Zai Lab (ZLAB) Morgan Stanley 23rd Annual Global Healthcare Conference summary

Company overview and strategy

• Founded in 2014, with IPOs on NASDAQ and Hong Kong Stock Exchange; operates discovery, development, and commercial functions globally, with a focus on China.

• Eight commercial products launched, with two more approvals expected by early next year; strong presence in oncology, immunology, and neurology.

• Maintains $800 million in cash and reported $400 million in sales last year, indicating a healthy financial position.

• Pursues both internal discovery and in-licensing, focusing on assets synergistic with existing pipelines, especially in China.

• Selective about global rights, prioritizing therapeutic areas with strong internal expertise and leveraging both internal and external innovation.

Pipeline and clinical development

• DLL3 ADC is a key asset, targeting small cell lung cancer with a pivotal trial underway; aiming for accelerated US approval by late 2027.

• Second line DLL3 ADC data shows 79% ORR and mild safety profile; October update expected to confirm durability and efficacy.

• First line small cell lung cancer and neuroendocrine tumor data expected early next year; positive results could be breakthrough for neuroendocrine field.

• IL-13/31 program entering phase 1 in the US this year, with atopic dermatitis data anticipated next year.

• Immunology pipeline strengthened by POVI (IgAN nephropathy), aiming for best-in-class status and leveraging regulatory alignment with Vertex.

Commercialization and market outlook

• VYVGART positioned as frontline GMG therapy in China, supported by new national guidelines; subcutaneous version expected to drive further adoption in 2026.

• Cobenfy (KarXT) approval anticipated by early next year, with commercial strategy focused on urban psych wards and leveraging insurance before NRDL listing.

• BEMA submission paused pending further data; gastric cancer remains a major opportunity in China.

• Competitive landscape in China seen as beneficial, with multiple new mechanisms and products expected to expand market penetration.

• Pricing for new launches expected at 10–15% of US net price, with significant commercial potential due to large patient populations.