Company: ZLAB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001704292-25-000024
Chunk: 45

Company: Zai Lab Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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umulated AmortizationNet Carrying ValueFinite-lived intangible assetsCommercial products60,799 (6,644)54,155 57,104 (2,637)54,467 Software4,414 (3,291)1,123 4,360 (2,800)1,560 Total65,213 (9,935)55,278 61,464 (5,437)56,027 

10

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

Intangible assets for commercial products include capitalized post-approval milestone fees and acquired commercial manufacturing know-how and related development costs. The Company is amortizing intangible assets for commercial products as cost of product revenue over the estimated remaining useful life of the related products. Intangible assets for externally purchased software are amortized over three to five years on a straight-line basis.Amortization expense was $1.5 million and $4.4 million in the three and nine months ended September 30, 2025, respectively, and $0.7 million and $2.3 million in the three and nine months ended September 30, 2024, respectively. The weighted-average remaining amortization period for intangible assets for commercial products and software was 8.8 years and 2.4 years, respectively.

7. Revenues 

Product Revenue, Net The Company’s product revenue is derived from the sales of its commercial products in Greater China. The table below presents the Company’s gross and net product revenue ($ in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Product revenue - gross127,103 107,678 355,965 307,401 Less: Rebates and sales returns(11,742)(5,831)(25,870)(18,299)Product revenue - net115,361 101,847 330,095 289,102 Sales rebates are offered to distributors in mainland China, and the amounts are recorded as a reduction of product revenue. Estimated rebates are determined based on contracted rates, sales volumes, and level of distributor inventories. The following table presents the Company’s net revenue by commercial program ($ in thousands): Three Months Ended September 30,Nine Months Ended September 30,2025202420252024ZEJULA42,432 48,227 133,002 138,727 VYVGART / VYVGART