FAST NEWS: Zai Lab’s loss narrows on strengthening sales
The latest: Biotech company Zai Lab Ltd. (9688.HK; ZLAB.US) reported Wednesday that its loss narrowed 24.5% to $335 million last year.
Looking up: The narrower loss owed mainly to a 25% increase in revenue to $267 million last year on higher income from its core products, Nuzyra, Qinlock and Zejula, as well as a reduction in foreign exchange losses and R&D expenses.
Take Note: The company’s selling, general and administrative expenses increased by 8.7% to $282 million last year, due to expenses related to the launch of a new drug, Vyvgart.
Digging Deeper: Zai Lab licenses other companies’ drugs for commercialization in China. But high licensing costs have resulted in greater losses even as revenue has grown in recent years. To reverse that, the company has started to add more self-developed drugs by boosting its R&D staff and conducting more clinical trials to strengthen its independent drug-development capability. The company said in its results that it expects to launch as many as three products this year from its existing pipeline of innovative products.
Market Reaction: Zai Lab’s Hong Kong shares fell on Wednesday, closing down 1.5% at HK$17.50 by the midday break. It currently trades near the lower end of its 52-week range.
Translation by A. Au
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