ZAI LAB(ZLAB) - 2025 Q1 - Quarterly Report

Revenue Performance - Net product revenue for Q1 2025 was $105.7 million, a 21$106.5 million, up 22% from $87.1 million in Q1 2024[93]. - ZEJULA generated$49.5 million in revenue, a 9% increase; VYVGART / VYVGART Hytrulo revenue rose by 38% to $18.1 million; NUZYRA saw a 53$15.1 million[94]. Expenses - Research and development expenses increased by 11% to $60.7 million in Q1 2025, primarily due to licensing fees of$20.0 million[99]. - Selling, general, and administrative expenses decreased by 8% to $63.4 million in Q1 2025[93]. - Clinical program expenses rose by$9.3 million to $28.1 million, a 50$20.0 million increase in licensing fees[100]. - Selling, general, and administrative expenses decreased by $5.8 million to$63.4 million, an 8% decline from Q1 2024, primarily due to a $5.3 million reduction in personnel compensation[103]. Net Loss - The net loss for Q1 2025 was$48.4 million, a 9% improvement from a net loss of $53.5 million in Q1 2024[93]. - Net loss for Q1 2025 was$48.4 million, or a loss per ordinary share of $0.04, compared to a net loss of$53.5 million in Q1 2024[109]. Cash Flow and Financial Position - Net cash used in operating activities decreased by $28.4 million to$61.7 million in Q1 2025, reflecting improved operational efficiency[128]. - Net cash provided by investing activities surged by $322.8 million to$326.1 million, mainly due to $313.7 million from the maturity of short-term investments[130]. - As of March 31, 2025, the company had cash and cash equivalents of$857.3 million, expected to meet cash requirements for at least the next 12 months[125]. - Short-term debt outstanding as of March 31, 2025, was $173.4 million, with additional borrowing capacity of approximately$240.2 million available[126]. - As of March 31, 2025, the company had cash and cash equivalents of $757.3 million, an increase from$449.7 million as of December 31, 2024[140]. - The company reported restricted cash of $101.1 million as of both March 31, 2025, and December 31, 2024[140]. - Short-term investments decreased from$330.0 million as of December 31, 2024, to nil as of March 31, 2025[140]. - The company had short-term debt of $173.4 million as of March 31, 2025, up from$131.7 million as of December 31, 2024[145]. Currency and Other Income - Foreign currency gain was $0.7 million in Q1 2025, contrasting with a loss of$2.1 million in Q1 2024, due to RMB appreciation against the U.S. dollar[106]. - Other expense, net was $0.2 million in Q1 2025, a significant decline from other income of$9.4 million in Q1 2024, primarily due to changes in equity investment valuations[107]. Future Outlook - The company expects to continue incurring substantial costs related to research and development and commercialization activities[80]. - The company anticipates fluctuations in financial results based on the success of commercial products and research and development expenses[81]. - Future milestone payments could total up to $247.5 million for current clinical programs and$684.9 million for other programs, contingent on product candidate progress[90]. Credit and Investment Management - The company has historically collected receivables within credit terms with no significant credit losses incurred[141]. - The investment portfolio primarily consists of time deposits aimed at preserving principal and maximizing income without significantly increasing risk[143]. - The company monitors credit risk related to accounts receivable through ongoing balance monitoring and limiting credit based on payment history[141]. - A 100-basis point increase in interest rates would not materially increase the company's interest expense[145]. - A hypothetical 10% relative change in interest rates would not have a material impact on future interest income[144].