internal achieving we facilitate SEC Exchange have controls audit base existing public with April, In be independent are engaged U.S. the transition to The The is registered of fits natural for globalization we we statements engagement firm. evolution liquidity continued the fiscal key our to growing the of global global also listings. auditor XXXX. multiple consolidated our to for to of continued with shareholder a expect strong access Lab like our KPMG facilitates the to company. global

eligible Main Hong Kong we primary to will by company channel Exchange plan addition, which key In be to mainland us is China enable have dual in Board conversion pursue which announced Connect, the Becoming to listing Stock Kong provide on a our invest with Stock to traded voluntary the the traded Hong on recently. investors listed which the primary for a dual of split ADSs on This Stock Kong Exchange. issue, for to in ordinary robust traded We March as well want from share our XX, became as shares NASDAQ stocks in liquidity our all Hong follows investors XXXX. on effective shares Exchange. Stock our ordinary can

commercial to Moving performance. our

Our QINLOCK to are first strong from indication robust to year for this Building products; and NUZYRA. unique well. growth our year. was of therapies achieve included label for later ZEJULA ZEJULA's we ZEJULA on next ovarian available seeing XXXX continued cancer first share ZEJULA, favorable commercial the Optune, cancer line ovarian revenue market the continue NRDL. year, in continue news biomarker execution patients a and in position the treat to this promising among drive perform four marketed ovarian it the months no a we With of trend end and than gaining regardless reimbursement decision expect to three of cancer of status, to in leadership

hospitals in the growth in XXXX, post-NRDL Similarly, we as reimbursed. Optune. over continue the Optune solid be first X,XXX performance. of XX, to China to continued listed one in strong foundation ZEJULA for three addition, achieve top In treatments providing of was In quarter, March a

we to QINLOCK, establishing as and which standard X,XXX patients for every fourth-line committed a year over treatment As for GIST, in new is growing. China are

XX As insurance Optune supplemental XXXX, are of plans in municipal China, covered XX, and by and XX or respectively. provincial March QINLOCK

moxifloxacin MDR for comparable ABSSSI. NRDL benefit unmet patients linezolid efficacy with expect We ABSSSI. China believe locally NUZYRA profile, year infections, or is tetracycline acute we this the intravenous in safety in in skin favorable and need. drug in approved and and best-in-class a of novel significant structure in launched indications addressing in manufactured successfully with With potential antibiotics both NUZYRA seek a was both X to to or treatment a pneumonia, is needs to broad-spectrum CABP and many for antibiotic oral was NUZYRA year, as bacterial is inclusion with China. and last bacterial demonstrated for noted CABP, we innovative As December. a skin to community-acquired Category It infections formulation more

million, will $XX.X quarter from for period Total the were first financial in up XXXX. $XX.X the of I million revenues discuss XXXX Now first results. quarter for same

and with market products. operating growth time mentioned, to continued successful XXXX to are leverage. million. launches come, over we launches of more is $XX.X ZEJULA sales generate very expected for and trajectory product sales As pleased the many our commercial our With strong considerable first of quarter platform were

the million. Optune Over sales in same quarter were first for period ZEJULA XXXX, million. $XX.X were $XX.X sales

sales were million. period first sales same Optune QINLOCK quarter the $X Over were $X.X in million. XXXX, for

XXXX. expenses sales development for related for to quarter by to Over same the of expenses XXXX, The payroll were million ongoing no to million in Research due for decrease new compared increased newly were initiated the $XX.X the payment quarter licensing same period trials headcount. $X.X in the $XXX.X from and R&D period higher first late-stage expenses $X.X upfront offset in was clinical XXXX and payroll-related partially were NUZYRA R&D expenses increased sales agreements, primarily million. QINLOCK and and million. first for

$X.XX upfront core expenses to were attributable share million first loss $X.XX, new per $XX.X a for the for or the same for quarter were XXXX. Excluding same of $XX compared period the payments Selling, administrative and commercial of million expenses XXXX compared loss $XX.X of general $XX.X in licensing R&D net XXXX, in stockholders quarter agreements, and in years. of a headcount, a from the XXXX to for in the for payroll expand top operations period million in payroll-related of the few was first the net a over $XX.X first anticipation reported and to million, share as common or The in to per to general in common of primarily of Lab next same increased substantial cents, in due Zai expenses its attributable China invest quarter loss stockholders and continued growth commercial Zai loss XXXX. increase period Lab line and administrative to to for compared million XXXX. million $XXX.X

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

Operator

Thank you. open the to for We [Operator would questions. Instructions]. now line like

the your question Jefferies. from Please comes line from of ask first Michael Our question. Yee

Michael Yee

one perspective, big China, maybe a concerned in companies about One watching you to of Thank you. had dynamics Good to commercial are From and could We the a lockdowns things. are a and investors obviously impact and two I picture question. appreciate different hospitals, afar lot and but update. challenges of big any morning. the a just was trials. little question respect to picture pipeline questions. various some different about was bit access talk and particularly with a clinical A due enrolling saying whether the bit there's

this okay, and that's snapshot there, a you what's China FDA in if you would to press give would are or And submit confirm Thank you us with some light efgartigimod FDA release affirmed So of If you could that pipeline is to that great. of meet in question the on that planning the are the shed Did going that be middle could be year. actually you there your you. you discussions? helpful? still in

Alan Sandler

or Mike. I'll first the for Harald. and to Hi, the second either your Samantha one Thanks one take questions. give

developed and environment impact protocols we've So a which this under in to well now time. and been procedures, minimize have situation, now for operating throughout been are in COVID the two over terms COVID years place of

in quarter, there from some Now as may prepared Shanghai. second in be in heard challenges particular remarks, you the are

of the of in It very less continuing the X%. statistic, were as less recent I to there And cases closely, new than cases but may than the like monitor of we're are even X% yesterday, number that peak. be report the would most community. zero So to found

communicated most milestones. a regulatory goals not our any importantly, we including this to year, clinical execution particular overall, make of this all IL-XX all to global global did So need and impact in track, for that year. terms at changes development point of the strategies programs And program our in there. the previously X time, in called feel of And half there's and this the of ZL-XXXX have, are no our trial programs on of Phase second including we initiating

Michael Yee

on hear that. to Great And efgartigimod?

Harald Reinhart

communication for regulatory last submitted Thank up them Hi. of FDA the we and indeed this efgartigimod had on in we which them a question in to the with pathway not so year, Yes. forward. you have already CDE have year. follow middle and but meet dossier the we a much plans to Yes, with to

may You since the what approval a our would it of our lot things they them be press the mentioned And this a about had PK that with Japan we in drug. good meantime, meeting In we in China that of broad label efgartigimod, which the very year have expect ingredients including importantly, for meeting results came releases dossier. in happened, the our is last for through. studies more even recall

So we the going from are now ready CDE and awaiting forward. plans a proposed our on response

this be in we meeting subsequently? it when middle exactly do hopefully will And the year. that we know. will of do what So will dictate don't But that happen

Michael Yee

you Got much. it. very Thank

Operator

Thank you.

Our your Citigroup. comes Please question. Yigal from next from question ask

Yigal Nochomovitz

as one where Samantha and firm. taking Thank and the you, will regarding Hi, KPMG questions. last have announced an accounting you month be engaged you independent for news the I registered team. just Billy, for Billy

left, wondering, need you point, clarify at inspection that is or with the the gain you in could the by to to there any inspection And just to Just is technical demonstrate the satisfy are the other compliance you? what only HFCAA KPMG steps inspection step? need regulators? sign step only or PCAOB if this Thank operational this

Billy Cho

Thanks Yigal. question. Yes. for your Hi,

for interruption inspection last KPMG appointed stating an Hong in of our and the year our and know, we HFCAA our finding as expect expect Qs XX, for NASDAQ from recent any the and high accountant April Kong as did don't fully and K, Audit therefore, with by And consistent the of right. to to many a where with U.S. And you the or release You're and with purposes our been the financial we what most expect to be the an next And that that statements off will XX-K filing On the do cycle. also Committee in matter. we subject very list confidence press in auditor listing. U.S. with comply an PCAOB. we've we we release is filed Board X-K SEC

Yigal Nochomovitz

Okay, got maybe then topical you. pipeline And shifting for or question a Alan, in-house IL-XX. the regarding Samantha the to

I indicated you soon Zai global program, Phase with design noted which, a is is think in you've that FDA meeting the to call, X psoriasis. in as multicenter plaque a comprehensive study expected chronic to be

FDA? China? XXXX, this question you first launch have could road an U.S., pharma what I'm since program, I European highly and product team, additionally, at with operationally, beyond with what the is given Obviously, if for whether obviously the further had very Japanese the were just a Josh for that a would And So scaling markets. on then is Lilly are building thoughts and the your businesses, experience wholly-owned this yet And in international down think you product engagement appealing secondly, prove his the to Smiley curious And franchise so, takeaways? addition looking useful recent XXXX.

you if there, be you. So that'd your offer could Thank great. thoughts

Alan Sandler

something which for IL-XX, getting is XXXX FDA. I now This in me. is still to the Yes, a ready U.S. with is guess for indeed this X Phase going we need discuss a study question and

the submitted question, your we dossier. did to But this So meeting we have have not yet.

that them multicenter this study, the accordingly. still and as of study, start and can adjust we all Phase will But hear by you from we X year. rest we So say, the this end back believe placebo-controlled

we goes in-house and attractiveness others. this many, indeed many believe As do great, our in has with to about approach. far reach, detail Billy. as stagger question the our I great But can I you, global to over in maybe to discuss Over and this people regions your how will marketing hand

Billy Cho

Samantha please?

Samantha Du

Zia to member you in-house, And a [indiscernible] on key you will we correct. the experience our And August of he be the of as doubt beginning also [indiscernible] organization. [indiscernible]. contributing of Josh full Yigal. And global but no X. announced, have will I Josh terms you, Lab are just global it he Thank be capability where Yes. as has a COO said, has in his basis. do

Yigal Nochomovitz

Thank you much. very

Billy Cho

Yigal. you, Thank

Operator

Thank you.

Our from next questions. question comes ask JPMorgan. from your Anupam Please Rama

Anupam Rama

Hi, the with sales one place the team that you guys. region, much Thanks the COVID-XX the questions, up we've to call in continue physicians sense the your question. you prior of given taking following about engage for certain talked us of have a in Maybe give so so in kind on this to Thanks for restrictions on regions? much. can strategies of

Alan Sandler

Anupam. give stated environment this some some under When how to and earlier we working and Hi, developed protocols Yes, happy examples. procedures. we've

medical examples, [indiscernible] some where So with in would promote, there's a a you. range solution, way. community a way be out One can figuring engage digital you out compliant to a with

So we had to actually build that.

example. an that's So

over systems And the Another for get up been having example having that. historically to place in facility, would China ways and plus build years. be figuring prescription past in place tactical help where a at patient flare another with strategies two ups, and right, there's prescription, -- in and let's to say, and due out potentially to protocols

we're a about talking So what of a here. gives hopefully, you of bit flavor that little

Anupam Rama

so question. my for taking much Thanks

Operator

Thank you.

Securities. your comes from question Jonathan ask from next Our SVB Please Chang questions.

Jonathan Chang

Hi, guys. taking my for Thanks questions.

your recent in with companies, changed, volatility earlier the at discuss the business all? and stage First can markets, question, strategy with especially you has how development, if smaller around

Billy Cho

take want Jon, one? do you this to

Jonathan Wang

question. the for Thanks Jonathan. Hi, sure. Yes,

a environment, are pipeline, promising good we of as current see the continually which do efforts. also with interesting well as the perspective. from class external internal world assets is always on focused very and opportunities, So In as balance both of lot we building BD our a

than U.S. biotech companies more today of sort half look the under of are If cash. you at, trading

up pick see about to they the to At pharmaceutical we continue leverage to strong from also great to China the interest market, how opportunities second think largest to Western same potential global prices. do at have accelerate time, we companies, as So assets but very also China, their access good timeline.

So good of of opportunities as those well. source we type have continued

think any comes it As I BD we'll selective very opportunity. when to always, be

today, our that in dislocated. share very a bringing assets. acknowledge have high price also We is severely bar I'll

higher in opportunity any context. will in market, this meet bar BD today's environment. we about even current So of certainly in to the an And light think have the

Jonathan Chang

it. Got me. second taking you trends for inclusion? I then since for the line NUZYRA And NRDL that first question provide sales guess Thanks Can color question. on some

Billy Cho

Hi, Jonathan.

script So we although market internally. have share them we're giving data publicly, not data,

of is actually into third available very data from gain year, and share et Q, you But what starts some year. And let's the throughout cetera. that see fourth even, market last our will say, quarter quarter clear are a this

you quarter, up a You saw year-over-year quarter cetera, seasonably a ZEJULA, due the able and all first where [ph] China saw that's course you and a of prescription. fourth quarter even holidays, nice XX% quarter discount a and first of and have where not low nationwide, -- to me, and price with et excuse offset it's substantially you we like quarter, a you in flip sudden to the have implementation switch in it a January revenue, on situation listings to that was were low X energy on in

out. hospital And very to a try list, then now prescription the represcription. get in robust have fashion, actually You go on and

should fourth market gains well. you third, And should the And of And see quarter pleased commercial a expect also a ZEJULA. line and along and second, performance, the credit way similar first for it's is lot right, you share to quite we're to a that, see we NRDL, course, expect the with coming as our first team of from on to had beyond. trend that. quarter that So

Jonathan Chang

Got my taking for questions. Thanks it.

Operator

you. Thank

question. from comes from Goldman Our Please Ziyi next Sachs. question your ask Chen

Ziyi Chen

you my taking Thank for questions.

simple on one burn. Just the cash question

quarter, cash burn significantly below has quarters. So first previous been

toughest first the think us no And to facing ways, about year, for will guide environment have strategies what are commitment? a that's the extend possible budgeting the how There the And rest pretty particularly cash that so was the fees BD Thank funding And if runway? to will light affect you. your the the licensing overall your and to you budget, of in that quarter. quarter. manage

Billy Cho

this take to one. happy I'm Ziyi,

design have have and guess, very actually and of all I saying So a been very first strategy. by productive, we this but along, all, we -- efficient platform of a we've kind by

been R&D. guidance to trial, by not much product and BD we've into it and by really portfolio able regulatory cost design is a And that giving on really global It's success being build recently, to I of versus versus in strategy efficiency. really terms development think with R&D. BD that historically core and a a integrated. But plugs more it's higher

I have of capital a seeing BD commentary, some of deals, in of XXXX. yes, But, the you're going be inflow. runway to results And where that. in with burn So even end overall, runway even we're to there type so could activity mean BD of cash -- of sort future terms

we billion So cash. X.X today, have in

million million net of burn from XXX cash XXX on was year XX less down loss also from but QX Our and that's burn first million basis, XX million, a in basis, was quarter down year-over-year. P&L for and on a cash last

XXX look difficult XXXX and going and 'XX So to at told I we 'XX, three-year range. think -- numbers it's were million. as respectively, before, And already over million, historical with million, you it's at million, that be XXX And you, 'XX, XXX year, upfront payment the be give won't on to should I but not XX levels. for you the guidance those it Ziyi, spoke

Ziyi Chen

Got Billy. it. Thank you,

Operator

you. Thank

next question. Yang ask question your Credit comes from Please Huang Our Suisse. from

Yang Huang

Thanks me opportunity have I ask. for giving quick two ones. to an

kind of COVID. is up quick a First on follow

second That's my in some year? and any do cities So quarter we wonder and quarter, quarter change compared I second and to dynamic given this see in first year lockdown last quarter first in the question. drug the Chinese in of stocking first also

Billy Cho

Yang. Hi,

inventory nuanced of change. nothing on, of could material. channel what's to terms given In some going no There incremental strategy, but kind material there's be activity stocking

So there our is comparable, consistent. quite quite strategy

Yang Huang

on Okay, I expense. is see. my question second SG&N then And

year, increase. same still significant is increase which see compared SG&A last we on headcount due our to So period to

So I'm the whole what during rationale wondering period, it? behind overall this year? plan kind what's difficult And of our the increase for headcount to for is

Billy Cho

Yes.

not first in terms up So compared year-over-year, actually SG&A QX was it But SG&A, QX. you're -- of right, last first this was quarter quarter to so down first XX%. to year, Yang, quarter to our year

a we So And at of We able commercial But to already -- our commercial employees. not material we're to were don't most. expect we just QX team incremental be XXX build need in last have that to on adding right. revenue mainly of what going kind don't that means still is It presence. that up year, while ramp mode, expand number, in be could as year, this at our we well.

operating that's So leverage in. kicking

stated. year-over-year, will be And it up the of first for will to SG&A but level from overall so to the year year not be this close reasons of first quarter I last quarter

Yang Huang

Thanks lot. Okay, a got it.

Operator

Thank All right. you.

session. closing to Du turn question-and-answer CEO, Lab's end for the I will call reached Samantha the the back have Zia of remarks. We

Samantha Du

Operator, forward join want again time We I second the look now on everyone disconnect after operator. support us the your you, call. to updating quarter. today. appreciate to and taking call you may this for Thank thank the to you

Operator

our conference participating. today. Thank Thank for for you. you conclude does That

You disconnect. may all

Zai Lab Limited (ZLAB) 11 May 222022 Q1 Earnings call transcript