Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 36

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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,800)1,560 Total63,110 (6,912)56,198 61,464 (5,437)56,027 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.

9

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

Amortization expense was $1.5 million and $0.7 million in the first quarter of 2025 and 2024, 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 March 31,20252024Product revenue - gross112,333 93,112 Less: Rebates and sales returns(6,683)(5,963)Product revenue - net105,650 87,149 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 March 31,20252024ZEJULA49,529 45,501 VYVGART / VYVGART Hytrulo18,105 13,162 NUZYRA15,118 9,913 OPTUNE11,363 12,480 QINLOCK8,509 6,093 XACDURO1,117 — AUGTYRO1,626 — Other (i)283 — Product revenue - net105,650 87,149 (i)Other includes product candidates sold in patient programs prior to commercialization. Collaboration Revenue Collaboration revenue was $0.8 million in the first quarter of 2025 and related to promotional activities in mainland China. We had no such collaboration revenue in the first quarter of 2024.

8. Income Tax 

No provision for income taxes has been required to be accrued because the Company is in a cumulative loss position for the periods presented. The Company recorded a full