Full Press Release Details
Zai Lab Announces Financial Results and Corporate Progress for the
Six Months ended June 30, 2018
SHANGHAI, China, August 30, 2018 (GLOBE NEWSWIRE) Zai Lab Limited ( Zai Lab or the Company ) (NASDAQ:ZLAB), a Shanghai-based
innovative biopharmaceutical company, today announced financial results for the six months ended June 30, 2018, and provided a corporate update.
The first half of 2018 has been a period of tremendous progress for Zai Lab, marked by the continued advancement of our clinical programs, expansion of
our therapeutic pipeline, preparation for our commercial launch and strengthening of our management team, said Dr. Samantha Du, Zai Lab s Chief Executive Officer. For ZL-2306 (niraparib),
we continue to enroll patients in three separate pivotal trials in China targeting ovarian and small cell lung cancer, and are exploring additional indications by planning to initiate several more trials in the remainder of the year. The goal of our
comprehensive clinical development program is to establish ZL-2306 (niraparib) as the leading PARP inhibitor in China. In addition, we continue to advance our multiple late-stage clinical programs in both
oncology and infectious diseases. The past six months also marked the exciting transition of Zai Lab to a commercial stage company. In anticipation of the launch of ZL-2306 (niraparib) in Hong Kong later this
year and in China, we started building our sales and marketing team, and importantly, appointed industry veteran William Liang as Chief Commercial Officer. In addition, we appointed Yong-Jiang Hei, M.D., Ph.D., as our Chief Medical Officer (CMO) for
oncology to lead and advance our oncology pipeline. As we approach our upcoming clinical and commercial milestones throughout the remainder of 2018, we believe that Zai Lab is well-positioned to continue our positive momentum.
Recent Clinical Highlights
FPA144 (bemarituzumab)
ZL-2401 (omadacycline)
Recent Business & Corporate Developments
ZL-2401 (omadacycline)
FPA 144 (bemarituzumab)
Financial Results for the Six Months Ended June 30, 2018
Zai Lab (NASDAQ: ZLAB) is a Shanghai-based innovative biopharmaceutical company focused on bringing transformative medicines for cancer, autoimmune and
infectious diseases to patients in China and around the world. The company s experienced team has secured partnerships with leading global biopharma companies, generating a broad pipeline of innovative drug candidates targeting the fast-growing
segments of China s pharmaceutical market and addressing unmet medical needs. Zai Lab s vision is to become a fully integrated biopharmaceutical company, discovering, developing, manufacturing and commercializing its partners and its
own products in order to impact human health worldwide.
Zai Lab Forward-Looking Statements
This press release includes certain disclosures which contain forward-looking statements, including, without limitation, statements regarding the
timing of the initiation, progress and scope of the clinical trials of ZL-2306, ZL-2401, FPA144, ETX2514, ZL-2301 and ZL-2302, the commercial plans for ZL-2306, the timing of results from clinical studies of our product candidates and the ability to obtain regulatory approval for Zai
Lab s product candidates. You can identify forward-looking statements because they contain words such as anticipate and expected. Forward-looking statements are based on Zai Lab s current expectations and
assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are
neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Zai Lab s Annual
Report on Form 20-F for the fiscal year ended December 31, 2017 and its other filings with the U.S. Securities and Exchange Commission. Zai Lab undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Media: Nancie Steinberg & Robert Flamm
McClellan, on behalf of Zai Lab
212-213-0006, ext. 318,
212-213-0006, ext. 364,
Investors: Jill Steier
McClellan, on behalf of Zai Lab
212-213-0006, ext. 364,
Consolidated balance sheets (U.S. GAAP)
dollars ( $ ) except for number of shares)
| As of June 30, 2018 | As of December 31, 2017 | |||||||
| $ | $ | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 127,715,473 | 229,660,148 | ||||||
| Short term investment | 50,000,000 | |||||||
| Prepayments and other current assets | 4,690,984 | 954,506 | ||||||
| Total current assets | 182,406,457 | 230,614,654 | ||||||
| Investments in equity investees | 3,500,600 | 1,650,348 | ||||||
| Prepayments for equipment | 927,154 | 126,411 | ||||||
| Property and equipment | 19,466,017 | 11,853,764 | ||||||
| Other non-current assets | 4,512,146 | 5,389,051 | ||||||
| Total assets | 210,812,374 | 249,634,228 | ||||||
| Liabilities and shareholders equity | ||||||||
| Current liabilities: | ||||||||
| Short term borrowing | 755,675 | |||||||
| Accounts payable | 5,726,571 | 8,967,685 | ||||||
| Other payables | 3,776,643 | 3,101,459 | ||||||
| Total current liabilities | 10,258,889 | 12,069,144 | ||||||
| Deferred income | 1,622,225 | 2,394,124 | ||||||
| Total liabilities | 11,881,114 | 14,463,268 | ||||||
| Total shareholders equity | 198,931,260 | 235,170,960 | ||||||
| Total liabilities and shareholders equity | 210,812,374 | 249,634,228 |
Consolidated statements of operations (U.S. GAAP)
U.S. dollars ( $ ) except for number of shares)
| For the six months ended June 30, | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Operating expenses: | ||||||||
| Research and development | (34,632,256 | ) | (20,873,605 | ) | ||||
| General and administrative | (6,364,088 | ) | (4,040,996 | ) | ||||
| Loss from operations | (40,996,344 | ) | (24,914,601 | ) | ||||
| Interest income | 407,977 | 285,466 | ||||||
| Changes in fair value of warrants | 200,000 | |||||||
| Other income (expenses), net | (695,618 | ) | 9,652 | |||||
| Loss before income tax and share of loss from equity method investment | (41,283,985 | ) | (24,419,483 | ) | ||||
| Income tax expense | ||||||||
| Share of loss from equity method investment | (206,443 | ) | ||||||
| Net loss | (41,490,428 | ) | (24,419,483 | ) | ||||
| Loss per share-basic and diluted | (0.83 | ) | (2.30 | ) | ||||
| Weighted-average shares used in calculating net loss per ordinary share-basic and diluted | 50,041,670 | 10,630,041 |
Consolidated statements of comprehensive loss (U.S. GAAP)
(In U.S. dollars ( $ ) except for number of shares)
| For the six months ended June 30, | ||||||||
| 2018 | 2017 | |||||||
| $ | $ | |||||||
| Net loss | (41,490,428 | ) | (24,419,483 | ) | ||||
| Other comprehensive income, net of tax of nil: | ||||||||
| Foreign currency translation adjustments | 418,389 | 376,574 | ||||||
| Comprehensive loss | (41,072,039 | ) | (24,042,909 | ) |