Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 6

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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 for ovarian cancer in mainland China; and NUZYRA, supported by increasing market coverage and penetration. 

Cost of Product Revenue

Cost of product revenue increased by $4.8 million in the first quarter of 2025 primarily due to increasing sales volumes.

Collaboration Revenue and Cost of Collaboration Revenue

In the first quarter of 2025, collaboration revenue related to promotional activities in mainland China was $0.8 million and cost of collaboration revenue was $0.2 million. We had no such collaboration revenue in the first quarter of 2024.

Research and Development Expenses 

The following table presents the components of our research and development expenses ($ in thousands):

Three Months Ended March 31,Change20252024$%Personnel compensation and related costs24,079 28,008 (3,929)(14)%Licensing fees19,997 — 19,997 NMCROs/CMOs/Investigators expenses9,830 19,904 (10,074)(51)%Other costs6,823 6,733 90 1 %Total60,729 54,645 6,084 11 %

NM - Not Meaningful

Research and development expenses increased by $6.1 million in the first quarter of 2025, primarily due to: 

•an increase of $20.0 million upfront fees for our license and collaboration agreements; partially offset by 

•a decrease of $10.0 million in CROs/CMOs/Investigators expenses and other costs related to ongoing clinical trials; and 

•a decrease of $3.9 million in personnel compensation and related costs primarily driven by the Company’s resource prioritization and efficiency efforts.

The following table presents our research and development expenses by program ($ in thousands):

Three Months Ended March 31,Change20252024$%Clinical programs28,092 18,788 9,304 50 %Pre-Clinical programs3,314 2,049 1,265 62 %Unallocated research and development expenses29,323 33,808 (4,485)(13)%Total60,729 54,645 6,084 11 %

Research and development expenses attributable to clinical programs increased by $9.3 million in the first quarter of 2025 primarily driven by an increase of $20.0 million in licensing fees, offset by a decrease of $10.7 million in CROs/CMOs/Investigators expenses related to the progress