Company: ZLAB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001704292-25-000024
Chunk: 94

Company: Zai Lab Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 contingent on the progress of our product candidates prior to commercialization, and we see these payments as favorable because they indicate that product candidates are advancing. As of September 30, 2025, we also in the future may be required to pay sales-based milestone payments of up to an additional aggregate amount of $1,753.0 million as well as certain royalties at tiered percentage rates on annual net sales. Such sales-based milestone and royalty payments are contingent on the performance of our commercial products, and we see these payments as favorable because they signify that a product is achieving higher sales levels.

21

Results of Operations 

In this section, we discuss our results of operations for the three and nine months ended September 30, 2025 compared to the same periods in 2024.

The following table presents our results of operations ($ in thousands):

Three Months Ended September 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%RevenuesProduct revenue, net115,361 101,847 13,514 13 %330,095 289,102 40,993 14 %Collaboration revenue734 418 316 76 %2,464 816 1,648 202 %Total revenues116,095 102,265 13,830 14 %332,559 289,918 42,641 15 %ExpensesCost of product revenue(46,764)(36,569)(10,195)28 %(128,219)(105,336)(22,883)22 %Cost of collaboration revenue(119)(348)229 (66)%(531)(433)(98)23 %Research and development(47,928)(65,982)18,054 (27)%(159,271)(182,252)22,981 (13)%Selling, general, and administrative(70,106)(67,219)(2,887)4 %(204,566)(216,123)11,557 (5)%Loss from operations(48,822)(67,853)19,031 (28)%(160,028)(214,226)54,198 (25)%Interest income8,345 9,029 (684)(8)%25,794 28,017 (2,223)(8)%Interest expenses(1,400)(745)(655)88 %(3,848)(1,350)(