Zai Lab Reports 9% Revenue Growth and Reduced Net Loss in Q2 2025

Zai Lab Limited reported its financial results for the second quarter of 2025, revealing a net product revenue of $109.1 million, a 9% increase from $100.1 million in the same period last year. For the first half of 2025, total revenues reached $216.5 million, up 15% from $187.7 million in the first half of 2024. The growth in revenue was primarily driven by increased sales of VYVGART, which benefited from extended therapy duration and greater market penetration, as well as the recent launch of XACDURO. However, sales of ZEJULA softened due to competitive pressures within its class.

The company reported a net loss of $40.7 million for the second quarter, significantly reduced from a loss of $80.3 million in the same quarter of 2024. For the first half of 2025, the net loss was $89.2 million, compared to $133.7 million in the prior year. This improvement in profitability was attributed to a decrease in operating expenses, particularly in research and development, which fell by 18% in the second quarter, and selling, general, and administrative expenses, which decreased by 11%. The company’s total expenses for the second quarter were $164.9 million, down from $179.8 million a year earlier.

Zai Lab has made strategic advancements in its product pipeline, including the FDA granting Fast Track designation to ZL-1310 for treating extensive-stage small cell lung cancer (ES-SCLC). The company also announced positive results from the Phase III FORTITUDE-101 trial for bemarituzumab in gastric cancer, which met its primary endpoint for overall survival. These developments are expected to enhance Zai Lab's market position and contribute to future revenue growth.

Operationally, Zai Lab's cash and cash equivalents increased to $732.2 million as of June 30, 2025, compared to $449.7 million at the end of 2024. The company reported a significant reduction in net cash used in operating activities, which decreased to $92.7 million from $132.3 million year-over-year. Zai Lab's employee headcount remained stable, supporting its ongoing research and development efforts. The company continues to focus on expanding its commercial presence in Greater China and enhancing its product offerings.

Looking ahead, Zai Lab anticipates continued investment in research and development to support its pipeline and commercial products. The company expects fluctuations in financial results as it balances the success of its commercial products with ongoing development costs. Zai Lab remains committed to achieving regulatory approvals for its product candidates and expanding its market share in the biopharmaceutical sector.