Zai Lab Posts 3Q 2026 Net Loss of USD 46.14 Million as Product Sales Dip 7%; Cash on Hand at USD 659.66 Million Ahead of USD 241.20 Million Private Placement Inflow

Bulletin Express
11/05

Zai Lab (09688) reported third-quarter 2026 revenue of USD 108.21 million, down 7 % year on year, as softer demand for key oncology drug ZEJULA and a price reset for VYVGART outweighed gains in newer launches.

Revenue and Profitability • Net product revenue fell to USD 107.65 million from USD 115.36 million a year earlier.   – ZEJULA declined 24 % to USD 32.28 million after hospital utilisation shifted toward generic alternatives.   – VYVGART / VYVGART Hytrulo slipped 13 % to USD 24.07 million following National Reimbursement Drug List (NRDL) repricing.   – NUZYRA (+37 % to USD 21.09 million) and XACDURO (+31 % to USD 8.42 million) benefited from wider market penetration, while newly launched KarXT contributed USD 2.02 million. • Collaboration revenue was USD 0.56 million versus USD 0.73 million in the prior-year quarter. • Gross margin compressed as cost of product revenue rose 10 % to USD 51.31 million, reflecting inventory write-downs (USD 7.50 million in the quarter). • R&D expense increased 4 % to USD 49.81 million, driven by higher clinical and pre-clinical spend, partly offset by lower headcount costs. • SG&A expense held steady at USD 70.07 million. • Operating loss widened 29 % to USD 62.98 million; net loss rose to USD 46.14 million (USD 0.04 per ordinary share, USD 0.41 per ADS).

Nine-Month Performance For the nine months to 30 September: • Net product revenue slipped 6 % to USD 308.96 million. • R&D outlays climbed 11 % to USD 177.17 million, including USD 37.00 million in licensing fees. • SG&A inched up 2 % to USD 208.01 million. • Net loss reached USD 147.98 million, versus USD 125.13 million a year earlier.

Liquidity and Capital Resources • Cash, cash equivalents, restricted cash and short-term investments totalled USD 659.66 million at quarter-end. • Short-term debt stood at USD 252.37 million with a 2.35 % weighted-average interest rate. • In October 2026, Zai Lab raised USD 250.00 million (USD 241.20 million net) via a private placement of 11.34 million ADSs, further bolstering liquidity.

Pipeline and Milestones • Oncology: Promising Phase 1 data for DLL3-targeting ADC zocilurtatug pelitecan (ZL-1310) in first-line extensive-stage small-cell lung cancer supports advancement to Phase 3. • Immunology/Neuroscience: Positive topline Phase 3 ALKIVIA readout for VYVGART Hytrulo in autoimmune myositis; argenx discontinued Sjögren’s Phase 3 UNITY trial for futility. • Pre-clinical IL-13/IL-31Rα antibody ZL-1503 generated initial single-ascending-dose data; subcutaneous bridging study begun in August 2026.

Capital Commitments and Outlook • Potential future milestone obligations: up to USD 652.00 million for current clinical and other programs, plus up to USD 2.35 billion in sales-based milestones and tiered royalties. • Management affirms sufficient liquidity for at least the next 12 months and continues to evaluate additional debt or equity options to fund strategic growth initiatives.

Regulatory and Governance Notes The company remains subject to multi-jurisdictional regulatory, currency and policy risks inherent in operating across Greater China, the United States and other markets. No material legal proceedings were reported at quarter-end, and no changes were made to internal control over financial reporting during the period.

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