Zai Lab Limited (ZLAB): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Zai Lab Limited's strategy, and after two decades in this game, I can tell you it's a fascinating transition from pure licensing to a commercial force in China. This Business Model Canvas distills that shift: they are now driving significant sales, booking $115.4 million in product revenue in Q3 2025 alone, while still managing the high costs of a deep pipeline, evident in their $47.9 million R&D spend that same quarter. It's a high-stakes balancing act of in-licensing global blockbusters and building out a specialized Chinese sales team, all while sitting on $817.2 million in cash as of Q3 2025. See the full breakdown below to understand the nine critical components powering this growth.

Zai Lab Limited (ZLAB) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Zai Lab Limited's growth strategy, which heavily relies on external collaborations to fuel its pipeline and commercial reach in China. This model minimizes early-stage discovery risk by in-licensing late-stage assets, which is a smart way to deploy capital when you're scaling commercial operations.

Global Biopharma Firms for In-Licensing

Zai Lab Limited's core partnership strategy involves securing exclusive rights for Greater China from global biopharma firms, effectively acting as their specialized commercialization bridge. This approach has brought in key assets across oncology and immunology.

Consider the deals that shape the current portfolio. For Repotrectinib, Zai Lab Limited secured Greater China rights from Turning Point Therapeutics, involving a $25 million upfront payment, with potential for up to an additional $151 million in development, regulatory, and sales milestones, plus mid-to-high teen royalties on Greater China net sales. For the DLL3 ADC, Zocilurtatug Pelitecan (formerly ZL-1310), Zai Lab Limited has exclusive worldwide rights from MediLink Therapeutics, with MediLink eligible for upfront fees, development/sales milestones, and tiered royalties on global net sales.

The depth of these relationships is evident in ongoing clinical participation:

• Partner argenx for Efgartigimod (FcRn), where Zai Lab Limited participated in the global Phase 3 ADAPT SERON study for seronegative gMG, with topline data announced in August 2025.
• Partner Viridian for VRDN-003 (IGF-1R, subcutaneous), with Zai Lab Limited planning to initiate a registrational study in thyroid eye disease in Greater China in the second half of 2025.
• Partner Vertex for Povetacicept (APRIL/BAFF), with Zai Lab Limited joining the global pivotal Phase 2/3 OLYMPUS study for primary membranous nephropathy (pMN) in Greater China in the fourth quarter of 2025.
• Partner Amgen for Bemarituzumab (FGFR2b), with Zai Lab Limited participating in the global Phase 3 FORTITUDE-102 study.

The company is tracking toward its guidance, expecting total revenue to be at least $460 million for the full year 2025, and aiming to achieve non-GAAP profitability in the fourth quarter of 2025. As of September 30, 2025, cash and equivalents stood at $817.2 million.

Clinical Research Organizations (CROs) for Global Trial Execution

Executing global trials requires robust external support, and Zai Lab Limited leverages the expanding capabilities within the Chinese ecosystem, which is increasingly recognized for its quality and speed. While specific 2025 contract values aren't public, the reliance on this infrastructure is clear.

The industry trend shows that CROs like Tigermed are building global clinical operations footprints to support multi-regional trials, which directly benefits Zai Lab Limited's execution of its partnered global studies. Zai Lab Limited's participation in global studies, such as those for Efgartigimod and Povetacicept, necessitates the use of experienced CROs to manage site activation and patient enrollment across Greater China.

Manufacturing Partners for Commercial Supply Chain

For commercial supply, Zai Lab Limited benefits from the mature Contract Development and Manufacturing Organization (CDMO) sector in China. Companies like WuXi AppTec anchor end-to-end platforms that help biotechs cultivate supply chains outside of China, which is increasingly important given geopolitical trends. This outsourcing capability allows Zai Lab Limited to focus its internal resources on commercialization within China for licensed products like VYVGART, which contributed to strong revenue growth.

Chinese Government Bodies for Regulatory Approval (NMPA) and Pricing

Navigating the China National Medical Products Administration (NMPA) is a critical partnership, as regulatory success dictates market access and revenue realization. Zai Lab Limited's expertise here is a key value proposition for its global partners.

Recent regulatory milestones in 2025 demonstrate this interaction:

• In August 2025, the NMPA granted Innovative Medical Device Designation for Tumor Treating Fields (TTFields) for pancreatic cancer, with Zai Lab Limited planning a regulatory submission in the fourth quarter of 2025.
• Zai Lab Limited planned to submit a New Drug Application (NDA) for Tisotumab Vedotin (TIVDAK) to the NMPA in the first quarter of 2025.

These regulatory achievements directly impact the revenue stream, as successful approvals allow Zai Lab Limited to leverage its commercial footprint for patient access.

Academic and Research Institutions for Early-Stage Discovery

While the primary focus is in-licensing, Zai Lab Limited is also building its internal discovery engine to establish a global pipeline of proprietary candidates. This internal R&D is a partnership with the scientific community at large, often involving early-stage academic data validation.

A concrete example of this internal development advancing is ZL-1503 (IL-13/IL-31R), where Zai Lab Limited initiated a global Phase 1/1b study in June 2025, following promising preclinical data. Furthermore, the company is advancing its wholly-owned ADC, ZL-1310 (Zocilurtatug Pelitecan), which began a global registrational study in October 2025.

Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Key Activities

You're looking at the core engine of Zai Lab Limited, which is definitely a blend of global asset acquisition and internal development, all focused on the Greater China market. Here's the quick math on what they're actively doing as of late 2025.

Late-stage clinical development and global registrational studies (e.g., zoci/ZL-1310)

The late-stage work is where the near-term value is being built. Zocilurtatug pelitecan (zoci, formerly ZL-1310), the DLL3 ADC, is a prime example; Zai Lab announced the initiation of a global Phase 3 registrational study in the latter half of 2025. This followed positive data presented in June 2025 at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, where the objective response rate (ORR) in second-line (2L) ES-SCLC was 67% across all dose levels (n=33), reaching 79% at the 1.6 mg/kg dose (n=14). The safety profile showed Grade ≥3 treatment-related adverse events (TRAEs) of only 6%.

For bemarituzumab, the Phase 3 FORTITUDE-101 trial met its primary overall survival (OS) endpoint, but a subsequent combination trial, FORTITUDE-102, was stopped in November 2025. On the immunology front, the global pivotal Phase 2/3 study for povetacicept in Primary Membranous Nephropathy (pMN) is expected to start in Greater China in the second half of 2025.

Commercialization and sales of approved products in Greater China

The commercial engine is showing growth, though management has recalibrated expectations. Total revenues for the third quarter of 2025 were $116.1 million, marking 14% growth year-over-year. This followed Q2 2025 revenue of $110 million, which was 9% higher than the prior year. Management revised the full-year 2025 total revenue guidance down to at least $460 million in Q3 2025. VYVGART continues to be a standout, achieving record patient utilization in Q2 2025 and being recommended for early use in mild-to-moderate and highly active patients. ZEJULA sales in Q3 2025 were $42.4 million.

It's important to note the impact of pricing actions on reported sales. For Hytrulo, Q3 2025 sales were $24.1 million, which included a $2.4 million reduction following a voluntary price adjustment ahead of National Reimbursement Drug List (NRDL) negotiation.

• VYVGART: Sales reached $49.5 million in Q1 2025, benefiting from NRDL listing effective January 1, 2024.
• ZEJULA: Q3 2025 sales were $42.4 million.
• Hytrulo: Q3 2025 sales were $24.1 million.

Strategic in-licensing and business development to expand the pipeline

Zai Lab Limited is actively using business development to broaden its portfolio, often securing rights for Greater China or specific Asian markets, which helps manage R&D costs. This strategy is clearly visible in recent agreements.

• Partnered with Vertex Pharmaceuticals to develop and commercialize povetacicept in Mainland China, Hong Kong SAR, Macau SAR, Taiwan region, and Singapore.
• Obtained a sublicense from Zenas, via a license agreement, for the Viridian anti-IGF-1R antibody (VRDN-003/ZL-1109) for clinical development.
• Announced a strategic partnership with MediLink Therapeutics in January 2025 to develop a novel LRRC15 Antibody-Drug Conjugate (ZL-6201).

Regulatory submissions and National Reimbursement Drug List (NRDL) negotiations

The company is pushing for market access through regulatory milestones. For Tumor Treating Fields (TTFields) in pancreatic cancer, Zai Lab announced in August 2025 that the China National Medical Products Administration (NMPA) granted Innovative Medical Device Designation based on Phase 3 PANOVA-3 trial results. The plan is to submit for regulatory approval in China in the fourth quarter of 2025. Also, preparations are underway for the launch of KarXT for schizophrenia in China.

Internal R&D for wholly-owned, differentiated global assets

The commitment to wholly-owned assets shows a shift toward proprietary innovation. ZL-1310 is a key example, but the internal pipeline extends further. ZL-6201 (LRRC15 ADC) is planned to initiate Investigational New Drug (IND)-enabling studies in 2025, following data presentation at AACR 2025. ZL-1503, an IL-13/IL-31R antagonist for atopic dermatitis, has a favorable preclinical profile, with first-in-human data targeted for mid-2026. ZL-1218, a CCR8 antibody, has had a preliminary readout from an ongoing Phase 1 study in solid tumors.

The company held approximately $830 million in cash and cash equivalents as of June 30, 2025, and the estimated quarterly cash burn rate for operations was about $41.6 million in Q3 2025, giving them a substantial runway to fund these internal R&D activities. Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Key Resources

You're looking at the core assets Zai Lab Limited is using to drive its business right now, late in 2025. It's a mix of hard cash, established market access, and valuable drug rights. Here's the quick math on what they are sitting on.

The financial foundation is solid, which is key when you're funding a global pipeline. As of September 30, 2025, Zai Lab Limited held cash and cash equivalents, short-term investments, and current restricted cash totaling $817.2 million. That's significant operational flexibility, especially as they manage the shift in revenue guidance.

The company's commercial engine in Greater China is a primary resource. They have built out a sales and marketing team covering major medical centers across the region. This team has proven experience, with commercial staff having backgrounds from leading global pharmaceutical companies like AstraZeneca, Roche, and Novartis. This infrastructure supports the ongoing sales of their in-licensed portfolio, with plans to expand this commercial pipeline to more than 15 products by 2028.

The portfolio of approved, revenue-generating products is the current lifeblood of Zai Lab Limited. These assets are the direct result of their partnership strategy. For instance, VYVGART continues to be a major driver, ranking as the #1 innovative drug by sales among all new launches in China over the past two years. The company reported that nearly 21,000 patients have been treated with VYVGART to date. Still, the commercial picture is nuanced across the portfolio.

Here is a look at the key commercial product performance data we have as of the Q3 2025 filings:

The Intellectual Property (IP) and exclusive commercial rights in Greater China represent the future value. This includes the rights to their pipeline assets, which are now taking center stage. For example, Zai Lab Limited initiated the global registrational study for its internally developed asset, Zocilurtatug Pelitecan (zoci, DLL3 ADC), in October 2025. The data supporting this asset is compelling; at the 1.6 mg/kg dose, it showed an overall response rate of 68% in second-line+ extensive-stage small cell lung cancer (ES-SCLC). Furthermore, Zai Lab Limited is preparing for the launch of KarXT in China, which has been added to China's schizophrenia guidelines.

The experienced R&D and regulatory teams in the US and China are the engine executing on this IP. Their efficiency is reflected in cost management; Research and Development (R&D) expenses decreased to $47.9 million in Q3 2025 from $66.0 million in Q3 2024, partly due to reduced licensing fees. The speed of development is a resource in itself; zoci entered its pivotal stage in under two years. You can see the team's focus on global ambition through the initiation of global studies for both zoci and ZL-1503 in November 2025.

These key resources are deployed across several functions:

• Maintain cash reserves of $817.2 million as of September 30, 2025.
• Support a commercial team with experience from top-tier global pharma.
• Drive sales for the seven commercialized products in Greater China.
• Advance the global pipeline, including zoci's registrational study initiation in October 2025.
• Manage R&D spending, which was $47.9 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Value Propositions

You're looking at Zai Lab Limited (ZLAB) and trying to map out exactly what value they deliver to their customers-the patients and their global partners. It's not just about the drugs; it's about the speed and the quality of access. Here's the breakdown of their core value propositions as of late 2025.

Rapid access to first-in-class/best-in-class global therapies for Chinese patients

Zai Lab Limited's primary value is acting as the bridge, getting therapies developed globally into the hands of Chinese patients quickly. This focus is evident in their pipeline strategy, which heavily relies on in-licensing and retaining commercialization rights within China for innovative drugs. For instance, Zocilurtatug pelitecan (zoci), their DLL3-Targeted ADC, is positioned as a potential first-in-class/best-in-class therapy for extensive-stage small cell lung cancer (ES-SCLC). The company is focused on leveraging its commercial footprint to accelerate patient access, as seen with TIVDAK®, where they planned to submit a Biologics License Application (BLA) to the National Medical Products Administration (NMPA) in the first quarter of 2025. Furthermore, their partner product VYVGART is now integrated into China's national MG guidelines, signaling successful market penetration and access for chronic disease patients.

Innovative treatments for areas of high unmet need: oncology, autoimmune, neuroscience

Zai Lab Limited targets specific therapeutic areas where the need is greatest. Their focus areas are clearly defined as oncology, immunology, neuroscience, and infectious disease. In oncology, they are advancing several next-generation therapies beyond zoci, including ZL-6201 (LRRC15 ADC) for sarcoma and other solid tumors, with IND-enabling studies planned for 2025. For neuroscience, the inclusion of KarXT in China's national treatment guidelines for schizophrenia highlights their success in bringing novel treatments to this challenging area. The autoimmune portfolio is anchored by VYVGART, which is being evaluated across multiple indications, including Lupus Nephritis (LN) and Seronegative gMG.

Clinically differentiated products like Zocilurtatug Pelitecan (zoci) in ES-SCLC

The differentiation of Zai Lab Limited's internally developed assets is a key value driver. Zocilurtatug pelitecan (zoci) provides concrete, differentiated clinical data. Updated Phase 1 data presented in October 2025 showed a 68% Objective Response Rate (ORR) at the 1.6 mg/kg dose in second-line ES-SCLC patients. This activity was paired with a potential best-in-class safety profile, showing a low rate of Grade ≥3 treatment-related adverse events (TRAEs) and zero discontinuations in that cohort. The company moved quickly, initiating the global Phase 3 registrational study for zoci in second-line plus ES-SCLC in October 2025. Earlier data from June 2025 at ASCO showed an even higher ORR of 79% at the 1.6 mg/kg dose in a subset of second-line SCLC patients (n=14).

Improved patient outcomes in chronic diseases (e.g., VYVGART in gMG)

For chronic conditions, the value proposition centers on tangible improvements in disease activity and convenience. VYVGART, for generalized myasthenia gravis (gMG), is a prime example. The partner announced topline data in August 2025 from the pivotal ADAPT SERON study for seronegative gMG, which met its primary endpoint with a p-value of 0.0068, showing improvements across all three subtypes (MuSK+, LRP4+, triple seronegative). Commercially, VYVGART is a significant revenue contributor; its net product revenue in the second quarter of 2025 reached $26.5 million, a sequential increase of 46% from the first quarter's $18.1 million. Furthermore, patient convenience is enhanced with the US FDA approval in April 2025 of VYVGART Hytrulo prefilled syringe (PFS), which Zai Lab Limited plans to submit for China regulatory approval in 2025.

A dual-market presence that de-risks development for global partners

Zai Lab Limited's operational footprint in both China and the United States provides a structural advantage, de-risking development for their international partners. This dual presence allows them to manage global trials while focusing commercialization expertise locally. The company is on track to achieve profitability in the fourth quarter of 2025. Financially, the trailing twelve-month (TTM) revenue as of September 30, 2025, stood at $442 million, with the full-year 2025 revenue guidance reaffirmed between $560 million and $590 million. This financial stability, supported by a strong cash position-$832.3 million as of the end of Q2 2025-underpins their ability to advance a robust pipeline, which is expected to include more than 15 products by 2028.

The company's goal is to achieve profitability in the fourth quarter of 2025.

Zai Lab Limited (ZLAB) - Canvas Business Model: Customer Relationships

You're managing a commercial-stage biopharma company in China, and your customer relationships are deeply tied to regulatory success and partner alignment. For Zai Lab Limited, this means a constant, high-stakes dialogue with both the China National Medical Products Administration (NMPA) and international licensors.

High-touch engagement with specialized physicians and key opinion leaders (KOLs).

While the exact number of dedicated sales representatives isn't public, the commercial execution supporting products like VYVGART demonstrates the scale of this engagement. VYVGART and VYVGART Hytrulo sales grew 46% quarter-over-quarter in the second quarter of 2025, reaching $26.5 million, up from $18.1 million in the first quarter of 2025. This acceleration suggests intensive support for adoption among specialists. Furthermore, the company is preparing for the launch of KarXT for schizophrenia, which was included in China's national-level treatment guidelines in late 2025, requiring deep engagement with the relevant psychiatric KOL community.

Dedicated sales and medical affairs teams supporting product adoption.

The commercial platform in China is described as strong and scalable, driving revenue growth toward a revised full-year 2025 total revenue guidance of at least $460 million. The focus is on leveraging the existing footprint, for instance, using the ZEJULA commercial footprint to accelerate patient access for KarXT if approved. The company is executing against a profitability plan, aiming for adjusted profitability by the fourth quarter of 2025, which implies disciplined management of the sales and medical affairs personnel costs.

Patient support programs to improve access and adherence.

Access improvement is quantified through reimbursement and guideline inclusion. The NUZYRA (omadacycline) intravenous formulation's listing on China's National Reimbursement Drug List (NRDL) was renewed in January 2025, directly impacting patient access and adherence for those indications. The company is also focused on extending the duration of therapy, as seen with VYVGART, where sales growth in Q2 2025 was driven by an extension of duration of therapy.

Long-term strategic relationships with licensing partners.

Zai Lab Limited's model is heavily reliant on these external relationships, which involve significant financial structures. The relationship with Turning Point for TPX-0022 includes potential development, regulatory, and sales-based milestone payments up to approximately $336 million. The company is actively managing multiple global programs through these partnerships, such as Povetacicept with Vertex, where Zai Lab plans to start a global pivotal Phase 2/3 study in Primary Membranous Nephropathy (pMN) in the second half of 2025.

The following table summarizes key late-stage product milestones that required close coordination with global licensing partners and regulatory bodies through late 2025:

Direct interaction with regulatory and reimbursement authorities.

The relationship with the NMPA is central to Zai Lab Limited's commercial success, evidenced by multiple filings and acceptances in 2025. The company is building a track record that de-risks future submissions for its partners.

• NMPA accepted the NDA for KarXT for schizophrenia in January 2025.
• NMPA accepted the supplemental New Drug Application for repotrectinib for NTRK-positive solid tumors in April 2025.
• NMPA accepted the Biologics License Application (BLA) for TIVDAK in March 2025.
• NMPA granted Priority Review to repotrectinib in February 2025.
• The NMPA granted Innovative Medical Device Designation for TTFields in August 2025.

The company maintains a strong balance sheet with a cash position of $857.3 million as of March 31, 2025, which supports the investment required for these complex regulatory interactions. Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Channels

You're looking at how Zai Lab Limited gets its innovative therapies to patients across Greater China; it's a multi-pronged approach built on direct sales power and national access agreements. Honestly, the channel strategy hinges on getting products onto the National Reimbursement Drug List (NRDL) because that's the key to volume in the Chinese market.

Specialized Hospital Sales Force Targeting Tertiary and Secondary Hospitals in China

Zai Lab Limited has established a commercial infrastructure where its sales and marketing teams cover major medical centers across Greater China. This team is structured to manage the entire product sales cycle, which includes medical affairs, marketing, market access, and distributor management. The commercial team has experience drawn from leading global pharmaceutical companies like AstraZeneca, Roche, Novartis, and BMS, allowing them to tailor commercialization strategies for each product. For instance, the growth in NUZYRA sales in the third quarter of 2025 was supported by increasing market coverage and penetration, which directly reflects the effectiveness of this ground force.

• Commercial team capabilities cover medical affairs, marketing, market access, and distributor management.
• Sales and marketing teams cover major medical centers across Greater China.

Inclusion on the National Reimbursement Drug List (NRDL) for Broad Access

Securing a spot on the NRDL is a primary goal to enhance access and affordability for marketed therapies in mainland China. This channel is critical because it allows for reimbursement by the national health insurance, making drugs affordable and accessible to a much wider patient base. As of November 2024, Zai Lab Limited announced the inclusion of AUGTYRO (repotrectinib) for ROS1+ NSCLC, alongside successful renewals for NUZYRA and QINLOCK on the NRDL. The company's focus remains on leveraging this inclusion, though before that, they also aim for coverage under commercial and supplemental insurance plans.

The financial impact of successful market access is clear: VYVGART, a key product, generated $93.6 million in net product revenue in its first full year of launch in 2024.

Direct Distribution to Hospitals and Pharmacies in Greater China

Zai Lab Limited's commercial products are distributed across Mainland China, Hong Kong, and Macau. The company has a commercial footprint that supports the sales of its products, which includes leveraging established infrastructure for new launches. For example, the launch of XACDURO in mainland China in January 2025 involved leveraging the industry-leading commercialization infrastructure of Pfizer's affiliated companies in the anti-infective area to help accelerate patient access. ZEJULA continued to be the leading PARP inhibitor in hospital sales for ovarian cancer in mainland China in the first quarter of 2025.

Clinical Trial Sites for Pipeline Product Access

Clinical trial sites serve as an early access channel for pipeline products, engaging key opinion leaders and specialized centers before full commercial launch. Zai Lab Limited is actively using its presence in Greater China to participate in global studies, which supports future regulatory submissions in the region. For instance, Zai Lab participated in the global Phase 3 ADAPT SERON study for VYVGART in seronegative gMG, enabling a potential China regulatory submission following positive August 2025 topline data. Furthermore, the company initiated a global registrational study for Zocilurtatug pelitecan (zoci) in second-line+ ES-SCLC in October 2025, and a registrational study for VRDN-003 in Thyroid Eye Disease (TED) in Greater China in the fourth quarter of 2025.

Digital and Medical Education Platforms for Physician Outreach

Physician outreach is supported through education and outreach efforts designed to increase brand perception and adoption of their therapies. While specific digital platform metrics aren't public, the overall commercial strategy explicitly includes activities to increase brand perception and adoption through education. This complements the direct sales force efforts to ensure that physicians are aware of the latest data and appropriate use guidelines for products like VYVGART, which is now recommended for early use in mild-to-moderate and highly active patients.

Here's a look at the revenue performance tied to these commercial channels through the third quarter of 2025:

Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Customer Segments

You're looking at the core groups Zai Lab Limited targets to drive its commercial success and pipeline advancement as of late 2025. This is a company focused on bringing global innovation to the Greater China Region (GCR).

The primary patient groups are defined by complex and high-need medical conditions across Zai Lab Limited's focus areas: oncology, immunology, neuroscience, and infectious disease.

The company's commercial success in Q3 2025 saw total revenue reach $116.1 million, with management guiding for at least $460 million in total revenue for the full year 2025. This revenue supports the customer base.

The specific patient segments targeted by Zai Lab Limited's current portfolio and late-stage pipeline include:

The specialists who prescribe these therapies are concentrated in the Greater China Region (GCR), which Zai Lab Limited defines as Mainland China, Hong Kong, Macau, and Taiwan. These include:

• Oncologists treating lung and gastrointestinal cancers.
• Neurologists managing autoimmune neuromuscular disorders like gMG.
• Infectious disease specialists dealing with multi-drug resistant bacterial infections.

Hospitals and medical centers are key access points, especially since Zai Lab Limited's strategy heavily relies on securing coverage through China's government health insurance schemes. Zai Lab Limited had six products included in the NRDL as of late 2024, with renewals in 2024/2025. The company aims to enhance access and affordability primarily through NRDL inclusion.

Global biopharma companies form a critical segment, as Zai Lab Limited leverages partnerships for both commercialization and pipeline development. The company ended Q3 2025 with $817 million in cash, supporting these strategic alliances.

Key global partners include:

• argenx: For VYVGART studies in Greater China, including seronegative gMG.
• Vertex: For povetacicept in IgA Nephropathy (IgAN), with Zai Lab Limited partnering on the global pivotal Phase 2/3 study in Greater China, expected to start in the second half of 2025.
• Amgen: Participation in the global Phase 3 study of bemarituzumab in gastric cancer.
• Pfizer: Collaboration for the launch and commercialization of XACDURO in mainland China, which launched in January 2025.

Payers, specifically China's National Healthcare Security Administration (NHSA) managing the NRDL, are a crucial segment. Inclusion in the NRDL significantly expands patient access to Zai Lab Limited's medicines at more affordable treatment costs. The company is on a path to profitability by Q4 2025, which will further solidify its relationship with payers as a sustainable provider.

Zai Lab Limited (ZLAB) - Canvas Business Model: Cost Structure

You're looking at the major outlays for Zai Lab Limited as they scale their commercial operations and advance their pipeline through late 2025. The cost structure is heavily weighted toward innovation and market access.

High Research and Development (R&D) expenses are a core cost. For the third quarter of 2025, Zai Lab Limited reported R&D expenses of $47.9 million. This figure actually represented a decrease from the $66.0 million reported in the third quarter of 2024.

The reduction in R&D spend in Q3 2025 was largely attributable to changes in licensing fees and milestone payments to global partners. These upfront and milestone payments are variable costs tied directly to pipeline progression and new agreements, so their fluctuation significantly impacts the reported R&D line item.

Selling, General, and Administrative (SG&A) costs reflect the build-out and execution of the China commercial team. For Q3 2025, SG&A expenses were $70.1 million, up from $67.2 million in the same period of 2024. This increase was primarily driven by higher general selling expenses needed to support the growth of key commercial products.

Clinical trial expenses form a substantial, though often bundled, part of the overall R&D spend, reflecting the deep and advancing pipeline Zai Lab Limited is managing. For instance, the advancement of ZL-1310 (DLL3 ADC) into a global registrational study in the second half of 2025 represents a significant, ongoing investment in clinical execution.

Cost of Goods Sold (COGS) is the direct cost associated with generating product revenue. While the specific COGS number for Q3 2025 isn't explicitly detailed here, we know that product revenue for the quarter was $115.4 million, driven by sales of commercial products like VYVGART and NUZYRA. COGS scales directly with the volume and pricing of these commercialized assets.

Here's a quick look at the key expense and revenue metrics for Q3 2025 compared to the prior year:

The cost structure is managed through specific operational levers:

• R&D expenses decreased year-over-year, primarily due to reduced upfront and milestone payments.
• SG&A rose due to higher selling expenses supporting NUZYRA and VYVGART growth.
• Clinical trial costs are influenced by the advancement of pipeline assets like ZL-1310 into pivotal studies.
• Product revenue growth, such as VYVGART reaching $27.7 million sequentially, directly impacts the COGS base.

Finance: draft 13-week cash view by Friday.

Zai Lab Limited (ZLAB) - Canvas Business Model: Revenue Streams

You're looking at the core ways Zai Lab Limited (ZLAB) brings in cash right now, which is key for understanding their near-term financial health. The primary engine is product sales, which hit $115.4 million in the third quarter of 2025. This performance led management to revise the full-year 2025 total revenue guidance to at least $460 million. That guidance revision, coming after Q3 results, signals a shift in expectations for the remainder of the fiscal year.

The revenue from commercialized products is broken down by key assets. Here's what the numbers looked like for the major drivers in Q3 2025:

The growth in total product revenue was driven by increased sales for NUZYRA and XACDURO, even as ZEJULA sales softened year-over-year due to competitive pressures. You should note that the VYVGART and VYVGART Hytrulo figure of $27.7 million included a $2.4 million reduction from a voluntary price adjustment made ahead of National Reimbursement Drug List (NRDL) negotiations.

Beyond direct sales, Zai Lab Limited captures value through other avenues, though these are currently smaller contributors to the top line. Collaborative revenue, which comes from things like sub-licensing deals or hitting development milestones with partners, was reported at $0.8 million in the first quarter of 2025. This stream is important as it shows external validation of their pipeline assets.

The revenue structure also includes potential future upside from their wholly-owned assets:

• Sales of core products: VYVGART, NUZYRA, XACDURO, and ZEJULA.
• Collaborative revenue from sub-licensing or development milestones.
• Potential future royalty payments from wholly-owned global assets.

Finance: draft the 13-week cash flow view incorporating the revised full-year revenue expectation by Friday.