ZAI LAB (09688) announces annual performance with a 15% year-on-year increase in total revenue to 460 million US dollars. Positive progress seen in all product pipelines.

ZAI LAB (09688) has announced its full-year financial performance for the fiscal year ending on December 31, 2025. The net product revenue increased by 15% to $457 million, mainly due to the increase in sales of Dingyoule (benefiting from strong patient demand and continuous expansion of hospital coverage, with some impact from supply restrictions within the year) and Niuzhailuo (benefiting from improved market coverage and penetration rates). The net loss decreased by 32% to $176 million, primarily due to the faster growth in product revenue compared to net operating expenses and the change from exchange losses to exchange gains, offset by a decrease in interest income. Basic and diluted loss per share was $0.16. In 2025, the company's financial performance remained strong, with total revenue increasing by 15% to $460 million compared to the previous year, while the net loss decreased by 32% to $176 million. The revenue growth was mainly driven by the increase in sales of Dingyoule, benefiting from strong patient demand and continuous expansion of hospital coverage, with some impact from supply restrictions within the year; and Niuzhailuo, benefiting from improved market coverage and penetration rates. Despite the evolving competitive landscape for PARP inhibitors in mainland China, Zai Lab continues to maintain its leading position in the domestic ovarian cancer PARP inhibitor market. In 2025, the revenue for Weiguoji includes a $5.6 million rebate related to its national medical insurance catalog renewal, while the revenue for Weiliji includes a $2.4 million rebate following proactive price adjustments before national medical insurance catalog negotiations. In the fourth quarter of 2025, the National Medical Products Administration approved Aokailuo for the treatment of NTRK-positive solid tumors in adult patients and KarXT for the treatment of adult patients with schizophrenia. The company expects continued revenue growth in 2026, primarily driven by existing commercialized products and products or new indications expected to launch this year. The company's product pipeline also continued to make progress. In terms of global assets, the company achieved promising results in the global Phase I study of Zoci, a targeted DLL3 ADC with potential to be a first-in-class and best-in-class for the treatment of extensive-stage small cell lung cancer, and the internally developed IL-13/IL31R bispecific antibody ZL-1503 for the treatment of atopic dermatitis also showed encouraging preclinical data. In terms of late-stage regional pipeline assets, the company obtained positive data in the current year, including data on povetacicept for the treatment of IgA nephropathy and idiopathic membranous nephropathy. The company also expanded and strengthened its pipeline through synergistic business development efforts, including obtaining global exclusive rights for the development and commercialization of ZL-1311. ZL-1311 is a next-generation TCE targeting MUC17 for the treatment of gastric cancer and gastroesophageal junction cancer, and is expected to undergo global clinical development this year.