Zai Lab (ZLAB) Citi's 2024 Global Healthcare Conference summary

Commercial operations and growth outlook

• Operates a dual business model: commercializing in China and developing a global portfolio, with eight approved products/indications in China.

• Leading product Zejula dominates the ovarian cancer PARP market; Vyvgart is the fastest-growing, targeting gMG.

• 2023 sales expected at $380–$390 million in China, with a target of $2 billion by 2028 and $3 billion by decade's end.

• Cash profitability targeted by Q4 2025, with full-year profitability in 2026 and operating margins of 20–30% by 2030.

• Global ambitions include launching products outside China, with DLL3 antibody as a key near-term candidate.

Vyvgart launch and market strategy

• Vyvgart approved for gMG and CIDP; over 12,000 gMG patients expected to initiate treatment by year-end.

• NRDL listing for IV gMG achieved in January 2024, enabling broad access; CIDP listing expected in 2026.

• Annual treatment cost is $32,000 in China; gMG opportunity estimated at $500 million, CIDP at 50,000 patients.

• Focus in 2025 is on expanding gMG penetration and preparing for a robust CIDP launch in 2026.

• Additional indications, such as thyroid eye disease, present significant future growth potential.

NRDL pricing and reimbursement dynamics

• NRDL price renegotiation occurs every two years, with a new simplified renewal process offering predictable single-digit price reductions.

• Each indication and formulation (IV, subQ) is priced separately; subQ offers self-administration benefits in China.

• No price change expected for Vyvgart in 2025; focus remains on patient uptake and retention.