Company: ZLAB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008409
Chunk: 225

Company: Zai Lab Ltd
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 225
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Our product revenue is derived from the sales of our commercial products, primarily in mainland China, net of sales returns and rebates to distributors with respect to the sales of these products. 

Our net product revenue increased by $130.9 million in 2024, primarily driven by increased sales for VYVGART since its launch in September 2023 and NRDL listing in January 2024 for the treatment of gMG. Other key drivers of net product revenue growth include increased sales volumes for ZEJULA and NUZYRA in 2024. ZEJULA sales remained strong as it continued to be the leading PARP inhibitor in hospital sales for ovarian cancer in mainland China. The growth in NUZYRA sales was supported by the inclusion in the NRDL for its IV formulation for the treatment of CABP and/or ABSSSI in the first quarter of 2023 and for its oral formulation for these indications in the first quarter of 2024. 

Research and Development Expenses

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

Year Ended December 31Change20242023$%Personnel compensation and related costs106,154 115,749 (9,595)(8)%Licensing fees30,997 19,291 11,706 61 %CROs/CMOs/Investigators expenses69,870 103,333 (33,463)(32)%Other costs27,483 27,495 (12)— %Total234,504 265,868 (31,364)(12)%

Research and development expenses decreased by $31.4 million in 2024 primarily due to:

•a decrease of $33.5 million in CROs/CMOs/Investigators expenses related to ongoing clinical trials; and

•a decrease of $9.6 million in personnel compensation and related costs primarily driven by the Company’s ongoing resource prioritization and efficiency efforts; partially offset by 

•an increase of $11.7 million in licensing fees in connection with increased upfront and milestone payments for our license and collaboration agreements.

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

Year Ended December 31Change20242023$%Clinical programs86,126 112,158 (26,032)(23)%Pre-clinical programs31,913 17,356 14,557 84 %Unallocated research and development expenses116,465 136,354