SHANGHAI and CAMBRIDGE, Mass. — Zai Lab reported a wider second-quarter loss as the biopharmaceutical company increased licensing spending and advanced several oncology and immunology programs toward clinical and regulatory milestones.
The company posted a net loss of $50.8 million for the quarter, compared with $40.7 million a year earlier. Loss per American depositary share widened to 46 cents from 37 cents.
Total revenue declined to $106.3 million from $110 million in the same period last year. Net product revenue was $105.8 million, compared with $109.1 million.
Product revenue increased 11 percent from the first quarter, helped by stabilization of sales for ovarian cancer drug ZEJULA and double-digit volume growth for VYVGART.
“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,” founder and CEO Samantha Du, Ph.D., said.
Du said the company’s internally developed pipeline and improving commercial performance position it for its next stage of growth.
Research and development expenses rose to $61.8 million from $50.6 million, primarily because of higher licensing fees. Selling, general and administrative expenses increased slightly to $72.9 million from $71 million.
Zai Lab reported an operating loss of $76.5 million. Excluding certain non-cash expenses, adjusted operating loss was $60.4 million.
The company ended the quarter with $717.5 million in cash, cash equivalents, short-term investments and current restricted cash, down from $761.3 million at the end of March.
Zai Lab expects several pipeline developments during the second half of 2026, including initial global Phase 1 data for zocilurtatug pelitecan, or zoci, in first-line extensive-stage small cell lung cancer.
The company plans to present data evaluating zoci in combination with atezolizumab, with or without chemotherapy, at the European Society for Medical Oncology Congress in October. Subject to the results and regulatory discussions, Zai Lab plans to begin a registrational Phase 3 study later this year.
A separate pivotal Phase 3 study, called DLLEVATE, is evaluating zoci in previously treated small cell lung cancer. Enrollment is expected to finish in the first half of 2027, followed by an interim analysis that could support an application for accelerated approval in the United States.
Zoci is an antibody-drug conjugate targeting DLL3. The U.S. Food and Drug Administration granted the drug orphan designation for neuroendocrine carcinomas in July and fast-track designation for extrapulmonary neuroendocrine carcinomas in May.
China’s National Medical Products Administration approved TIVDAK in June for adults with recurrent or metastatic cervical cancer whose disease progressed during or after chemotherapy.
In immunology, Zai Lab completed enrollment in the single-dose portion of a Phase 1/1b study of ZL-1503, a long-acting antibody targeting IL-13 and IL-31 receptor alpha. Initial safety, pharmacokinetic and pharmacodynamic data are expected during the second half of the year.
Enrollment is continuing in a multiple-dose study involving patients with atopic dermatitis, with initial clinical data expected in the first half of 2027.
Zai Lab also launched KarXT in mainland China in June for adults with schizophrenia. The company said early launch trends were encouraging and plans to seek inclusion in China’s National Reimbursement Drug List in 2027.
The company said its commercial business is positioned to return to meaningful growth in 2027 as product sales stabilize and newer launches gain momentum.
