Zai Lab (NASDAQ: ZLAB) posts Q2 2026 net loss of $50.8M
Rhea-AI Filing Summary
Zai Lab Limited reported second quarter 2026 total revenue of $106.3 million, with net product revenue of $105.8 million and an 11% sequential increase versus the prior quarter. Research and development expenses rose to $61.8 million and selling, general and administrative expenses were $72.9 million. Loss from operations was $76.5 million, or $60.4 million on a non-GAAP basis excluding depreciation, amortization, and share-based compensation. Net loss was $50.8 million, or $0.05 per ordinary share and $0.46 per ADS. Cash, cash equivalents, short-term investments, and current restricted cash totaled $717.5 million as of June 30, 2026.
The company highlighted continued progress in its pipeline. Zocilurtatug pelitecan (zoci) received U.S. and EU orphan drug designations and a second FDA Fast Track Designation and is moving toward multiple registrational studies in small cell lung cancer and extrapulmonary neuroendocrine carcinomas. China’s NMPA approved TIVDAK for recurrent or metastatic cervical cancer, KarXT was commercially launched in mainland China for schizophrenia, and VYVGART’s U.S. label was expanded to all generalized myasthenia gravis serotypes. A BLA for povetacicept in IgA nephropathy was accepted with a PDUFA target action date of November 30, 2026, and management outlined several key data readouts and regulatory milestones expected through the first half of 2027.
Positive
- Multiple key approvals and designations, including China NMPA approval of TIVDAK, commercial launch of KarXT in mainland China, and U.S./EU orphan drug and FDA Fast Track designations for zoci, strengthen Zai Lab’s oncology and neuroscience portfolios.
- Zai Lab ended June 30, 2026 with $717.5 million in cash, cash equivalents, short-term investments, and current restricted cash, providing substantial liquidity to support its global clinical and commercial programs.
Negative
- Product revenue, net declined 3% year over year on a reported basis (and 7% at constant exchange rates) to $105.8 million in Q2 2026, reflecting a year-over-year decrease versus the prior-year period.
- Loss from operations increased 39% year over year to $76.5 million in Q2 2026, and adjusted loss from operations widened to $60.4 million from $34.2 million, reflecting higher operating losses year over year.
Filing Explained
At June 30, 2026, Zai Lab reported 1,122,445,390 shares outstanding and $717.5 million in cash, investments, and restricted cash.
This
As of
At quarter-end, the reported
The same balance sheet reported short-term debt and total current liabilities, so the disclosed liquidity figure is presented alongside current obligations rather than as an unrestricted cash amount.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue Q2 2026: $106.3 million
Product revenue, net Q2 2026: $105.8 million
Loss from operations Q2 2026: $76.5 million
+4 more
7 metrics
Total revenue Q2 2026
$106.3 million
Quarter ended June 30, 2026; compared with $110.0 million in Q2 2025
Product revenue, net Q2 2026
$105.8 million
Down 3% year over year as reported; 7% decline at constant exchange rates
Loss from operations Q2 2026
$76.5 million
GAAP loss from operations for the three months ended June 30, 2026
Adjusted loss from operations Q2 2026
$60.4 million
Non-GAAP loss from operations excluding depreciation, amortization, and share-based compensation
Net loss Q2 2026
$50.8 million
Net loss for the three months ended June 30, 2026; compared with $40.7 million in Q2 2025
Loss per ADS Q2 2026
$0.46
Loss per American Depositary Share attributable to shareholders in Q2 2026
Cash, ST investments and current restricted cash
$717.5 million
Balance as of June 30, 2026; compared with $761.3 million as of March 31, 2026
Key Terms
American Depositary Shares, Orphan Drug Designation, Fast Track Designation, accelerated approval, +2 more
6 terms
Orphan Drug Designation regulatory
"received Orphan Drug Designation (ODD) from the U.S. Food and Drug Administration"
Orphan drug designation is a special status given to medicines developed to treat rare diseases affecting only a small number of people. This status often provides benefits like faster approval processes and financial incentives, making it more attractive for companies to develop these drugs. For investors, it signals potential for exclusive market rights and reduced competition, which can impact the drug’s profitability.
Fast Track Designation regulatory
"received Fast Track Designation from the FDA for zoci for the treatment of patients"
Fast track designation is a status the U.S. Food and Drug Administration grants to drugs intended to treat serious conditions and address an unmet medical need. It gives the developer more frequent communication with the FDA and can allow parts of the application to be reviewed on a rolling basis, and it may pave the way to priority review or accelerated approval. It can shorten development timelines, though it does not guarantee approval.
accelerated approval regulatory
"supporting a potential U.S. accelerated approval submission in 2027"
Accelerated approval is a process that allows new medical treatments to be approved more quickly than usual if they address serious or life-threatening conditions and show promising early results. For investors, it signals that a treatment may reach the market sooner, potentially boosting a company's prospects, but it also involves some uncertainty since full evidence of effectiveness is still being gathered.
PDUFA target action date regulatory
"with a PDUFA target action date of November 30, 2026"
The PDUFA target action date is the deadline set by the U.S. Food and Drug Administration (FDA) by which it aims to decide whether to approve or reject a new drug application. This date helps investors gauge when a company’s new medication might reach the market, potentially influencing sales and revenue expectations. It acts as a key milestone signaling progress in the drug approval process.
non-GAAP financial
"These adjusted growth rates and adjusted loss from operations are non-GAAP measures"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Earnings Snapshot
Total revenue: $106.3 million
Three months ended June 30, 2026
Total revenue
$106.3 million
compared with $110.0 million in the same period in 2025
Product revenue, net
$105.8 million
-3% year over year as reported; -7% at constant exchange rates
Loss from operations
$76.5 million
39% increase year over year as reported
Net loss
$50.8 million
compared with $40.7 million in the same period in 2025
Cash, ST investments and current restricted cash
$717.5 million
down from $761.3 million as of March 31, 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Zai Lab (ZLAB) perform financially in Q2 2026?
Zai Lab reported total revenue of $106.3 million in Q2 2026, with net product revenue of $105.8 million. Loss from operations was $76.5 million, and net loss was $50.8 million, or $0.05 per ordinary share and $0.46 per ADS.
What is Zai Lab (ZLAB)'s cash position as of June 30, 2026?
As of June 30, 2026, Zai Lab held $717.5 million in cash, cash equivalents, short-term investments, and current restricted cash, compared with $761.3 million as of March 31, 2026, providing significant resources for ongoing R&D and commercialization activities.
How did Zai Lab (ZLAB)'s revenues and product sales trend year over year?
In Q2 2026, total revenue was $106.3 million versus $110.0 million a year earlier. Net product revenue was $105.8 million, down 3% year over year on a reported basis and 7% at constant exchange rates, but increased 11% sequentially versus the prior quarter.
What major pipeline designations and milestones did Zai Lab (ZLAB) report?
Zai Lab highlighted U.S. and EU orphan drug designations and a second FDA Fast Track Designation for zoci, plus plans for multiple registrational studies. It also expects key data readouts for zoci, ZL-1503, ZL-6201 and other programs through late 2026 and the first half of 2027.
What recent regulatory approvals and launches did Zai Lab (ZLAB) achieve?
China’s NMPA approved TIVDAK for recurrent or metastatic cervical cancer, and Zai Lab launched KarXT for adult schizophrenia in mainland China. Additionally, VYVGART’s U.S. label was expanded to all generalized myasthenia gravis serotypes via a partner’s approved sBLA.
How are Zai Lab (ZLAB)'s operating expenses and losses evolving?
R&D expenses rose to $61.8 million and SG&A expenses were $72.9 million in Q2 2026. Loss from operations increased to $76.5 million, with adjusted loss from operations at $60.4 million, compared with $34.2 million in the prior-year quarter.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________
FORM 8-K
________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
________________________
(Exact name of registrant as specified in its charter)
________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| 314 Main Street 4th Floor, Suite 100 Cambridge, MA, USA | 02142 | ||||
| (Address of principal executive offices) | (Zip Code) | ||||
+86 21 6163 2588
+1 857 706 2604
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| The Stock Exchange of Hong Kong Limited | ||||||||||||||
*Included in connection with the registration of the American Depositary Shares with the Securities and Exchange Commission. The ordinary shares are not registered or listed for trading in the United States but are listed for trading on The Stock Exchange of Hong Kong Limited
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2026, Zai Lab Limited issued a press release announcing its financial results for the second quarter of 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
The information contained in this report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued by Zai Lab Limited on August 6, 2026 | |||||||
| 104 | The cover page of this report is formatted in Inline XBRL | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ZAI LAB LIMITED | ||||||||
| By: | /s/ Yajing Chen | |||||||
Yajing Chen | ||||||||
Chief Financial Officer | ||||||||
Date: August 6, 2026 | ||||||||
Exhibit 99.1
Zai Lab Announces Second Quarter 2026
Financial Results and Recent Corporate Updates
–The Company advanced multiple global oncology and immunology programs toward key clinical and regulatory milestones, with significant pipeline catalysts expected in the second half of 2026
–Global Phase 1 data for zocilurtatug pelitecan (zoci) in combination with a PD-L1 inhibitor in first-line SCLC to be presented at ESMO 2026; planned initiation of a registrational Phase 3 study later this year
–Registrational Phase 3 DLLEVATE study evaluating zoci in second-line plus SCLC remains on track, with enrollment expected to be completed in the first half of 2027, supporting a potential U.S. accelerated approval submission in 2027
–Global Phase 1/1b study of ZL-1503, a potential first-in-class long-acting IL-13/IL-31Rα bispecific antibody for the treatment of atopic dermatitis, continues to advance, with initial first-in-human data expected in the second half of 2026
–KarXT successfully launched in mainland China; encouraging early launch trends building momentum ahead of potential NRDL inclusion
–Total revenues of $106.3 million in the second quarter of 2026; net product revenue grew 11% versus prior quarter driven by stabilization of ZEJULA and double-digit volume growth for VYVGART; commercial business positioned for a return to meaningful growth in 2027
Conference call and webcast today, August 6, 2026, at 8:00 a.m. ET (8:00 p.m. HKT)
SHANGHAI & CAMBRIDGE, Mass., August 6, 2026 -- Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) today announced financial results for the second quarter of 2026, along with recent product highlights and corporate updates.
“Zai Lab is entering an exciting new chapter in our evolution,” said Dr. Samantha Du, Founder, Chairperson and Chief Executive Officer of Zai Lab. “Over the past several years, we have evolved from bringing innovative medicines to patients in China to becoming a global biopharmaceutical company developing our own differentiated medicines for patients around the world. Today, our innovation pipeline is rapidly maturing. We advanced zocilurtatug pelitecan (zoci), our potential best-in-class DLL3 antibody-drug conjugate (ADC), from Investigational New Drug (IND) to global Phase 3 in under two years, and our growing portfolio of internally developed medicines, including ZL-1503, gives us confidence that innovation will increasingly drive Zai Lab's next phase of growth. Meanwhile, we continue to strengthen our commercial business. This quarter, we sharpened our commercial focus, delivered sequential revenue growth, maintained commercial profitability, and laid the foundation for a return to meaningful growth in 2027. Together, these achievements position Zai Lab to create long-term value for patients and shareholders.”
“We are excited about the progress across our growing global pipeline, with three registrational studies expected to be underway by year end and the potential for our first U.S. regulatory submission next year,” said Rafael G. Amado, M.D., President, Head of Global Research and Development at Zai Lab. “Zoci has demonstrated a differentiated profile — strong systemic and intracranial activity with a favorable safety profile — that supports development across multiple treatment settings in small cell lung cancer (SCLC) and extrapulmonary neuroendocrine carcinomas (epNECs). In immunology, ZL-1503 has the potential to address both inflammation and itch through dual inhibition of IL-13 and IL-31. Combined with its extended half-life enabled by YTE modifications, we believe its differentiated profile has the potential to address significant unmet needs in one of the largest markets in immunology. We look forward to sharing important clinical updates for both programs in the second half of the year.”
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Second Quarter 2026 Financial Results
•Total revenue was $106.3 million in the second quarter of 2026, compared to $110.0 million for the same period in 2025. Product revenue, net was $105.8 million in the second quarter of 2026, compared to $109.1 million for the same period in 2025. Net product revenue increased 11% versus the prior quarter, driven by stabilization of ZEJULA and continued volume growth for VYVGART. In the second half of the year, we expect to further stabilize product sales while laying the foundation for a return to meaningful growth in 2027.
•Research and Development (R&D) expenses were $61.8 million in the second quarter of 2026, compared to $50.6 million for the same period in 2025. This increase was primarily due to an increase in licensing fees under our license and collaboration agreements, partially offset by decreased clinical and pre-clinical costs.
•Selling, General and Administrative (SG&A) expenses were $72.9 million in the second quarter of 2026, compared to $71.0 million for the same period in 2025. SG&A remained relatively flat year over year, reflecting continued efforts to streamline the organization, optimize resource allocation, and enhance operating efficiency as the company advances its next phase of growth.
•Loss from operations was $76.5 million in the second quarter of 2026, $60.4 million when adjusted to exclude certain non-cash expenses including depreciation, amortization, and share-based compensation. A reconciliation of loss from operations (GAAP) to adjusted loss from operations (non-GAAP) is included at the end of this release.
•Net loss was $50.8 million in the second quarter of 2026, or a loss per ordinary share attributable to shareholders of $0.05 (or loss per American Depositary Share (ADS) of $0.46), compared to a net loss of $40.7 million for the same period in 2025, or a loss per ordinary share of $0.04 (or loss per ADS of $0.37). The increase in net loss was primarily due to higher licensing fees.
•Cash and cash equivalents, short-term investments, and current restricted cash totaled $717.5 million as of June 30, 2026, compared to $761.3 million as of March 31, 2026.
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Recent Pipeline Highlights
Below are key product candidate updates since our last earnings release:
Oncology Pipeline
•Zocilurtatug Pelitecan (zoci, DLL3-Targeting ADC) (formerly ZL-1310):
–In July 2026, Zai Lab received Orphan Drug Designation (ODD) from the U.S. Food and Drug Administration (FDA) for zoci for the treatment of neuroendocrine carcinomas (NECs).
–In June 2026, Zai Lab received ODD from the European Medicines Agency (EMA) for zoci for the treatment of patients with pulmonary NECs.
–In May 2026, Zai Lab received Fast Track Designation from the FDA for zoci for the treatment of patients with epNECs. This is the second FDA Fast Track Designation for zoci, and we are actively engaging with health authorities on a registrational plan for epNECs.
–In April 2026, Zai Lab partner Amgen initiated enrollment in the global Phase 1b study (DeLLphi-313) evaluating zoci in combination with tarlatamab with or without anti-PD-L1 in patients with SCLC.
•TIVDAK (Tisotumab Vedotin, Tissue Factor ADC):
–In June 2026, China’s National Medical Products Administration (NMPA) approved the Biologics License Application (BLA) for TIVDAK for the treatment of adult patients with recurrent or metastatic cervical cancer with disease progression on or after chemotherapy. TIVDAK is the first ADC approved in China for this indication.
Immunology, Neuroscience, and Infectious Disease Pipeline
•ZL-1503 (IL-13/IL-31Rα): Completed enrollment in the single ascending dose (SAD) portion of the Phase 1/1b study of ZL-1503 in healthy volunteers, with initial PK, PD, safety and immunogenicity data expected in the second half of 2026. Enrollment is ongoing in the multiple ascending dose (MAD) portion of the study in patients with atopic dermatitis.
•VYVGART (FcRn): In May 2026, the FDA approved the supplemental Biologics License Application (sBLA) submitted by Zai Lab’s partner argenx for VYVGART® (efgartigimod alfa-fcab) and VYVGART Hytrulo® (efgartigimod alfa and hyaluronidase-qvfc), expanding the label to include all serotypes of adult patients living with generalized myasthenia gravis (gMG) — anti-AChR-Ab positive, anti-MuSK-Ab positive, anti-LRP4-Ab positive, and triple seronegative. The approval is based on data from the Phase 3 ADAPT SERON study. Zai Lab participated in the ADAPT SERON study in Greater China. Zai Lab is preparing to seek inclusion of VYVGART Hytrulo in China’s National Reimbursement Drug List (NRDL) in 2027.
•KarXT (xanomeline and trospium chloride) (M1/M4-agonist): In June 2026, Zai Lab commercially launched KarXT in mainland China for the treatment of schizophrenia in adults. KarXT is the first schizophrenia therapy with a novel mechanism of action approved in over 70 years, offering a fundamentally new approach to treating schizophrenia through selective activation of M1 and M4 muscarinic receptors. Zai Lab is preparing to seek inclusion of KarXT in China’s NRDL in 2027.
•Povetacicept (pove, APRIL/BAFF): In June 2026, Zai Lab partner Vertex announced that the FDA accepted its BLA submission for pove for accelerated approval in adults with immunoglobulin A nephropathy (IgAN), with a PDUFA target action date of November 30, 2026. Zai Lab participated in the global Phase 3 RAINIER study in Greater China.
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Anticipated Major Milestones in 2026 and the First Half of 2027
Global Pipeline
Expected Clinical Developments and Data Readouts
Zocilurtatug Pelitecan (zoci, DLL3-Targeting ADC; formerly ZL-1310)
•First-Line Extensive-Stage Small Cell Lung Cancer (ES-SCLC): Report initial Phase 1 data evaluating zoci in combination with atezolizumab, with or without chemotherapy, at the European Society for Medical Oncology (ESMO) 2026 Congress in October 2026 and, subject to emerging data and regulatory discussions, initiate a registrational Phase 3 study in the second half of 2026.
•Second-Line Plus ES-SCLC: Complete enrollment in the global pivotal Phase 3 DLLEVATE study in the first half of 2027 followed by a planned interim analysis with the potential to support a BLA submission for accelerated approval.
•epNECs: Complete enrollment in the Phase 2 expansion portion of the ongoing global Phase 1b/2 study evaluating zoci in patients with selected solid tumors and, subject to regulatory feedback, advance the program into registrational development in the second half of 2026.
ZL-1503 (IL-13/IL-31Rα)
•Report initial first-in-human data from the SAD portion of the global Phase 1/1b study in healthy volunteers, including pharmacokinetics (PK), half-life, pharmacodynamic biomarkers (including pSTAT6), and safety, in the second half of 2026.
•Continue enrollment in the MAD portion of the Phase 1/1b study in patients with atopic dermatitis. Initial clinical data from the MAD portion expected in the first half of 2027.
ZL-6201 (LRRC15 ADC)
•Provide topline results from the dose escalation portion of the global Phase 1a/b study evaluating ZL-6201 in patients with sarcoma and selected tumors in the first half of 2027.
ZL-1222 (PD-1/IL-12)
•Submit an IND application in the U.S. and initiate a global Phase 1 study in 2027.
ZL-1311 (MUC17/CD3)
•Submit an IND application in the U.S. by year-end 2026 and initiate a global Phase 1 study in the first half of 2027.
Regional Pipeline
Upcoming Potential NMPA Acceptance
•Tumor Treating Fields (TTFields) in locally advanced pancreatic cancer.
Expected Clinical Developments and Data Readouts
Efgartigimod (FcRn)
•Myositis: Zai Lab partner argenx to provide topline results from the global Phase 2/3 ALKIVIA study evaluating autoimmune inflammatory myopathies (AIM or myositis) in the third quarter of 2026. Zai Lab participated in the ALKIVIA study in Greater China.
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Elegrobart (Anti-IGF-1R, subcutaneous)
•Zai Lab to complete enrollment in the Phase 3 registrational study for the treatment of thyroid eye disease in China in the third quarter of 2026.
•Zai Lab to provide topline results from the China Phase 3 registrational study in 2027.
Conference Call and Webcast Information
Zai Lab will host a live conference call and webcast today, August 6, 2026, at 8:00 a.m. ET (8:00 p.m. HKT). Listeners may access the live webcast by visiting the Company’s website at http://ir.zailaboratory.com. Participants must register in advance of the conference call.
Details are as follows:
•Registration link for webcast (preferred): https://edge.media-server.com/mmc/p/4mhmttj2
•Registration link for dial-in: https://register-conf.media-server.com/register/BIc69829b23daf4513a56e2253eaff583c
All participants must use the link provided above to complete the online registration process in advance of the conference call. Dial-in details will be in the confirmation email which the participant will receive upon registering.
A replay will be available shortly after the call and can be accessed by visiting the Company’s website.
About Zai Lab
Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) is an innovative, research-based, commercial-stage biopharmaceutical company based in China and the United States. We are focused on discovering, developing, and commercializing innovative products that address medical conditions with significant unmet needs in the areas of oncology, immunology, neuroscience, and infectious disease. Our goal is to leverage our competencies and resources to positively impact human health.
For additional information about Zai Lab, please visit www.zailaboratory.com or follow us at https://x.com/ZaiLab_Global.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, we disclose growth rates that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. We have also presented a measure of adjusted loss from operations that adjusts GAAP loss from operations to exclude the impact of certain non-cash expenses including depreciation, amortization, and share-based compensation, which we refer to as “profitability.” These adjusted growth rates and adjusted loss from operations are non-GAAP measures. We believe that these non-GAAP measures are important for an understanding of the performance of our business operations and financial results and provide investors with an additional perspective on operational trends and greater transparency into our historical and projected operating performance. Although we believe the non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.
Zai Lab Forward-Looking Statements
This press release contains certain forward-looking statements, including statements relating to our strategy and plans; potential of and expectations for our business, commercial products, and pipeline programs; our goals, objectives, and priorities and our expectations under our growth strategy (including our expectations regarding our commercial products and launches, clinical stage products, revenue growth, profitability, and cash flow); clinical development programs and related clinical trials; clinical trial data, data readouts, and presentations; risks and uncertainties associated with drug development and commercialization; regulatory discussions, submissions, filings, and approvals and the timing thereof; the potential benefits, safety, and efficacy of our products and product candidates and those of our collaboration partners; the anticipated benefits and potential of investments, collaborations, and business development activities; our profitability and timeline to profitability; our future financial and operating results; and financial guidance, including with respect to our capital allocation and investment strategy and our expected path to profitability. All statements, other than statements of historical fact, included in this press release are forward-looking statements, and can be identified by words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “poised,” “positioned,” “possible,” “potential,” “will,” “would,” and other similar expressions. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of future performance. Forward-looking statements are based on our expectations and assumptions as of the date
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of this press release and are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. We may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in our forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including but not limited to (1) our ability to successfully commercialize and generate revenue from our approved products; (2) our ability to obtain funding for our operations and business initiatives; (3) the results of our clinical and pre-clinical development of our product candidates; (4) the content and timing of decisions made by the relevant regulatory authorities regarding regulatory approvals of our product candidates; (5) risks related to doing business in China; and (6) other factors identified in our most recent annual and quarterly reports and in other reports we have filed with the U.S. Securities and Exchange Commission (SEC). We anticipate that subsequent events and developments will cause our expectations and assumptions to change, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Our SEC filings can be found on our website at www.zailaboratory.com and on the SEC’s website at www.SEC.gov.
For more information, please contact:
Investor Relations:
Christine Chiou / Cyan Liu
+1 (917) 886-6929 / +86 195 3130 8895
christine.chiou1@zailaboratory.com / cyan.liu@zailaboratory.com
Media:
Shaun Maccoun / Xiaoyu Chen
+1 (415) 317-7255 / +86 185 0015 5011
shaun.maccoun@zailaboratory.com / xiaoyu.chen@zailaboratory.com
Zai Lab Limited
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Zai Lab Limited
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars ($), except for number of shares and per share data)
| June 30, 2026 | December 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | 607,522 | 679,573 | ||||||||||||
| Restricted cash, current | 100,000 | 100,000 | ||||||||||||
| Short-term investments | 10,000 | 10,000 | ||||||||||||
Accounts receivable (net of allowance for credit losses of $20 and $31 as of June 30, 2026 and December 31, 2025, respectively) | 69,595 | 106,116 | ||||||||||||
| Notes receivable | 3,395 | 12,169 | ||||||||||||
| Inventories, net | 90,890 | 74,745 | ||||||||||||
| Prepayments and other current assets | 32,635 | 36,683 | ||||||||||||
| Total current assets | 914,037 | 1,019,286 | ||||||||||||
| Restricted cash, non-current | 1,118 | 1,116 | ||||||||||||
| Property and equipment, net | 46,431 | 47,389 | ||||||||||||
| Operating lease right-of-use assets | 16,159 | 19,152 | ||||||||||||
| Land use rights, net | 2,883 | 2,853 | ||||||||||||
| Intangible assets, net | 85,774 | 76,144 | ||||||||||||
| Deferred tax assets | 4,848 | 3,390 | ||||||||||||
| Other non-current assets | 3,543 | 3,054 | ||||||||||||
| Total assets | 1,074,793 | 1,172,384 | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | 136,692 | 141,608 | ||||||||||||
| Current operating lease liabilities | 5,025 | 6,344 | ||||||||||||
| Short-term debt | 238,104 | 204,530 | ||||||||||||
| Other current liabilities | 48,763 | 63,684 | ||||||||||||
| Total current liabilities | 428,584 | 416,166 | ||||||||||||
| Deferred income | 27,500 | 27,333 | ||||||||||||
| Non-current operating lease liabilities | 11,447 | 13,385 | ||||||||||||
| Other non-current liabilities | 225 | — | ||||||||||||
| Total liabilities | 467,756 | 456,884 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Shareholders’ equity | ||||||||||||||
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized; 1,132,222,310 and 1,113,822,550 shares issued as of June 30, 2026 and December 31, 2025, respectively; 1,122,445,390 and 1,106,389,340 shares outstanding as of June 30, 2026 and December 31, 2025, respectively) | 7 | 7 | ||||||||||||
| Additional paid-in capital | 3,370,798 | 3,343,469 | ||||||||||||
| Accumulated deficit | (2,730,461) | (2,628,620) | ||||||||||||
| Accumulated other comprehensive income | 214 | 29,697 | ||||||||||||
Treasury Stock (at cost, 9,776,920 and 7,433,210 shares as of June 30, 2026 and December 31, 2025, respectively) | (33,521) | (29,053) | ||||||||||||
| Total shareholders’ equity | 607,037 | 715,500 | ||||||||||||
| Total liabilities and shareholders’ equity | 1,074,793 | 1,172,384 | ||||||||||||
7
Zai Lab Limited
Unaudited Condensed Consolidated Statements of Operations
(in thousands of $, except for number of shares and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Product revenue, net | 105,751 | 109,085 | 201,307 | 214,735 | ||||||||||||||||||||||
| Collaboration revenue | 560 | 892 | 4,615 | 1,729 | ||||||||||||||||||||||
| Total revenues | 106,311 | 109,977 | 205,922 | 216,464 | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Cost of product revenue | (48,162) | (43,003) | (86,477) | (81,455) | ||||||||||||||||||||||
| Cost of collaboration revenue | — | (217) | (20) | (412) | ||||||||||||||||||||||
| Research and development | (61,766) | (50,614) | (127,357) | (111,343) | ||||||||||||||||||||||
| Selling, general, and administrative | (72,872) | (71,038) | (137,942) | (134,460) | ||||||||||||||||||||||
| Loss from operations | (76,489) | (54,895) | (145,874) | (111,206) | ||||||||||||||||||||||
| Interest income | 5,879 | 8,843 | 12,326 | 17,449 | ||||||||||||||||||||||
| Interest expenses | (1,587) | (1,262) | (3,224) | (2,449) | ||||||||||||||||||||||
| Foreign currency gains | 15,065 | 2,837 | 29,902 | 3,488 | ||||||||||||||||||||||
| Other income, net | 5,285 | 3,750 | 5,447 | 3,553 | ||||||||||||||||||||||
| Loss before income tax | (51,847) | (40,727) | (101,423) | (89,165) | ||||||||||||||||||||||
| Income tax benefit (expense) | 1,022 | — | (418) | — | ||||||||||||||||||||||
| Net loss | (50,825) | (40,727) | (101,841) | (89,165) | ||||||||||||||||||||||
| Loss per share - basic and diluted | (0.05) | (0.04) | (0.09) | (0.08) | ||||||||||||||||||||||
| Weighted-average shares used in calculating net loss per ordinary share - basic and diluted | 1,116,973,380 | 1,091,933,150 | 1,112,208,460 | 1,086,413,130 | ||||||||||||||||||||||
8
Zai Lab Limited
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(in thousands of $)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net loss | (50,825) | (40,727) | (101,841) | (89,165) | ||||||||||||||||||||||
Other comprehensive loss, net of tax of nil: | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | (14,891) | (2,955) | (29,483) | (4,167) | ||||||||||||||||||||||
| Comprehensive loss | (65,716) | (43,682) | (131,324) | (93,332) | ||||||||||||||||||||||
9
Zai Lab Limited
Non-GAAP Measures
(unaudited)
($ in thousands)
Growth on a Constant Exchange Rate (CER) Basis
| Three Months Ended June 30, | Year over Year % Growth | Six Months Ended June 30, | Year over Year % Growth | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | As reported | At CER* | 2026 | 2025 | As reported | At CER* | |||||||||||||||||||||||||||||||||||||||||||
| Product revenue, net | 105,751 | 109,085 | (3) | % | (7) | % | 201,307 | 214,735 | (6) | % | (10) | % | ||||||||||||||||||||||||||||||||||||||
| Loss from operations | (76,489) | (54,895) | 39 | % | 36 | % | (145,874) | (111,206) | 31 | % | 29 | % | ||||||||||||||||||||||||||||||||||||||
* The growth rates at CER were calculated assuming the same foreign currency exchange rates were in effect for the current and prior year period
Reconciliation of Loss from Operations (GAAP) to Adjusted Loss from Operations (Non-GAAP)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| GAAP loss from operations | (76,489) | (54,895) | (145,874) | (111,206) | ||||||||||||||||||||||
| Plus: Depreciation and amortization expenses | 4,173 | 3,735 | 8,117 | 7,193 | ||||||||||||||||||||||
| Plus: Share-based compensation | 11,941 | 16,973 | 25,465 | 32,773 | ||||||||||||||||||||||
| Adjusted loss from operations | (60,375) | (34,187) | (112,292) | (71,240) | ||||||||||||||||||||||
10