ZLAB - Earnings call transcript Q2 2022

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Operator

Hello, ladies and gentlemen, thank you for standing by and welcome to Zai Lab's Second 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.

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

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

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

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

Samantha Du

for operating we thank to have executed report our done by in its and for EMERGENT-X today. that the you medicines schizophrenia. trial a very could as data be past, you, meet everyone, joining in X positive of strong this the topline globally. consistently XXXX, to We China’s second the all patients many and results. week Zai from the for Thank all acceptance efgartigimod the NMPA. quarter important China us we from treatment the continued as KarXT Phase Hello, of including delivered and BLA half environment, believe a challenging class well schizophrenia in readout goals first had KarXT Earlier in over Billy. in I'm century for a happy corporate Despite suffering new option

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the pipeline providing that sustainability. corporate for our our long-term competitiveness our in evaluate order to focus on the and programs continue global greatest We have to resources smoothening while patients potential

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Josh Smiley

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like comments over to franchise. to Now Oncology our turn call the on I'd for Alan

Alan Sandler

Lab's the well key and including trial the quarter, Oncology in you, and make initiations Thank second regulatory continued readouts, Zai Josh, to clinical to team. as progress clinical data welcome franchise progress. as

first-line XXX PRIME a or patients prespecified Zai and woman new subgroup IV study to updates data our year, extension to Phase to clinical response inhibitor significant ovarian clinical KRAS on platinum productive potent perspective, important III for the ZEJULA then study updates rest the the TT response touch platinum-based our oral XXXX. what analysis Lab for small complete progression with compared chemotherapy. chemotherapy. to look partial stage have a device cancer that and from cancer and examined the from the niraparib or of clinical of this division. response with saw data in who prior a fields either PRIME XXXX. We'll From when regardless on of of inhibitor analysis of highly a revealed focus the diagnosed At molecule we newly in the X disrupts experienced China cancer. free We enrolled also based remainder ASCO placebo p.GXXC PARP Results mostly ovarian over This and electric from selective cell survival status busy programs, presented Fields, expect in a adagrasib,

the and advanced evaluating This EF-XX together of supportive for Also in at Phase with months X secondary alone partial announced rate safety Specifically, niraparib a with complete median PFS response with primary placebo. Lab subgroup versus met PFS consistent group standard-of-care XX.X the treatment for median was study, ASCO, HERX-positive The and with the safety pilot in X.X endpoints. group chemotherapy months and as XX.X overall or previous for no efficacy profile across Zai in response patients patients signals clinical months identified for was endpoint trials trial in placebo, issues combination the versus trastuzumab this its with gastric safety of the cancer. Novocure for months first-line analysis. new with the niraparib niraparib was X.X in response TTFields

with control the median response from recently of XXXX rate overall of announced Mirati revealed PFS lung cancer the result adagrasib in an the results OS KRYSTAL-X treated non-small Most intracranial cell XX, two Phase was data our of off XX.X months. of previously treated an of and rate CNS X.X updates. with a For June harboring XX% X CNS-specific metastases median the months partner X.X cohort disease Mirati to this enabling full KRASGXXC-mutation. from in presented clinical evaluating study patients adagrasib and registration revealed XX% The previously study of results median the response of response overall The cut data activity with XX%. duration in months. was rate January the The stable

Phase and In this analysis X from a to results, The updated from cell results a Phase Also results of addition in study the the pooled results non-small CNS an the cancer lung cell the cancer of control of KRASGXXC-mutated the Mirati with KRYSTAL-X rate X/Xb intracranial CNS XX.X XX%. months. overall in The XX, non-small cell months metastases. cohorts. duration was analysis prospective intracranial of Xb these non-small a January X.X XX% disease patients a untreated study, in the with overall PFS response revealed registrational specific pooled median of revealed was of median cohort reported With months. of rate and lung active June data XXXX rate these XX.X and response analysis from findings the OS response including of median Mirati with cut adagrasib responses activity an The Phase evaluating lung KRYSTAL-X cancer announced patients of advanced XX%. was of off cohort the

Prime For improves analysis modified of randomized, advanced cancer These results the FOLFOXX FGFRXb Five demonstrate reported the expression that no which A previously X oncology outcome later new pipeline in continue to over clinical Zai LUNAR year, the of study number safety modified data the as franchise. evaluating our double-blind, neuroscience completed. top from in Zai survival autoimmune will the the tumors plus Reinhart clinical the our from acquired line in continued FIGHT was the concerns. final and be study, collaborated bemarituzumab, are Amgen bemarituzumab increasing observed Amgen with With of controlled I in by was Lab And areas. including regulatory benefit was initiations second a FOLFOXX TTFields our best-in-class China. clinical trial [indiscernible] Lab. study numerous and of partner study and X now, year Harald expressing discuss our GEJ regulatory program Dr. and oncology products, untreated patients with Greater quarter Throughout to with the levels. FIGHT pipeline will across on bemarituzumab and early Phase in gastric the and XXXX, with the greater Phase patients with first-in-class first that half Harald? as progress turn pivotal very well therapeutic from about excited updates potentially of to we data at submissions to floor FGFRXb productive,

Harald Reinhart

us the marketed in autoimmune China. was and introduced alfa novel and with autoimmune Hainan this and July the difficult International the milestones efgartigimod NMPA truly efgartigimod treatment started announced for Zone, patients Medical face injection the Pilot to myasthenia I'll Chinese diseases delivering generalized first or BLA Alan. many bring Lab gravis closer with These for VYVGART. the with you, July through important treatment gravis XXXX, treated efgartigimod. in Tourism control accepted that Thank Zai disease. In its myasthenia name was complex to challenges patients patient who And XXXX, adult efgartigimod the with a of for living

schizophrenia. assessed Scale difficulty negative delusions of with to in is compared demonstrated we statistically significant less of by positive It PANSS KarXT in neuroscience and various the all statistically such conditions. system late or key adults of p demonstrating statistically time receptors And treatment trial Syndrome placebo reduction maintained trial that symptoms than PANSS The MX/MX-preferring line score, secondary for in of last starting meaningful or area, symptoms, tolerated, consistent KarXT trial. just withdrawal both and early from tolerability central KarXT Marder with total partner Moving and for subscales. as and schizophrenia KarXT side agonist Karuna also also stimulates EMERGENT-X disease. clinical Alzheimer's enjoying a trials the KarXT by positive in this top to X investigational trials a psychosis through total significant reported as well primary an endpoint, negative profile recall or with an you'll as KarXT stage psychiatric value in of KarXT was met generally reduction Positive PANSS demonstrating Therapeutics rights November others week-X X.XXXX. clinically China. the week-X in schizophrenia. the significant efficacy, the symptoms KarXT entered implicated score Phase effect instance life into Negative in positive, and endpoints prior with our measured with nervous and X.X-point points in negative in at its safety, from at Greater oral evaluating i.e. an sustained is and schizophrenia, reductions Monday, Karuna its the hallucinations and with agreement for the results muscarinic exclusive substantially met in to reduction a PANSS

With line We confirm be differentiated will we have able seen from KarXT what improvements that clinical across demonstrating data the of results EMERGENT-X disorders. positive other and negative while pivotal These we believe both growing supporting approach million weight Greater and evidence notable care Phase problematic schizophrenia, than as schizophrenia, the living schizophrenia the top Phase KarXT trial thrilled new and for gain, these the trial. and to therapies of China psychotic eight effects as a are X the X symptoms a such associated common potential movement with treating to of on for in people of more being disorders. body standard EMERGENT-X not potential in with become new has side sedation, current

Our plans development a in submit is getting the discussion clinical China to trial and design plan, regards for drug bridging mid-XXXX. CDE to in to program China. application partner the in the the USFDA With application with new submit ready team a with

this program. with the very trial reported benefit continue antibody on Last the X we chronic psoriasis. year protocol a to in early IL-XX Moving we to we our FDA to plaque In penetration filed excited topical were global ZL-XXXX, FDA program. in a to proof-of-concept show with of year, patients second clinical work the proposed quarter monoclonal the we skin and and a fragment Phase that

with our trial a results. to will dose year. now, commercial Phase Billy? X of financial And finding products ZL-XXXX speak and progress second the We this half of in are on track Billy about start

Billy Cho

results quarter. to Harald. execute in delivered Lab well the continues you, second with strong Zai Thank

same these to to XXXX the the NUZYRA $X for representing for XXXX, and million $XX.X growth, for the were a a the total $X.X same growth. representing to $X.X million the XX% QINLOCK company XX% to $XX.X period year-over-year XXXX XX, million ZEJULA to are $XX.X months period compared regarding for million of enter million $X.X for revenues growth, in in were Product compared million revenues For inclusion same million year-over-year for million, scheduled the the million periods And XXXX the XXXX compared same XXXX last Optune for same $XX.X compared for period $XX.X the period price representing year-over-year for selling XX% June three ended in QINLOCK, period to compared for and nil potential NMPA June lowered year. negotiations the NRDL. NUZYRA in with the products. for

three As a products those $XXX.X new clinical and XXXX, common initiative prior due reduction the June XX, in June the three offset ended in during expenses compared ZEJULA months $X.X licensing trials as R&D agreements, headcount. practice price QINLOCK to decrease million with XXXX. to for the sales rebates million previously and of R&D million compensation to for same ongoing related partially R&D payroll $XX.X NUZYRA for to we for for expenses and the sold China payroll upfront the The distributors period the to those by no and months increased payment million were expenses XX, expenses in ended respectively related primarily at accrued of increased was XXXX. $X.X higher

expenses in $X.XX and same same primarily to $XX.X for non-cash to $XX.X Excluding ended the licensing same The The for increase XX, $X.XX three $XX.X net months primarily million was period the no period million, of months adjustment. for operations XXXX. loss during continue the June China three period and XXXX the the increased XXXX months payments compared during Net of was $XX.X SG&A period agreements, upfront million agreements, million in general anticipation its $XXX.X for commercial share payroll ended compared strong the for line which R&D from loss few Net million XXXX foreign is next decrease and expenses for was commercial were of XX, the three invest ordinary new XXXX per compared last three Lab XX, ended to growth years. the XXXX. XXXX. loss due the of the payroll $X.XX upfront new licensing were and of year. loss for related June to for offset due increase XXXX. a June core $XXX.X payments $X.XX administrative expand million period exchange expenses compared top over same to in in in June headcount Zai was same ended partially was for by ADS per loss in months to Net XX, to

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

Operator

Our line first Jefferies. comes from ahead. Instructions] Michael [Operator question Please go Yee of the from

Michael Yee

you questions. good comment for just morning. around the Dennis the This Have the Can them in briefly confident China, talk having you is can on engaged Mike. that Thank this? And are on for Zai audited with how Thanks audited Hi, HFCAA? Lab to on board [ph] be our with views this? your be would taking versus you SEC your you. about in specifically be U.S.

Billy Cho

you one? Hey take to Josh, this do want

Josh Smiley

question. Josh. for Yes, sure. Thanks is Hi the it

the quarter, have as auditor to we do our PCAOB the in As U.S. the workpapers, KPMG and KPMG's second they'll will we've XXXX. and audit for for XXXX appointed full in the said, access such, as

any the file KPMG we that given movement that go audit, on XX-K. confident we're Holding we and XX-K not audit file that have be very and we're control the once on So, well, we reporting Foreign that with the we will be, and be standpoint, the here completes compliant practices list this and Act will will things time see from when Accountable next you'll and would Companies our their

is on audit work for I the think ultimately the between year KPMG is for end sign off now prepare and to then, really, XXXX and our to, financials.

the met So requirements that quite law. again, confident of we've we're

Billy Cho

Thank you for the questions.

Operator

Yigal go ahead. Nochomovitz question comes from of the next Citi. from Please Our line

Yigal Nochomovitz

taking the for question. much very thanks guys, Hi,

you leader China. become of first that in you've park market space you So believe that the July the in the statement can made

could So that if the terms you just of into or in statement? projections metrics, making, Thank you make in down and that statement that confident bit drill making a perhaps that you're internal little you. more will data

Billy Cho

I'll this for your question. Hey, Thanks one. take Yigal.

then -- things, So to we broadly, and that awareness I into since class the I'll last kind as that see of increase, despite tried trend. grow share year. continued starting continued be of even market park penetration park many think it picture. our just of has the came say you growing, that know, will continued it And And, to the we sort stop COVID really from to despite situation, asset didn't the recent particularly

tracking, asking was it And would, are I thing. exact, so sort but XXXX, market of XXXX we other damping, and that's If climb. of know, you kind metrics? we're I to a We're So possible going be as to of possible of it's a IQVIA. data, up listing as know, continue about around mentioned for really there's listings, June course, by state publicly about of number to reference. a unidirectional gets good lot, it's the as share a And, ZEJULA, you to published earlier, It you XX.

gives no And question. us we the of check Thank later than we confidence next a to first an you we and the and share hold expect should line, leader have for be it the things. market You to, year. internal And that, second this towards all it's I the goal pointing awareness the usage, of mentioned. initial that's what the know, statement line, kind lot the

Operator

Rama Next question ahead. line Please comes Morgan. Anupam from of the J.P. of go

Anupam Rama

taking KarXT call hope a all There bridging Hey, and you're a thanks so much China about the in doing study question. guys, on in was for the for well schizophrenia. comment

regulatory no so for why to you similar Yes, data ZEJULA, had there KarXT thanks So QINLOCK? is with what on ex-China path much.

Billy Cho

Take yes that Harald please. Harald,

Harald Reinhart

where different you is efgartigimod Asiatic hello. a in question. standard data doing the program. Yes, for is mentioned, China, some se. of KarXT at programs not Bridging data Thanks when had least. the situation, for things per the and don't for case We of you have way some instance, other the we for for the This had

in with So will CDE discussions to China then we on move expeditiously as now us bridging well. which allow in a program, are forward the

Anupam Rama

much for so question. our taking Thanks

Operator

The line Leerink. next question Chang of comes ahead. go from from Jonathan Please the

Jonathan Chang

the On Hi and U.S.? for versus KarXT taking questions. and similarities you differences guys, thanks treatment the schizophrenia in my discuss can China, landscape the

Harald Reinhart

over when you know, side is. patient longer is of for second of effect used effect Jonathan. the second the the is couldn’t generation some it's currently from antipsychotics, in comes first And known elsewhere. part they in movement profile. to antipsychotics, thank the a generation a a because the that indeed world all profile be and effects And it well much and Yes, agents, atypical China There as -- or probably dopamine antipsychotics quite question given But you the it which antipsychotics in treatment has active should are their psychosis it than side away united serotonin of treatment. This is really actives, a are as understood. generation side led are to discontinuation of use

or you and same the drugs see in of is drug that the So the paradigm would stands based is Europe. in the U.S. is that elsewhere its in action. treatment world, like the KarXT in out mode other drug, no by China on paradigm similar it treatment There really

the So see show this really to differentiation. EMERGENT-X results that assumption delighted showed And to which we of this correct. was is the opportunity are our trial,

for So question. thanks the

Billy Cho

the you Thank for question.

Jonathan Chang

for question. thanks taking it, the Got

Operator

Ziyi line go Sachs. Goldman Chen questions of ahead. Please come the Next from of will

Ziyi Chen

questions. two taking Actually, for questions. you Thank my

Optune quarter. The because first feel about like the the quarter, is second in pretty the we in second sales sales receded were

the particularly that at definitely this on efforts question And there to because achieve a and also lockdown, elaborate indication the given sales? to XX will time second in quarter, the done of what get notice limited NRDL plus do team is now bit hospital recede to be and covering prepare you we a very into up that have point, second in you more is, QINLOCK. a sales small very you [indiscernible] surgeries already cities, plans insurance of the a However, supplementary large QINLOCK probably this first some And kind could by price going on, line for visits negotiation in to cut? choose sign why of

So how actually how evaluate Thank small you. for you into a the indication? potential much SG&A be savings uptake and on getting such side the NRDL expecting should by

Billy Cho

thanks take questions. these your Ziyi, I'll Hi for questions.

Optune despite So listed growth option. we had it that resilient, treatment yes, fact was is NRDL not year-over-year that an the

cities. market of strategy tier So, about the well. concentrated -- two of But access progress market sort access there's to the around quarter. tier challenges And second a in the more one, of continued clustered we follow we've course,

been our of and operating we've plus world for all, of within it the as been two a COVID kind years. an First under a past institution, team that

China it kind So ups that things call know, of been kind as we've recently, of you structural as flare that but Nothing the kind of, as technology we've Shanghai deployed on first you know, discussed a during of, solutions. there's lot time. throughout you the quarter know, enabled

the going listed to you that, in know, to of for on we're and XX also, the program we've and Keytruda into second You to program already now know, that's grow. you you know, team. Optune that. And going most kind goes grow plans insurance to continue think goes why continue reimbursed supplemental it's the we're insurance -- and to supplemental addition after in work that. commercial just a to course, And, good credit resilience I hard that But goes of, know, credit our

So these the I factors. are think two

And [ph]. this of bit first question treatment treatment of I as color QINLOCK around still access strongly NRDL the that a gives setting. little of it's resilience. treatment advanced we And that it's accomplished, with all, is that kind awareness. been see think need all then hope guideline to into really GIST. recommended course, this public established your And there's a care option population, more really right many standard patients, and own therapy and of We that only GIST building we really go setting. in QINLOCK around advanced you I'll patients really and evasion XA patients class that just you'll [indiscernible] is we hopefully to And do if in into even really for in these year. decision know, the domain, believe as additional And hope can just say second to you actually, but very evidence was you It our roughly and know, now treat And patients of is guidelines, in get GBM So in know, an it's, alone. you beyond. that try earlier level expand comers the XXXX treatment we that in that can about life for

to pursue So, this of part this year. strategy is NRDL our always

You [indiscernible]. know, the profile you we compared course, which, the to interesting know, line for study were year, of second waiting in some favorable safety given last data, has interest some respects

leverage have as to GIST can. patients two many would to we So been it patients account as that try treat

Operator

for you questions. Thank the

the Next questions ahead. are line from from of Guggenheim. go Fernandez Please Seamus

Seamus Fernandez

Great, thanks for the question.

you markets? X So guys my just sense substantial available, guys You the Can number give know, you a could that question the feel in on you once other cite? share a available it to KarXT is million that of that actually where product us there's of do where of there's opportunity more where Obviously, antipsychotics know, market And, seems patients in KarXT. development the market? in likely to are relative products of a U.S. take we of here, the you just And, market given actually limited quite available. stand products becomes fits really China. and of penetration like lots go bit lots has but

the population? you interested versus guys just a China And the just in with then as opportunity to PD-X how combination helpful, thoughts So patient are opportunity just know for of be the on kind in standalone we that? opportunity about KRAS secondarily, think Thanks. would about your just adagrasib broadly, thinking

Billy Cho

Jonathan, do on you want one, to take the first KarXT?

Jonathan Wang

Yes, I start you can and can…

Billy Cho

Or Harald, want it? take do you to

Jonathan Wang

Yes, ahead. go I please --

Harald Reinhart

address relate well treatment a as to government is the wise really at is take underserved and in widen KarXT me the let with also but an a treatment efforts first here no market. that in Yes, population. is and government the China, psychiatric personnel access it There a options, and the wise to there's recognition services both Chinese a been it's underserved antipsychotics the it's been need by as because diseases. program to it’s underserved that to I it has think large market there answer recognized If stab the market the is and startup

not spectrum not drug which differentiating have greater And Current approval this main as get correct. either like a can you you are standalone You're we hope treatment. tolerated. a which a, in the approved. here more useful side what add-on an currently treatments more as But available, and a KarXT drug is to really such, as clearly effect have There's as other features drug is program differentiated use the makes is profile mark, a a once China both limited or of will overlapping. better but to clearly is really the and as The -- U.S. the such eventually. options in standalone

other Maybe can team So market to somebody it China. I else in at from leave that. speak our aspects the

Billy Cho

Harald, Yes, there just pan chime think how maybe also number to piggybacking of over just But feel today. schizophrenia the China many X I'll off are in really to actually about is, China million department. these patients think national patients free that One Jonathan you in in. we million off illness at about, And I'll right the around two bat the schizophrenia is know, the that patients from are registered are cases ways. severe diagnosed. X can the it do registered -- with mental And look mentioned

today. the million. you the around is to way know, way about, that, think way another And you schizophrenia know, around you to reason, patients X.X know, X.X million, are the the you gets that being is you treated same way all triangulate the reason, of another Another around way triangulate know, number, to that half to

the think, be I decades, we to potentially good, here you with. with pretty the you a if think excited. start opportunity a think in penetration that's drugs plus I know, quite five is decent new And more about So probably can't and compelling of even number a class brand

Operator

question. Thank you your for

Billy Cho

is yes the the Oh, inside so was nail. and recent, that's adagrasib, probably second But part get two question the on chime you prompted if so what in change seems and I inquiry, hit think the data, question, the you question others. like the it sorry, probably can the WCLC Alan, to around, feel free

for so cancer, -- to China, in battle really publication another duking differentiate and of you how XXX,XXX stay the key think the think XX%. think, sort for be non-small tuned to the us something year, you going like it This there's for on you I this here that. out adagrasib right? Hong you I data But, pretty of and cell only out will. of update non-small out So it's are are programs is I significant every in rate know, patients lung a not area if cell have it's [indiscernible] going talking Kong later about well, mutation China, is a frontline the is, The GXXC. thing of, that lung for and in there's cancer new year a good that there has lot publication two

China, XX% in with for So using a patients think first kind a much have of towards treated that time to of can as it's data. can for good U.S. around the globally, kind go and in we pretty plus, Because let's know, that you that. awareness few being We've if we going inch we're and we options, that's at actual it's opportunity. in are what up. or But trials as KRASGXXC the But better treatment KRAS grows, And see only believe trials. we're initiated already now.

Harald Reinhart

let maybe a just I'll add well that, a So little to Maybe bit. Billy, just the broaden and color more me, question as

mentioned, help that Billy and upcoming attempt, with the be KRASGXXC this in participate as to attempt to be very about opportunity. so for approval a approval very scientific we're about to CDE. from accelerate regulatory China at we're able And, is treating that excited discussions perspective first going U.S. successful mutation, pathway the in the So in U.S. that to the very important excited

Moving CRC forward, global studies, in KRYSTAL-XX global line and lung studies. plus non-small line, KRYSTAL-XX the already cell we've started second participating in cancer second in the

we differentiated profile a want and lung as acid in checkpoint course class, also with be believe we along improve Importantly, studies, formulation, as has the GI to it, best believe And our non-small over in [indiscernible] believe opportunities and in with frontline cell believe cancer just along lung of that I close first the cancer lastly, the cell inhibitors. such as we combination cannot we're do in which Mirati can tablet partners, with other non-small tolerability. well, using class

for the this So again, very forward looking question. excited and Thank to you moving forward.

Operator

you. Thank

the from ahead. Please question Yang We have of go from another Suisse. line Huang Credit

Yang Huang

questions. have quick I you. two Thank

its one has however, approval is know is can we approval it China has U.S., kind years five expansion ZEJULA indication one since the indication ZEJULA? for in only so contraindication, And First, so of been that expansion opportunity in as ZEJULA, you talk still future still in process. about the

Billy Cho

think for yes. that's I you, Alan

Alan Sandler

yes, Yes, for sure. Thanks the question.

with cancer GBM also and patients. mention I are the study So to well, registrational this also that global cell as terms there stage you cancer, in of ongoing. for an clinical breast looking zero There's I along lung cancer will think early alluded trials and non-small Ivy lung Tumor are Center Brain

ZEJULA both and opportunities, you question. and with And global for or partners projects. the the for management potential be with on lifecycle GSK, We locally we'll our either working are constantly at scouring thank GFK

Yang Huang

see. I Okay,

second seemed product compared on I've got last particular quarter for my is gross this quarter to the down, Okay margins, same to question has be that? follow there gross quick a year, is margin reason our so up our for a

Billy Cho

that take gross so bottom this mean, margin. I'll on $XX around that the line, Yang, right so Hey, I straight adjustment one. to you nonrecurring million saw drops you, the

I of gross So But evolving would margin. sort it. towards that guide would explain our also probably

brand really products. mix it's revenue know, new you a function of As product and

helps. that hopefully So

Operator

Michael question followup Yee We from from have of go the ahead. one Please Jefferies. for time line

Michael Yee

for and the In growth coming years. for fact your need in the global in prepared and that to thanks putting the expanding about little your me globally, active more months you remarks, more you be guys support to again. bit Hi, queue a infrastructure will talked

you to you're it little the have bit So around more it us, emphasizing and a like globalization than in like that. things seems past

could given later? So we larger a you. rather than a haven't done many announcement deals Thank there really year, you sooner this is see possibility

Billy Cho

that? take to want you do Josh,

Josh Smiley

the think we're I as asset And internal we've X question. our a first, the mentioned Phase advancing for Thanks into yes. study. Sure, ZL-XXXX quarter, in

there, of that product. rights -- about that's course and opportunity the So we've for are global thinking got potential

a geared has are global has looking been built of opportunities a a and to basis. in Zai capability business now to I to done innovation. portfolio scale. think think just we select a from great team development, I advantage certainly broader China, as China, use potential of not it And towards the partners picking relates but for beginning, opportunities We take that Lab The great on products winners. on global can job and certainly fabulous of regional

we're product. going deals do come we're same and to not have our deal to to So, come of just a kind global going going for these be, think It's they use partnerships. to all a the evaluation when I of process we use

in but with really license think, I on the sense when a global some we think into our I we're capabilities China a will would a good comes just or the selective and not basis is, And good So be something but very makes insight that think of when predicting certainly Thanks. global closely us acquisition I a speculative, of again, but working best if it And broader world partners opportunities. gives we'll on of act. course, see we be basis, interested.

Samantha Du

inception, the Yes, since discovery. on five we been, question. And years also Michael, has that's last a focused internal spent good the Zai have Lab

those forward, clinical moving we're as will quietly entering well. as stages into we programs So see

thank you. So

Operator

at you. Lab's this showing call questions I'll Samantha further Zai I'm the to closing Thank for time. no over CEO, turn now Du, back remarks.

Samantha Du

call I to update forward support join everyone us appreciate taking look this this We for on you, the Thank after thank and time to operator. you call. again your want to today.

this call disconnect now may You

Operator

for that your you and today. conclude conference the Thank Ladies you. does participation. for Thank gentlemen,

You may now disconnect.

Zai Lab Limited (ZLAB) 10 Aug 222022 Q2 Earnings call transcript