ZAI LAB (09688) announced its second quarter 2025 financial results, reporting total revenue of $110 million USD, representing a 9.43% year-over-year increase. The company reaffirmed its full-year 2025 revenue guidance of $560-590 million USD. Operating loss reached $54.9 million USD, narrowing by 28% compared to the prior year, while adjusted operating loss contracted by 37% to $34.2 million USD. Net loss amounted to $40.727 million USD, a 49.27% year-over-year improvement. As of June 30, 2025, total cash and cash equivalents, short-term investments, and restricted cash reached $832.3 million USD.

According to the announcement, second quarter revenue growth was primarily driven by increased sales of Efgartigimod, QINLOCK, and Nuzyra, partially offset by slower sales momentum for Zejula. The reduction in net loss was mainly attributed to product revenue growth outpacing the increase in net operating expenses.

Key product performance highlights include:

Efgartigimod and Efgartigimod Hytrulo: Second quarter 2025 net product revenue totaled $26.5 million USD, compared to $18.1 million USD in the first quarter of 2025, representing a 46% sequential growth. This increase was primarily due to extended treatment duration and improved market penetration.

Zejula: Second quarter 2025 net product revenue was $41 million USD, compared to $45 million USD in the same period of 2024. Sales decelerated due to evolving competitive dynamics in the PARPi product category.

QINLOCK: Launched in the fourth quarter of 2024, QINLOCK generated net product revenue of $4.6 million USD in the second quarter of 2025.

Nuzyra: Second quarter 2025 net product revenue reached $14.3 million USD, up from $12.3 million USD in the same period of 2024. This growth resulted from expanded market coverage and enhanced penetration.

Research and development expenses for the second quarter of 2025 totaled $50.6 million USD, compared to $61.6 million USD in the same period of 2024. This decrease was primarily due to reduced personnel costs and clinical trial expenses resulting from ongoing resource optimization and efficiency initiatives.

Sales, general, and administrative expenses for the second quarter of 2025 were $71 million USD, down from $79.7 million USD in the same period of 2024. This reduction was mainly driven by lower personnel costs from resource optimization and efficiency measures.

For the first half of 2025, total revenue reached approximately $216 million USD, up 15.35% year-over-year, while net loss was $89.165 million USD, narrowing by 33.33% compared to the prior year.

Dr. Du Ying, Founder, Chairman and Chief Executive Officer of ZAI LAB, commented: "ZAI LAB is entering a critical development phase centered on innovation, scale, and efficient execution. We have achieved substantial progress across all business areas - continuously expanding our patient impact, accelerating global innovation initiatives, and maintaining prudent financial principles. The updated data for ZL-1310 (DLL3 ADC) presented at ASCO further validates its best-in-class potential for second-line small cell lung cancer (SCLC) treatment. We are rapidly advancing this product toward pivotal clinical stages while actively exploring its potential for first-line SCLC and other neuroendocrine cancers. Additionally, the positive data for Bemarituzumab in first-line gastric cancer and the latest preclinical data for our IL-13/IL-31 dual antibody demonstrating potential in atopic dermatitis further strengthen our near-term commercialization opportunities and potential global pipeline value. With multiple product launches imminent, continued pipeline advancement, and anticipated profitability goals, ZAI LAB is steadily progressing toward our vision of becoming a leading global biopharmaceutical company."

Josh Smiley, President and Chief Operating Officer of ZAI LAB, stated: "Benefiting from longer treatment cycles and increased maintenance therapy, Efgartigimod achieved record patient utilization levels, continuing to lead our commercialization momentum. The July update to China's myasthenia gravis diagnosis and treatment guidelines further reinforces Efgartigimod's position in both acute and maintenance therapy, and we anticipate continued acceleration in growth momentum during the second half of the year. Simultaneously, we are preparing for the launch of multiple blockbuster products including KarXT and Bemarituzumab - these products, together with Efgartigimod, Povetacicept, and other products with multi-indication expansion potential, will drive our next growth phase. With operating losses narrowing 28% year-over-year, and 37% on an adjusted basis, we are positioned to achieve our profitability targets in the fourth quarter. With robust cash reserves, continuously growing commercial operations, and advancing global pipeline, ZAI LAB has established a solid foundation for creating long-term shareholder value."