Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 7

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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 of existing studies. Research and development expenses attributable 

21

to pre-clinical programs increased by $1.3 million in the first quarter of 2025 primarily driven by an increase of CROs/CMOs/Investigators expenses related to newly initiated studies and progress of existing studies.

Although we manage our external research and development expenses by program, we do not allocate our internal research and development expenses by program because our employees and internal resources may be engaged in projects for multiple programs at any given time. 

Selling, General, and Administrative Expenses 

The following table presents our selling, general and administrative expenses by category ($ in thousands):

Three Months Ended March 31,Change20252024$%Personnel compensation and related costs40,643 45,894 (5,251)(11)%Other costs22,779 23,300 (521)(2)%Total63,422 69,194 (5,772)(8)%

Selling, general, and administrative expenses decreased by $5.8 million in the first quarter of 2025, primarily due to a decrease of $5.3 million in personnel compensation and related costs related to the Company’s resource prioritization and efficiency efforts.

Interest Income 

Interest income decreased by $1.1 million in the first quarter of 2025 primarily due to decreased interest rates.

Interest Expenses 

Interest expense increased by $1.1 million in the first quarter of 2025 primarily due to increased short-term debts.

Foreign Currency Gains (Losses)

Foreign currency gain was $0.7 million in the first quarter of 2025, primarily driven by remeasurement gain due to appreciation of the RMB against the U.S. dollar, compared to foreign currency losses of $2.1 million in the first quarter of 2024, driven by remeasurement losses due to depreciation of the RMB against the U.S. dollar. 

Other (Expense) Income, Net 

Other expense, net was $0.2 million in the first quarter of 2025, compared to other income, net of $9.4 million in the first quarter of 2024, primarily due to the shift from a gain of $4.9 million in the first quarter of 2024 to a loss of $1.9 million in the first quarter of 2025 for our equity investment in MacroGenics, Inc. as a result of changes in its stock price, and a decrease of $2.8 million in government grants.