Zai Lab Limited (ZLAB) 12 Nov 242024 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by, and welcome to Zai Lab's Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to Christine Chiou, Senior Vice President of Investor Relations. Please go ahead.

operator. you, Thank welcome Call. and Lab's Quarter Third Hello, to Earnings XXXX everyone, Zai Today's by led call be will Dr. Zai Chairperson. Du, Samantha Lab's Founder, CEO and be Smiley, Josh Dr. joined Chief will Officer; President Operating She and by Global Rafael President Development; and of Amado, Research Head and and Dr. Chief Chen, Yajing Officer. Financial Business Chief also will during our answer call. be of Q&A portion Wang, the to questions Officer, Jonathan available the

that These to a SEC may we risks based on statements reminder, certain making forward-looking numerous to results during As actual of in expect to current cause today's including statements expectations. differ be and what our subject call, discussed those uncertainties a we will from factors, are our filings. materially variety due

loss XX, financial disclosure. We information Dr. furnished earnings my Samantha is Du. operations, non-GAAP release which financial XXXX, on turn the this time, to to this will pleasure to call a on SEC for to our also the with adjusted additional November from is it measure. refer At non-GAAP Please refer over

Thank product Lab as third everyone. you, enhancing Starting growth. Zai key to pipeline our execute growth, our year continue grew strategic net the global with This a three tremendous year-over-year. efficiency. expanding Christine, Total and has driving we revenue for revenue been for operational and priorities: quarter revenue welcome, XX%

indications, products top and commercial in products year, rapidly. blockbuster Our line. later to one potential multiple China With growing new this VYVGART is further become we business will our on track grow of to launch which expect our

DLLX-targeted extensive small to global potential data in ZL-XXXX, pipeline. in our pipeline. Recently, stage significant best-in-class presented made cancer. from advancements lung Turning we a cell our We ADC

IL-XX other diseases. our immunologic dermatitis for introduced atopic antibody recently bi-specific also internally discovered IL-XX, We and

which worldwide, innovator portfolio, role preclinical are into not pricing addressing added RORX reinforcing the to global year. needs next only Zai but in we we as advance Additionally, health we an By expanding also our Lab's a plan ZL-XXXX, industry. X care Phase ADC,

one enrollment years. in which at expect believe significant late-stage us to includes XXXX, pivotal approvals two to we our alike. on progress made also next regional blockbuster the to course keeping NMPA now both for KarXT, potential This potential, five Bemarituzumab, the least substantial We which pipeline, studies. submit we early completed for both have two These patients products, and holds has and in promise providers in where over

efficiency Lastly, and organization. operating productivity the increased we with throughout are

I'll the made, As in same third of the result the that a and improvement efforts, to quarter you over year. net our now support well a our positioned look forward the want the achieved to loss And the for in few of period create we the I to to are have substantial updates XX% progress to compared we continued thrilled about coming value emphasize previous in years. next year. our Thank Josh? Josh. mission. all I'm over in further we for I business providing call your pass

you, Samantha, the for you, call and joining today. Thank everyone, thank

demonstrating made excellent our several pipeline quarter, and This programs. strong across execution business, financial progress we great across performance

potential. We guidance. This covering $XXX.X path to to driven This start line successfully with performed ability the approximately and our targeted are China. for million, one in of with for full the achievement ever market Starting is by immunology entire access. top launch VYVGART. all strongest make well and a hospitals in team's I'm expanding and by in would exceptionally we on our achieved with $XX VYVGART's clear has uptake launch VYVGART, for quarter value an third robust share across million The led in listings sales which to execute product measures, a of across revenue exceed sales, patient by year, is our to strategic pleased gMG gMG priority NUZYRA. of for channel year-over-year all supported that and launch hospitals, year at successful the net XX% we've our increased product XX% of ZEJULA primary chain. the Our grew launch also

targeting enhancing supplemental wave and next insurance for additional of community. offer we are access patient Now hospitals the support to the

is a data-driven Next, a nature X,XXX prescribed growing. the percentage This place Ben now where FcRn our of the VYVGART being scientific IVIg. by core growing significant leading quarter. gMG given increased Nearly adoption on the physicians now VYVGART's launch. prescribers. top-of-mind alongside we Health, a third-party emphasis at biologic each XX% gMG Physician a therapy the have the mechanism achievement and early have and with according in is care now awareness have repeat VYVGART awareness health proven China for effective. And brand professionals and antibody-driven strategies of to is analysis of stage

XXX,XXX been Lastly, patients. is fraction this still patients China. gMG with have while number, And an is Approximately since XX,XXX launch. with the just a patients now treated living VYVGART in it of exceptional

to in at continue steady pace. the added New setting, initiating in predominantly number in third patients treatment maintenance substantial the previously patients. of acute whereas And a saw we was patients be quarter, the a increase it

patients less the in subsequent number the more, based of VYVGART for last weeks, infusion realize VYVGART or XX% than trials. was the seeing with their have in of somewhere also VYVGART that saw third the six repeat Physicians have nine waited weeks we clinical the Over the cycle. for in of in we five beginning year average returned of June, trial each cycle. believe number of weeks we're value estimates our time, the we between first of significant passed to repeat of patients ADAPT+ as previous the cycles patients What XX% infusion ADAPT initiated long-term should the a distribution treatment patients. the fell and patients of Around Based rest who cycle seen from are on also a already and of approximately treatment waited increase Additionally, between. the on the patients. with one

excited on thus early setting comments real-world strong any we from by the too trends it's the make far. and to feedback the in positive China, distribution momentum while are the in on current based physicians, Now still

also expect including of or expected as launch, year the update VYVGART next increasingly gMG national treatment end option which of to guidelines early additional include important this for gMG. are an We an towards year, tailwinds the for anticipated

also are year. China, therapies with months announce to the establishing the that We we and of of possible. provides efgartigimod patients the care and NMPA well this in the believe also XX as sBLA CIDP CIDP earlier CIDP, and of pleased week, supplemental VYVGART plan I'm time six a disease as shorter better will that way we to growing, achieve soon to in administration treatment to new approved acceptance of XX to for formulation disease of launch significantly more of China. be is earlier convenient robust in subcutaneous Hytrulo, by license as will indication self-administration a formulation for end no only application biologics as adult we the is the alternative in for to this possibility working after a approved seconds the VYVGART year. gMG standard help gMG Hytrulo patients further for and on management. the affects our patients for VYVGART There to Demand the IV XX,XXX uptake. launch drive are this The

prefilled physicians, with Rafael will the stakeholders, expect this additional best-in-class Our annual we can with is to VYVGART, Hytrulo billion submit support in for patients These us our and VYVGART, look to to improve all syringe, provides in VYVGART opportunities for we in of cover footing the strong opportunities and lives. great his and remarks. NMPA sales other importantly, key including will and China execute There us launch for next team the gMG multiple help promise year of exceed and a on patient CIDP. the new realize of we exemplary believe $X as which are which indications, which

Now other China. for hospital to commercial ZEJULA continues cancer PARP and sales ovarian looking the at in be inhibitor our leading products.

seeing driven continued increasing are by first-line patients. uptake penetration share in We BRCA-mutated

on this access important treatment. patients NUZYRA, to For support for and ongoing we who promote continue rely

and also the we XXX,XXX opportunities. cases in between two Hytrulo, comprises of VYVGART in cell caused additional each are in non-small year. by cancer there for to infections, year addition non-small in ROSX-positive of ventilator-associated preparing hospital which pneumonia nearly Acinetobacter cancer, in In baumannii XACDURO acquired China; which per new X% approximately China of lung are X% cell XXX,XXX lung AUGTYRO launch and cases

its in parallel, to efficient the at the launch. pipeline And in in operations in and next peak gastric billion commercial third ahead, sales is each declined our are our the $X schizophrenia regional of submit we to cervical established growth. discipline. resource the nicely. following ZEJULA to enhancing Looking loss could half the plans market Furthermore, least which We're during productivity on BLA and allocation substantial expect for track on significant quarter opportunities, deliver potential. year of driving leverage with on first top to ongoing NMPA late-stage these our for TIVDAK force year-over-year. Both closely efficiency, launch represents line Bemarituzumab a net are we increasing financial cancer focused and in XXXX, of KarXT behind. by also optimizing organization, of see XX% cancer progressing in efforts And entire our Through throughout we

Lab's with targeted strong to cash we will building drive positioned efforts, our on end Rafael. Zai growth. We And million to of third and track as goals. we strategic global reach are $XXX In a end execution in allows both that, coming this profitability. to position the momentum reinforces us and commercial portfolio, next Lab profitability quarters. this commitment to the the a forward With growth prepare of look revenues I quarter the for continued the phase for XXXX expanding to the pass drive are on quarter and to by pipeline We call our of at product of Zai summary, well

Thank you, Josh.

this advancing especially progress ZL-XXXX, with highlighted, Samantha pipeline, our investigational quarter, scale on ADC. significant global an DLLX-targeted we in a made As

escalation recurrent or Phase showed the we X from levels all ENA presented ZL-XXXX one very are at which a excited robust portion patients ZL-XXXX by Spain. Symposium in ongoing Barcelona, small lung post-treatment cell with with dose rate in dose study the clinical of We objective cancer, across preliminary of in least activities evaluation. response EORTC-NCI-AACR at the the XX% patients

date prior patients reduction. showed to six a DELTA XXX% results tumor the observed durability, the XX% in with in any partial lung rate brain an in in a it While extensive small objective beyond premature second to all and ADC the with is The stage a highest is among cancer patient partial metastases line with failure in response also achieving and rate response One disease. response with response. highest cell assess with a achieved patients

antibody majority XXX,XXX to Europe. aggressive affecting the lung or Additionally, there high for the a in improve at rate XXX,XXX cell X we demonstrating good at being is U.S. data a we patients all X% small been safety X. to aggressive of XX% this outcomes the work Grade or related ongoing is plus dose profile five-year date, who lung atezolizumab to Venereology patients clinical develop tumors, escalation extensive in a swiftly therapy. ZL-XXXX over ZL-XXXX's its highly start European chemotherapy have best-in-class immunology, for To had significantly opportunity neuroendocrine atopic prior for and study indication. with and other expressed being in DLLX levels Dermatology rapidly patients to treatment-emergent dose adverse including to conditions. being study with platinum-based for global year. of and XX%, to ZL-XXXX optimization ZL-XXXX, and With great development pruritic Zai, stage atezolizumab EIDV this discovered the this cell combination we internally ZL-XXXX the Academy small inflammatory patients next ZL-XXXX explore global and This cancer and in monotherapy survival the rate adverse events Only potential, cell patients have or TEAE Congress, with we with is we aim therapeutic leading around we lung and accelerate received highlighting mortality dose of Phase study Small X moved highly bi-specific into against disease in is on events, fast-growing will cancer, to asset. tolerated will In which cancer IL-XX/IL-XX by of no neoplasm. discontinuation. and early at worldwide, a The a need a also drug an other treatment this demonstrated presented into in well with just year data and of preclinical has had TEAEs, dermatitis

at a and models, results to in more share preclinical We in conference continue to medical promising the see we bi-specifics of details expect XXXX.

with to In Phase We program. to submit next-generation a we study next an year initiate FDA planning solid a year. are to the tumor IND in X global expect application ADC next oncology, RORX ZL-XXXX,

assets anticipate possible, will We next pipeline progress our these internal develop continuing year. other strong quickly and as products expand IND leverage oral submissions to and capabilities undisclosed as to the and into we IND-enabling

KarXT swiftly factor Squibb not submit list class moving X.XXXX. study subscale with China. reduction States muscarinic we approval Now week the efficacy KarXT starting in all PANSS evaluating by programs, or symptoms neuroscience. our nervous a antipsychotic demonstrating score in trial positive U.S. and this positive in unexpected announced at of also on early prescribing of an and X placebo p-value schizophrenia PANSS box bridging negative agonist Marder KarXT, our Last with met PANSS warnings NDA KarXT schizophrenia demonstrated information PANSS reductions KarXT United and to This September. Notably, negative from of will The top no schizophrenia China, does followed secondary first-in-class as from move subscale, not key to and of Bristol-Myers baseline by to partner, in system score. measured statistically compared line the have in and of announced safety significant endpoints, a X.X-point warning. KarXT showed late-stage central a positive X XXXX. does signals. precautions the safety In we for in Phase results atypical the statistically the negative data month, in Cobenfy significant

inhibitor Moving treatment oncology. for Amgen, chemotherapy with the good months schedule. in month, study checkpoint progress gastric partner, with making with ahead And Bemarituzumab. our completed FGFRXb-positive FORTITUDE-XXX Bemarituzumab patient we, last enrollment as We're to of in along cancer for and first-line combination a

in for months. results expect pivotal with await the both which starting next studies few we we Now FORTITUDE-XXX,

our immunology franchise. Next, with

with Hytrulo, consistent the Greater polyneuropathy the subgroup NMPA debilitating of VYVGART NMPA placebo. relapse patients for demyelinating This adult about study, Hytrulo on participants approval approval The The in we Josh treatment CIDP. or much-needed approval excited As mentioned, disease. compared patients demonstrated based study participants enrolled was this with in chronic subcutaneous of Treatment these with a the analysis we which novel of recent options China. neurological and response of ADHERE to with is the patients global XX% suffering from for are reduction formulation Chinese VYVGART the progressive of efgartigimod a outcomes. risk brings inflammatory treatment

IgG the Additionally, clinical underlying therapy's XX% in the for of weekly NMPA unmet treated Chinese VYVGART their recognition dosing participants. assessment with that profiles and The participants period thorough Hytrulo of open-label the safety confirming We global tolerability Chinese in and CIDP. of role was biology profile further the cohort improvement, the the study of of in consistent appreciate the differentiated the demonstrated of patient of need of medical and in patient large China. the autoantibodies favorable evidence

our continue products disease to regional plan am an terms to our which at TED, forward to we care autoimmune the with ocular for I Yajing? progress call. in will and look with in results. the registrational overview to our Yajing the IgG-mediated with of MG or discovery of Sjogren's enrollment And and indications, financial in to in updates now indication, earnings initiating global eye quality development. and treat other potential pipeline, executing this and month. negative the both we're next including and and speed potential work the give are I explore these this both providing about are great the CMG, Beyond of thyroid starting participate CIDP, making medical we change studies in China and studies excited disease.  We gMG myositis, we argenx to global

Thank you, Rafael.

the VYVGART strong XX% NRDL net XX% acute increased net Now this quarter million launch I by first increase XXXX, the pneumonia, VYVGART revenue X, since bacterial remained increased results in third period XXXX, continued $XX.X formulation to first September $XXX.X as the This the NRDL compared it $X.X revenue year-over-year to for for China. treatment increased XX% driven inhibitor representing XXXX. to by million.  ZEJULA adults growth product the of will the in compared period sales grew this million sales compared year-over-year million listings sales in following: for skin revenue gMG same grew and or in discuss same and listing included the of XXXX was formulation CABP, by XXXX the of $XX ovarian our sales million NUZYRA. NUZYRA quarter quarter hospital net of to Total prior product quarter product growth. for financial and $XX.X treatment revenue of ZEJULA period. with and driven for for third for the leading bacterial cancer or in oral was year community-acquired EPC, quarter primarily net product indication and revenue XXXX January drivers XXXX, ZEJULA by its PARP supported structure third for to in also driven increased for sales of the the XXXX. in Primary be to the Mainland IV skin effective million, infections, of and for in to $XX.X

primarily and general resource resource partially expenses a million efficiency increased were expenses $XX.X offset agreements, operations narrowed Loss and efficiency XXXX.  This expenses, $XX.X a costs depreciation, in personnel Selling, collaboration was ongoing for and quarter by result prioritization the partially third fees million efforts. in including the ongoing quarter $XX.X trial costs amortization XXXX primarily efforts, compared administrative both clinical XXXX. and This to VYVGART. XX% decreased decrease adjusted the and million million expenses. when exclude expenses to the period to third development offset $XX.X $XX.X by result were Research period $XX.X Turning as of increase driven general on same and our primarily million, upfront by now to of increased our a of prioritization in by the personnel and as license noncash from for XXXX in compensation, due basis quarter decreased for non-GAAP share-based of XXXX was expenses, and for compared was in selling milestone same of million year-over-year. third to

loss Zai ongoing in share which revenues initiatives. share of cost by from XX% a result loss or loss our ordinary $X.XX. expect XXXX per narrow $X.XX, $XX.X of of million We net to the to for net $XX.X a year-over-year loss ordinary continue of shareholders efficiency reported per common the third a of loss attributable quarter to period as and and a operations growing of XXXX to improved or compared in million a same Lab

our operating in of plan cash fund and $XXX.X a able like with the be up to lines quarter I position, ending million profitability, through a to operator by XXXX. for to the million that, expect anticipated we which growth, strong achieve are revenue open XX, to now June compared financial the to our business to of would to And back with position on over the $XXX call our we end XXXX. Based turn as expect of questions. Operator? We

of Instructions] the question [Operator comes first from Your Michael line from Jefferies. Yee

execution. continued X and results the on We Congrats questions. had

and getting driven it would quarter and just the about when the seeing which your fourth color second we about the Can sort doubled steps of in growth. the what of think talk you got approved next a quarter. in growth us number Just the almost with the that moderated more when maybe second were attention does VYVGART results, question the lot sequential was Can quarter, next great second third data in thinking the in quarter? of people get what drug. just of to had remind to how would And the DLLX to quarter obviously, first the about fourth Maybe do think back? how relates immediate timing the quarter. And quarter-over-quarter growth we and could and Josh just people give released cycle coming about growth or comment, but the there? are first are you have significant to The third versus existing have to, some you

Okay. question I'll ask next to thank comment then Rafael Josh. with the VYVGART you. steps and take It's DLLX. Mike, on

year. the I the think of first VYVGART, as remarks, with pleased in X we're with mentioned upfront I really months this

in X,XXX we about trends in seeing think I seeing of where we're patients month. for are initiated increasingly, being saw And come patients and continued second because we're we and cycle. launch, third the the in terms in back per QX, of new year

expected. in would for line have what we So hoped with and really

the otherwise. pleased we I terms the sequential QX, metrics I function at being we are we're of say, with is very the we in growth, patients cycles so some increasingly, halfway becomes far, the see point, about I in otherwise, think maintenance performance. think where month. and are base see a come at I about new it of in the X,XXX those and patient think terms through patients in and a the are quarter of initiated everything some disease. we, think of as phase of to continue in QX just quite encouraging.  We And And And

China. in XXX,XXX year. on consider you of maintenance are the uncontrolled, patients get in year which a we've calendar year maintenance have remember These a setting. chance or in in that XX% trying You'll really if a to per focused them second get we like initiated patients is over patients average, a And half of started on the this setting, really about good to the they're cycles X that

and is third fourth see initiated mentioned we to in for the we that cycle, a new at comments upfront level. quarter. fourth example an back more and have coming back we'll at high sort can now the that quarter, of a coming patients come we and from look in should second to we and see cycles. look in track the and see building of them already the back in the should now I the June a patients third then benefit in cumulative of who think patients see for continued effect -- I And I second as what So, think

by So, quarter, the if and paradigm number good expect patient continued thinking the sort just year, now no patients I growth. XX,XXX. treatment will of VYVGART those portion focused be good sequential reason the on, that a if think expect And reminder, end you and substantial can think of patients of to at initiated I think as we're into you that not we'd about that And to be we're XXXX on fourth I look I capture get XXXX. think some we over base into maintenance of headed of pretty have a sales really

Just long-term look phase, of. or $XXX and That's we continuing But launch continues the good maintenance starting million again, example, see you in of that top patients reservoir a in of guidance an which range so on treatment the to half patients or to I not add of of somewhere anything. potential. on uptake those with a it emphasize sales, think as the are you're if

I that, talk to think steps DLLX. immediate to next Rafael with about for the I'll turn it

question. Michael, Thanks, for and thanks, Josh, the

and I about next next was set data think update. or steps sort it of

course, So, other levels dose capture to to and since we've in patients presentation, durability. enroll continued the of

As talked as as we about well short you a know, follow-up. responses unconfirmed very

data see to mature. let So, it's for the to us continue and important

that remarks optimization. regulatory a couple We also will said for time, But the at dose preparatory doses the we've of I our we've same chosen announced, to continue interactions. in as have

randomization to we that of we're a randomization every and totality may the of starting will when And well. a the those responses So, perhaps in decent and decide escalation have meaningful we what across update consist patient follow-up confirmatory dose see cohorts, on the as with start we'll phase. that

collecting enrolling and So, anticipate this very will we data, fast sometime make and we year. update are next we that in

we're scanty we but the with haven't just update. specific will the we the presentation. We that not that We progress want whenever last study, fast be time, meaningful committed that significant it a data set. consider don't data fact have given long to accumulating and a be we're But fairly it making to from very should present

from line Your Yigal the next Nochomovitz comes Citigroup. from question of

obviously, comment product? the change you the the launch market given just generally, the launch as competitive you There the could to And news schizophrenia as commercial that you comment yesterday, and in was how data. thinking KarXT about build-out proceed regard some landscape? to may for your on Could that to impact with then the KarXT more AbbVie

Thanks, Josh. cover I'll Yigal. this. It's

excited opportunity for and First, are very the for the study, registration. supportive KarXT. you've which and we're patients for quite the about bridging line the results global And Zai of seen with from in much

opportunity. think and the And So, I is of I to going move the get that towards things submission ready fast one different launch. about we're for is launch, China, I for versus think concentration the of U.S. think,

China. I type than think is China in XXX patient see X million of we opportunity that do about across hospitals resident that comprise more XX% of the

launch think be some of least you the terms type thinking initially of which we commercial VYVGART of as launches, the the targeted closer build-out, this of think about. broader than in may I to So, at approach

see And them getting XXX-person the really the should to a So, physicians, much opportunity as as be We significant, sales versus KarXT somewhere the in the quite historical know. it's educating you range at of opportunity. to of capture here atypical able force try around antipsychotics. launch

course, Of to regardless, and few first a for think on less years, the were having we new opportunity for the physicians long-term But forecast here. the and potential otherwise. sales good focused is our be mechanism educating thing on I competition going

and more it broader for But certainly, us. open change. field doesn't provides that a So, long-term,

I we've do been a consistent, quite significant we So, that in schizophrenia saying see KarXT. think, opportunity for in

types with prices from day in post-NRDL to very at assumptions of make don't branded line antipsychotics. per certainly penetration get significant atypical we You to have reasonable see to what

to get You $X billion are in penetration to numbers very need assume the rates sales range. don't that high to

getting So, can to get submitted we we're that quick approved. and focused a off as soon as and capturing opportunity on start

out. That's then going evolve how one helpful. the the mentioned. one that have topical you're far curious the with have any about is which as And terms internal that obviously, versus thinking curious super And also, you that briefly potentially then discovery on IL-XX, IL-XX, how IL-XX, in updates one as Okay. you I'm I'm to regard partnering to the discovery efforts, if you of internal data?

Okay. Great. Thanks, Yigal. question. I'll on jump ask Rafael to that in

it's is be Yes. a IND that about year. in in it's we two potent heavy presented preclinically would to the product product. durability half-life, this look its owing at over XX, excited quite a be IL-XX, its continue with effect. clinical chains of long, data assays bispecific And preclinical what its seeing these design Thank I of special terms per pretty to you. next assays, time do With name of we're implies. and And as It quite to which will site. also, we an is actually binding

far, like least the receptor we've a we know. will you kind inflammatory as an well it chosen asthma, et that some is long and as there's optimal pruritic list, provide like conditions esophagitis, where think other disorders molecule potentially of for dermatitis so at right as ligand So, well eosinophilic disorders atopic and as cetera,

safety obliterate half-life lesions, seeing the regards and and and would affect to were to we'll lead probably sort performs in do starting which AD, mean, right. and hopefully way really this a be efficacy and dermatitis how of also of these we something program. in that would dose massive to with pursue terms long-term this all development you're of potency, I convenience. atopic So, ability the is If a obviously, to to with long and thoughtful it differentiation ability in pruritus indications, then biology

about we these that evaluated about need more products. partner, product. comments yet really decisions my this regards those we data We are to X or whether will those With this. haven't around So not are

yes, IL-XX. -- was question other The

IL-XX it's accruing study, a So, year. are going against X It's think and II we -- for moment. Phase ongoing. start well and schedules we'll next patient strengths analysis the futility. X-arm placebo is X sometime testing And we'll interim trial, in data early And quite enough an have at to do we

will that, complete out, accrual end receive then next out after we futility the data think anticipate the subsequently. on milestone will of by it we the the recommendation that and the So, I then IDMC and analysis, and this read we probably read from if study year continues the just will

interim Whether seeing and what or recommendation But a is. from next So if futility to DMC met. those what not on the analysis our to the do so are not our are is then the we continue futility there's far, depends plans. are second year plans or

the next JPMorgan. Rama question from line comes Your from of Anupam

This is Priyanka a question. on have for We Anupam. just quick

been internal R&D clinical several over should of the development, highlighting for pipeline. you infrastructure increasingly next about You guys move how a we spend more have And years? as global think to the guys

that, please. cover will Yajing I to ask

the This for is Thanks Yajing. question.

in the on you now. have know, development stage. of regional lot So, side, we right a are approval to R&D pipeline as approaching the They

that's quickly. So ramp continued made up. global that's significant we time, to already, picking pipeline is investment the the very and up quite a At same

are to expand we global with to and So, is growth the stable going relatively position, next to going expect net accelerate spend pipeline. years. overall remain few In our R&D in modest

Chen Louise of line the Cantor. from comes question from next Your

Louise. for on Wayne is This quarter. this progress the all on Congrats

opportunity? there So, we landscape Are market competitive other type have development? think the think any the What current can of quick for ballpark we a And how in revenue And is assets should contributions you potential DLLX? about any of? question.

Thanks how in market in the ask development comment dynamics back and opportunity. think cancer for competitive I'll to Rafael here, on small come and talk then I'll the we lung cell question. about about

a want summary here. you to give if Rafael, quick So

very it's at a evolving the Yes, field moment. and Sure. dynamic

therapy which You with chemotherapy which approved is to platinum based responses approved delta, products of DLLX cisplatin mentioned is XX% were there both after a engager, XX% development, and and in X are T-cell months. X.X engager, progression development, on T-cell that after durability for approved X continue in lurbinectedin, or

the if of these with X sort standards full you or of AbbVie are actually will, and discontinued commitments approval the for was have post-marketing both approval.  Other Rova-T they you those standards, toxicity. of development, that about may drugs, contemporary know ADC in from So drugs because well,

had in patients. cancer of cell close a about which in of small of well. X at ESMO, And that's really that's one response XX MediLink, DLLX, like emerging cell response BX-HX the There YL-XXX was to perhaps is other ADC lung in from presented are So as a the months product compound as T with at and not ligand robust play duration stage to moment. BI rate engagers XX%,

And number different particularly products, We you good as with see, and and is thankfully cross-resistant, So, and or DLLX. necessarily don't engagers the of development. a think these of in both thing. a landscape now this robust products can ADCs is approved that BX-HX process are the T-cell like targets

one As a but in there's least landscape, remains I to failure a DL-XXXX. So, at dynamic was I'll with need on much think patients with mentioned there you, unmet in delta that pass disease product the this prepared response need. remarks, it there was were in Josh. that response our one strong --

And the This about market quite It's about we if Thanks, unmet given patients asset we're patients excited us the of think think here, small it for see is need I about Rafael. idea market cell on how XXX,XXX my in the can West. a the global And cancer. is about and give if think lung an XX,XXX I the I'll on U.S., we think remarks with which focus opportunity. because opportunity.

just if like type you and to, in a of pricing rough I using just very are $XXX,XXX things price you second XX,XXX think if numbers, get the and and But line, number tumors per can between get we line, the in think and can significant otherwise. look first I other maybe price. U.S. of of using is line, again, looking can patients if in in XX,XXX tarlatamab across use cycle, now $XXX,XXX first to them range, again, cycles you at extrapolate $XXX,XXX at per this somewhere given we and

over the at U.S. can total in a somewhere billion fewer $X.X sales the do as to get alone. you're XX,XXX see range in sort of potential. we of at line, in you so this then billion.  So, cycles, billion or market $X opportunity $X.X patients get billion And in You second if

involved not exclusive about can thinking well. of extrapolate DLLX the course, mutually markets for and potential As to investments to the And we getting we're into excited. developing in that exciting and can they're Europe But out market China mentioned, that as quite other we're Rafael and to so you of as tap of kind and relevant the here, opportunities opportunity. execution do course, begin that around speed put We we'll here. how then is see

remarks. Lab's no am closing turn showing [Operator call CEO, questions at back further this time. now Instructions] Samantha over Du, the I for I to Zai will

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