Zai Lab Ltd. Q3 FY2024 earnings call

• Samantha Du highlighted driving revenue growth, expanding global pipeline, and enhancing operational efficiency. Total net product revenue grew 47% YOY. Pipeline advancements include ZL-1310 showing robust objective response rates in small cell lung cancer, IL-13/IL-31 bispecific antibody for atopic dermatitis, and progress in late-stage products like KarXT and bemarituzumab. - Josh Smiley noted VYVGART's strong launch with over 10,000 patients treated, ZEJULA and NUZYRA's sales growth, and preparation for additional launches. - Rafael Amado discussed ZL-1310's promising data in small cell lung cancer, progress in KarXT and bemarituzumab trials, and NMPA approval of VYVGART Hytrulo. - Yajing Chen reported financial results with R&D and SG&A expenses, and narrowing loss from operations.

Total net product revenue for the third quarter grew 47% year-over-year to $101.8 million. VYVGART net product revenue grew to $27.3 million in Q3 2024 compared to $4.9 million in the same period of 2023. ZEJULA net product revenue increased 16% to $48.2 million. NUZYRA net product revenue grew 82% to $10 million. VYVGART's launch has performed exceptionally well, on track to exceed $80 million in sales. ZEJULA continues as the leading PARP inhibitor for ovarian cancer in hospital sales in China. NUZYRA's revenue growth is driven by multiple listing approvals.

• VYVGART is on track to exceed $80 million in sales, in line with full year guidance. - Aim to reach profitability by the end of 2025. - Anticipate submitting BLA for TIVDAK in cervical cancer in the first half of next year. - Expect to launch multiple new products and indications later this year to grow top line.

• Statements are subject to numerous risks and uncertainties that may cause actual results to differ materially from expectations, including those discussed in SEC filings. Factors such as regulatory approvals, market competition, and clinical trial outcomes can impact results.

Q: Thoughts on VYVGART growth, sequential growth, and fourth quarter outlook, and next steps for DLL3?

A: Josh Smiley said VYVGART saw continued trends with new patients and maintenance phase initiations, and Rafael Amado mentioned DLL3 update expected next year when meaningful data is available.

Q: Impact of AbbVie data on KarXT launch and commercial build out for KarXT?

A: Josh Smiley said they are excited about KarXT, will move fast to submission and launch, with commercial build out focused on targeted approach with a 200-person salesforce.

Q: Thoughts on internal discovery efforts for IL-13/IL-31 and IL-17?

A: Rafael Amado said IL-13/IL-31 bispecific is an IND next year with promising preclinical data, and IL-17 is in Phase 2 study accruing well with interim analysis planned.