Q1 2021 Zai Lab Ltd Earnings Call
Okay.
Phase III trials are ongoing in CIB P pencil and ITT and bylaw plans to enroll Chinese patients to the trial.
<unk> also plans to identify and begin clinical testing in two additional indications this year.
As more being planned for future years.
T O M 081, and T. P X deals for 'twenty, two significantly bolstered our lung cancer and gastric cancer franchises.
Two areas, where we have built world class portfolio.
These deals are great. Examples of how we use business development and other key strategy for quickly extend our business vertically and horizontally and create a sustainable platform for biologics.
Going forward with our strong track record of execution and our new capital we raised through our recent equity offering we will continue to leverage our partner of choice on us to strengthen our pipeline for BD effort.
Our BD pipeline remains very strong.
Looking ahead into the remainder of 2021 by lab alongside of.
All of our development and commercial partners is once again positioned to achieve key milestones, which are summarized in our press release.
We plan to expand indications in commercial products achieve.
Achieve approvals for new products for.
Mid for new regulatory approvals.
<unk> key clinical data Readouts for both late and early stage programs.
Militia numerous pivotal studies across our pipeline.
Both internally developed assets with global rights and aggressively pursue new business development opportunities.
It goes without saying, we're committed to continuing <unk> track record of efficient and effective execution.
Now I would like to turn the floor over to my colleague Billy Cho Chief Financial Officer to discuss our recent financing and our first quarter of 2021 financial results.
Thank you Tom I will give a brief summary of our recent financing and review of our financial results for the first quarter of 2021.
Last month, we closed on a global offering of both American depository shares ordinary shares with gross proceeds to dial out of approximately $857 $5 million.
This offering was the first ever dual tranche offering in both NASDAQ and the Hong Kong stock exchange.
Before this new strategic capital will allow us to expand our pipeline for additional collaboration agreements accelerate the clinical development of our product portfolio and scale, the R&D and commercial organizations to drive strong revenue growth and enhance our global pipeline for years to come.
Moving to our financial results for the three months ended March 31, 2021, net product revenues were $20 1 million compared to $8 $2 million for the same period in 2020.
Revenues for the period were comprised of $12 $6 million 50, too low compared to $6 3 million for the same period in 2020, and $7 1 million for <unk> compared to $1 9 million for the same period interest obviously.
Research and development expenses were $203 $9 million for the three months ended March 31, 2021, compared to $33 7 million for the same period in 2020.
The increase in R&D expenses was primarily attributable to the $62 3 million upfront payment and die that equity, which was determined at the fair value of the shares on the closing date, given certain restrictions and the $75 million development cost sharing payment toward genetics as well as for 25 million upfront a turning point.
There were also additional expenses related to ongoing and newly initiated late stage clinical trials and payroll and payroll related expenses from increased R&D headcount.
Selling general and administrative expenses for $35 $8 million for the three months ended March 31, 'twenty, one compared to $18 $7 million for the same period in 2020. The increase was primarily due to payroll and payroll related expenses from increased commercial headcount and related costs.
<unk> continued to expand its commercial operations in China.
For the three months ended March 31st 2021 is already reported a net losses for $232 9 million or a loss per share attributable to common stockholders of $2 64, compared to a net loss of $48 million or a loss per share attributable to common stockholders of 66 for the same periods for sub 20.
As previously highlighted the increase in net loss was primarily attributable to the new collaboration agreements with our Gen X a turning point recorded in R&D expenses.
As of March 31st 2021, cash and cash equivalents short term investments and restricted cash totaled 1.01 for doing dollars compared to $1.188 billion as of December 31, 2020. In addition in April 2021, dial up announced the closing of a global follow on offering.
The expected total proceeds to XI lab, including broke the American depository shares offering and the ordinary shares offering net of underwriting fees and other operating expenses are approximately $818 $1 million.
Now I'd like to turn the call back over to the operator to open up for flying for question operator.
Thank you.
We'd like to open the line for questions. If you have a question. Please press star one at this time.
And to keep all price related to orders just to take your questions to one at a time.
Once again, please press star one for you.
Questions.
Once again for her.
One to ask a question.
Our first question comes from the line of he got I'm not sure.
I'm not sure home moving from Citigroup.
Your line is open.
Right.
Hi, Good morning, Hi, Samantha billions now thank you very much for taking the question. How you mentioned that the BD pipeline remains very strong, but what should we expect in terms of the pace of new business development initiatives over the near term.
The plan to continue to expand in disease areas, where you already have exposure such as oncology autoimmune and infectious disease or would you consider branching out perhaps into new areas such as rare disease and two additional treatment modalities for example cell therapy, where you currently don't have exposure.
Some things off.
But some of them here on to watch out for questions.
Oh, Thanks for the question we all.
Over the last few years.
We have really established.
Are they sustainable platform as a company and that's a weighted to.
I'll give I'll amend the commercialization regulatory changes combined efforts, we've built up.
Sky, we built up leadership in China and demonstrates her track record and as a result of that day side as Tom mentioned.
We're getting a lot of inbound interest from potential partners as well as some existing partners across very diverse.
Areas and Paradise for US always we aspire to bring in global quality best in class first in class asset.
Quality is always the most important and I think if you look at our track record over the last couple of years, you know what I think our track record speaks for itself.
And I think you know as we continue to build our BD strategy is always to support the company's growth and our ambition is ultimately to be a global biopharmaceutical company.
And so your question also asked about therapeutic areas I think if you look at especially for example, the last 12 months.
We've done a number of deals, which actually extended out therapeutic areas.
For example, the regeneron deal.
As well as the organic still and we got into two areas in hematology is less severe autoimmune diseases.
We did not have strong presence beforehand very quickly through these anchor assets.
For a book to Bill at a pretty nice pipeline in those new areas.
So going forward I think we're definitely continuing to strengthen existing disease strongholds in encore.
Call. It for you for example in laundry and gassing areas. Like these are very important for us, but also potentially for getting new therapeutic areas like what we've done with organic with regeneron.
And potentially also to enter into collaborations that will adopt for accelerate our global ambition.
So hopefully that answers your question.
Yeah. Thank you very much.
Thank you once again to ask a question. Please press star one.
Telephone keeps cash.
Okay.
Our next question is from the line of.
Seamless Fernandez.
Your line is open.
Okay.
Targeted therapy.
Just hoping you could help us understand.
In amongst the U S companies there are some concerns raised about the pace of.
<unk> targeted therapy and patient identification in the market today.
Was hoping to just understand better given your broad targeted therapy portfolio.
You know how this might differ in China.
For if you just think that the market is misinterpreting.
The pace of uptake relative to the U S market and some other developed markets.
Hum.
Of these targeted therapies that you have partnered.
Yeah.
Relative to COVID-19. So I'm just trying to maybe ask if you guys can tease out a little bit more of the strategy.
An optionality with the broad targeted portfolio and if you see that having a significant advantages in China.
Or if you just think that the concerns that are being raised today by investors around the pace of targeted therapy update and patient identification.
Yeah, if that's really more of a COVID-19 related issue in your view. Thanks, so much.
Oh, Thanks for Cmos.
Yeah.
Yeah Yeah.
They have passive therapies, who have numerous numerous therapy, we also have to.
To my children to.
Oh for a thoughtful approach of income Boston.
Thank you for the interest.
Pakistan.
We have I think Samsung, even you know lung cancer and gastric cancer.
That's the part time.
Handset financing for testing different patient population.
And I don't think COVID-19 has much impact to other business.
Lastly, and most Smith Hum pretty much full song for you.
Going to some other revenue from other clinical development.
Yes.
And that was for less than golf.
China, Nice now more and more close to what.
Developed countries for treatment of certain standard and <unk>.
That's not a companion diagnostic for companies, but also clothing.
Very well.
Other than that global car lots of companies.
It's too much Oh.
Sure.
Kitchen Bath documentation.
And as I said, some population having price. So you can look at other platforms.
Current.
Oh that's.
Yeah, Oh, Yeah, Oh my status for <unk>.
Sample with a book.
That's the only first line I'll comment on monotherapy.
A consultation.
The first one I think that's fine.
So per.
For white.
Kinloss or sales for only one come this bathroom.
For later lines.
Some population.
And also for all.
That's true that's also still want.
There's no pass muster with Macquarie.
So off lifestyle.
There was a physician I'm back to April two off kind of through other causes for the patient population, which each one of them has a much greater patient populations.
And the other countries.
Uh Huh, that's sitting there did I answer your questions.
Yeah, I mean I.
That's that's that's makes sense.
As you move forward and you know it was more a question of.
Are there opportunities to kind of.
Hi, your your broader portfolio too.
To optimize patient identification for the targeted therapies.
But that's something that's unique design lab relative to others, but that I think you answered my question. Thanks, Anna Thanks for that.
That's true.
Yes, I can maybe I suppose.
Father's day point because.
Each sponsor to close.
Have multiples.
<unk> has the policy.
So it doesn't go through or after they come out for many different Pos terminal footprint.
That's true.
Based on the mutation type.
Thank you.
Thank you.
Our next question is from the line of <unk> Chen of Goldman Sachs for your line is open. Please go ahead.
Thank you and congratulations on the strong quarter and thanks for taking my questions.
But with the recent public offering I think dial off now all have a very strong cash position about like 1.8 bit and so it will be great that management could share with us more color on how youre going to spend that money what would that be b. How are you going to accelerate the pace for the BD deals or youre going to see.
More efforts on an in house discovery team be it up or you know any color on beating out the significant bigger commercial team. So trying to understand how youre going to allocate the resources to beef up the in house pipeline and also the commercial strength. Thank you.
Yeah, that's a day as a penchant for him because he has them all off definitely true, but that's a question.
Sure. Thanks for the question.
So you're right right now if you add in the capital raise for during April we do have a little over one for Nate going public in cash if we combine that with the March close palace.
But.
Typically true the capital raise it for last month. It is based on our fundamentals for kidney.
So for your question to be answered here in terms of the search GAAP capital.
They apply to accelerate the timeline.
To scale further.
Breaking down further into specific areas within the functional department a good part of it will go to fund new business opportunity in terms of BD corporate development licensing opportunities that we were talking about.
On the call as well as the earnings release.
Also we've identified.
Opportunities to complete additional clinical trials.
Drug candidates and just overall for a scale up our R&D platform.
And the other thing goes to our commercial efforts, we have a very significant.
Schedule.
Not only wrapping up for three innovative products, we have right now, but we have many more acute for a potential approval and launch over the next few years as you know.
Like over 10 with just our current pipeline.
Pipeline in.
In the medium term, so making sure that we can.
Yeah.
Absorb that type of growth is going to be important. So we want to allocate some funding to expand our commercialization efforts and then last but not least.
Also to enhance our global pipeline. So these are the four broad areas, where we see we can it get for this capital and create additional shareholder value.
Alright, Thank you Billy.
Thank you.
Next question for the line of other foundries.
P M.
The other half to 90 program.
Hey, guys. Thanks, so much for taking the question and congrats on all the progress maybe I can ask a quick one on kinlaw here I know it's early days in the launch is expected later this month, but I'm just wondering how we should be thinking about that launch curve here say relative to as of July. Thanks, So much.
Good morning, and upon central for the question.
One for a basketball.
Yeah sure Adam Thanks for the question you're right, it's pretty exciting times right. Now you know we're going to have our first launch in gastric cancer franchise with Tim locking it that's just.
We expect to launch this month in May.
And we think that we have an opportunity here to establish a new standard care for treating patients with advanced Gist in China and of course later. This year. We also have second line data coming out for growth.
Where interest paid and then how come as well so we'll see.
So as you know at a problem here is approximately 30000 patients.
Newly diagnosed in China every year.
Fiscal quite significant number quite as many of you in Europe combined.
So we have a pretty significant opportunity and we have already built a commercial team inorganic cash franchise to launch can work well.
And we're ready to go so we're not giving guidance just yet but.
Alright.
Pretty exciting.
Thanks for taking our questions.
Thank you.
Next question is from the line of Jonathan Chang SBB Leerink.
Your line is open.
Yeah.
Hi, guys congrats on the progress and thanks for taking my question.
With the recent approvals of anti PD, one drugs and frontline gastric cancer can you talk about how this impacts for gastric cancer strategy with multiple partner programs for the space.
Yeah.
Yes. Good morning, gentlemen, thank you for the question Alan do you want to watch out for questions.
Okay.
Sure. Thank you very much and thanks for the question is that of course.
As you know gastric cancer is the second largest cancer in China, both in terms of incidence and mortality and there are significant unmet needs.
And Fortunately more and more treatment options are available.
That's how I'd mentioned that earlier and Ah.
A key aspect to our expression appears to be orthogonal in that it appears to occur in those patients not necessarily especially for true.
True for example, so there continues to be a.
Definitely that might need and opportunity there as well.
With respect to her too.
And the recent.
The weighted approval for Pemetrexed.
Believe as does our partner Macrogenics with theirs.
Definitely an opportunity there and continue to evaluate margins that's the math.
With that PD.
One checkpoint blockade.
Believe that this may create synergistic anti tumor activity.
For enhanced tumor specific T cell immunity. So we still believe there are.
Considerable opportunities in this.
Important area.
Yeah.
Just a question.
Uh huh.
Yeah that partially a maybe I can just sneak in a follow up then on beam or twos in that half.
Specifically, how should we be thinking about next regulatory and development steps are what could a potential phase III study look like in the context for at least evolving gastric cancer landscape.
So I don't think we're certainly mindful for.
Sorry.
Go ahead al.
I think that we are free to take the play where we're working with our partners Amgen and.
Evaluating the recent changes that have occurred in this particular area that we'll be working towards that the optimal design of that phase III study moving forward.
Got it thank you.
Thank you.
Thank you next question for Sunday.
Line of Michael Yee of Jefferies. Please go ahead.
Income from.
Hi, Thank you congrats on a great quarter of progress.
Going back to the follow up about the recent significant capital range.
I was wondering about your consistent stated goal to become a global pharmaceutical company, but wondering if that specifically means that you would be interested in expanding.
More so into other geographies Asia east or west and thinking about.
What that means to become a global pharmaceutical company beyond China, and how the capital raise may play a role in that if at all thank you so much.
Oh good morning, multiple thank you maam.
So there was no like cool thank you.
And I think that.
As I mentioned earlier.
Taking a global pharma company.
And then the net credit accordingly.
We plan to have additional per my comments lunch.
Taking into account for the new partnerships indication expansion for income from sponsors.
But I also like the high low.
China is now the second largest global losses.
Going forward, it's going to continue.
This is true.
So it's doing well in China.
Volume growth.
And then also as I mentioned earlier.
Very strong platform.
On top of what we talked about the hub for.
For many products already want food.
<unk> to be approved this year.
One more could you approved over the next day to say, yes.
Felipe on the commercial provision for some.
Hum in greater China and Asia.
However, they also have very strong.
Some pipeline not only that maintenance space that early stage.
You talked about seven new tenants to fill the pipeline with global rights, including three for.
Global for one.
Can you believe it makes it for years, we will have something for them and entering into pivotal stage.
And of course. In addition, we have something for you Keith and other PPE to continue to speak for Keisha technicians for them.
More promising.
Cash and that means for them.
Some can be a global rights from China was based on the stage and wholesale sales for them in a patient population.
This is also because the zone.
Along with all the 17th consecutive months of their own internal platforms.
Accordingly.
But we have over the last two years with spending in the office and other.
R&D teams globally.
Now key stuff.
Not only in China in Shanghai.
R&D, but also we have teams in Boston and San Francisco focusing on deal flow.
But I believe it's one of those approaches.
For me a lifelong ambition Mrs sensor.
Thank you.
Thank you.
We have yes.
For the next question your line is open.
Thank you for management to taking my question. So my question is on tumor treating fields for commercialization progress in China. So.
Okay, I understand it's already almost a year Sam soy commercially launch the product in China.
Kind of a give us kind of more color on our commercial progress for example, if compare to develop a conscious I math.
So China patients stay.
All other device longer or shorter.
Oh, we have various collaboration while there's a supplemental.
For us in China, and how does the other insurance plan, Chris our new patients.
Who are using our devices and yeah I like color on commercialization would be helpful. Thank you.
Sure sure.
For me.
Oh my goodness for us that's a question.
Yeah.
Hey, Thanks for the question. So the sales are off to in China has been robust.
As you saw from our earnings release, the first quarter of 2021 came in at $7 1 million compared to $1 9 million in the same period last year.
And the momentum is quite strong as we continue on in second quarter and beyond.
So we're not yet giving for your guidance, calling for softness given the momentum we did double the number of sales teams for about 50 at launch to about 100 now.
And to your point also you specifically mentioned the other per types that we've been able to leverage.
And to see how their adoption and Youre exactly right. So there are 13 supplemental insurance plans are there were attitude and theres additional commercial price as well, it's mostly still driven by private paid for us or we can get over the longer term.
These additional pair of free.
Well, if you will is going to be quite favorable long term and the contribution should increase for a while ago girl.
They are trending in the right direction. So hopefully Oh, yes, you also asked about sort of the experience we've had specifically with Chinese patients and how they compare to sort of ex kind of patients.
So we're not giving specifics on on back.
Because the losses relative to you as well.
It's really kind of in the back half of a.
Second half lift kind of back up a second half last year, we're off to.
What's kind of.
We were actually kind of interest in the initial stages of the current launch curves.
But we see strong uptake as I previously mentioned before new patients and we're collecting good data right now on a monthly basis.
The stuff that kind of on the right path and we think that looking at your new.
A new benchmark in terms of per.
For months Scripps.
Okay. Thanks, a lot.
Thank you.
David.
Macquarie for the next question. Please go ahead your line or something.
Hi, I stated and for Macquarie. Thank you for taking my question. If I may I can just focus on.
Julian I'll tell you and again so for the.
First quarter.
Very strong year over year sales can.
Can you tell a little bit about the quarter over quarter trend for jeweler and then I guess, specifically after March when the new price and the other coverage kicks in.
Can you share with us what you notice on the ground.
Especially in terms of volume expansion.
The speed satisfactory and entering into April.
April and may have to ramp.
Grandma continue so that's the jeweler and again you know maybe also comparing against the two.
New competitors of course standard day indication are not the same.
As you guys, but you know I noticed that their price is also quite a comparable with I guess Beijing those are just recently.
Launch there so any thoughts on along that line in terms of third our pricing strategy for the rest of this year, so even pose pose an L. D O inclusion.
Are you thinking of offering some more kind of P. A P program on top of an L D O to to be competitive unsecured.
Sorry, a couple of questions on since you are not.
And basically a I guess a strategic question in the next three to four years with much fewer competitive threat in China is does it make sense not to go after them.
Yeah like on a national level and if that's the case that it doesn't mean that it can afford to.
More time.
Graham it up more gradually.
And then achieve maybe potentially even higher peak sales rather than compared to some of the other.
Innovative drugs in China, where they have to really go intensive in their first two years after and out the other inclusion so that's kind of my question.
Question on day two products. Thank you.
Yeah.
Yeah. Good evening day I can ask another question for it.
For some time now net.
So I think that's right.
Yes sure. Thanks for that thanks, David for the question.
So let me go through one by one but I'll I'll go backwards and then adjusted for other one so in terms of opportune in your questions about sort of optimizing the private pay channel with a comprehensive strategy to sort out for Jack. So we've always said that for option for GBM, that's gonna be debased strategy and as you know there are other.
Indications large indications for <unk>.
And quite well, especially with recent news so we'll.
We'll kind of rethought their strategy or what does get finalized.
May be approved and launched so fingers crossed and that's going to be a great for the traditional b can we what can we do above and beyond sort.
For the current comprehensive private pay strategy with not only out of pocket.
For the falling for its commercial payers within the for sure it's et cetera.
Because David to your point early that approach if you do it well.
<unk> achieved the rational pricing as well.
Adoption, so to layer on thinking about that.
We think it would be a positive book to be continue.
To your first group of questions are the jewels.
I believe you were talking about sort of the competitive landscape and then our first quarter ramp so in terms of the competitive landscape you're right.
The I think the best way to work with the weighted will characterize it as part of other classes become quite important.
Dressed ovarian cancer patients, but even beyond that in China.
And that's great to see the awareness building up in this asset class because we believe that we have already positioned for Judah as a best in class PARP inhibitor.
And we see that in.
And in our although we're not giving guidance in specific you know kind of kpis.
But we already see that and in third quarter when the NRG almost implemented.
We saw a clear kind of volume ramp book and of course, it's going to continue in terms of kind of adopting.
Sort of absorbing and transitioning for NRG yield trunk right. Because you have to now go out and get on all the hospital listings, but of course the number of hospital listings have kind of noted up words trended up nicely into the second quarter and beyond.
And of course, that's the reason why we bought with double.
The number of sales team for 150 net loss to 300.
Right now and we will continue to invest because we see good momentum and yes. So hopefully those I hope that I could ask with Jonathan answering your questions.
Questions.
Thank you, Yeah, I think tavy regarding true competitive landscape.
All right.
Right now.
Hum, who has Oh no no one Congress plaza for food.
And then hum status for proof of concept.
Awesome.
Second line.
Uh huh.
Yeah, I'm not losses.
For the two competitors you mentioned, we don't view them as a competitor because they are two brightcove.
Nathan lines.
Yes.
Yes.
So we don't see totally neutral to asset sales.
Although I do for not for me it's for them.
Its expectation for us to modify our strategy because of things Nathan harmless when later line patients.
Thank you thank you Samantha.
Thank you.
Right.
I'm showing no further questions at this time.
T O.
For closing remarks.
Yeah.
Thank you operator.
One other thing to everyone.
Taking the time to join us on the call today.
We appreciate asset for missile with top tier artist.
That is clearly a matter for Robert.
Yes.
Awesome.
Now disconnect. This call. Thank you all.
Thank you and this concludes today's conference call. Thank you for participating.
You may now disconnect.
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Hello, Ladies and gentlemen, thank you for standing by and welcome to resign as well this quarter for <unk> 2021 financial results conference call at this time all parties.
But you said cash in listen only mode. Later, we'll conduct a question and answer session and instructions will follow at that time.
Today's call is being recorded.
Now my pleasure to tend to flow to over to Billy Cho Chief Financial Officer.
He will make for production.
Introductory comments.
Good morning, and welcome to <unk> first quarter 2021 financial results and corporate update conference call.
Earlier this morning, <unk> issued a press release, providing the details of the company's financial results for three months ended March 31, 2021, as well as product highlights and corporate update.
The press release is available in the Investor Relations section of the company's corporate website at IR Day Laboratory Dot com.
Today's call will be led by both of us not to be dialogues founder chairperson and Chief Executive Officer.
She will be joined by Tao Fu Chief strategy Officer, who will provide more details on our recent commercial and pipeline progress.
Jonathan Wang head of business development.
Doctor Island Sandler President head of global development oncology and Dr. Harold Reinhart, Chief Medical officer for autoimmune and infectious diseases will also be available to answer questions. During the Q&A portion of the call.
As a reminder, during today's call XI lab will be making certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including our business plans and objectives.
Timing and success for our clinical trials regulatory applications and commercial launches.
Such forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance upon them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.
I refer you to our SEC filings for a discussion of risk factors that could cause our actual results to differ materially from those discussed today.
At this time it is my pleasure to turn the call over to dial up as founder Chairperson and Chief Executive Officer, Dr. Samantha Du.
Thank you for me.
Hello, everyone and thank you.
For all for joining us.
On the call.
Scott some of highlights from the fourth quarter and for my remarks.
That's why would you need satellite sees for it.
That's been price it.
Yeah for a great start this year.
They need simple something one should be another strong year of execution quality.
And satellites have been known for COVID-19.
Therefore to become a leading global pharmaceutical company.
Executing on this growth.
It's funny.
Seems satellite that Sunday father's day.
We have quickly expanded.
The portfolio of clinically.
One day the product.
More than 40 dysfunction.
We have enough for life, the first true policy, China it for the patients.
Mark since it simple.
One.
The team the promo for Kim blocks.
The first one.
Approved within the last 15 months in time.
Innovation.
Yes.
It's encouraging.
Several of other TSA for.
Other questions.
C L E filing.
Before I kick them off and TNT was that's it for that.
That's a difficult December 17 can be simple one.
The phase III pivotal name a child with tumor treating fields.
In non small cell lung cancer.
The recommendation to continue.
Good day simplifies.
In our standard at this interim analysis.
And Piedmont.
That's true.
For your designation.
Well first of all interest for that.
For patients.
Well over the price that CSR true.
Yeah.
Carlos your.
The clinical development.
That's H 11, how you may think about student.
It's five have already been approved.
We should have.
For all you know maybe for the photo.
For pathways to achieve significant scale it didnt get a few years.
I also want to highlight.
EBITDA was 35.
If you'd like to have problems.
We have seven early stage programs worldwide.
Worldwide right.
Including free.
Other clinical trials.
In the first quarter.
Continuing for us.
Well, there's not a lot.
No.
We entered into several strategic transformation.
For sure.
For further strengthen other gastric and lung cancer samples.
There's many countries both for the other franchise.
Sydney, Sydney Simpson with price.
Your next for that Scott.
That's true pipeline and product opportunities.
But when those critical tool for them for.
For two days.
Zero.
Let me see approval for peanuts.
On the first commercial profit.
That's what's called the moving fast you kind of for franchise.
Instead of it.
Revenue for us.
Cause me losses hybrid knocked it out in December of last year.
And then for many patients started it's impossible for me.
One.
Oh Dong for kids.
Debbie.
We expect this to continue.
Volume for such a low.
I'm really confident in other.
Moving to be the market share leader in income.
For this important step.
Clos and ovarian cancer.
For the closing of our recent global topics often.
Precision for Neely.
860 moving.
It's a music company.
And other types of position.
With new capital losses.
Have fun.
Thank you.
Strategic partnerships.
Let's celebrate the clinical demand or volume.
Powerful for them.
Scaled.
Most of them for my patients.
The slabs for them.
Hum.
Mobile platform.
We remain on target.
All aspects of our pipeline and lots of interest would be one.
We continue to expect non tiered promo.
Okay.
For community acquired bacterial pneumonia.
Steven.
It's a free infection.
We plan to file my book.
For a positive breast cancer.
He can sales for mesothelioma.
And for two loss for me.
Like a rising price in China.
So that's the biggest gating.
P a.
On the regulatory filing strategy.
Got kicked them off and see the MTBE.
And we anticipate moving.
I would say for me about it.
Including the two.
Sales for liver cancer and the burn center.
He was the second along too.
For my Kids.
What's your time Sir.
Let's see here, maybe one in non small cell lung cancer.
I'm for P. P S.
For the true now.
Small cell lung cancer tests for cancer.
So net of admission price.
And that is a medical need for pace.
Some time ago and around the world.
We continue to execute on other classic for 17.
<unk> expenses.
Book value.
As demonstrated by our progress for first quarter.
Okay. That's helpful.
Achieving our mission.
Obviously true has never been for either.
With that I'll now ask.
Oh gosh.
First of all the performance and prospective multi town halls. Thank you Samantha.
I will comment on the performance of our ongoing launch it and discuss some recent product highlights.
First I'd like to touch on for Julien.
As a reminder, the Juno is approved in China for first and second line ovarian cancer is the only PARP inhibitor approved for all comers reinforce lab.
In comparison, we didn't parse out for the label was sitting it's used for patients with <unk> mutation, which comprise only about 15% of overall patient because the price.
No other PARP inhibitors have been approved for either first for second line.
The results of the Prima study conduct by GSK globally, and other Nora study sponsored by Psi in China demonstrated that an individualized starting dose regimen of dadullah preserved efficacy, while improving the product side effect profile.
This further differentiates dadullah other PARP inhibitors.
This quarter, what she is an important milestone our team was successful in gaining inclusion on the national reimbursement drug list for second line ovarian cancer within the same year all launch.
This further underscores the significant clinical value for a broad range of ovarian cancer patients.
The rapid infusion provides patients much greater office and.
And it was already starting to see strong.
Volume growth.
In addition, our team has also been successful gaining coverage for commercial health insurance with coverage currently being provided by 67 commercial health insurance clients and 52 supplemental insurance plan.
We're very pleased with our launch performance, so far and overtime, we believe that <unk> will become the leading PARP inhibitor in China.
Moving to our team as you recall, we launched <unk> in China in the second half of 2020.
Product is the first novel treatments in GBM approved by the M. P. A in the last 15 years.
It was highly anticipated by the medical community and it was already recommended by the China National government guidelines prior to launch.
With our teams' efforts often became the first innovative medical device supported by commercial.
Commercial health insurance in China and is also covered in 13 supplemental insurance plan.
We'd be deployed innovative strategies to support patient access and rapid uptake.
Including establishing 28 direct to patient centers in China.
Importantly, we are working with our partner novocure to potentially expand the indications for tumor treating fields and areas.
Unmet medical needs.
Additional late stage studies underway in tumor types potentially affecting over 1 million in the hot new patients for Europe and China.
Moving.
In non small cell lung cancer, where that has been another important development.
Last month, our partner Novocure announced an update regarding the global phase III pivotal trial.
I'll take a review by an independent data monitoring committee for DMC Novocure working for them by the committee that the pre specified interim analysis for the lunar trial have been accelerated given the last couple of cool and a number of events observed.
The DMC further completed.
It's likely unnecessarily impossible unethical for patients randomized for the control arm to continue accrual to 530 for patients with 18 months fall off.
The DMC recommended and they would deal with the sample size of approximately 276 patients with a 12 month follow up which could potentially accelerate at the overall timeline other 12 by more than a year.
Novocure has filed an IDE supplement with the FDA and are awaiting the agency's response.
Encouraged by this important update in lung cancer, an area of huge unmet medical need in China.
I look forward to additional clinical data readouts for Novocure, and patriotic liver and ovarian cancer and brain metastases.
Robust soma with high intensity arrays.
We also have a China only phase two pilot trial in gastric cancer.
Second to complete enrollment this year, we continue to be on target to file tumor treating fields and you can see the Illinois later this year.
Now I'd like to start with recent regulatory approval for two walk we filed for approval in China last July It was accepted under priority review and the NDA was approved in March one full quarter ahead of the original schedule.
We expect to launch the product in fourth line gist in the second quarter.
She losses.
First approved tyrosine kinase inhibitor designed specifically for chip for patients regardless of mutational status.
The Invictus trial demonstrated a significant benefit versus placebo in progression free survival and overall survival and served as the basis of between lock approvals in both U S and China.
Topline data for the phase III global pivotal intrigue trial in second line share are expected in the second half of 2021 and could potentially support label expansion in this important indication.
We have many other products, we'd like to discuss with you.
Interest of time.
One is.
Is about these.
Compound is a first in class antibody that is being developed and godspeed as gospel.
Joe for junction cancer, as a targeted therapy for tumors that express <unk>.
In data presented at <unk> Gi in January.
In combination with modified football demonstrated a statistically significant improvement versus placebo versus the modified full force in all three efficacy endpoints for the fight trial.
Including progression free survival and overall survival.
You might could address a significant unmet need in China.
680000, new cases in gastric cancer every year.
87% 88 per cent of which our Hertz went negative and about 30 per cent of the potential patients for bema.
The compounded with a key driver I'm doing $1 $9 billion acquisition of a pipeline and people. When BMO also received breakthrough designation from the FDA.
I'm doing is actively planning for pivotal phase III study and is considering studying the compounding additional indications such as squamous cell non small cell lung cancer.
He will work closely with our new partner to maximize the full potential for this exciting path.
I would like to say a few words about our business development execution last quarter and beyond.
We entered into three highlights strategic collaboration recently with our genetics, turning point and called them on oncology in greater China.
For car T. J Maxx became bankrupt outfit for our audio new franchise with true pipeline in the product potential.
Since we entered into the partnership that's called DLA for Gmg was accepted for the producer date of December 17 2021.
Phase II trials are ongoing for the IBP pencil and ITT and dialogue plans to enroll Chinese patients to the trial.
<unk> also plans to identify and begin clinical testing in two additional indications. This year was more being planned for future years.
T O N eight one on TP excuse for 'twenty, two significantly bolstered our lung cancer and gastric cancer franchises to areas, where we have built world class portfolio.
These deals are great. Examples of how we use business development and other key strategies to quickly expand our business vertically and horizontally and create a sustainable platform for biologics.
Going forward with our strong track record of execution and the new capital we raised through our recent equity offering we will continue to leverage our partner of choice on us the strength in our pipeline through BD effort.
Our BD pipeline remains very strong.
Looking ahead into the remainder of 2021.
By lab alongside of.
All of our development and commercial partners is once again positioned achieved key milestones, which are summarized in our press release.
We plan to expand indications in commercial products achieved.
Achieve approvals for new products.
For new regulatory approvals.
<unk> key clinical data Readouts for both late and early stage programs.
Alicia numerous for pivotal studies across all pipeline.
Both internally developed assets with global rights.
Of late because of the new business development opportunities.
It goes without saying, we're committed to continue <unk> track record of efficient and effective execution.
Now I would like to turn to flow over to my colleague Billy Cho Chief Financial Officer.
Discuss our recent financing and our first quarter of 2021 financial results.
Thank you Tal I will give a brief summary of our recent financing and review of our financial results for the first quarter of 2021.
Last month, we closed on a global offering of both American depository shares ordinary shares with gross proceeds to die lab of approximately $857 $5 million.
This offering was the first ever to trumps offerings in both NASDAQ and the Hong Kong stock exchange.
<unk> mentioned before this new strategic capital will allow us to expand our pipeline for additional collaboration agreements accelerate the clinical development of our product portfolio and scale, the R&D and commercial organizations to drive strong revenue growth and enhance our global pipeline for years to come.
Moving to our financial results for the three months ended March 31, 2021, net product revenues were $20 1 million compared.
Compared to $8 $2 million for the same period in 2020.
Revenues for the period were comprised of $12 $6 million 50, too low compared to $6 3 million for the same period for 'twenty and $7 1 million for <unk> compared to $1 9 million for the same period interest obviously.
Research and development expenses were $203 $9 million for the three months ended March 31, 2021, compared to $33 7 million for the same period in 2020.
The increase in R&D expenses was primarily attributable to the $62 3 million upfront payments inside that equity, which was determined at the fair value of the shares on the closing day, keeping certain restrictions and the $75 million development cost sharing payment toward genetics as well as for 25 million upfront Attorney book.
There were also additional expenses related to ongoing and newly initiated late stage clinical trials and payroll and payroll related expenses from increased R&D headcount.
Selling general and administrative expenses were $35 $8 million for the three months ended March 31, 'twenty, one compared to $18 $7 million for the same period in 2020.
The increase was primarily due to payroll and payroll related expenses from increased commercial headcount and related costs, a dialup continued to expand its commercial operations in China.
For the three months ended March 31st 2021 is already reported a net losses of $232 9 million or a loss per share attributable to common stockholders of $2.64 compared to a net loss of $48 million or a loss per share attributable to common stockholders of 66 for the same periods for the twins.
As previously highlighted the increase in net loss was primarily attributable to the new collaboration agreements with our Chinese attorney point recorded in R&D expenses.
As of March 31st 2021, cash and cash equivalents short term investments and restricted cash totaled 1.01 for doing dollars compared to $1 $188 billion as of December 31, 2020. In addition in April storms, and one dollar, but now with the closing of a global follow on offering.
The total proceeds to XI lab, including book, the American Depository shares offering and the ordinary shares offering net of underwriting fees and other operating expenses are approximately $818 $1 million.
We would now like to turn the call back over to the operator to open up for flying for questions operator.
Thank you.
We'd like to open the line for questions. If you ask a question. Please press star one at this time.
Keep all places it is true artist he said that your questions to one at a time.
Once again, please press star one.
To your question.
Once again this time.
For one to ask a question.
Our first question comes from the line of he got I'm not sure I'm not sure home moving from Citigroup. Your line is open.
Hi, Good morning, Hi, Samantha billions, how thank you very much for taking the question. How you mentioned that the BD pipeline remains very strong. So what should we expect in terms of the pace of new business development initiatives over the near term.
Is the plan to continue to expand in disease areas, where you already have exposure such as oncology autoimmune and infectious disease or would you consider branching out perhaps into new areas such as rare disease and two additional treatment modalities for example cell therapy, where you currently don't have exposure.
For some things off.
But some of them for you want to watch out for questions.
Oh, Thanks for the question on the golf.
Over the last few years.
So we have really established.
Credit Suisse technical platform as a company and nothing really too.
Our development and commercialization regulatory teams combined efforts, we've built up.
Sky, we built up leadership in China, and demonstrated through our track record and as with all of that besides as Tom mentioned.
We're getting a lot of inbound interest from potential partners as well is it from existing partners across very diverse areas and paradox for us always we aspire to bring in global quality best in class first in class asset.
Quality is always the most important and I think if you look at our track record over the last couple of years, you know I think our track records speaks for itself.
And I think you know as we continue to build our BD strategy is always to support the company's growth and our ambition is ultimately to be a global biopharmaceutical company.
And so your question also asked about therapeutic areas I think if you look at it especially for example, the last 12 months.
We've done a number of deals which actually extended their therapeutic areas.
For example, the regeneron deal as.
As well as the organic still and we got into two areas in hematology is less severe autoimmune diseases, which we did not have strong presence in beforehand and very quickly through these anchor assets.
A book to Bill with a pretty nice pipeline.
The areas for us.
Going forward I think we definitely continue to strengthen existing disease strongholds in oncology for example in laundry and gassy areas like D. I said very important for us, but also potentially for getting new therapeutic areas like what we thought were the organic with regeneron.
And potentially also to enter into collaborations that would further accelerate our global ambitions.
So hopefully that answers your question golf.
Yeah. Thank you very much.
Thank you once again to ask questions. He says Taiwan.
On your telephone keeps cash.
Okay.
Our next question is for benign of.
Seamless for an added to that.
Your line is open.
Okay.
Targeted therapy.
Just hoping you could help us understand.
In amongst the U S companies there are some concerns raised about the space.
<unk> targeted.
Therapy and patient identification in the market today.
I was hoping to just understand better given your broad targeted therapy portfolio.
How this might differ in China for.
Or if you just think that the market is misinterpreting.
The pace of uptake relative to the U S market and some other developed markets.
Hum.
These targeted therapies that you have partnered.
Relative.
Relative to COVID-19, so I'm just trying to maybe.
As if you guys can tease out a little bit more of the strategy.
And optionality with the broad targeted portfolio and if you see that having.
Having significant advantages in China.
Or if you just think that the concerns that are being raised today by investors around the pace of targeted therapy uptake and patient identification.
If that's really more of a COVID-19 related issue in your view. Thanks, so much.
Thank you for a few months.
Yeah.
Yeah Yeah.
On behalf of therapies.
Have you enrolled.
In the therapy.
Also has a.
To my chicken sales.
All three offers for.
Hum.
Awesome.
Specifically true pocket classes, where you have I think Samsung even.
In a long time for it and that's your counsel.
The constant currency and price in different patient population.
And I don't think COVID-19 has much impact to other business.
Last year and this year.
Hum pretty much based on so you can see from other than some other clinical development for sector and that was for less than golf.
China, Nice now more and more close to what.
Developed countries for treatment.
<unk> expenses.
That's not a companion diagnostic for company for all cycles.
Very well.
Other than that is global corn ethanol for companies.
He might shop.
Sure.
Kitchen Bath segmentation.
And as I said, some population having first though you can look at other platforms.
Current.
<unk> approved promise.
Yeah, Oh, Yeah, Oh cosmos status for <unk>.
Example, it's a war.
That's the only first line all comers.
So.
Hum for pension.
Second.
Gross line and that's fine.
So for.
For what Kinloss also for only one Congress Plaza.
So for later lines.
Patient population.
And also for us.
<unk> is also still want their snowpack gnostic requirements.
So us lifestyle, where he mcmahon for physicians.
But true April two off kind of for other causes for the patient population.
Each one of them has a much greater patient populations.
The other countries.
Okay.
Uh huh.
Did I answer your questions.
Yes, I mean I.
That's that's that's.
Makes sense I guess as you move forward and you know it was more a question of.
Are there opportunities to kind of.
Hi, your your broader portfolio.
To optimize patient identification for the targeted therapies.
But that's something that's unique design lab relative to others, but that I.
I think you answered my question. Thanks, Dennis Thanks for that.
That's true.
Yes, I can maybe I suppose.
The other point because.
It's starting to close.
Multiple.
<unk> has the policy.
So whether it goes for a doctor will come out for many different that's tough.
For the option for treatment.
Based on the mutation type.
Thank you.
Our next question is from the line of <unk> Chen of Goldman Sachs. Your line is open. Please go ahead.
Thank you and congratulations on the strong quarter and thanks for taking my questions.
With the recent public offering I think dialogue now have a very strong cash position about like 1.8 bit and so it will be great that management could share with us more color on how youre going to spend that money what would that be b. How are you going to accelerate the pace for the BD deals or youre going to spend more.
Efforts on an in house discovery team be it up or you know any color on beating out the significant bigger commercial team. So trying to understand how youre going to allocate the resources in our beef up the in house pipeline and also the commercial stress. Thank you.
Yeah. That's a that's a question for you because even ask us really true SaaS question.
Sure. Thanks for the question so you're right right now if you add in the capital rates for during April we do have a little over $1 $8 billion in cash if we combine that with the March close palace.
But.
Two the capital raising for last month. It is based on our fundamental strategic need.
So for your question to be answered yet in terms of the searches GAAP capital.
Price accelerate the timeline.
To scale a trial it further and breaking down further into specific areas within the functional departments.
For a good part of it will go to fund new business opportunity in terms of BD corporate development licensing opportunity that we were talking about.
On the call as well as the earnings release itself and then also we've identified.
Opportunities to complete additional clinical trial, that's been true.
Candidates and just overall for our R&D platform.
And the same goes to our commercial efforts, we have a very significant.
Schedule.
Not only ramping up for three innovative products, we have right now, but we have many more acute for potential approval and launch over the next.
A few years as you know for sorry.
Over 10 with just the current.
Pipeline are in.
In the medium term, so making sure that we can.
Yeah.
Absorb that type of growth is going to be important. So we want to allocate some funding to expand our commercialization efforts and then last not least.
Also to enhance our global pipeline. So these are the four broad areas, where we see we can deploy this capital and create additional shareholder value.
Got it thank you Billy.
Thank you.
Next question is for the nine O side. This time around my own G. P M.
290 for open.
Yeah.
Hey, guys. Thanks, so much for taking the question and congrats on all the progress maybe I can ask a quick one on kinlaw here I know it's early days in the launch is expected later this month, but I'm just wondering how we should be thinking about that launch curve here say relative to as the jeweler. Thanks so much.
Good morning at the palms central for your question.
Thanks, Paul.
Yeah sure. Thanks for the question you're right, it's a pretty exciting clients right now.
We're going to have our first launch in gastric cancer franchise with him locking at that Jeff.
We expect to launch this month in May.
And we think that we have an opportunity here for establishing new start of care for treating patients with advanced Gist in China and of course later. This year. We also have second line data coming out for growth.
We're anticipating that all come as well so we'll see.
So as you know had a problem here is approximately 30000 patients.
Newly diagnosed in China every year for.
Quite significant number quite as many of us and Europe combined.
So we have a pretty significant opportunity.
And we have already built a commercial team inner gastric cancer franchise too low.
<unk> can work well.
And we are ready to go so we're not giving guidance just yet but I for.
Alright.
Pretty exciting.
Thanks for taking our questions.
Thank you.
Next question is from the line of Jonathan Chang SBB Leerink.
Your line is open.
Yeah.
Hi, guys congrats on the progress and thanks for taking my question.
With the recent approvals of anti PD, one drugs and frontline gastric cancer can you talk about how this impacts for gastric cancer strategy with multiple partner programs for the space.
Yeah.
Yeah. Good morning, Jonathan. Thank you for the question Islands do you want to watch out for questions.
Yeah.
Sure. Thank you very much and thanks for the question is of course.
As you know gastric cancer is the second largest cancer in China, both in terms of incidence and mortality and there are significant unmet needs.
And Fortunately more and more treatment options are available.
As Howard mentioned that earlier.
And.
A key aspect to our expression appears to be orthogonal in that it appears to occur in those patients not necessarily especially true.
True for example, so there continues to be a.
Definitely that may need and opportunity there as well.
With respect to her too.
And the recent.
Accelerated approval for Pemetrexed.
Believe as does our partner Macrogenics for Derek.
Definitely an opportunity there and continue to evaluate <unk> plus a map with TD.
PD, one checkpoint blockade they.
I believe that this may create synergistic anti tumor activity to enhance tumor specific T cell immune a day. So we still believe there are.
Considerable opportunities in this.
Important area.
Just a question.
Yeah that partially maybe I can just sneak in a follow up then on bema, Susan that are specifically how should we be thinking about next regulatory and development, that's what could a potential.
Phase III study look like in the context of the evolving gastric cancer landscape.
Jonathan for certainly for the.
So hold on.
I think that we are.
For the take or pay where we're working with our partners Amgen and evaluating the Lucent.
Uh huh.
Changes that have occurred in this particular area and we'll be working towards that the optimal design of that phase III study moving forward.
Got it thank you.
Thank you.
Thank you next question is from.
Your line of Michael <unk> of <unk>.
Jeffrey Please go ahead.
I'm sorry.
Hi, Thank you congrats on a great quarter of progress.
Going back to the follow up about the recent significant capital raise I was wondering about your consistent stated goal to become a global pharmaceutical company, but wondering if that specifically means that you would be interested in expanding.
More show into other geographies Asia east or west.
And thinking about.
What that means to become a global pharmaceutical company beyond China, and how the capital raise may play a role in that if at all thank you so much.
Good morning, Michael.
This is Ed.
Good morning, senior life non life.
Thank you.
<unk>.
And I think if I can.
You had mentioned earlier, it's definitely aspire to be a global brand.
Come true.
And the net credit accordingly.
We plan to have additional ton mile product's launch without taking into account any new partnerships indication expansion for income from sponsors.
Well for wholesale license high low.
On China, It's now the second largest global losses.
Going forward, it's going to continue with double digit growth.
So it didnt volume time off.
Volume growth.
And then also as I mentioned earlier.
Very strong pipeline.
On top of what we talked about three.
Three products already want true.
It should be approved this year.
One more could you approved over the next day to 30 days.
The leap on the commercial provision for some.
Hum in greater China and Asia.
However, they also have smoothed some.
Some pipeline not only that maintenance space at early stage.
We're talking about seven internal discovery pipeline with global rights, including three for global Phase one trials.
We believe price makes it for years, we will have something for them and turn them.
In two people per stage.
Of course in addition, we have against some key other.
Other beauty to continue with this.
It keeps your calculations.
For more promising iPhone.
And that's wonderful for me, it's time for them.
Yeah.
Some can be a global rights can be as China was based on the stage and also based on the net patient population.
This is also all.
Along with all the 17th consecutive months of their own internal pipeline.
Accordingly.
But they have over the last two years extending.
Off the system.
Other R&D team globally.
Now Keith.
Not only in China in Shanghai, and Beijing, R&D, but also they have kids in Boston and San Francisco focused on deal flow.
And this would be with all of this approach is that sufficient for my lifelong ambition message.
Okay.
Thank you.
Thank you.
We have young credit.
Credit Suisse for the next question your line is open.
Yes.
Uh huh.
Thank you for management to taking my question. So my question is on tumor treating fields commercialization progress in China.
Okay, I understand that's already almost a year Sam soy commercially launch the product in China.
Give us kind of more color on our commercial progress for example, if compared to developed countries.
China patient's day.
All of the device longer or shorter.
Oh well.
Various collaboration while there's a supplemental.
And for Us in China, and the hard time zone.
Those plans and Chris our new patients.
<unk> using our devices and yeah, I like color on commercialization won't be a helpful. Thank you.
Sure sure.
Good evening.
Like Sydney for exactly that question.
Hey, Thanks for the question. So the sales are off tune in China has been robust.
So you saw from our earnings release, the first quarter of 2021 came in at $7 1 million compared to $1 9 million in the same period last year.
And the momentum is quite strong as we continue on in second quarter and beyond.
So we're not yet give me for your guidance for us all in for softness in all of that given the momentum we did double the number of sales teams for about 50 at launch to about 100 now.
And to your point also you specifically mentioned the other per types that we've been able to leverage.
Add to sales.
Hello, good adoption.
And you're exactly right. So there are 13 supplemental insurance plants, there were attitude and theres additional commercial price as well.
It's mostly still driven by private pay but are we think that over the longer term.
These additional per.
Cool if you will is going to be quite favorable long term and the contribution should increase or was it all the time.
In the right direction, so I hope for.
And Oh, Yeah. You also asked about sort of the experience we've had specifically with Chinese patients and how they compare to sort of ex trying to patients.
So we're not giving specifics on on path.
Because the losses relative to you as well.
It's really kind of in the back half of.
Second half lift kind of back out the second half last year we're.
We're up to.
What's kind of.
We were actually kind of in the initial stages of the current launch curves.
But we see strong uptake as I previously mentioned before new patients and we're collecting good data right now on a book basis.
The stuff that kind of underwrite bright path and we think that organic.
Your benchmark in terms of first 12 months Scripps.
Okay. Thanks, a lot.
Thank you.
David Thanks for.
From Macquarie for the next question. Please go ahead your line is open.
Hi, I stated in for Macquarie. Thank you for taking my question. If I may I can just focus on that.
Julien opt in again so for the.
First quarter very strong year over year sales.
Can you tell a little bit about the quarter over quarter trend for CIT jeweler, and then I guess, specifically after March when the new price and the other coverage kicks in can you share with us what you notice on the ground, especially.
Especially in terms of volume expansion.
The speed satisfactory and entering into April.
For April and May have to.
Ramp up continue so that's that ULA and <unk>.
And then maybe also comparing against the two.
New competitors of course standard day indication are not the same.
So you guys, but you know I noticed that their price is also quite comparable with.
I guess Beijing those are just recently.
Launch there so any thoughts on along that line in terms of third our pricing strategy for the rest of this year, so even pose pose and inclusion.
Are you thinking of offering some more kind of P. A P program on top of an L. D O to to be competitive answer Julien.
Sorry, a couple of questions on since you are not doing basically a I guess a strategic question in the next three to four years.
With much fewer competitive threat in China is does it makes sense not to go after them.
Yeah like on a national level.
And if that's the case does it mean that it can't afford your team more time.
[noise] ramp it up more gradually.
And then achieve maybe potentially even higher peak sales rather than compared to some of the other.
Innovative drugs in China, where they have to really.
Go intensive in their first two years after and out the other inclusion.
So that's kind of my cash.
Question on day two products.
Yeah.
Yeah. Good evening day that I'm going to ask another question for the interest of time, maybe for Keith Oh, some asking similar questions I'm sorry.
Yeah sure thanks for that that figure for the question.
So let me go through them one by one but I'll I'll go backwards and then adjusted for earlier ones, though in terms of off tune in your questions about sort of optimizing the private pay channel with a comprehensive strategy to sort out for Jack. So we've always said that for option for GBM, that's gonna be debased strategy and that there are other ins.
The cases larger indications.
And quite well, especially with recent news so we'll.
We'll kind of rethought their strategy or what does get finalized and ultimately approved and launched so fingers crossed and that's going to be a great because it.
Can we what can we do above and beyond sort.
The current comprehensive private pay strategy with not only out of pocket.
For the falling for commercial payers within the for sure it's et cetera, because David to your point.
Surely that approach you could do it well.
Achieved irrational pricing as well.
Adoption so.
They're all talking about that.
We think it will be a positive but to be continue.
To your first group of questions are the jewels.
I believe you were talking about sort of the competitive landscape and then our first quarter ramp so in terms of the competitive landscape you're right.
The I think the best way to work with the way, we would characterize it as part of asset classes, becoming quite important.
Address not only ovarian cancer patients, but even beyond that in China.
And that's great to see the awareness building up in this asset class because we believe that we have already positioned to do other as a best in class PARP inhibitor.
And we see that.
And in our although we're not giving guidance in specific kind of API.
But we already see that and in third quarter, when the NRM be almost implemented.
We saw a clear kind of volume ramp up and of course, it's going to continue in terms of kind of adopting.
Sort of absorbing and transitioning for NR deal drug right. Because you have to now go out and get on all the hospital listings, but of course the number of hospital listings has kind of noted up words trended up nicely into the second quarter and beyond.
And of course, that's the reason why we bought with double the number of sales team for 150 net loss to 300.
As of right now and we will continue to invest because we see good momentum.
And yes, so hopefully those I'd hope that accurate Jonathan answering your book.
Your question.
Thank you Yeah, I think David regarding true competitive landscape.
Uh huh.
We buy small oney come true.
Who has oh Mount.
No one Congress plaza for food.
I mean I'm in Oklahoma that is approved for.
Hum.
And also on the second line at <unk> Health.
He thought that into an ICL loss for the two.
True competitive you mentioned, we don't view them as a competitor because they are too Brian.
Mathan lines and they are just wrong.
Thank you.
So we don't feel we need to attack.
Oh, we don't at least for now for the near term for T M.
Our justification for us to modify our strategy because of both maintenance harmless for later line patients.
Thank you. Thank you Samantha thank you peony.
Thank you.
Right.
I'm showing no further questions at this time I will now turn the call back over to design S. T O.
For closing remarks.
Thank you operator.
One other thing everyone, let's say for.
The time to join us on the call today.
We appreciate all support a mythical with top sales.
August putting them out of free cash.
No other yes.
Operator, you may now disconnect this call.
Thank you and this concludes today's conference call and thank you for participating.
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