Zai Lab (ZLAB) 2024 Cantor Fitzgerald Global Healthcare Conference summary

Strategic vision and growth outlook

• Aims to become a leading commercialization company in China, with five products currently on the market and plans for multiple launches through 2028.

• Expects compound annual sales growth of 50% from $400 million in 2023 to $2 billion by 2028.

• Forecasts profitability on a cash basis by Q4 2025, with operating margins of 20%-30% by 2028.

• Transitioning from early-stage biotech to a full-scale commercial, cash-generating business, while building a global pipeline.

• Three products in global clinical development are expected to generate significant data and support global expansion.

Key product portfolio and launches

• ZEJULA is the current market leader in ovarian cancer in China, expected to grow at 20% annually.

• VYVGART, the fastest-growing product, is projected to exceed $80 million in 2024 sales and could reach $1 billion+ with new indications.

• Additional products include Qinlock for GIST, NUZYRA for infections, and Optune for glioblastoma, each with targeted growth strategies.

• Three new launches in Q4: XACDURO for antibiotic-resistant infections, a ROS1 inhibitor for lung cancer, and SubQ VYVGART.

• SubQ VYVGART will be available via supplemental insurance until NRDL listing in 2026, with IV remaining the mainstay in the interim.

Financial and operational guidance

• Revenue growth in the second half of 2024 is expected to be around 50%, driven by VYVGART.

• SG&A and R&D expenses will see only modest growth, supporting profitability by Q4 2025.

• Non-GAAP profitability is defined by excluding stock-based compensation, about $80 million annually.

• Operating expense growth will remain moderate even as new products launch and sales force expands for schizophrenia and gastric cancer.