China-based Zai Lab Ltd (NASDAQ: ZLAB; HKG: 9688) has released its financial results for the second quarter of 2023, along with recent product highlights and corporate updates. The company reported total product revenues of USD 68.9 million for the quarter, marking a 53% year-on-year (YOY) increase at constant exchange rates.
Research and Development (R&D) and Financial Position
Research and development costs for the quarter were USD 76.7 million, up from USD 66.1 million in Q2’22. Zai Lab’s strong balance sheet is evident with a cash position of USD 876.4 million as of June 30, 2023, a slight decrease from USD 931.4 million as of March 31, 2023. Net losses for Q2 were USD 120.9 million, an improvement from the USD 137.9 million reported in Q2 of the previous year.
Recent Product Highlights and Sales Growth
The company’s sales were driven by increased access to Zejula, Qinlock, and Nuzyra due to their inclusion in the National Reimbursement Drug List (NRDL), and for Optune due to increased supplemental insurance plan coverage. Each of its commercialized products saw increased sales compared to the same period last year, with Zejula reaching USD 43.0 million (up 26% YOY), Optune at USD 13.7 million (up 18% YOY), Qinlock at USD 7.5 million (from USD 0.6 million), and Nuzyra at USD 4.6 million (up from USD 1.3 million).
Vyvgart Approval and Clinical Trial Success
Vyvgart (efgartigimod alfa injection) was approved in China as the first and only neonatal Fc receptor (FcRn) blocker for generalized myasthenia gravis (gMG), with launch preparations underway. In May 2023, the Taiwan Food and Drug Administration approved the Marketing Authorization Application (MAA) of Optune for the treatment of patients with glioblastoma multiforme (GBM). The primary endpoint was met in the ADHERE trial of VYVGART Hytrulo (efgartigimod alfa and hyaluronidase) for the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP).
Corporate Updates and Growth Strategy
Zai Lab outlined its 5-year growth strategy, with goals by the end of 2028 including over 15 commercial-stage products (up from the current 5), over 8 clinical-stage products with at least one Investigational New Drug application (IND) per year (up from the current 3), and a revenue compound annual growth rate (CAGR) of >50% from 2023 to 2028. The company anticipates significant revenue growth and expanding operating margins, leading to corporate profitability by the end of 2025.-Fineline Info & Tech
