Zai Lab Ltd : Jp Morgan Cuts Target Price To $46 From $54

Q3 2025 revenue rose 14% year-over-year to $116.1M, led by Nuzyra and VYVGART, while profitability is now expected beyond Q4 due to a slower ramp in China. Zoci advanced to pivotal trials, and the pipeline remains robust with strong cash reserves supporting growth.

Based on Zai Lab Ltd. [9688] Q3 2025 Audio Transcript — Nov. 6 2025

3Q'25 revenues grew 14% year-over-year to $116.1M, driven by strong performance in VYVGART, NUZYRA, and OPTUNE, while ZEJULA stabilized after competitive pressures. Operational efficiency improved, losses narrowed, and a robust pipeline positions the company for multiple blockbuster launches in 2026-27.

Original document: Zai Lab Ltd. [9688] Slides Release — Nov. 6 2025

Q3 2025 saw 13% revenue growth to $115.4M, led by NUZYRA and XACDURO, with net loss narrowing to $36M. R&D expenses fell, cash reserves remained strong at $817M, and new credit facilities were secured to support ongoing pipeline and commercial expansion.

Original document: Zai Lab Ltd. [9688] SEC 10-Q Quarterly Report — Nov. 6 2025

Revenue grew 14% year-over-year to $116.1M in Q3 2025, with improved operating loss and strong cash reserves. Key pipeline advances include zoci's global study and KarXT's inclusion in China's schizophrenia guidelines. Full-year revenue guidance raised to at least $460M.

Original document: Zai Lab Ltd. [9688] SEC 8-K Current Report — Nov. 6 2025

• Zocilurtatug pelitecan (zoci, DLL3 ADC) (formerly ZL-1310) data presented at Triple Meeting in October continues to demonstrate first- and best-in-class potential, supporting the recent initiation of the global registrational study in 2L+ ES-SCLC
• Advancing other high-potential global programs, including initiation of a global Phase 1 study for ZL-1503 (IL-13xIL-31R bispecific antibody) and a planned IND submission for ZL-6201 (LRRC15 ADC) by year-end 2025
• KarXT was recently included in China's national-level treatment guidelines, underscoring the urgent need for novel therapies in schizophrenia; launch preparations are underway
• Total revenues grew 14% y-o-y to $116.1 million in the third quarter of 2025, operating loss improved by 28% y-o-y to $48.8 million, and by 42% to $28.0 million on an adjusted basis(1) ; revising total revenue guidance for the full year 2025 to at least $460 million

Conference call and webcast today, November 6, 2025, at 8:00 a.m. ET (9:00 p.m. HKT)

SHANGHAI & CAMBRIDGE, Mass.--(BUSINESS WIRE)--November 06, 2025--

Zai Lab Limited (; ) today announced financial results for the third quarter of 2025, along with recent product highlights and corporate updates.

"Zai Lab is entering the next phase of our growth, powered by the rapid advancement of our global pipeline and supported by a commercially profitable and scalable business in China," said Dr. Samantha Du, Founder, Chairperson, and CEO of Zai Lab. "With zoci moving into pivotal development less than two years after IND and multiple differentiated global programs progressing in parallel, we are demonstrating the speed, scientific rigor, and global ambition of our R&D engine. At the same time, our commercial platform in China remains strong, with new products and indications — including KarXT, povetacicept and VYVGART — broadening our long-term growth profile. Together, we are building a company that will make a lasting difference for patients and create long-term value for our shareholders."

"This quarter, we continued to deepen the foundations of the VYVGART launch," said Josh Smiley, President and COO of Zai Lab. "In gMG, we are seeing steady new patient starts and increasing treatment duration, supported by updated treatment guidelines and real-world experience. While adoption is building gradually, physician confidence continues to grow and reinforces the long-term potential of VYVGART as a new standard of care in the treatment of this chronic disease. Looking ahead, we are preparing for our next expected launch for KarXT in schizophrenia. We remain focused on disciplined execution as we position for the significant opportunities ahead, supported by a growing regional business and a rapidly progressing, global pipeline."

(1) Refers to adjusted income (loss) from operations (non-GAAP), calculated as GAAP income (loss) from operations adjusted to exclude certain non-cash expenses, including depreciation, amortization, and share-based compensation. For additional information on this adjusted profitability measure, refer to the "Non-GAAP Measures" section.

Recent Pipeline Highlights

Below are key product updates since our last earnings release:

Oncology Pipeline

• Zocilurtatug Pelitecan (zoci, DLL3 ADC) (formerly ZL-1310):

• In October 2025, Zai Lab initiated a global registrational study of zocilurtatug pelitecan monotherapy in second-line+ extensive-stage small cell lung cancer (ES-SCLC).
• In October 2025, Zai Lab presented updated Phase 1 results at the AACR-NCI-EORTC International Conference, demonstrating a best overall response rate of 68% at the 1.6 mg/kg dose in second-line extensive-stage small cell lung cancer. The estimated median duration of response (DoR) of 6.1 months across all doses and all lines of therapy is highly encouraging for a monotherapy in this heavily pre-treated and difficult-to-treat patient population. Meaningful activity in patients with brain metastases was also observed, including an 80% response rate in patients with untreated brain metastases. The data also demonstrated a well-tolerated safety profile at 1.6 mg/kg, with Grade >= 3 treatment-related adverse events of 13%, no Grade >=2 interstitial lung disease, and no drug discontinuations. Together, these results reinforce zoci's best-in-class potential and support the initiation of the global registrational study.

• Tumor Treating Fields (TTFields): In August 2025, Zai Lab announced that the China National Medical Products Administration (NMPA) has granted Innovative Medical Device Designation for TTFields for patients with pancreatic cancer based on the positive results from the Phase 3 PANOVA-3 trial. We plan to submit for regulatory approval in China in the fourth quarter of 2025.
• Bemarituzumab (FGFR2b): In November 2025, Zai Lab partner Amgen announced FORTITUDE-102, a Phase 1b/3 study of bemarituzumab plus chemotherapy and nivolumab in patients with first-line gastric cancer, was stopped.

Immunology Pipeline

• ZL-1503 (IL-13/IL-31R): In November 2025, Zai Lab initiated a global Phase 1/1b study to evaluate safety, tolerability and pharmacokinetics of ZL-1503 in healthy volunteers and participants with moderate to severe atopic dermatitis.
• Efgartigimod (FcRn):

• Sjogren's disease: In September 2025, Zai Lab joined the registrational UNITY study of efgartigimod subcutaneous given by prefilled syringe in Sjogren's disease in Greater China (mainland China, Hong Kong, Macau and Taiwan, collectively).
• Seronegative gMG: In August 2025, Zai Lab partner argenx announced topline data from the pivotal ADAPT SERON study of VYVGART in patients with AChR-Ab seronegative gMG. The study met its primary endpoint (p-value=0.0068) and it is the first global phase 3 study to demonstrate clinically meaningful improvements in disease activity across all three subtypes -- MuSK+, LRP4+, triple seronegative. Zai Lab participated in the global Phase 3 study in Greater China, enabling a potential China regulatory submission.

• Xanomeline-Trospium (or KarXT) (M1/M4-agonist): In September 2025, the "China Schizophrenia Prevention and Treatment Guidelines (2025 Edition)" were officially released, and KarXT was included for the first time, marking the first national-level guideline globally to include KarXT. The guidelines emphasize KarXT's broad efficacy across all three symptom domains (positive, negative, and cognitive symptoms) and its unique safety profile, supporting long-term adherence and functional recovery. China's NMPA accepted the New Drug Application (NDA) for the treatment of schizophrenia in January 2025.
• Povetacicept: In September 2025, the U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy Designation (BTD) to povetacicept for the treatment of IgA nephropathy (IgAN). Subsequently, the FDA also granted a rolling review of the Biologics License Application (BLA) submission for povetacicept for this indication. Vertex has completed full enrollment of the Phase 3 study, including the interim analysis cohort for potential accelerated approval in the U.S. Zai Lab participated in the global Phase 3 RAINIER study in patients with IgAN in Greater China.

Third Quarter 2025 Financial Results

• Product revenue, net was $115.4 million in the third quarter of 2025, compared to $101.8 million for the same period in 2024, representing 13% y-o-y growth, 14% y-o-y growth at constant exchange rate (CER). This increase was primarily driven by increased sales for NUZYRA and XACDURO, partially offset by softer sales for ZEJULA:

• VYVGART and VYVGART Hytrulo were $27.7 million in the third quarter of 2025 which includes a $2.4 million reduction following a voluntary price adjustment on Hytrulo ahead of National Reimbursement Drug List (NRDL) negotiation, compared to $26.5 million in the second quarter of 2025. Sales grew 4.6% quarter over quarter driven by an extension of duration of therapy and increased market penetration.
• ZEJULA was $42.4 million in the third quarter of 2025, compared to $48.2 million for the same period in 2024. Sales were softer due to evolving competitive dynamics within the PARPi class.
• XACDURO, which was launched in the fourth quarter of 2024, was $6.4 million in the third quarter of 2025.
• NUZYRA was $15.4 million in the third quarter of 2025, compared to $10.0 million for the same period in 2024. This growth was supported by increased market coverage and penetration.

• Research and Development (R&D) expenses were $47.9 million in the third quarter of 2025, compared to $66.0 million for the same period in 2024, primarily due to a decrease in licensing fees in connection with upfront and milestone payments.
• Selling, General and Administrative expenses were $70.1 million in the third quarter of 2025, compared to $67.2 million for the same period in 2024. This increase was primarily driven by higher general selling expenses to support the growth of NUZYRA and VYVGART, partially offset by decreases in selling expenses related to ZEJULA.
• Loss from operations was $48.8 million in the third quarter of 2025, $28.0 million when adjusted to exclude certain non-cash expenses including depreciation, amortization, and share-based compensation. A reconciliation of loss from operations (GAAP) to adjusted loss from operations (non-GAAP) is included at the end of this release.
• Net loss was $36.0 million in the third quarter of 2025, or a loss per ordinary share attributable to stockholders of $0.03 (or loss per American Depositary Share (ADS) of $0.33), compared to a net loss of $41.7 million for the same period in 2024, or a loss per ordinary share of $0.04 (or loss per ADS of $0.42). These decreases in net loss were primarily due to increased product revenue and decreased operating expenses.
• Cash and cash equivalents, short-term investments, and current restricted cash totaled $817.2 million as of September 30, 2025, compared to $832.3 million as of June 30, 2025.

Anticipated Major Milestones in the Fourth Quarter of 2025 and Full Year 2026

Expected Clinical Developments and Data Readouts

Global Pipeline

Zocilurtatug Pelitecan (zoci, DLL3 ADC) (formerly ZL-1310)

• Second-Line+ ES-SCLC: Zai Lab to present updated data on intracranial activity from the ongoing Phase 1 study in the first half of 2026.
• First-Line ES-SCLC: Zai Lab to provide data readout from the Phase 1 study evaluating zoci combination therapy (with atezolizumab and/or chemotherapy) in the first half of 2026 and advance into a registrational study in 2026 based on emerging data. Zai Lab also plans to initiate a Phase 1 study to explore zoci in a novel combination in 2026.
• Other neuroendocrine carcinomas: Zai Lab to provide data readout from the global Phase 1/2 study in patients with selected solid tumors in the first half of 2026 and advance into a registrational-enabling cohort in 2026.

ZL-1503 (IL-13/IL-31R)

• Zai Lab to provide the initial data readout from the global Phase 1/1b study in healthy volunteers and participants with moderate to severe atopic dermatitis in 2026.

ZL-6201 (LRRC15 ADC)

• Zai Lab to submit an Investigational New Drug application to the FDA for a global Phase 1 study for patients with sarcoma and potentially other LRRC15-positive solid tumors in the fourth quarter of 2025.

Upcoming Potential NMPA Submissions

• Tumor Treating Fields (TTFields) in first-line pancreatic cancer in the fourth quarter of 2025
• Efgartigimod (FcRn) for prefilled syringe in generalized myasthenia gravis (gMG) and chronic inflammatory demyelinating polyneuropathy (CIDP) in the fourth quarter of 2025

Upcoming Potential NMPA Approvals

• Xanomeline-Trospium (or KarXT) (M1/M4-agonist) in schizophrenia
• Tisotumab Vedotin (Tissue Factor ADC) in recurrent or metastatic cervical cancer following progression on or after chemotherapy
• Repotrectinib (ROS1/TRK) in NTRK+ solid tumors

Regional Pipeline

Efgartigimod (FcRn)

• Ocular myasthenia gravis: Zai Lab partner argenx to provide topline results from the global Phase 3 ADAPT-OCULUS study in the first half of 2026. Zai Lab participated in the study in Greater China.
• Myositis: Zai Lab partner argenx to provide topline results from the global Phase 2/3 ALKIVIA study evaluating three myositis subsets (immune-mediated necrotizing myopathy (IMNM), anti-synthetase syndrome (ASyS) and dermatomyositis (DM)) in the second half of 2026. Zai Lab participated in the study in Greater China.
• Thyroid eye disease (TED): Zai Lab partner argenx to provide topline results from two registrational UplighTED studies in the second half of 2026. Zai Lab participated in the studies in Greater China.

Povetacicept (APRIL/BAFF)

• Primary membranous nephropathy (pMN): Zai Lab to join the global pivotal Phase 2/3 OLYMPUS study of povetacicept in pMN in Greater China in the fourth quarter of 2025.
• IgAN: Zai Lab partner Vertex will conduct an interim analysis of the global Phase 3 RAINIER study following 36 weeks of treatment. Vertex expects to submit the first module of the IgAN BLA to the FDA before the end of 2025 and plans to complete the full BLA submission in the first half of 2026 for potential accelerated approval in the U.S.

VRDN-003 (anti-IGF-1R, subcutaneous)

• Zai Lab to initiate a registrational study in TED in Greater China in the fourth quarter of 2025.
• Viridian to provide topline results from global registrational REVEAL-1 study in active TED patients in the first quarter of 2026 and global registrational REVEAL-2 study in chronic TED in the second quarter of 2026. Zai Lab, through its license agreement with Zenas, obtained a sublicense to the Viridian anti-IGF-1R antibody and is proceeding with clinical development.

Full-Year 2025 Outlook

Zai Lab is revising total revenue guidance for the full year 2025 to at least $460 million.

Conference Call and Webcast Information

Zai Lab will host a live conference call and webcast today, November 6, 2025, at 8:00 a.m. ET (9:00 p.m. HKT). Listeners may access the live webcast by visiting the Company's website at http://ir.zailaboratory.com. Participants must register in advance of the conference call.

Details of registration links are as follows:

• For webcast (preferred): https://edge.media-server.com/mmc/p/svanah67
• For dial-in: https://register-conf.media-server.com/register/BIc22945ac95b04071a1d7c0d81eb32021

All participants must use the link provided above to complete the online registration process in advance of the conference call. Dial-in details will be in the confirmation email which the participant will receive upon registering.

A replay will be available shortly after the call and can be accessed by visiting the Company's website.

About Zai Lab

Zai Lab Limited (; ) is an innovative, research-based, commercial-stage biopharmaceutical company based in China and the United States. We are focused on discovering, developing, and commercializing innovative products that address medical conditions with significant unmet needs in the areas of oncology, immunology, neuroscience, and infectious disease. Our goal is to leverage our competencies and resources to positively impact human health worldwide.

For additional information about Zai Lab, please visit www.zailaboratory.com or follow us at https://x.com/ZaiLab_Global.

Non-GAAP Measures

In addition to results presented in accordance with GAAP, we disclose growth rates that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. We have also presented a measure of adjusted loss from operations that adjusts GAAP loss from operations to exclude the impact of certain non-cash expenses including depreciation, amortization, and share-based compensation, which we refer to as "profitability." These adjusted growth rates and adjusted loss from operations are non-GAAP financial measures. We believe that these non-GAAP financial measures are important for an understanding of the performance of our business operations and financial results and provide investors with an additional perspective on operational trends and greater transparency into our historical and projected operating performance. Although we believe the non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to the corresponding GAAP financial measures.

Zai Lab Forward-Looking Statements

This press release contains certain forward-looking statements, including statements relating to our strategy and plans; potential of and expectations for our business, commercial products, and pipeline programs; our goals, objectives, and priorities and our expectations under our growth strategy (including our expectations regarding our commercial products and launches, clinical stage products, revenue growth, profitability, and cash flow); clinical development programs and related clinical trials; clinical trial data, data readouts, and presentations; risks and uncertainties associated with drug development and commercialization; regulatory discussions, submissions, filings, and approvals and the timing thereof; the potential benefits, safety, and efficacy of our products and product candidates and those of our collaboration partners; the anticipated benefits and potential of investments, collaborations, and business development activities; our profitability and timeline to profitability; our future financial and operating results; and financial guidance, including with respect to our capital allocation and investment strategy and our expected path to profitability. All statements, other than statements of historical fact, included in this press release are forward-looking statements, and can be identified by words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "plan," "poised," "positioned," "possible," "potential," "will," "would," and other similar expressions. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of future performance. Forward-looking statements are based on our expectations and assumptions as of the date of this press release and are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. We may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in our forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including but not limited to (1) our ability to successfully commercialize and generate revenue from our approved products; (2) our ability to obtain funding for our operations and business initiatives; (3) the results of our clinical and pre-clinical development of our product candidates; (4) the content and timing of decisions made by the relevant regulatory authorities regarding regulatory approvals of our product candidates; (5) risks related to doing business in China; and (6) other factors identified in our most recent annual and quarterly reports and in other reports we have filed with the U.S. Securities and Exchange Commission (SEC). We anticipate that subsequent events and developments will cause our expectations and assumptions to change, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Our SEC filings can be found on our website at www.zailaboratory.com and on the SEC's website at www.SEC.gov.

 
 
 
Zai Lab Limited 
Unaudited Condensed Consolidated Balance Sheets 
(in thousands of U.S. dollars ($), except for number of shares and per 
share data) 
 
                                         September 30,    December 31, 
                                              2025             2024 
                                         --------------  --------------- 
Assets 
Current assets 
        Cash and cash equivalents              717,155        449,667 
        Restricted cash, current               100,000        100,000 
        Short-term investments                      --        330,000 
        Accounts receivable (net of 
         allowance for credit losses of 
         $25 as of both September 30, 
         2025 and December 31, 2024, 
         respectively)                          85,377         85,178 
        Notes receivable                        19,628          4,233 
        Inventories, net                        67,135         39,875 
        Prepayments and other current 
         assets                                 43,653         41,527 
                                         -------------   ------------ 
Total current assets                         1,032,948      1,050,480 
        Restricted cash, non-current             1,115          1,114 
        Property and equipment, net             48,868         47,961 
        Operating lease right-of-use 
         assets                                 15,751         21,496 
        Land use rights, net                     2,852          2,907 
        Intangible assets, net                  55,278         56,027 
        Other non-current assets                 2,128          5,768 
                                         -------------   ------------ 
Total assets                                 1,158,940      1,185,753 
                                         =============   ============ 
Liabilities and shareholders' equity 
Current liabilities 
        Accounts payable                        99,706        100,906 
        Current operating lease 
         liabilities                             5,496          8,048 
        Short-term debt                        203,026        131,711 
        Other current liabilities               51,541         58,720 
                                         -------------   ------------ 
        Total current liabilities              359,769        299,385 
                                         -------------   ------------ 
        Deferred income                         28,061         31,433 
        Non-current operating lease 
         liabilities                            10,840         13,712 
        Other non-current liabilities              325            325 
                                         -------------   ------------ 
Total liabilities                              398,995        344,855 
                                         -------------   ------------ 
Commitments and contingencies 
Shareholders' equity 
                Ordinary shares (par 
                 value of $0.000006 per 
                 share; 5,000,000,000 
                 shares authorized; 
                 1,113,299,160 and 
                 1,082,614,740 shares 
                 issued as of September 
                 30, 2025 and December 
                 31, 2024, 
                 respectively; 
                 1,105,865,950 and 
                 1,077,702,540 shares 
                 outstanding as of 
                 September 30, 2025 and 
                 December 31, 2024, 
                 respectively)                       7              7 
                Additional paid-in 
                 capital                     3,327,557      3,264,295 
                Accumulated deficit         (2,578,211)    (2,453,083) 
                Accumulated other 
                 comprehensive income           39,645         50,515 
                Treasury Stock (at 
                 cost, 7,433,210 and 
                 4,912,200 shares as of 
                 September 30, 2025 and 
                 December 31, 2024, 
                 respectively)                 (29,053)       (20,836) 
                                         -------------   ------------ 
Total shareholders' equity                     759,945        840,898 
                                         -------------   ------------ 
Total liabilities and shareholders' 
 equity                                      1,158,940      1,185,753 
                                         =============   ============ 
 
 
Zai Lab Limited 
Unaudited Condensed Consolidated Statements of Operations 
(in thousands of $, except for number of shares and per share data) 
 
                          Three Months Ended September   Nine Months Ended September 
                                      30,                            30, 
                          ----------------------------  ------------------------------ 
                               2025           2024           2025            2024 
                          --------------  ------------  --------------  -------------- 
Revenues 
        Product revenue, 
         net                    115,361       101,847         330,095       289,102 
        Collaboration 
         revenue                    734           418           2,464           816 
                          -------------   -----------   -------------   ----------- 
Total revenues                  116,095       102,265         332,559       289,918 
Expenses 
        Cost of product 
         revenue                (46,764)      (36,569)       (128,219)     (105,336) 
        Cost of 
         collaboration 
         revenue                   (119)         (348)           (531)         (433) 
        Research and 
         development            (47,928)      (65,982)       (159,271)     (182,252) 
        Selling, 
         general, and 
         administrative         (70,106)      (67,219)       (204,566)     (216,123) 
                          -------------   -----------   -------------   ----------- 
Loss from operations            (48,822)      (67,853)       (160,028)     (214,226) 
        Interest income           8,345         9,029          25,794        28,017 
        Interest 
         expenses                (1,400)         (745)         (3,848)       (1,350) 
        Foreign currency 
         gains                    6,422        14,457           9,909         8,281 
        Other income 
         (expense), net            (508)        3,441           3,045         3,859 
                          -------------   -----------   -------------   ----------- 
Loss before income tax          (35,963)      (41,671)       (125,128)     (175,419) 
Income tax expense                   --            --              --            -- 
                          -------------   -----------   -------------   ----------- 
Net loss                        (35,963)      (41,671)       (125,128)     (175,419) 
                          =============   ===========   =============   =========== 
Loss per share - basic 
 and diluted                      (0.03)        (0.04)          (0.11)        (0.18) 
Weighted-average shares 
 used in calculating net 
 loss per ordinary share 
 - basic and diluted      1,102,072,680   981,687,390   1,091,690,340   976,941,030 
 
 
Zai Lab Limited 
Unaudited Condensed Consolidated Statements of Comprehensive Loss 
(in thousands of $) 
 
                            Three Months Ended         Nine Months Ended 
                              September 30,              September 30, 
                         ------------------------  ------------------------- 
                            2025         2024          2025         2024 
                         -----------  -----------  ------------  ----------- 
Net loss                 (35,963)     (41,671)     (125,128)     (175,419) 
        Other 
        comprehensive 
        loss, net of 
        tax of nil: 
        Foreign 
         currency 
         translation 
         adjustments      (6,703)     (14,503)      (10,870)       (9,356) 
                         -------      -------      --------      -------- 
Comprehensive loss       (42,666)     (56,174)     (135,998)     (184,775) 
 
 
Zai Lab Limited 
Non-GAAP Measures 
(unaudited) 
($ in thousands) 
Growth on a Constant Exchange Rate (CER) Basis 
 
                 Three Months Ended      Year over Year %     Nine Months Ended     Year over Year % 
                   September 30,               Growth            September 30,            Growth 
              ------------------------  -------------------  --------------------  ------------------- 
                                            As                                         As 
                 2025         2024       reported   At CER*    2025       2024      reported   At CER* 
              -----------  -----------  ----------  -------  ---------  ---------  ----------  ------- 
Product 
 revenue, 
 net          115,361      101,847        13%        14%      330,095    289,102     14%        15% 
Loss from 
 operations   (48,822)     (67,853)      (28)%      (28)%    (160,028)  (214,226)   (25)%      (25)% 
 
 
*  The growth rates at CER were calculated assuming the same foreign currency 
   exchange rates were in effect for the current and prior year periods. 
 
 
Reconciliation of Loss from Operations (GAAP) to Adjusted Loss from Operations (Non-GAAP) 
 
                        Three Months Ended September 30,            Nine Months Ended September 30, 
                ------------------------------------------------  ----------------------------------- 
                         2025                     2024                     2025              2024 
                -----------------------  -----------------------  ----------------------  ----------- 
GAAP loss from 
 operations                    (48,822)                 (67,853)               (160,028)  (214,226) 
Plus: 
 Depreciation 
 and 
 amortization 
 expenses                        3,901                    2,871                  11,094      8,824 
Plus: 
 Share-based 
 compensation                   16,923                   16,795                  49,696     53,413 
                ----------------------   ----------------------   ---------------------   -------- 
Adjusted loss 
 from 
 operations                    (27,998)                 (48,187)                (99,238)  (151,989) 
                ======================   ======================   =====================   ======== 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251106957927/en/

CONTACT:

For more information, please contact:

Investor Relations:

Christine Chiou / Cyan Liu

+1 (917) 886-6929 / +86 195 3130 8895

christine.chiou1@zailaboratory.com / cyan.liu@zailaboratory.com

Media:

Shaun Maccoun / Xiaoyu Chen

+1 (415) 317-7255 / +86 185 0015 5011

shaun.maccoun@zailaboratory.com / xiaoyu.chen@zailaboratory.com

Phase 1 results for zocilurtatug pelitecan in small cell lung cancer showed a 68% ORR at 1.6 mg/kg, strong activity in patients with brain metastases, and a favorable safety profile. A global Phase 3 trial has started to further evaluate efficacy and safety.

Original document: Zai Lab Ltd. [9688] Press release — Oct. 24 2025