Q2 2021 Zai Lab Ltd Earnings Call

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Hello, Ladies and gentlemen, thank you for standing by and welcome to the <unk> second quarter 2021 financial results conference call at the time, all participants are in a listen only mode and later, we will conduct a question and answer session and instructions will follow at that.

unknown: Unsponsored ADR

unknown: Today's conference call is due to begin shortly. Until the first time, your lines will remain on music hold. Please continue to stand by. Thank you for your patience.

And as a reminder, today's call is being recorded.

unknown: Please continue to stand by. We thank you for your patience.

It is now my pleasure to turn the floor with the Billy Joel Chief Financial Officer of <unk>.

It will make the introductory comments.

Thank you operator good morning.

unknown: Unsponsored ADR Unsponsored AD

And welcome everyone.

I think of a bunch of closed yesterday, the dialogue issued a press release provided the details of the company's balance results for the second quarter ended June 30 of 2021.

Well as part of the highlights and corporate update.

The press release, it's available on the Investor Relations section of the company's corporate website at IR that side of the tour of Dot com.

Today's call will be led by the office method 2.

unknown: Hello, ladies and gentlemen. Thank you for standing by, and welcome to Zai Lab's second quarter 2021 Financial Results Conference call.

And while ups founder chairperson and Chief Executive Officer.

She'll be joined by Paul Food Sheep Studies officer, who will provide more details on the product portfolio, along with the pipeline and commercial progress.

And I will conclude with comments on our financial results and the quarter.

But the Alexander President and head of corporate development oncology.

But the Herald Weinhardt, Chief Medical officer for autoimmune and infectious diseases and so.

And the 1 head of business development will also be available to answer questions. During the Q&A portion of the call.

As a reminder, during today's call Saar lab will be making certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including on our business plans and objectives and the timing of the success of our clinical trials regulatory applications and commercial launches such forward looking statements are not guarantees of future performance.

unknown: At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to Billy Cho, Chief Financial Officer of Zai Lab, who will make introductory comments.

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 expense.

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's my pleasure to turn the call of 2 startups founder chairperson and Chief Executive Officer, Dr. Samantha Du.

unknown: Thank you, operator. Good morning and welcome everyone.

Thank you binnie.

Hello, everyone and thank you all for joining us.

unknown: After the market closed yesterday, Zai Lab issued a press release providing the details of the company's financial results for the second quarter and June 30th, 2021, as well as product highlights and corporate updates. The press release is available in the investor relations section of the company's corporate website at ir.zailaboratory.com. Today's call will be led by Dr. Samantha Du, Zai Lab's Founder, Chairperson, and Chief Executive Officer.

On the call I'll discuss highlights from all of a second quarter and cause.

unknown: She'll be joined by Tao Fu, Chief Strategy Officer, who will provide more details on the product portfolio.

Survived the major something.

That's the accomplish some of the remainder of can be simple 1.

Consistent with all the talk track what's the satellites.

Satellites continues that's the key.

And the quality across our organization 2 of the second quarter.

The success of lung came along and try and.

And record time.

King lots of thought of a third of commercial products and oncology with the launch of the loss of 16 months and.

The first part of that what we expect the become world class catch the kinds of franchise.

We continue with the generally strong revenue growth some on the first 2 products.

unknown: for Pipeline and Commercial Products. I will conclude with comments on our financial results for the quarter. Dr. Alan Fowler, President, Head of Global Development, Oncology Dr. Harald Reinhart, Chief Medical Officer for Autoimmune and Infectious Diseases, and Jonathan Wang, Head of Business Development, will also be available to answer questions during the Q&A portions of the webinar. As a reminder, during today's call, Zai Lab will be making some forward-looking statements within the meaning of the Private Securities Mitigation Reform Act of 1995, including our business plans and objectives, and the timing and success of our clinical trials, regulatory applications, and commercial launches.

And the auction.

And the entrance into the strategic collaboration.

The marquee Macrogenics and southern girl and the affected.

To further deepen and strengthen our disease area of samples and all of a global pipeline.

How many sort of discussed this achievements and I'll detail.

We now have simplified globally, even though they are as I said and I will pass on.

And the quality and.

And the price of our pipeline for continuous growth.

Notably cloud products on late stage development of which.

<unk> 5 has already been approved and the U y and.

And we have received FDA breakthrough therapy designation.

unknown: These forward-looking statements are not guarantees of future performance, and therefore we 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 Zai Lab's Founder, Chairperson, and Chief Executive Officer, Dr. Samantha Du.

In addition, our quoting pipeline now includes 11, Proteus and pros on the floor.

Worldwide right.

Including clearing.

The global clinical trial.

We have to use of 12, you know Vegas 90 day the portfolio.

The successful launch.

2 of cheap.

Yeah, Let me just 2 years.

We will continue to leverage on the scale and operating like some of them.

And our pipeline.

And I believe in the Vegas Com.

The new strategic partnerships and internal R&D.

We expect to achieve many exciting milestones across our product pipeline throughout the remainder of 2000 tens of 1.

unknown: Hello everyone. Thank you all for joining us. On this call, I'll discuss highlights from our second quarter and provide the latest updates to what we expect to accomplish for the remainder of 2021, consistent with our top checklist. Satellites continue to execute with speed and quality across our organization during the second quarter. We successfully launched King Locks in China in record time. Team Lock is our third commercial product in oncology to launch over the last 16 months.

We expect the pool of knowledge.

And fourth commercial product and Sarah.

And then sort of crunch bacterial pneumonia and.

It appears that some of the skin and skin structure infection, but 98.

We'll also continue to make progress on the based on the rest of his findings and activities.

We expect to have the discussion and then Paul on the filing strategy, so I sort of pick them up and in the near future.

And basically numerous favorite and without getting the right.

The book here.

It can work and the second line from.

Mark pick them up and get your concern.

C L a and the tier 1 the non small cell lung cancer or P. P. S sales share of 72, and non small cell and catch of cancer.

The other product candidates and our global pipeline.

unknown: Unsponsored ADR, We continue to generate strong revenue growth from our first two products as well as Nocturne. We entered into three strategic collaborations with Maradi, Microgenics, and Schrodinger, respectively, to further deepen and strengthen our disease-aerial strongholds and our global pathways. Paul and Billy will discuss this achievement in more detail.

We continue to invest and our world wide optimization and facilities.

Since September.

And our presence and the Eli.

And I formally open our clinical development and business the tendency in Cambridge, Massachusetts.

And perhaps even to the faults in the area of bowel far more ecosystem.

unknown: We now have 25 globally-innovative assets in our platform, and the quality, depth, and breadth of our pipeline will continue to grow. Notably, 12 products are in late stage development, of which 5 have already been approved in the U.S. Unsponsored ADR. In addition, our growing pipeline now includes 11 early stage programs with worldwide records, including three global clinical trials. We have to use a proud, innovative, validated portfolio whose success will allow us to achieve significant sales within just a few years. We will continue to leverage our skills and promote excellence. Brand our Type 1.

unknown: It's a greatly innovative product, and through strategic partnerships and internal R&D, we expect to achieve many exciting milestones across our product pipeline throughout the remainder of 2021. Fleece Bag Approvals of non-affiliated commercial products in Xerox. Community Acquired Bacterial Pneumonia and Acute Bacterial Skin and Skin Structure Infections by the NMPA

In the meantime, and physical R&D and business center in the San Francisco Bay area and.

And China and will continue to girl.

For the life of school and substantially since our inception 7 years ago.

And with the abundance of growth opportunities we see.

And somebody to be but we feel and the early phase of our growth trajectory.

And given the current right and that some of the portfolio we have.

unknown: We also continue to make progress on additional registry filings and activities. We expect to have a discussion with an NPA on the filing strategy for FDR-QAnon in the near future. Scientifically, numerous data results during the break of this year, for Pinlock Infection Lung Disease, for Mark Pilsenhoff in Gastric Cancer, for CLN-081 in Non-Small Cell Lung Cancer, and for PPX-0022 in Non-Small Cell and Gastric Cancer.

unknown: Unsponsored ADR, Please continue to invest in our worldwide organization and facilities. In June-September, we will expand our presence in the U.S. by formally opening a clinical development and business facility in Cambridge, Massachusetts. Unsponsored ADR. In the meantime, our regional R&D and business centers in the San Francisco Bay Area and in China will continue to grow. Fairlight has grown substantially since our inception seven years ago, and with the abundance of growth opportunities we seek.

Decided the whole R&D day on September 10th and second to take a deep dive into all of the pipeline and duties of Swanson and.

unknown: We strongly believe that we are in the early stage of our growth trajectory. And given the current breadth and depth of our portfolio, we have decided to hold an R&D day on September 22nd to take a deep dive into our pipeline and improve the stronghold, and to highlight the fundamental growth potential. We hope you come away from it with a more comprehensive understanding of what we are doing and what we expect to accomplish in the future.

The highlights the fundamental growth potential and side.

We hope you come away from it the more comprehensive understanding of what we are doing what we expect accomplishments of the future.

We believe we have 1 seen much innovation and opportunity to be the leading global biopharmaceutical company and a son.

unknown: We believe we have a once-in-a-generation opportunity to be the leading global biopharmaceutical company with a strong foundation in both China and the U.S. Zai is in a great position to capture growth opportunities without a global infrastructure and an ever-growing first and or backing club portfolio. We remain as committed as ever to our mission to develop innovative medicines addressing the end-of-life medical needs of patients around the world. We believe by doing this, we'll benefit our shareholders as well. With that in mind, I now ask Tao to discuss our performance in perspective in more detail. Tao? Thank you, Samantha.

The foundation and Bo.

China, and he and the U S.

Bias and a great position to capture growth opportunity.

On the global infrastructure and ever really and first and best in class for the phone.

We remain as committed as ever to on that mission.

Developing innovative medicines addressing the unmet medical need for patients around the world.

We believe I think the benefit our shareholders as well.

With that and I'll ask Paul to discuss our performance and prospective multi tell Paul.

Thank you Samantha I'll call them on the launch performance of our food and commercial products and the progress we've made and the quarter and our main disease franchises and lung cancer gastro cancer, hematology autoimmune disorders, and the infectious diseases.

unknown: I will comment on the launch performance of our new commercial products and on progress we have made in the quarter in our main DD franchises, lung cancer, gastric cancer, hematology, autoimmune disorders, and infectious disease. So Duva continued to perform very well in the second quarter, and it achieved significant sequential revenue growth. As a reminder, Zajula is approved in China for first and second-line ovarian cancer and is the only partial inhibitor monotherapy approved for all comers in the first line.

So do the continued to perform very well and the second quarter and we achieved significant sequential revenue growth of either.

Reminder, the jeweler is approved in China for first and second line ovarian cancer and at least.

The only PARP inhibitor and monotherapy approved for all comers and the first 1. So this provides significant differentiation from other PARP inhibitors the income.

unknown: So this provides significant differentiation from other part inhibitors. The inclusion of Zedula in our DL starting from March of this year provided major momentum for the Zedula launch. One key leading indicator for the successful launch and NRDL implementation is hospital listings. Our team has been laser-focused on increasing hospital listings, and as of June 30, 2021, the doula has been listed in more than 800 hospitals in China, which represents a more than 70-fold increase than just prior to the NRDL implementation in March 2021.

The issue of the dual and our deal starting from March of this year provided the major momentum for the jewel of launch.

1 key leading indicators for the successful launch and our default and implementation of hospital listing.

Our team has been laser focused on increasing hospital listen and as of June 30 of 2021 the June.

And how can elicit from more than 800 hospitals in China, which represent more than 7 fold increase from just prior to the EMR implementations and March 2020 of them.

Combined with the differentiated label all of successful market access strategy lays the foundation for strong volume growth and the second half of the year and beyond.

unknown: Combined with the differentiator label, our successful market access strategy lays the foundation for strong volume growth in the second half of the year and beyond. We remain confident that, over time, Judo will become the market-leading quality inhibitor in ovarian cancer in China. Similarly, the launch of Optum is going well. As a reminder, Optum is the first innovative medical device supported by commercial health insurance in China and has also been covered in 14 supplemental insurance plans since its launch in June 2020.

We remain confident that overtime the drill it will become the market, leading PARP inhibitor and ovarian cancer and China.

Similarly, the launch of options and going well.

The reminder, often is the first the medical device supported by commercial health insurance and China and also have been covered and 14th supplemental insurance plans since its launch in June 2020.

During the second quarter, we held the extensive multi disciplined physician education campaigns to increase blend of adoption and we're pleased with the feedback we've received from treatment of specialists.

unknown: During the second quarter, we held extensive multidisciplinary physician education campaigns to increase brand adoption, and we were pleased with the feedback we received from treatment specialists. Importantly, on the development side, we're working with our partner NovoCure to extend indications of tumor treating fields in areas of large unmet medical need globally and in China. We look forward to additional critical data readouts in lung, pancreatic, liver, and ovarian cancers, bone metastases, and in glioblastoma with high-intensity array therapy over the next few years, and we continue to target a fouling of tumor-treating fields for malignant pleural epithelioma later this year.

Importantly on the development side, we're working with our partner Novocure to extend indications of tumor treating fields and areas of large unmet medical need globally and in China.

We look forward to additional clinical data readouts in lung pancreatic liver and ovarian cancers and build on top of the.

And in Glioblastoma with heightened intensity of rates over the next few years.

And we continue the target of folly of tumor treating fields from malignant pleural mesothelioma later this year.

Sometimes the mentioned we achieved another important commercial milestones and successfully launching 2 loss and the fourth line Gist and China. We've made our third oncology launched and the last 16 months.

unknown: As Samantha mentioned, we achieved another important commercial milestone in successfully launching King Loft on fourth-line ships in China in May, our third oncology launch in the last 16 months. Kinloch is another great example of our track record of accelerating registry filing and approval of innovative oncology products. We were able to file the NDA for Kinloch in China only two months after FDA approval, and we received NMPA approval eight months after NDA acceptance. In July, Kinloch will be included in the Chinese Society of Clinical Oncology Guidelines for Diagnosis and Treatment of Gastrointestinal Formal Tumors 2021 as an option for second-line treatment for advanced GIST patients.

<unk> is another Great example of our track record of accelerating the other flu filing and approval of innovative oncology products, we were able to file the NDA per kilo and China only 2 months after FDA approval and we've received and the MTA approval 8 months after the NDA acceptance in July and law.

They are included and the Chinese society of clinical oncology guidelines for diagnosis and treatment of gastrointestinal stromal tumors 2021 of an option for the second line treatment of bands of Gist patients.

We're encouraged by all of the initial launch performance and look forward to updating you with all the progress through the remainder of the year.

unknown: We are encouraged by our initial launch performance and look forward to updating you with our progress through the remainder of the year. Now, let's move on to progress in our product pipeline. Starting in lung cancer, where we continue to build a disease stronghold with six products currently in clinical development. In June, we entered into an important strategic collaboration with Novati and obtained the right to research, develop, manufacture, and exclusively commercialize autoglassics, a potential best-in-class small-molecule KRAS G12C inhibitor in Greater China.

Let's move on to progress and our product pipeline, Saudi and lung cancer, where we continue to build of disease going hold with fixed products currently in clinical development and.

The June we entered into and it's important strategic collaboration with nobody and obtained the right to research develop manufacture and exclusively commercialize on our glasses of potential best in class small molecule K loss of <unk>, <unk> inhibitor and greater China.

Out of gossip received FDA breakthrough therapy designation in June for the potential treatment of non small cell lung cancer patients who harbor the <unk> mutation following prior systemic therapy viral.

unknown: Adegraseb received FDA breakthrough therapy designation in June for the potential treatment of non-small cell lung cancer patients who harbor the KRAS-G12C mutation following prior systemic therapy, viable support, and accelerated enrollment in key global registration-enabling clinical trials of aglossia in KLOPS G12C cancer patients, including non-small cell lung cancer and colorectal cancer. Merabi has announced his intention to file autographs for second-line non-small cell lung cancer in the U.S. in the second half of 2021.

And I will support accelerated enrollment from key global registration, enabling clinical trials over the other.

The asset and Talos 212 to cancer patients, including non small cell lung cancer and colorectal cancer.

The Robbie has announced the intention to file of out of glass. It for second line non small cell lung cancer in the U S and the second half of 2021.

We believe out of glass of tough batching cost potential and we will also aim to make it first in class and China, where there are currently no ongoing clinical trials in this part of the category.

unknown: We believe autographs have such great potential, and we will also aim to make it first in class in China, where there are currently no ongoing clinical trials in this product category. Adaglossic is a great addition to our lung cancer franchise and complements other promising by-products being developed for lung cancer, including tumor-treating fields, lipoprotectinib, CLN-081, and TPX-0022. For tumor treating fields, Zai initiated the China portion of the phase three pivotal lunar trial and the phase three pivotal metastrial in brain metastases for nine small cell lung cancer.

Now the glasses to the Great addition to our lung cancer franchise and complements other promising di products being developed for lung cancer.

<unk> the tumor treating fields the protracted yet.

And the deal 81, and <unk> and 'twenty 2.

For tumor treating fields site initiated the the China portion of the phase III pivotal lunar trial and of.

Based on the pivotal <unk> trial and bring the policy for non small cell lung cancer.

The call volume made Novocure announced that the FDA approved the <unk> supplement before lunar reduces enrollment requirement and by about a half and shortening of the required patient follow up from 18 months to 12 months potentially accelerating the completion of the final by more than a year.

unknown: You will recall that in May, Novacure announced that the FDA approved their IDE supplement for Lunar, reducing enrollment requirements by about a half and shortening the required patient follow-up from 18 months to 12 months, potentially accelerating its completion of the trial by more than a year. So CLM081, in June, Pfizer's partner, Colinan, announced phase one, slash two, eight interim data in non-small cell lung CLM-081 continues to demonstrate its best in class potential with good activity and encouraging safety and tolerability. Now, let's move on to Glass Street Camp and Zai Disease Long Hold, the seven products currently in clinical development. Including Chin Lock and Demo Season.

The CRM dual 81 and June 5 partner equivalent on our balance of Phase 1 lost 2.8 interim data in non small cell lung cancer Egfr exon 20 patients.

She all enjoy 81 continues to demonstrate its best in class potential with good activity and the encouraging safety and Tolerability.

Let's move on the gastric cancer.

Our guidance in the stronghold the 7 products currently in clinical development, including 2 logs and the demo of Susan.

As I mentioned earlier, we're actively launching 2 marking the fourth line gist.

unknown: As I mentioned earlier, we're actively launching Kinloch in force line JIST, supported by the compelling data generated from the INVICTUS phase three study. In the second half of this year, our partners, Decephala, expect to receive data from the Intrude trial of Pinlock versus UnitedNet in second-line GIFs. Are they gastric cancer products? other products also made significant progress in the quarter, including BEMA, the monoclonal antibody against FGFR2B. In April 2021, Zai's partner Amgen was granted breakthrough therapy designation by the FDA for BEMA as a first-line treatment for patients with FgFR2B overexpressing HER2-negative metastatic and locally advanced gastric and gastroesophageal junction adenococcinoma in combination with modified FOFA. In June, Zai's partner Turning Point was granted often-blocked decimation by the FDA for TPS Including Gastroesophageal Junction adenocarcinoma.

<unk> by the compelling data generated from <unk> and Victoza phase III study.

And the second half of this year all of the partner or expect to receive data from the intrigue trial of Tmall versus significant and second line gist.

Other gastric cancer products also made significant progress in the quarter, including Bema and <unk>.

Monoclonal antibodies against <unk>.

In April 2021.

And as part of Amgen was granted breakthrough therapy designation by the FDA for Bema and the first line treatment for patients with <unk> over expressing her 2 negative metastatic and locally and advanced gastric and gastroesophageal junction adenocarcinoma and <unk>.

Combination with multiplied full box.

In June of <unk> partner, turning point was granted orphan drug designation by FDA for TPS and deal with until 'twenty, 2 and gastric cancer.

Including gossip and Salford Youll junction adenocarcinoma.

And of our hematology franchise. The May 2021 sites partner of Regeneron and resumed enrollment in the phase II potentially pivotal clinical trial of ultra and Mexican lab in patients with Follicular lymphoma, and diffuse large b cell lymphoma.

unknown: In our hematology franchise, in May 2021, Zai's partner Regeneron resumed enrollment in the Phase II, potentially pivotal clinical trial of ultranexacomab in patients with follicular lymphoma and diffuse large B-cell lymphoma. We look forward to initiating this important clinical trial in China. Since our last earnings call, we have also entered into two other strategic research and development collaborations to bolster our global oncology pipeline. In June, I and Mathogenics announced that the two companies have entered into an exclusive collaboration and license agreement involving up to four immuno-oncology molecules.

Look forward to initiating this important clinical trial and China.

Since our last earnings call. We also entered into 2 other strategic research and development collaborations to bolster our global oncology pipeline.

And in June <unk> and.

And Macrogenics announced that the 2 companies have entered into and exclusive collaboration and license agreement involving up to 4 immuno oncology molecules.

The first collaboration program covers the lead research molecule that incorporates macrogenics, the dark platform and buying CBP and the undisclosed target that is.

unknown: The first collaboration program covers a lead research molecule that incorporates microgenics with dark platinum and binds CD3 in an undisclosed target that is expressed in multiple solid tumors. The second program covers a target to be designated by microgenesis.

Expressed in multiple solid tumors.

The second program covers the targets with the designated by Macrogenics.

For both molecules value received commercial rights, and greater China, Japan, and Korea, and obtained and the option to convert the leads research program into a global 50, 50 profit sharing arrangement upon achieving a pre defined clinical milestone.

unknown: For both molecules, Zai received commercial rights in Greater China, Japan, and Korea and obtained an option to convert the LEAD research program into a global 50-50 profit-sharing arrangement upon achieving a predefined clinical mile. For two additional early-stage molecules, Zai Lab has exclusive global development and commercial rights. Earlier this month, Zai and Schrodinger announced a global discovery, development, and commercialization collaboration focused on a novel target in the DNA damage response pathway, a key research interest for Zai's Lab in oncology.

With 2 additional early stage molecule by lab has excuse of global development and commercial life.

Earlier, this month and shoulder analysis of global discovery development and commercialization collaboration focused on of novel target and the DNA damage response pathway of key research interest the dialogue and oncology shoulder.

<unk> is an industry leader in providing computational platforms using the drug discovery the.

unknown: Schrodinger is an industry leader in providing computational platforms using drop-to-drop discovery. The research program will be conducted jointly by the two companies' scientific teams, and Zai Lab will have exclusive development and commercial rights. This initiative will complement our existing discovery efforts in DNA damage response pathways, in addition to potential combinatorial approaches within our pipeline with such products as the part inhibitor Zedula and DL2309. Unsponsored ADR. In July, Zai Lab's partner, RGNX, announced myositis and bolus cancervoids are two new indications for African pigeon moth, such as R&D data. To date, five clinical trial applications for FVAR filed by ZAI have been approved.

The research program will be conducted jointly by the 2 companies scientific teams and dialog will have exclusive development and commercial rights globally.

This initiative will complement our existing discovery efforts and DNA damage response pathways. In addition to potential company Portio approaches within all of <unk>.

Pipeline with such products.

And the pivotal as the jeweler NPL 20 from all night.

You know autoimmune franchise in July by lots of partner Iconix and now notified us on bolus Pemphigoid of 2 new indications for after the peaking out not just the.

R&D day.

2 day 5 clinical trial applications for Fr filed by <unk> have been approved.

With all of this progress as you can see the size development and commercialization of operations are hitting on all cylinders.

unknown: With all of this progress, as you can see, the appliance development and commercialization operations are hitting on all cylinders. We have an abundance of growth opportunities, and we very much look forward to sharing our further progress with you throughout the year. And now, Billy will discuss our financial results in the corner.

And the abundance of growth opportunities and we very much look forward to sharing of further progress with you throughout the year.

And now we will discuss our financial results and the corner.

Thank you Paul.

unknown: We continue to remain in a high growth mode.

We continue to remain in high growth growth.

unknown: Unsponsored ADR

And our financial results reflect strong progress across our business.

Today, I'll briefly summarize our financial results for the second quarter as well as year to date of 21, which are both in line with our internal expectations.

unknown: Today, our brief summarized Oxfam entry

unknown: Results for the second quarter as well as year-to-date 2021, which are both in line with our internal expectations. Revenues for the second quarter and year-to-date 2021 were $36.9 million and $57 million, respectively. Over the same period last year, revenues were $11 million and $19.2 million, respectively. We're still early in the revenue ramp cycle, but we are very pleased with the successful launches and sales trajectory of our first three oncology products. Did you look sales for the second quarter and year-to-date 2021 with $23.4 million and $36 million, respectively?

Revenues for the second quarter and year to date, 2021 of $36.9 million and $57 million respectively over.

unknown: Over the same period last year, jewelry sales were $7.5 million and $13.8 million, respectively. Opt-in sales for the second quarter and year-to-date in 2021 were $9.5 million and $16.6 million, respectively. And over the same period last year, opt-in sales were $3.5 million and $5.4 million, respectively. As for our third product update, we successfully launched Kinloch on May 20th and achieved $4 million in revenue for the quarter. Research and Development expenditure

Over the same period last year revenues were $11 million and $19.2 million respectively.

Still early and the revenue ramp cycle and we're very pleased with the successful launches and sales trajectory of the first 3 oncology products.

Did you the sales for the second quarter and year to date, the stills and 'twenty, 1 with $23.4 million and $36 million respectively. Over the same period last year, the jewelry sales were $7.5 million and.

And $13.8 million, respectively on.

<unk> sales for the second quarter and year to date. So the 21 were $9.5 million and $16.6 million respectively.

And over the same period last year after the sales were $3.5 million and $5.4 million respectively as.

And as far the third product update is the fifth relaunched kinlaw on may 20th and the.

Cheap $4 million of revenue for the quarter.

Research and development expenses were $142.2 million for the 3 months ended June 30th from 'twenty, 1 compared to $68.3 million of at the same period and 2020.

unknown: Unsponsored ADR

unknown: The increase in R&D expenses was primarily attributable to additional strategic partnerships, including a $65 million upfront payment to North Korea.

The increase in R&D expenses was primarily attributable to additional strategic partnerships, including a 65 million below the upfront payment to Marathi and 25 million of the upfront payment to macrogenics expenses related to ongoing and newly initiated late stage clinical trials and pay and payroll related expenses from increased R&D headcount.

unknown: to Mirati and a $25 million upfront payment to Necrogenics.

unknown: Expenses related to ongoing and newly-initiated late-stage clinical trials, and pay and payroll-related expenses from increased R&D activities. Selling General and Administrative Expenses were $54.4 million for the three months ended June 30, 2021, compared to $23.8 million for the same period in 2021. The increase was primarily due to payroll and payroll-related expenses from increased commercial headcount and additional commercial activities, and Zai

Selling general and administrative expenses were $54.4 million for the 3 months ended June 30 of 2021 compared to $23.8 million for the same period and from 'twenty.

The increase was primarily due to payroll and payroll related expenses from increased commercial headcount and additional commercial activities and so on.

The continued to expand its commercial operations in China.

For the 3 months ended June 30 of 2021 and download reported a net loss of $153.3 million or a loss per share attributable to common stockholders of the dollar and 76 cents compared to a net loss of $86 million or a loss per share it should book to common shareholders.

unknown: Unsponsored ADR For the three months ended June 30, 2021, Zai Lab reported a net loss of $163.3 million, or a loss per share attributable to common stockholders of $1.76, compared to a net loss of $88.6 million, or a loss per share attributable to common shareholders.

The $1.8 of them for the same period of 2020.

The increase and net loss was primarily attributable to additional strategic partnerships increased R&D and SG&A expenses for the reasons I just mentioned.

unknown: The increase in net loss was primarily attributable to additional strategic partnerships, increased R&D, and SG&A expenses for the reasons I just mentioned. As of June 30, 2021, cash and cash equivalents, short-term investments,

As of June 30 of 2021 cash and cash equivalents short term investments and restricted cash totaled $1.77 billion.

Compared to 1 and $1.9 billion as of June December 31, 7 and 20.

unknown: compared to $1.19 billion as of June 31, 2020. Now, I'd like to turn the call back over to...

We would now like to turn the call back over to the operator to open up the line for questions operator.

unknown: We would now like to turn the call back over to the operator to open up the line for questions. Operator?

Ladies and gentlemen, if you can now begin the question and answer session to ask the question. Please press star 1 on your telephone keypad and wait for your name to the announced the.

unknown: Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. To cancel your request, please press the pound or hash. Kindly note, we request you to ask two questions per term for time constraints. Once again, it is star 1 to ask a question.

On the request please press the pound or how should be.

And the notes.

2 questions for Tom.

And what time from stream once again made the star 1 to ask the question.

And you have the first question coming from the line of Mike Casey.

unknown: We have the first question coming from the line of Michael... We have the first question coming from the line of Yigal Nochomovitz from Citigroup. Please go ahead.

We have the first question is coming from the line of the trauma of it from Citigroup. Please go ahead.

Hi, great. Thank you very much for taking the questions.

unknown: Hi, great. Thank you very much for taking the question. So you have a very rich pipeline of in-licensed assets that are making their way through clinical development, and now you have three approved products. So are you still as focused on the BD effort to bring in new assets into the company? Or do you believe you have a sufficiently rich pipeline and will focus more?

So he has a very rich pipeline of in licensed assets that are making their way through clinical development and now 3 approved products and so are you still as focused on the BD effort to bring in new assets into the company or do you believe you have the sufficiently rich pipeline and we will focus more on developing the assets that you've already bought.

unknown: Unsponsored ADR

<unk>.

And I think you eat of and dismantle and good morning all.

unknown: Thank you, Yigal, and this is Mantha. Good morning. I'll let Jonathan address the question.

Okay and that counter into a change of the question.

Hi, Thank you for the question look I think that desire of the bidding strategy.

unknown: Irigal, thank you for the question.

unknown: Unsponsored ADR

As a policy of the Companys growth strategy.

unknown: Unsponsored ADR Unsponsored AD

And because of really being evolution and for us and I think it would be really positioning ourselves as the partner of choice and China Southern.

And continue to execute on bringing globally and class best and.

And class of assets into our pipeline.

To complement it with the oncology, where the order you mean and within infectious diseases, and but I think beyond that we're also looking for transformative deals and we're also looking for.

Opportunities to go beyond.

Our existing therapeutic areas, just like we have done and the pox and Scott, but the the general asset I think we'll continue to do that and I think even beyond that and we have done recently with the macrogenics. The the shrug and there are shortages of deals I think even to support of discovery efforts.

So I think BD.

Always evolving and I think it's multi dimensional.

So just wanted to go on to the company.

Okay. Thanks, Jonathan and I just had 1 follow up so.

unknown: Okay, thanks, Jonathan. I just had one follow-up. So, by my count, I believe you have 11 oncology products in your portfolio, with two already approved. That opens up the possibility of investigating combination strategies within your portfolio. So, that being said, I'd be curious to know which products you believe would make the most sense to evaluate in combination clinical trials.

So of by my Count I believe you have 11 oncology products and your portfolio with 2 are 2 already approved so that opens up the possibility of investigating the combination strategies within your portfolio. So that being said I'd be curious to know which products do you believe would make the most sense to evaluate and combination clinical trials.

unknown: Combination Clinical Trials and What Tumor Types. Unsponsored ADR

And then what tumor types.

Hi, Thanks to call on.

unknown: Thank you all. Island, our Outdoor President of Oncology Development. Please take the question. Hello, sorry, I was on mute.

And then Alan.

And the appointment of Bom content.

The strong I'll take the question.

Hello, sorry on value.

unknown: Thank you for the question. And yes, this is one of the great advantages that we have here at SAI, given the large number of assets in the portfolio and additional ones forthcoming. I think that there are opportunities would exist, interestingly, in our gas kit franchise and our loan franchise, in particular, given the broad number of assets that we have in there and the targeted approach with which we have. We're looking at a number of different combinations that may be associated with KRAF, also a combination in one and also in gastric with the various combinations that are available, including PD-1, LARGE, HER-2 agent, MET, etc.

And thank you for the question and yes. This is 1 of the you know the great advantages that we have here of side given the large number of assets and the portfolio and an additional 1 and forthcoming.

Think that there are.

Opportunities with the exist.

Interestingly and our gastric franchise and our lung franchise and I think in particular and given the broad number of assets that we have in there and the targeted approach with which we have and we're looking at a number of different combinations and it may be associated with the payer and also a combination of 1 and also in the gastric and.

With the various combinations that are available, including PD 1 on large for 2 agent match.

The et cetera, so I think that would be.

You of hints of some of the areas with which we're lucky.

And if I addressed your question.

Yes. Thank you.

Okay.

Thank you.

unknown: I think that would give you a hint of some of the areas with which we're looking. Have I addressed your question? Yes, thank you. Thank you. We have the next question. This is coming from the line of Michael Yee from Jeffrey's. Please go ahead and ask your question. Hi, good morning. Good evening.

The next question is coming from the line of Mike and he's from Jefferies. Please go ahead and ask your question.

Hi, Good morning, good evening, we have 2 questions.

unknown: We have two questions. One was about the recent Schrodinger deal, but just more broadly, strategically, should we anticipate that you are going to do more deals that bring in more global rights and with an intention of developing and bringing in more internally developed R&D programs rather than an in-license of other programs, rather than instead developing your own internal programs and doing it globally? That's question one. How should we think about that?

And 1 was on the recent Schrodinger deal suggests more broadly strategically.

And we anticipate that you are going to do more deals that bring in more global right.

And with an intention of developing and bringing in more internally.

All of the R&D programs, rather than and in license of.

The other programs.

Rather and stepped developing your own internal and to give a globally. That's question..1 how should we think about that and question..2 is based on the comment around expanding outside of the therapeutic areas and I think you have the very strong focus on oncology et cetera, and that's pretty well known can you just maybe expand upon the idea of 2 to go beyond oncology.

unknown: And question two is based on a comment around expanding outside your therapeutic areas. I think you have a very strong focus on oncology, etc. That's pretty well known. Can you maybe expand upon the idea to go beyond oncology?

unknown: Unsponsored ADR

And to what other areas.

Should we expect the or could anticipate so we're not surprised and thank you so much.

Thank you and Michael.

unknown: Thank you, Michael. How do you want to comment on the AI and the surrender deal? This collaboration is a pretty exciting new partnership for us. As you may know, they are the industry leader in, you know, physics-based computational chemistry platforms and really have a really strong existing track record. So we had this collaboration with them, really focused on a key area of R&D interest for Zai Lab, the DNA damage repair pathway on a very, you know, interesting target, which we will discuss later. So really trying to leverage the capabilities of both companies and, obviously, get Zai Lab global rights on this particular target. Yeah, so the AI area is a new, promising field.

How do you want to come and on the AI and Mr. Showing the 10 P M.

Yeah, Yeah sure sometimes the myself that thank you very much for your questions.

So.

Yeah. The film the cooperation of the pretty exciting new partnership for Us.

And they know they are the industry leader and physics based.

Computational chemistry platform and.

And you really have on there were strong existing track record.

So we have this collaboration with them really focus on our key area of the R&D interest for Cy lab, the DNA damage repair pathway on the dairy.

Interest and target, which we will discuss later on.

And so really trying to leverage the capabilities of both companies and.

And obviously get the dialogue.

The global rights on all of this particular.

And particularly with holiday.

So the the AI area is of the new of promising area.

unknown: We'll try to stay on the cutting edge. We're really trying to use external collaboration to complement our existing capabilities in areas such as AI. Yeah, I think just to elaborate on what Hao was saying, the Discovery Technology Platform collaboration, like Michael you regularly mentioned, is a way for us to expand our discovery capabilities and to complement our existing discovery technology platforms for us to do internal global discovery and development. But having said so, we will continuously do what we have done very well, which is to make efforts where we see differentiation, we see unmet medical needs, whether for China or for the world. It's based on the seats that are out of the pipeline.

The stay on the cutting edge.

And we're really trying to use the external collaboration to complement our existing capabilities.

Area of such as such as AI discovery.

Yeah, I think it gets to that great on the Congress, saying the discovery channel and technology.

And technology platform calculation.

Michael.

So there's not the they've mentioned.

Well the philosophy extends the average discovery capability on.

The 2 countries Munchausen 16 discuss the new technologies and platforms.

And so Oscar Turner of global just kind of thing.

And that just from me because on the smooth.

But having said so we're continuously to what they have from their well, which is true and we see.

See different shapes, and they see unmet medical need rather than from China of Oklahoma.

And so it's based on the.

And it does keep the velocity of.

Thank you.

Question number 1.

And and still have makes sense, yeah both of them.

unknown: Thank you. For question number one. Unsponsored ADR Yeah, we actually have got many opportunities, more and more Yin-Tang interests from Unsponsored ADR. And so we're actively looking, but when we expand horizontally, we want to expand with anchor assets into a new therapeutic area. So that has to have, you know, such as, for example, we expand into the collaboration with Archimax, so at the peak amount, which offers a pipeline of product-type opportunities.

It makes sense both are important and then the idea of expanding therapeutically could you comment on what areas could be of interest.

Yeah.

We actually and.

And it has many opportunities more and more on Eden Park interest from them.

From a potential classmates, who have really off the peak.

And so a lot of credit for what they have plenty of sort of partnerships.

And so we actively looking.

Hey.

The only expand on.

All of them today, we want to expand the entry.

And 2 it's easy to new therapeutic area. So that tends to have on such as the example.

And into the transmission growth from.

Archie Mic so people mob.

Of course, a pipeline of product some of the opportunity.

And that's kind of steel, mainly the expense and they're looking for.

unknown: So that's kind of the deal, when we do expansion, we're looking. I mean horizontally, but vertically; we're always looking for more opportunities to complement our existing pipelines. We have the next question. This is coming from the line of Seamus Fernandez from Guggenheim Securities. Please go ahead.

And that and make it.

All of it sounds from me.

But equally weighted.

All of the Blue people more opportunity the company name all of these 15 type 1.

Thank you.

We have the next question is coming from the line of seniors Fernandez from Guggenheim Securities. Please go ahead.

Oh, great. Thanks for the question so maybe.

unknown: Oh, great. Thanks for the question. So, um, maybe just, uh, if we could cover the dynamics, you know, around just investor questions that we've gotten, uh, and concerns that have been raised, um, with regard to, uh, some of the, uh, volatility in shares in China, and where biotech, Unsponsored ADR Unsponsored ADR Unsponsored ADR Should we see a meaningful data set, particularly either Lunar or one How are you guys thinking about manufacturing capabilities with your partner, Novacure, in the context of CTF, and how do you hope to address that? Thanks. Uh, thank you, uh, Seamus.

Maybe just if.

If we could cover the dynamics are.

Around just the investor questions that we've gotten and.

And concerns that have been range with regard to some.

Some of the.

The volatility and share in China and.

Where biotech and strategically and.

And in terms of the Chinese governments are focused on certain areas I think the math.

The ear uniquely well positioned to the comments on those concerns.

The free die is it's well outside.

Side of some of the concerns that have been raised for other companies.

With regard to how.

The company's accounting has been executed and things like that but just.

Maybe help us understand the importance and strategic positioning of the biotech industry.

And China and.

And it's important to the continued growth and.

And local growth in China, and then the second question really I was just hoping you could give us a sense of the potential payment.

And that we could see to collaboration partners as it relates to milestone.

And that we should be thinking about for 2021 and 2022, given the very robust series of pipeline opportunities and then just 1 final question should we see a meaningful.

The dataset, particularly either lunar.

1 of the other major datasets come forward.

How are you guys thinking about manufacturing capabilities with your partner Novocure and the <unk>.

Context, the CTF and and how do you hope to address that thanks, so much.

Thank you and the like seamless.

And the first question and that is Uh huh.

unknown: The first question is, since you asked me to speak about this sector, and actually, we do agree. We have seen a lot of volatility. Long-term concept companies listed on UNICEF, and so we have done quite a lot of due diligence, myself also, and we spend time with different agencies to discuss with them what that means for Zai Lab and also, of course, Zai Lab's companies like that, cell tech companies like Zai Lab. Unsponsored ADR, Understanding, and I'm not sure they are representing any government body.

He asked me to speak about the sector.

And so actually we do agree we have seen lots of activity and the motive.

And Ron China of content Cookie listed on NASDAQ.

And so we and you'd have found quite a lot of insurance the dividend.

Myself also and.

Sometimes you.

And if an agency to discuss it on what does that mean to say lab and also of course the satellites now.

Companies like net.

And companies like that.

So the some.

Some other diseases and of course from out of the.

And the spending and.

I'm not sure on that.

Preventing any kind of the 5 days a.

And we believe that the actions that calls for them from the market volatility and.

unknown: But we believe that the actions that caused the recent market volatility are unrelated to China's particular business and also recent ones, including the Chinese government's continuous support of innovative biotech industries and, for example, the new CBE draft guideline issued on July 2nd on quality drafts. Please depart for university and do drop your valuables.

And maybe it's applying particular businesses and homes.

The recent events, including the Chinese government continues to support and you're getting paid the biotech industry.

And for example, the new C D and chocolate guidelines issued on July 2nd tied to the trucks and meets the bar for innovation do talk to the event.

And they've actually on the hopeful for the company.

unknown: These actually are very helpful for companies really focusing on differentiated first or back-in-class product portfolios instead of focusing on too many tools that may not work. They also recently reviewed the ACH guidelines and membership status, which shows their continued strong commitment to harmonization and global harmonization. And also, quite honestly, other sectors were already very heavily regulated. But if you're looking at the 13th time of the Economic Five-Year Plan, the biotech sector is considered one with a very strong supportive pillar industry, and, uh...

And really focusing on differentiated suite of best in class product for the photos instead of full focus on maybe the Youtube and email alerts.

Most of the recently reviewed the Ath VIP membership sadness.

It shows their continued strong net harmonization and global harmonization.

And also how much of it.

Great.

Other sectors, the oriented and various hesitate rank the navy.

And but if you're looking at the.

Time of the economical and.

5 year plan on.

And.

The biotech sector is considered 1 of the daily it's from supported and the industry.

And that the.

Focus really is.

unknown: The focus really is on innovation and promoting integration of biotech and accelerate biotech and biopharmaceutical and boost the, you know, in China and Innovation Capabilities from Fundamental Sites. So from all the activities we involve, also including some minor details like, you know, for these sectors, search data piloting, and a tax reduction plan in Shanghai, Pudong, where we're based. So there are many positive news. Of course, those are, perhaps, not hidden to the public. But what we have seen so far, we're very confident in Zai Lab's fundamental growth. So, Peter, do you want to address the second question?

On the emulation and promote integration utilization of about tax and the Saturday, the biotech and pharmaceutical and the debt.

The boost.

And you know in China and debt.

Innovation capability from some of the window side.

And so from all the activities really involved.

And including some minor details like no true this sector is sort of.

And it kind of PD tax reduction and in.

The 8 and Shanghai Pudong growth based on the there are many talks of the use of course there of some on the on perhaps now keeping to the company.

We have seen so far the very confident on the sign that strong fundamental growth.

And so did you want to address the second question.

Yes, sure and Miss I'll take a stab at the second and third question. So the question on related to upcoming milestone.

unknown: Yes, sure. Hey, Seamus, I'll take a second and third question. So, the question related to the upcoming milestone type of payment, as you know, Seamus, we don't get guidance, forward-looking guidance on those figures, but rest assured, it's immaterial compared to, let's say, the upfront portion.

Type of payment.

And I was saying is we don't give guidance forward looking guidance on those figures, but the rest assured it's a it's immaterial compared to let's say the upfront portion or the actual royalty that kicked in after the commercialization. So you would have seen some disclosures along the way, but I know the attorney point announced yesterday and they did disclose.

unknown: Unsponsored ADR

unknown: Some disclosures along the way. I know that Turning Point announced yesterday, and they did disclose, you know, that we made a $5 million payment because we achieved a certain development milestone. And, you know, you can expect something kind of along that zip code when we have a notable sort of development or regulatory milestone achieved. But, you know, you can kind of get a sense, right, Seamus, that in terms of materiality, it's quite limited compared to the upfront royalty. Which is that, you know, the one time up front and then at the back end. In terms of your question on sort of the, you know, kind of

We made of $5 million of payment because we achieved a certain development milestones.

And you can expect something kind of along that ZIP code. When we have a notable sort of development of regulatory milestone achieved but and you can.

You can kind of get a sense right Seamus that are in terms of materiality is quite limited compared to the upfront and royalties.

Which is that the the onetime upfront and then at the back and in terms of your question on sort of the.

And kind of wrap it up volume and what that means in terms of.

unknown: Unsponsored ADR

Manufacturing capabilities for tumor treating fields and I'll, let Paul add any other additional comments, but yes, I mean youre right.

unknown: but yeah, I mean, you're right. Your observation is right in that if the Lunar trial is successful with Final Phase 3 data out next year, you know, we're talking about different levels of scale and other opportunities to drive operating leverage at that volume, at that scale, especially

Observation is right in the lunar trial is successful with final phase II data out next year.

We're taking we're talking about different level of scale and.

And are the opportunities to drive operating leverage at that volume at the scale, especially China scale and ease of the questions that are.

unknown: Unsponsored ADR

We've been having these discussions with our partner.

Yeah.

Thank you.

unknown: Thank you. Okay, thank you. We have the next question.

I think you have the next question.

And do you have the next question from the line of from.

unknown: We have the next question from the line of Anupam Rama from JPM. Please go ahead. Hey guys, thanks so much for taking the question. A couple of broader macro questions following up on the last question, but specifically, there's been a lot of headlines about Chinese regulators' proposed rules on oncology trials. Maybe you can talk about what the implications for development here are in the region for your broader pipeline. And then, Samantha, digging into your comments a little bit more on the PTA-OB auditing and sort of what's going on in China there. You guys have PTA-OB not reviewing your financials as a 10K sort of risk. How are you strategically thinking about this situation and kind of addressing it over the long term? Thanks so much.

<unk> Rama from J P. M East go ahead.

Hey, guys. Thanks, so much for taking the question a couple of broader macro question. Following up on the last question, but specifically there's been a lot of headlines on sort of Chinese regulators proposed rules on the oncology trials and maybe you can talk about what the implications for development here or in the region for your broader pipeline.

And then Samantha digging into your comments, a little bit more on the PTA, Ob auditing and and and sort of what's going on and China. There you guys had P. T. A L. B not reviewing your financials of the 10-K sort of risk what's the how do you strategically thinking about the situation and and and and.

And the kind of addressing it over and over the long term. Thanks, so much.

First of all and it's on thank you for the question. So you're asking about the last week on the July 2nd type loan growth is that the.

unknown: First of all, Anupam, thank you for the question. So you're asking about the July 2nd guidelines? Is that the first question? about the oncology proposed. Yeah. Right, right.

The next question.

On the oncology propose yeah.

Right right.

unknown: Okay, so as I mentioned earlier, we think that guidance for industry, first of all, is that still guidance for soliciting industry input. We really think that we're going to raise the bar for innovation, for oncology development. And as we all know, China has many, many PD-1s, and PD-1s like the bioclinic retools will not be worse, right? And I think it's from many angles; it's not only that you won't really be responsive, but if CPE continues to support it, that really means it's not helpful for patients who already should have been exposed to many approved products instead of exposed to the placebo arm.

So as I mentioned earlier, we think that our guidance for the industry, especially the Sx is still kind of in Nashville, and he is paid in the.

True input.

Do they think that's going to meet the bar.

And so utilization so I'm kind of did you give out of finished and then.

And we all know China has many many PD, 1 PD lone naive and ceiling.

<unk>.

Let me choose the Mi book right.

And I think it's from many angles keeping up on the.

And you know maybe be the something that maybe from the each C D and continue to support it and.

Really means it doesn't sort of.

It's not helpful for patients who are ready and.

It should have been exposed to the true.

Many of food products and crude instead of the exposed to the placebo arm.

And secondly.

unknown: And secondly... Unsponsored ADR. Number one, you have to show differentiation to address unmet medical needs. Secondly, if there is already a gold standard established, you need to do comparative studies instead of procedural trials. I think that's the fundamental of that particular guideline. So that fits very well with SlideLife's strategy and our pipeline. And from day one, we evaluate internally or externally to develop products. That's how we use the global standard to see whether it ranks first or second class or only in class.

Yeah.

Well, so what the I'm really trying to emphasize is actually closed and philosophy a send it on ecology.

True.

And you Wonder why you have to show differentiation and to address unmet medical needs and then secondly, if they're already both Sundays that mission.

Do you need to do compared to the savvy and instead of the Super Charles I think that's the fundamentals on the <unk>.

That particular 5 months, so that seats nearby with finite spot on strategy for novel pipeline.

And from day, 1 we and if you had.

And that really resonates internally and externally to develop products and how we use the closeness and day.

Because they went on and it shows.

First of all the best in class, Oh, I need and Clos since all of the criteria.

unknown: That's our criteria. Unsponsored ADR Unsponsored ADR Unsponsored ADR Overall, Zai Lab, we believe we are very well positioned so the future generation of biopharmaceutical companies have China exposure but also continually expanding in the U.S., continuously instead of just China for China but really China for global and global for global. Those directions we're taking, I think they're all on a very positive trajectory, especially for companies that are already at Zai Lab's side. We believe that this gives us a strong opportunity to continue to see growth and strong growth from Zai Lab. If you want to comment on anything else,

And intense of the yeah, so sort of perhaps the by the over all the countries.

Future right about the timing issue and excellent news of policies.

And again, both on and really.

Has allowed to do with the older reel and.

Mentor and.

And then policies.

And with the erection and China's growth over the last through the years the.

And also want to families and different industry and how to control and the top of on the how to be.

And Ted and the top of monopoly and you have to balance that.

The population, which received and the agitation and stature of house to the the deep and provide the equal opportunities and the 1 point of appealing population.

But having said that it's not part of the area of expertise and I honestly don't testing and the pain for a long time and.

And they looked at the.

Try its actually the market reacted and that's.

That's the kind of from activity because the base has not been 1 and I view it has been lumpy and even since 2018.

And Oh.

Well the real day life.

And again.

And Theres amputations.

And the feature.

Generation only channel.

On the biopharmaceutical companies and try and make smoking, but always the companion day and spending in the U S companion snake instead of China, the triangle, but really China for global and global for global those erections, and we're taking and think that it's all on the very positive trajectory.

And especially for companies and Wendy and I say lifestyle, and we believe and it does keep up the.

Strong opportunity to compete.

The new tool to she explores continues to see and growth and the strong Phillips from fan out and giving you want to come from and from anything else. Yeah sure. Thanks and at the end of problem you asked about P. T O D. So I'm just kind of mentioned 2 quick broad points. The first just want to as you know.

unknown: Yeah, sure. Thanks, Samantha. Anupam, you asked about PTOB, so I'm going to ask you about PTOB.

unknown: I'm just going to mention two quick, broad points.

unknown: Unsponsored ADR

And everyone here that we are of 100% privately owned enterprise with the very simple and legal structure No V I E.

Never have never will and all of our financial reporting has historically been and continues to be on the U S GAAP basis and in accordance with PCA or the standards.

unknown: Unsponsored ADR Unsponsored AD

As it go most of the Fisher now, which is why were having a quarterly call with quarterly filings. We have also completed a full of start things off of Sox audit historically has grown and ongoing and the second point is that.

unknown: Unsponsored ADR Thank you. We have our next question. This is coming from Jonathan Chang from SBB. Learning, please go ahead.

There of course, we have a sandwich.

And the infrastructure in China, but we do have 8 offices around the world and we're making investments in the U S as well and that I guess without going into the details I can make the statement that we do plan to have options available to us to significantly and limit.

The risk that's been.

Publicly kind of published so far and you can also look towards our 10-Q filings for additional info on those but thank.

Thanks for your question.

Thank you.

We have our next question is coming from Jonathan Chang from <unk>.

And you'd be doing Pease go ahead.

Hi, guys. Thanks for taking my questions.

unknown: Hi guys, thanks for taking my questions. First question: are there certain subsectors or areas within Chinese biopharma that could be more or less vulnerable to changes in the regulatory landscape in the future? Well, I think so.

First question are there certain subsectors or spaces within Chinese biopharma that could be more or less vulnerable to changes and the regulatory landscape and the future.

Well I think of companies like satellite right and that's it.

unknown: Well, I think of companies like ZaiLab, as I said, focusing on innovation, focusing on meeting the needs of patients and patients globally. I think, I personally believe we are in the best sector. Inbound time.

And.

And focusing on innovation and casino and gaming and they've met the needs of patients and.

And for patients globally.

I think I personally believe we arent, even the fact thats true.

And downtime.

Right got it and and maybe the second question.

unknown: I got it. And maybe just a second question, can you provide any additional color on how investors should be thinking about second half revenues, you know, maybe specific to ZULA? Are there additional metrics you can provide to give us a sense of how the ZULA is performing relative to competitor programs? Thank you.

Provide any additional color on around how investors should be thinking about second half revenues you know maybe specific to the shoe and are there.

Are there additional metrics you can provide to give us a sense of how is the true.

And relative to competitor of programs. Thank you.

The mi.

Yeah sure.

unknown: Yeah, sure. So, thanks, Jonathan. We're obviously quite pleased with the sales momentum that we're seeing so far year-to-date. We saw a nice volume uptake and market share gains, and our deal implementation, while early.

So of.

It takes on it and we're obviously quite pleased with the sales momentum that we're seeing so far year to date, we saw a nice volume uptake and.

And market share gains are and our deal of implementation while early it is.

Off to a fast start and you saw our press release.

unknown: Unsponsored ADR

Siding the starting from the implementation date of March 1 till the end of June we actually increased the number of hospital listing by over 7 X are more.

unknown: Unsponsored ADR Unsponsored AD

More of a 7 fold, which is actually the actually closer to a kind of a more close to 858 hundreds. So we're.

And we're quite happy with the implementation going so far and the forward to of course, you know kind of building on the momentum.

For the the back half of the year as well and we're we're pretty confident of rocks, you're very confident in it.

And I will hit our internal goals.

And what we're talking we're not yet, giving a kind of full year sales guidance just yet.

But you could see some statistics that we shared around hospital listings of hospital coverage is also expanding as well and now we have over 2000 hospitals and our coverage.

unknown: Our hospital coverage is also expanding as well, and now we have over 2,000 hospitals in our network.

Got it thanks for taking the questions.

unknown: Got it. Thanks for taking the question.

Yeah.

We have the next question is coming from the Chen from Goldman Sachs. Please go ahead.

unknown: We have the next question. This is coming from Ziyi Chen from Goldman Sachs. Please go ahead.

Sure. Thank you. Thank you for it give me the opportunity to raise questions I look at the pipeline actually this time, we have of specifically left out the in internal R&D pipeline, which now we counted about 13 projects and targeting and identification and about 10 projects.

unknown: Sure. Thank you. Thank you for giving me the opportunity.

unknown: Unsponsored ADR Unsponsored ADR Unsponsored ADR

And frankly and the range of the optimization 2 phase 1 studies. So a couple of the crusher and SEC regarding the in house discovery strategy number 1 and style of came up we saw at the top of the Air company and her chase not only Charlotte Charlotte and Guy, but if I came March.

I see the rest of collaboration also with the Alpha math so.

And trying to understand the more about and Tricia beauty and the inhouse pipeline and will external cooperation on the discovery side will be of 1 of the major drivers are still we are beating your speeding up of pretty strong and in house team. If we can know the and I'm sure you know how big the discovery team and now with inside of lab, and I'm, particularly thinking of.

And in terms of the pipeline.

Covering the oncology autoimmune.

But in terms of of target selection. So is there any specific strategy youre going to be following income and tricia picking the right the right target to work on.

My second question and Steve we're trying to get a sense on the PARP competitions.

Kimberly towards end of this year I think side of it have the very good chance of getting to the anarchy out for the first of all of the education.

But at the same time, we start to see some of the local competitor, she and coding of hungry and medicine, and Beijing and they are also being pretty aggressive and treasurer marketing for their product but of course, it's the third eye indication instead of the <unk>.

And second life first of all I and based on our track you know and the second quarter and small first half. This year, probably is that I've already got about 25% and 30% market share and the part of market. So if you guys got of the first of all indication and what kind of market share we should be looking at.

And to the 3 Years' time, thank you.

Thank you Qi Lu on for.

unknown: Thank you for the first question related to our eHealth discovery. As you can see, in the news release, we announced our internal discovery pipeline with global rights. I'd just like to remind the audience that this is a seven-year-old company, and we've spent five years investing in internal discovery, increasingly investing in internal discovery with our e-house platforms, as well as the extension of, like we talked about earlier, microchemics by specific platforms. We talked about working with Schrodinger's and other universities, but we did not really feel it's material enough to expand, to elaborate. But having said that, what I'm trying to say is, I'm very pleased with the five years of internal discovery efforts. We started with a very small team in Shanghai.

First question related on the Ehealth discovery.

I think on has to be on.

And.

And you can see the in the.

And we should reduce the amongst on the pipeline of internal discovery platform.

The simple rights on small and I just like to remind the audience. This is from years.

On the company.

And we 5 years, you can connect and internal discovery increasingly invest and just get to tune of the country without the need and how it transforms and that.

Well and the expansion on from nights on the talk about earlier, Macrogenics and our Bispecific and the platforms. The talked about on once you get the stroke and crews and other universities, which we did not really feels that it's on.

And materially not too long.

True to expense.

That range.

And so what I'm trying to say and I'm very pleased with the size of the year can you describe the excellence.

The started the very small team and Shanghai now of the team was extending my body Shanghai, but the truth, though in the sense, even the San Francisco Bay area. We're also going to Oh, they're shown amongst our opening of Fastly sentence I pass the mic.

unknown: Now the team is expanding not only in Shanghai but in Chuzhou, in the San Francisco Bay Area. We're also going to, very soon, announce our opening in Boston, Cambridge, Massachusetts, and more focused on global development and also focusing on Unsponsored ADR. So that's, I think, the first thing I want to say. And secondly, I think we are no longer working within the wall for R and for D because we're in a different phase of job development.

And 10 breach and Massachusetts.

And the more folks from global development and also focusing on the wall.

All kinds of thinking the pigs.

So and that's I think the first theme of once the C and secondly, I think.

We are no longer and we're working within the war for Orange from art and fatigue, because we're eating a different channel phases. That's the.

The company technologies and.

unknown: There are constantly technologies which we, as one company, cannot handle all. And so with that, we understand we need to collaborate. We need to collaborate with companies that have AI capabilities or companies that have strong computational chemistry capabilities or, you know, companies that have strong bi-specific platforms, which complement what we don't have but which doesn't mean we will not continue to add internally other technology platforms. And all of this, I am saying, going forward, you will continue to see us have more and more collaborations, some with the, I mean, some with the...

Rich.

And the 1 company can now have it at home and.

And so the fact, we understand we need to package it and it's calculated with the companies have day and capabilities. The company has shrunk computation the kind of true capability.

Or you know the company didn't have swung by specific platforms and.

Which complement the wait and have the leach doesn't need scale, we will not continue the 2 at internally all of the technology platform.

And all of the day I am saying that going forward you will continue to see we had and more and more of transmission. Some goodness that means some with the.

And the the theme.

The truth Punky.

And I read attention is now say the does not want to continue on with 19.2 models.

What's the had not been to fix it moved to obtain the team.

And you know.

Many of them as they accelerate internal discovery, well and ocean and that's true piece of it.

And look for the best unmet medical need and.

Oh, and you know first of class I think to compete and not all of it. So all the time the right type of fund and also at the local pipeline and say life now and in the scale.

And we have the capacity and have the people and I think the business where with all of them.

In terms of the statistic target cell.

Those details and hopefully a we kind of because of the time of the day when he confirmed and dates on the side bar of what kind of talked about this the upcoming R&D day, Thank you rich and.

And the PD ones the attack.

And I'm extremely excited.

Yeah. So the odds of I'll take your second question about the 2 of the in relation to and our deal and some competitions that you referenced and Hungary and other domestic companies.

unknown: I'll take your second question about JULA in relation to NRBL.

unknown: So, just to reiterate, Zijula is the only PARP approved for all comers in the first phase. It is a once-daily model therapy, excellent.

So just to reiterate and secure the is the only PARP approved for all comers and the first line setting.

It is a once daily monotherapy excellent safety profile and has the ability to cross the blood brain barrier and you're already habits in the second line for NR deal and we strongly and we actually lead that's already been positioned and.

unknown: Unsponsored ADR

The best in class PARP for all of the various kinds of patients.

So you know I also like the kind of you also mentioned the next year with first line you know volume picking off potentially Oh, what does it look like in terms of market share.

And while we don't give guidance I know you've heard us historically say that we're confident that we can be the market share leader and we stick by that also like to point you towards some of them ex China statistics are in the U S. Right now the 2.

unknown: We're confident that we can be the market share leader, and we stick by that. I'd also like to point you towards some extras.

unknown: Unsponsored ADR

Of the has a 51% market share of personal lines and the Japan to have 68 per cent market share.

unknown: 51% market share in the first line, and in Japan, they have 68% market share.

unknown: Unsponsored ADR

So yeah.

And we're not giving the exact kind of percentage for China, but we have a very robust strategy on how to firmly establish by virtue of of as the best in class PARP inhibitor and the 1 thing, we're making very good progress towards that and and also on NR deal.

The first line ovarian cancer. It is eligible for negotiations this year.

unknown: For first-line ovarian cancer, it is eligible for negotiation this year, and actually, at the end of July, the MHSA published a review list, right, for the drugs that are eligible for energy negotiation, and Zitrulla is included, so we'll leave it at that. Thank you for your question. Yeah, I think actually also.

And and you actually on at the end of July the and.

And I say published a review of risk right for the for the for the drugs that are in the the.

And that are eligible for energy on negotiation and Institute of that's included so we.

We'll leave it at that.

Thank you for your question yes.

Yeah. Thank God TV and also you correctly pointed out and that's where the only on the Oklahoma first line monotherapy approved and time and added the Gopher and 19 on inclusion and that's true.

unknown: Yes, I think Ziyi also, you correctly pointed out, we're the only eCommerce first-line monotherapy approved in China and eligible for NRGR inclusion for next year. Yeah, sure. Thank you so much for having me. Thank you. The next question comes from Yang Wang from TED TV. Please go ahead.

Yeah sure. Thank you so much on bidding.

Thank you and the next question comes from young Wang from Credit Suisse. Please go ahead.

Yeah.

Ah Thanks, and my Congrats management per for the nice commercial progress on China, and just checking on the corner.

I have 2 questions first is of tumor treating fields and the competitive landscape in China and a lots of there are starting to see a few of our.

China domestic and China companies bought and conducting a there of tumor treating field device coming on and try and China and.

But that's the index of few years Walker and to see kind of let's say and offer on those sort of.

unknown: for the next few years. We're going to see clinical data from those studies. So I just want to ask you, "Unsponsored ADR, Dividing China." That's my first question.

And just 1 too.

However, our management of the comments on competitive and Alaska.

The long term or from the terminal.

On tumor treating fields.

And in China, That's my first question.

Yeah.

unknown: Yeah, I think that's a good question you're asking. First of all, as you correctly mentioned, it's a local company, still in the clinical development stage, and still focused on a very narrow indication, for which we do not know how the results will come out in the next couple of years. We'll see. So it's too early for us to say whether there is any computation because we're also expanding, and as you've seen, we have many other indications, large trials ongoing, and some are already past Phase II and going into Phase III.

And maybe that's a good question you're asking them.

And first.

So as you correctly mentioned and.

It's a local company and you can even put the value states and.

And she and focus on what their neighbor of indication and.

And of which meet the mountain, though to the high degree of thousands of come out and that's in the next couple of years. The seat. So it's too early tomorrow is the blended up there and any competition the claim.

We also used the sandy and debt.

You seem to have many other indications large trials on pony and there's some already on a path to go you can see threes.

Lots of indications. So we are very comfortable at this stage with our.

Data and even there I mean any blocks the worldcom and.

And the treatment options, what I'm sure is from it.

And it's proven to be successful and going to be people want to come up but the whether its at me true or meat on the worst or whether it's even quantified and email was the receipt and the weather itself and then.

unknown: Those are all large indications, and whether it's by then, we'll have very strong throughput crunch in the areas we are in. We have very strong confidence in this particular opportunity. Unsponsored ADR. So basically, patients, and doctors have already put this into the treatment guidelines. So we'll see, but we are very optimistic.

And then side will have very strong.

Cringe.

The need and the areas where.

We have very strong confidence in this and this particular opportunity.

And when you do and working on opportunities everything from.

The nice thing, we got scared of creep approval based on each of the all clear.

The guidance so the nuance.

So basically the patients are and if that's changed and that flip is already into law and its guidance for the treatment guidelines and so well let's see.

And I'm very optimistic.

Great. Thanks for color I'm on.

unknown: Great. Thanks for the color.

The second question is about our.

K restaurant, and so I noticed you know of crossroads and on the National we're kind of on.

The critical powerful K, Ras when and if that's the license from them.

So kind of come on and.

And then.

On the cover day.

Sure. Thanks, Samantha and thanks for the question.

unknown: And my second question is about our KRAS truck. So I noticed in our press release that we did not mention our kind of clinical plan for KRAS. We just licensed from one artist. So can you comment on that?

A couple of comments, 1 where we're extremely excited and at the either the partnering with Marathi on this are very interesting and wonderful molecule and K Ras and as a form of thoracic oncologists, having spent over 20 years are trying to come up with something for K Ras is extremely extremely.

unknown: Island, do you want to cover that? Sure. Thanks, Samantha. And thanks for the question. So our couple of comments. One, we're extremely excited at ZAI to be partnering with Murati on this very interesting and wonderful molecule, KRAS. And as a former thoracic oncologist, having spent over 20 years trying to come up with something for KRAS, this is extremely, extremely exciting. We have had the opportunity to participate in all of the Mono and Combo global trials.

And.

We had the opportunity to participate and all of the mono and combo a global trial.

We also have the potential to run exploratory local studies within our own pipeline assets, such as with the the PD, 1 and blacks rate of PD, 1 and et cetera.

unknown: We also have the potential to run exploratory local studies within our own pipeline assets, such as with the PD-1 and LAG-3 and PD-1, et cetera. And so it's a bit early to comment on what local studies will do, but what I'd like to emphasize is that we will be participating with Murati and in their global combination, in their global studies.

And and so.

unknown: And there'll be more to comment on as we move further along. Thank you. Thank you for the question. Thank you. That concludes our question and answer session for today. I would now like to hand the conference over to our host for any closing remarks.

So it's a it's a bit early the comment on what local studies will do but what I'd like to emphasize is that we will be participating with Marathi and and they're a global combination and the global studies.

And there'll be more more to come there as we move further along.

Okay. Thanks.

Thank you. Thank you for the question.

Thank you that concludes our question and answer session for today I would now like to hand, the conference or withdraw the host for any of the remarks.

Okay.

Yeah.

Okay.

I think maybe.

unknown: I think maybe Samantha is on mute.

Maybe some of us on mute.

But oh so.

unknown: Oh, so what? Unsponsored ADR. Yeah, the Q&A is done. Okay. Thank you, operator. I'm sorry, because I was on mute and I didn't pick up your sentence. Thank you, operator. And I want to thank everyone for taking the time to join us on the call today. We appreciate your support and look forward to updating you periodically on our progress throughout the year.

There are subsidies and so basically when the founding of the kidney.

Yeah. The Q&A, it's on some of the.

Okay. Thank you operator and salary so I was and foundries and I didn't pick up the all the same thing thank.

Thank you off and with it.

And I want to thank everyone.

Taking the time to join us on the call today.

I appreciate the on support and look forward to updating you periodically on the progress throughout the year.

Operator, you may now disconnect the call. Thank you all.

unknown: Operator, you may now disconnect this call. Thank you all. Certainly. Ladies and gentlemen, that concludes our conference call for today. Thank you all for your participation. You may disconnect now.

And.

Ladies and gentlemen that concludes our conference call for today. Thank you all for your participation you may disconnect now.

And.

[music].

unknown: Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR [inaudible] Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR, Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR, Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR Unsponsored ADR

unknown: Hello, ladies and gentlemen. Thank you for standing by, and welcome to Zai Lab's second quarter 2021 financial results conference call.

Uh huh.

[music].

unknown: At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, today's call is being recorded. It is now my pleasure to turn the call over to Billy Cho, Chief Financial Officer of Zai Lab, who will make introductory comments.

[music].

[music].

Hello, Ladies and gentlemen, thank you for standing by and welcome to the <unk> second quarter 2021 financial results conference call on.

unknown: Thank you, operator. Good morning and welcome, everyone. After the market closed yesterday, Zai Lab issued a press release providing the details of the company's financial results for the second quarter and June 30th, 2021, as well as product highlights and corporate updates.

At the time, all participants are in a listen only mode.

We will conduct the question and answer session and instructions will follow at that time as a reminder, today's call is being recorded.

It is now my pleasure to turn the floor with the Billy Joel.

The financial officer of dried up and we'll make the introductory comments.

Thank you operator, good morning, and welcome everyone.

unknown: The press release is available in the investor relations section of the company's corporate website at ir.zailaboratory.com. Today's call will be led by Dr. Samantha Du, Zai Lab's Founder, Chairperson, and Chief Executive Officer, to be joined by Tao Fu, Chief Strategy Officer, who will provide more details on the product portfolio along with the pipeline and commercial products. I will conclude with comments on our financial results for the quarter. Dr. Alan Sandler, President, Head of Global Development Oncology.

And the market closed yesterday, the dialogue issued a press release, providing the details of the company's financial results for the second quarter ended June 30 of 2021 as well as part of the highlights and corporate update the.

The press release, it's available on the Investor Relations section of the company's corporate website at IR, The Thai laboratory of Dot com.

Today's call will be led by toughest method the dial.

unknown: Dr. Harold Reinhart, Chief Medical Officer for Autoimmune and Infectious Diseases, and Jonathan Wang, Head of Business Development, will also be available to answer questions during the Q&A portions of the webinar. As a reminder, during today's call, Zai Lab will be making some forward-looking statements within the meaning of the Private Securities Mitigation Reform Act of 1995, including the business plans and objectives, and the timing and success of our clinical trials, regulatory applications, and commercial launch.

The <unk> founder chairperson and Chief Executive Officer, she'll be joined by Paul Food Chief Strategy Officer, who will provide more details on the product portfolio, along with the pipeline and commercial progress.

I will conclude with comments on our financial results in the quarter.

The Alexander President and head of corporate development and oncology Dr.

Dr. Harold Weinhardt, Chief Medical officer for autoimmune and infectious diseases and.

And Jonathan Wang head of business development 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.

unknown: These 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.

And our business plans and objectives.

Timing of the success of 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.

The statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expense.

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.

unknown: 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 Skylab's Founder, Chairperson, and Chief Executive Officer, Dr. Samantha Du. Thank you, Judy. Hello, everyone.

At this time the spot.

And as you can turn the call over to dial up the founder chairperson and Chief Executive Officer Doctors don't have to do.

Thank you binnie.

Hello, everyone and thank.

unknown: Thank you all for joining. On this call, I will discuss highlights from our second quarter and provide the latest updates on what we expect to accomplish for the remainder of 2021. Consistent with our top checklist, satellites continue to execute with speed and quality across our organization during the second quarter, with successful launch blocks in China in record time. Team Locked is our third commercial product in oncology to launch over the last 16 months and the first product in what we expect to become a world-class sketchy content franchise.

Thank you all for joining on.

On the call I'll discuss highlights from the second quarter and provide the navy something.

Makes sense of accomplish some of the.

And there can be simple 1.

Consistent with all the talk of truck platform.

The lights continues and that's the key thing.

And the quality of crown problems of innovation 2 of the second quarter.

The success of lung kinlaw triangle and record time.

Jim lots of with all the sort of commercial products and oncology with the launch of the loss of 16 months and the.

The first of all of that what we expect to become the workforce, that's you're kind of the franchise.

We continue with the generally some revenue growth some of these sorts of products, there's lots of opportunity.

unknown: We continue to generate strong revenue growth from our first two products as we lost an opportunity. They entered into three strategic collaborations with Maradi, Microgenics, and Schrodinger, respectively, to further strengthen and improve our disease-aerial strongholds and our global health. Paul and Billy will discuss this achievement in more detail.

And church.

And the strategic collaboration.

The Milwaukee, and Macrogenics and southern girl and such.

And the effective date.

To further deepen and strengthen our disease area of samples and all of a global platform.

All of them believe will discuss these achievements of all detail.

We now have simplified globally, even though they think I said not with Hudson and the.

unknown: We now have 25 globally-innovated assets in our platform, and the quality, depth, and breadth of our pipeline will continue to grow. Notably, 12 products are in late phase development, of which 5 have already been approved in the U.S. Unsponsored ADR. In addition, our growing pipeline now includes 11 early stage programs with worldwide rights, including three from Global Clinical Trials. We have to use a proud, innovative, validated portfolio whose success will allow us to achieve significant sales within just a few years. We will continue to leverage our skills and operating excellence. Brand our Type 1.

The quality, that's and breath of virus had flung.

10 years ago.

Notably cloud products on late Phase development of.

Which size has already been approved and the U S.

And we have received FDA breakthrough therapy designation.

Innovation.

The growing pipeline now includes 11 Hurley sinful from the well.

Worldwide place.

Clothing clearing and global clinical trials.

You have to you the well you know Vegas why did you say the portfolio is.

Besides la and.

The 2 achieved significant would.

It would be just 2 years.

We will continue to leverage all the scale and operating like some of them.

And all the pipeline globally and the biggest problem.

unknown: It's a greatly innovative product, and through strategic partnerships and internal R&D, we expect to achieve many exciting milestones across our product pipeline throughout the remainder of 2021. We expect approval of non-affiliated commercial products in Zara. Community acquired bacterial pneumonia, an acute bacterial skin and skin structure infection, MMPA.

The strategic partnerships and.

Total R&D.

We expect to achieve many exciting milestones across our product pipeline because of all the.

The remainder of could you kind of warm.

We expect the pool.

We'll flush of product and the Sarah so.

Community acquired bacterial pneumonia and the pure.

But several of the skin and skin structure infection. That's on P..8.

We'll also continue the progress on the fish and the rest of food filings and activities.

unknown: We also continue to make progress on additional registry filings and activities. We expect to have a discussion with NNPA on filing strategies for SRTCOMAT in the near future. Scientifically, numerous data results during the break of this year, for Pinlock Infectious Lung Disease, for Marc Pilsenhoff in Gastric Cancer, for CLN-081 in Non-Small Cell Lung Cancer, and for PPX-0022 in Non-Small Cell and Gastric Cancer.

We expect to have the discussion and then P M on the filing strategy and lifestyle.

Pick them up and the near future.

And typically numerous state of the about the price.

The book here.

The pin locks and the second long day.

Here's the math and get to conserve cash.

And the tier 1 the non small cell lung cancer.

The P. P S tariffs and the true non small cell and catch of concept and.

The other product candidates and our global pipeline.

unknown: Unsponsored ADR, We continue to invest in our worldwide organization and facilities. In June-September, we will expand our presence in the U.S. by formally opening a clinical development and business facility in Cambridge, Massachusetts, to pass into the box in the area about the farmer ecosystem. In the meantime, our existing R&D and business centers in the San Francisco Bay Area and in China will continue to grow. Their lives have grown substantially since our inception seven years ago. With the abundance of growth opportunities we see, we strongly believe that we failed in the early stage of our growth trajectory.

We continue the index and our worldwide accommodation and facilities.

And in September.

And our presence and the you'd like.

Formerly the opening of clinical development and business dependency and 10 bunch of Massachusetts.

Moving to the bottom of the area of bio pharma ecosystem.

In the meantime on the physical R&D and business Center, and the San Francisco Bay area and.

China and will continue to girl.

For the life of school and whats the sense.

Italy since our inception 7 years ago.

And with the abundance of growth opportunities, we see the.

So my belief, but we feel and the early phase of our growth trajectory.

And given the current price and bad stuff on the portfolio, we have decided to hold and R&D day on September 22nd the.

unknown: Given the current threat and that of our portfolio, we have decided to hold an R&D day on September 22nd to take a deep dive into our pipeline and deeply strengthen it, to highlight the Fundamental Growth Potential slide. We hope you come away from it with a more comprehensive understanding of what we are doing and what we expect to accomplish in the future. We believe we have a once-in-a-generation opportunity to be the leading global biopharmaceutical company with a strong foundation in both China and the U.S. Zai is in a great position to capture growth opportunities with our global infrastructure and ever-growing first and or backing class portfolio.

Take a deep dive into all of the type 1 and duties of Trumpf and.

The highlights the fundamental growth depends on side.

We hope you come away from it and a more comprehensive understanding of what we are doing and what we expect to accomplish in the future.

We believe we have 1 too much innovation and opportunity to be the leading global biopharmaceutical company and a strong foundation and both China and the Joy.

I assume a great position to capture the growth opportunity without the global infrastructure ever really and first and best in class of the phone.

We remain as committed as ever flow admission because the way.

unknown: We remain as committed as ever to our mission, to develop innovative medicines addressing the end-of-life medical needs of patients around the world. We believe by doing this, we'll benefit our shareholders as well. With that, I'll now ask Tao to discuss our performance and projects in more detail. Tao? Thank you, Samantha.

And if you can leave the medicine and fresh.

And the unmet medical needs of patients around the world.

We believe I think the will benefit our shareholders as well.

The bad I'll now ask Paul to discuss our performance and that's the most detail Paul.

Thank you for a bunch of I'll call them on the long term performance of Arps, and commercial products and the progress being made and the quarter and our main disease franchises and lung cancer gastric cancer, hematology autoimmune disorders and infectious diseases.

unknown: I will comment on the launch performance of our three commercial products and on progress we have made in the quarter in our main disease franchises, lung cancer, gastric cancer, hematology, autoimmune disorders, and infectious diseases. DRIVA continued to perform very well in the second quarter, and it achieved significant sequential revenue growth. As a reminder, Zajula is approved in China for first and second-line ovarian cancer and is the only part inhibitor monotherapy approved for all comers in the first line. Therefore, this provides significant differentiation from other part inhibitors. The inclusion of Zedula in NRDL, starting from March of this year, provided a major momentum for the Zedula Law.

So do the continued to perform very well and the second quarter and as we.

Cheap significant sequential revenue growth all the way.

Binder. The jeweler is approved in China for first and second line ovarian cancer and is the only PARP inhibitor and monotherapy approved for all commerce and the first 1. So this provides significant differentiation from other PARP inhibitors.

And the inclusion of the July and our deal starting from March of this year provided the major momentum towards the jewel of launch.

1 key leading indicators for the successful launch and on our default and implementation of hospital listing.

unknown: One key leading indicator for the successful launch and NRDL implementation is hospital listing. Our team has been laser-focused on increasing hospital listings, and as of June 30, 2021, the doula has been listed in more than 800 hospitals in China, which represents a more than 70-fold increase than just prior to the NRDL implementation in March 2021. Combined with the differentiator label, our successful market access strategy lays the foundation for strong volume growth in the second half of the year and beyond.

Our team has been laser focused on increasing the hospital listen and as of June 32021, the jewel of how can listen it's the more than 800 hospitals in China, which represents more than 70 fold increase from just prior to the and our default implementations and March 2020 of them.

Combined with the differentiator and label all of a successful market access strategy lays the foundation for strong volume growth and the second half of the year and beyond.

We remain confident that overtime the jewel of it will become the market, leading PARP inhibitor and ovarian cancer in China.

unknown: We remain confident that over time, Joola will become the market-leading crop inhibitor for ovarian cancer in China. Similarly, the launch of Optum is going well. As a reminder, Optum is the first innovative medical device supported by commercial health insurance in China and has also been covered in 14 supplemental insurance plans since its launch in June 2020.

Similarly, the launch of options and going well.

The reminder, often is the first of innovative medical device supported by commercial health insurance and China and also had been covered the 14th supplemental insurance plans since its launch in June 2023.

The only the second quarter, we held the extensive multi display and physician education campaigns to increase Glen the adoption and we're pleased with the feedback we've received from treatment of specialists.

unknown: During the second quarter, we held extensive multidisciplinary physician education campaigns to increase brand adoption, and we were pleased with the feedback we received from treatment specialists. Importantly, on the development side, we're working with our partner NovoCure to extend indications of tumor-treating fields in areas of large unmet medical need globally and in China. We look forward to additional clinical data readouts in lung, pancreatic, liver, and ovarian cancers, in brain metastases, and in glioblastoma with high-intensity array therapy over the next few years.

And importantly on the development side, we're working with our partner and mobile cure to extend and indications of tumor treating fields and the areas of large unmet medical need globally and in China.

We look forward to additional clinical data readouts and lung pancreatic liver and ovarian cancers and build on top of it and in Glioblastoma with heightened intensity of rates over the next few years.

And we continue to target the folly of tumor treating fields from malignant pleural mesothelioma later this year.

unknown: And we continue to target a fouling of tumor-treating fields for malignant pleural hematopoietoma later this year. As Samantha mentioned, we achieved another important commercial milestone in successfully launching King Loft on fourth-line ships in China in May, our third oncology launch in the last 16 months. Chinlok is another great example of our track record of accelerating the filing and approval of innovative oncology products. We were able to file the NDA for Chinlok in China only two months after FDA approval, and we received NMPA approval eight months after NDA acceptance. In July, Kinloch will be included in the Chinese Society of Clinical Oncology Guidelines for Diagnosis and Treatment of Gastrointestinal Femoral Tumors 2021 as an option for second-line treatment for advanced GIST patients.

That's the most of the mentioned we achieved another important commercial milestones and successfully launching 2 law from the fourth line Gist and China. These days.

Our third oncology launch and the loss of 16 months.

Jean Marc is another Great example of our track record and accelerating the as I say following on approval of innovative oncology products, we were able to file the NDA per kinlaw and China only 2 months after FDA approval and we received and the MTA approval 8 months after the NDA acceptance in July and why.

And that included in the Chinese Society of clinical oncology guidelines for diagnosis and treatment of gastrointestinal stromal tumors 2020.1 of an option for the second line treatment for advanced the gist patients.

We're encouraged by all of the initial launch performance and look forward to updating you with all the progress through the remainder of the year.

unknown: We are encouraged by our initial launch performance and look forward to updating you with our progress through the remainder of the year. Let's move on to progress in our product pipeline, starting in lung cancer, where we continue to build a disease stronghold with six products currently in clinical development. In June, we entered into an important strategic collaboration with Milwaukee and obtained the right to research, develop, manufacture, and exclusively commercialize autographics of potential best-in-class small-molecule KRAS Q12C inhibitors in Greater China.

Let's move on to progress and our product pipeline, Saudi and lung cancer, where we continue to build of disease stronghold with fixed products currently in clinical development and.

In June we entered into and it's important strategic collaboration with nobody and obtained the right to research develop manufacture and exclusively commercialize all of the classic of potential best in class of small molecule K last from 12 P inhibitor and greater China.

Out of gossip received FDA breakthrough therapy designation in June for the potential treatment of non small cell lung cancer patients who harbor. The cave on June 12, 2 mutation following prior systemic therapy viral.

unknown: Autographed received FDA breakthrough therapy designation in June for the potential treatment of non-small cell lung cancer patients who harbor the KRAS G12C mutation following prior systemic therapy, viable support, and accelerated enrollment in key global registration-enabling clinical trials of an autographic in KLOPS G12C cancer patients, including non-small cell lung cancer and colorectal cancer. Narabi has announced his intention to file autographs for second-line non-small cell lung cancer in the U.S. in the second half of 2021.

I will support accelerated enrollment and key global registration, enabling clinical trials of and others.

The asset and K last June and 12 to cancer patients, including non small cell lung cancer and colorectal cancer.

And the Ravi has announced the intention to file of out of glass. It for second line non small cell lung cancer in the U S and the second half of 2020.1.

We believe out of glass with the help that you and cost potential and we will also aim to make it first in class and China.

unknown: We believe autografting has rising cost potential, and we will also aim to make it first in class in China, where there are currently no ongoing clinical trials in this product category. Autographic is a great addition to our lung cancer franchise and complements other promising guide products being developed for lung cancer, including tumor treating fields, lipoprotectinib, CLN-081, and TPX-0022. For tumor-treating fields, Zai initiated the China portion of the Phase III Pivotal Lunar Trial and the Phase III Pivotal Metis Trial in brain metastases for nine small cell lung cancers.

And there are currently no ongoing clinical trials in this part of the category.

On the glasses to the Great addition to our lung cancer franchise and complements other promising the di products being developed for lung cancer, including tumor treating fields you are protecting it.

L M D O 81, and T. P exited all of you all of 22.

For tumor treating fields site initiated the the China portion of the phase III pivotal lunar trial and.

Phase III pivotal trial and bring the policy for non small cell lung cancer.

The call value of Mei noble pure and outside the FDA approved the IBD and supplement before lunar reducing enrollment requirement in 5 out of house and shortening the required patient follow up from 18 months to 12 months potentially accelerating the completion of the final by more than per year.

unknown: You will recall that in May, Novacure announced that the FDA approved their IDE supplement for Lunar, reducing enrollment requirements by about a half and shortening the required patient follow-up from 18 months to 12 months, potentially accelerating the completion of the trial by more than a year. For CLM081, in June, Pfizer's partner, Colinan, announced phase 1, slash 2, and interim data in non-small cell lung cancer, CLM-081 continues to demonstrate its best-in-class potential with good activity and encouraging safety and tolerability. Now, let's move on to gastric cancer. A Disease Long Hold with seven products currently in clinical development, including Chin Lock and Demerol seasoning.

Well see all of them do 81 and June 5 partner cooling on announced the phase 1 lost 2.8 interim data in non small cell lung cancer Egfr exon 20 patients.

She all enjoy 81 continue to demonstrate the best in class potential with good activity and the encouraging safety and Tolerability.

Let's move on to gastric cancer.

Of diabetes long hold the 7 products currently in clinical development and.

And who they can lock and femoral Susan.

As I mentioned earlier will occupy and launching to lock in the fourth line gist.

unknown: As I mentioned earlier, we're actively launching Kinloch in force line JISC, supported by the compelling data generated from the Invictus Space League study. In the second half of this year, our partner, Decephala, expects to receive data from the intrigue trial of Pinlock versus United Mint in second-line gist. Other gastric cancer products also made significant progress in the quarter, including BEMA, the monoclonal antibody against FGFR-2B. In April 2021, science partner Amgen was granted breakthrough therapy definition by the FDA for BEMA as a first-line treatment for patients with FGFR2B overexpressing HER2 negative metastatic and locally advanced gastric and gastroesophageal junction adenocardiogenoma in combination with modified FO In June, Zai's partner Turning Point was granted an often-blocked destination by the FDA for TPS0022 in gastric cancer, including Gastroesophageal Junction Democrocinoma.

Boarded by the compelling data generated from the Invictus the phase III study.

And the second half of this year all of the partner or expect to receive data from the intrigue trial of <unk> versus the net of it the second line gist.

Although the gastric cancer products also made significant progress in the quarter, including Viva.

Monoclonal antibodies against <unk>.

In April 2021 sites part of Amgen was granted breakthrough therapy designation by the FDA. It will be more of the first line treatment for patients with <unk> over expressing her 2 negative metastatic and locally and advanced gastric and gastroesophageal junction adenocarcinoma income.

Combination with multiplied full box.

In June 5 partner, turning point was granted orphan drug designation by FDA for PBX, the old until 'twenty, 2 and gastric cancer and.

Including the Gastro esophageal junction adenocarcinoma.

And our hematology franchise. The May 2021 sites partner of Regeneron resumed enrollment in the phase II potentially pivotal clinical trial on ultra on messed up on lab in patients with Follicular lymphoma, and diffuse large b cell lymphoma.

unknown: In our hematology franchise, in May 2021, Zai's partner Regeneron resumed enrollment in the Phase II Potentially Pivotal Clinical Trial, or Ultranexacomab, in patients with follicular lymphoma and diffuse large T-cell lymphoma. We look forward to initiating this important clinical trial in China. Since our last earnings call, we have also entered into two other strategic research and development collaborations to bolster our global oncology pipeline. In June, Xi and Microgenics announced that the two companies had entered into an exclusive collaboration and license agreement involving up to four immuno-oncology molecules.

Look forward to initiating this important clinical trial and China.

Since our last earnings call. We also entered into 2 other strategic research and development collaboration to bolster our global oncology pipeline.

In June <unk> and.

And Macrogenics and now that the 2 companies have entered into an exclusive collaboration and license agreement involving up to 4 and immuno oncology molecules.

The first collaboration program covers the lead research molecule that incorporates macrogenics, the dark platform and by the CDC and an undisclosed target that is.

unknown: The first collaboration program covers a lead research molecule that incorporates microgenics, the dark platform, unbinds CD3, and an undisclosed target that is expressed in multiple solid tumors. The second program covers a target to be designated by Michael Jennings.

Expressed in multiple solid tumors.

The second program colors, the targets with the designated by Macrogenics.

The both molecules value received commercial rights, and greater China, Japan, and Korea, and obtained and the option to convert the lead research program into a global 50, 50 profit sharing arrangement upon achieving of pre defined clinical milestone.

unknown: For both molecules, Zai received commercial rights in Greater China, Japan, and Korea and obtained an option to convert the lead research program into a global 50-50 profit-sharing arrangement upon achieving a predefined clinical milestone. For two additional early stage molecules, Zai Lab has exclusive global development and commercial rights. Earlier this month, Zai and Schrodinger announced a global discovery, development, and commercialization collaboration focused on a novel target in the DNA damage response pathway, a key research interest for Zai's Lab in oncology.

With 2 additional early stage molecule by lab has the exclusive global development and commercial life.

Earlier, this month fly and shoulder and now the global discovery development and commercialization collaboration focused on of novel target and the DNA damage response pathway of key research interests the dialogue oncology shoulder.

<unk> is an industry leader in providing computational platforms using drugs and drug discovery.

unknown: Schrodinger is an industry leader in providing computational platforms for drug discovery. The research program will be conducted jointly by the two companies' scientific teams, and Zai Lab will have exclusive development and commercial rights. This initiative will complement our existing discovery efforts in DNA damage response pathways, in addition to potential combinatorial approaches within our pipeline with such products as the part inhibitors Zajula and DL2309. Unsponsored ADR. In July, Zai Lab's partner, RGenX, announced myofasciitis and bolus cancervoids are two new indications for African titimod, that's its R&D date. Today, five critical file applications for FVAR filed by ZAI were approved.

The research program will be conducted jointly by the 2 companies scientific teams and.

Dialogues and will have exclusive development and commercial lives globally.

This initiative will complement our existing discovery efforts and DNA damage of response pathway. In addition to potential company Portio approaches within all of pipeline with such products without the <unk>.

PARP inhibitor of the jeweler NPL twenty-three overnight.

You know autoimmune franchise in July.

Lots of partner Biogen X amount more of a fight us on bolus Pemphigoid on 2 new indications after the TTM on lots at the R&D.

R&D day.

Good day, 5 clinical trial applications for Fr followed by guidance have been approved.

With all of this progress as you can see the price development and commercialization of operations are hitting on all cylinders.

unknown: With all of this progress, as you can see, our GIS development and commercialization operations are hitting an all-cylinder. We have an abundance of growth opportunities, and we very much look forward to sharing our further progress with you throughout the year. And now, we will discuss our financial results in more detail.

We have an abundance of growth opportunities.

Very much look forward to sharing of further progress with you throughout the year.

And now we will discuss our financial results and the corner.

Thank you Paul.

unknown: Unsponsored ADR Today, I'll briefly summarize our financial results for the second quarter and year-to-date 2021, which are both in line with our internal expectations. Revenues for the second quarter and year-to-date 2021 were $36.9 million and $57 million, respectively. Over the same period last year, revenues were $57 million.

We continue to remain in high growth book, and our financial results reflect strong progress across our business.

Today, I'll briefly summarize our financial results for the second quarter as well as year to date on the 21, which are both in line with our internal expectations.

Revenues for the second quarter and year to date, and 2021 with $36.9 million and $57 million respectively.

Of the same period last year revenues were $11 million and $19.2 million respectively.

unknown: $11 million and $19.2 million, respectively. We're still early in the revenue ramp cycle, but we are very pleased with the successful launches and sales trajectory of our first three oncology products. Did you leave sales for the second quarter and year-to-date 2021 with $23.4 million and $36 million?

So early and the revenue ramp cycle. So we're very pleased with the successful launches and sales trajectory of the first 3 on quality products.

You do the sales for the second quarter and year to date the cells in 'twenty, 1 with $23.4 million and $36 million respectively. Over the same period last year. The July sales were $7.5 million and $13.8 million respectively.

unknown: Over the same period last year, jewelry sales were $7.5 million and $13.5 million.

unknown: Unsponsored ADR Opt-in sales for the second quarter are due to date 2021, where $9.5 million and $16.6 million are set to go. And over the same period last year, opt-in sales were $3.5 million and $5.4 million, respectively. As for our third product update, we successfully launched Kinloch on May 20th and achieved $4 million of revenue for the quarter. Research and Development Expenses were $142.2.

<unk> sales for the second quarter and year to date still the 21 were $9.5 million and $16.6 million, respectively and.

And over the same period last year after the sales of $3.5 million and $5.4 million respectively as.

And as far as the third product update you said for the 3 launch kinlaw on may 20th and the <unk>.

<unk> $4 million of revenue for the quarter.

Research and development expenses were $142.2 million for the 3 months ended June 30th from 'twenty, 1 compared to $68.3 million of the same period and 2020.

unknown: Unsponsored ADR

unknown: Unsponsored ADR Unsponsored ADR Expenses related to ongoing and newly initiated late-stage clinical trials, and pay and payroll-related expenses from increased R&D activities. Selling General and Administrative Expenses were $54.4 million for the three months ending June 30, 2021, compared to $23.8 million for the same period in February 2021.

The increase in R&D expenses was primarily attributable to additional strategic partnerships, including a 65 million below the upfront payment of 2 Marathi and a 25 million of the upfront payment to macrogenics.

Does relate to ongoing and newly initiated late stage clinical trials and pay and payroll related expenses from increased R&D headcount.

Selling general and administrative expenses were $54.4 million for the 3 months ended June 30 of 2000 and some of them.

And compared to $23.8 million of at the same period and from 'twenty to.

The increase was primarily due to payroll and payroll related expenses from increased commercial headcount and additional commercial activities and by the continued to expand its commercial operations in China.

unknown: The increase was primarily due to payroll and payroll-related expenses from increased commercial headcount.

unknown: Commercial headcount and additional commercial activities, and Zai Lab will continue to expand its commercial operations.

For the 3 months ended June 30 of 2021 style of reported a net loss of $153.3 million or a loss per share attributable to common stockholders of the dollar and 76%.

unknown: For the three months ended June 30, 2021, Zai Lab reported a net loss of $163.3 million.

unknown: Unsponsored ADR of $1.08 for the same period in 2020. The increase in net loss was primarily attributable to additional strategic partnerships, increased R&D, and SG&A expenses for the reasons I just mentioned. As of June 30, 2021, cash and cash equivalents, short-term investments, and restricted cash totaled $1.77 billion, compared to $1.19 billion as of June 31, 2020.

Compared to a net loss of $86 million or a loss per share of sugar to common shareholders of.

The dollar of Afib for the same period of 2020.

The increase and net loss was primarily attributable to additional strategic partnerships increased R&D and SG&A expenses for the reasons I just mentioned.

As of June 30th 2021, cash and cash equivalents short term investments and restricted cash totaled $1.77 billion compared to $1.19 billion as of June December 31, 2020.

I would now like to turn the call back over to the operator to open the lines of questions operator.

unknown: We would now like to turn the call back over to the operator to open up the lines for questions. Operator, Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. To cancel your request, please press the pound or hash key.

unknown: Kindly note, we request you to ask two questions per term for time constraints. Once again, it is Star 1 to ask a question. We have the first question coming from the line of Michael. We have the first question coming from the line of Yigal Nochomovitz from Citigroup. Please go ahead.

Ladies and gentlemen, if you can now begin the question and answer session to ask the question. Please press star 1 on your telephone keypad and wait for your name to be announced the.

unknown: I agree. Thank you very much for taking the questions. So you have a very rich pipeline.

unknown: Unsponsored ADR

At the request.

Press the pound of all Hashed E.

And the question.

You asked 2 questions first John what time constraints once again made the star 1 to ask the question.

And we have the first question coming from the line of Mike Casey.

The first question coming from the line of together and the terminals of it from Citigroup. Please go ahead.

Hi, great. Thank you very much for taking the questions.

So he has a very rich pipeline of in licensed assets and are making their way through clinical development and now 3 approved products and so are you still as focused on the BD effort to bring in new assets into the company or do you believe you're of the sufficiently rich pipeline and we will focus more on developing the assets that you've already bought.

unknown: Unsponsored ADR Unsponsored AD

<unk>.

Alright, Thank you eat of and this has meant a good morning.

unknown: Thank you, Yigal. This is Manta. Good morning. I'll let Jonathan address the question.

That's.

The only thing to a change of the question.

Hi, Thank you for the question look I think outside of the bidding strategy.

unknown: Unsponsored ADR

As a part of the company's growth strategy.

And because of really being evolution of cross and I think it would be really positioning ourselves as the partner of choice and China. So.

Continue to execute on bringing unit globally and class best in class of assets into our pipeline.

To complement it with the oncology, where the older years and within infectious diseases, but I think beyond that we're also looking for transformative deals and also looking for opt.

unknown: To, you know, complement within oncology, within autoimmune, and within infectious diseases, but I think beyond that. We're also looking for transformative deals. We're also looking for opportunities to go beyond, you know, our existing therapeutic areas. Just like we have done in the past with Epgar, with the Regeneron asset, I think we'll continue to do that. And I think even beyond that, like what we have done recently with the macrogenics, with the Schrodinger deals, you know, I think even to support a discovery effort, you know, so I think VB is always evolving, and I think it's multidimensional, you know, to support the growth of the company.

And they used the guard beyond.

And our existing therapeutic areas, just like we have done and the Pos and always ask.

So the the general asset I think we'll continue to do that and I think even beyond that and we have done recently with the Macrogenics the sure.

Oregon deal of charges that goes I think even to support our discovery efforts.

So I think BD is always evolving and I think it's multi dimensional.

It's called the growth of the company.

Okay, Thanks, Jonathan and I just had 1 follow up.

unknown: Okay, thanks, Jonathan. I just had one follow-up. So, by my count, I believe you have 11.

So by my Count I believe you have of 11 oncology products and your portfolio with 2 are 2 already approved so that opens up the possibility of the investigators and combination strategies within your portfolio. So that being said I'd be curious to know which products do you believe would make the most sense to evaluate and combination clinical.

unknown: Unsponsored ADR

Trials, and then what tumor types.

I can't speak on island.

unknown: [inaudible]

And the printing of Bom College, and divestments piece long kind of takes the question.

Hello, sorry, and I was on mute on.

Thank you for the question and yes. This is 1 of the the great advantages that we have here of side, given the large number of assets and the portfolio and additional ones and forthcoming.

I think that there are.

For 2 of these would exist.

Interestingly and our gastric franchise and our long the franchise and I think in particular and <unk>.

Moving on to you at broad number of assets that we have in there and the targeted approach with which we have and we're looking at the number of different combinations and it may be associated with the pay Rep also of combination and why and also in the gastric and.

unknown: Thank you all. Island, our Outdoor President of Oncology Development. Please take the question, have. And we're looking at a number of different combinations that may be associated with KRAS, also a combination in one and also in gastric with the various combinations that are available, including PD-1, Marge, her two agents, Met, etc.

With the various combinations that are available, including PD, 1 on large hmm to agent match and.

Et cetera, So I think that would give you a hint of some of the areas with which we're lucky.

And if I addressed your question.

unknown: I think that would give you a hint of some of the areas with which we're looking. Have I addressed your question? Yes, thank you. Thank you. We have the next question. This is coming from the line of Michael Yee from Jeffrey's. Please go ahead and ask your question. Good morning. Good evening.

Yes. Thank you.

Okay.

Thank you Yeah of the next question is coming from the line of Mike and he's from Jefferies. Please go ahead of your question.

Hi, Good morning, good evening, we have 2 questions.

unknown: We have two questions. One was about the recent Schrodinger deal, but just more broadly, strategically, should we anticipate that you are going to do more deals that bring in more global rights? and with an intention of developing and bringing in more internally developed R&D programs rather than an in-license of other programs, rather than developing your own internal and doing it globally. That's question one. How should we think about that? And question two is based on a comment about expanding outside your therapeutic areas. I think you have a very strong focus on oncology, etc. That's pretty well known.

1 was on the recent Schrodinger deal, but just more broadly strategically.

Should we anticipate that you are going to do more deals that bring in more global right.

And with an intention of developing and bringing in more internally developed R&D programs, rather than and in license of other programs.

Rather instead of developing your own internal and to give of globally. That's question, 1 and how should we think about that and question..2 is based on the comments around expanding outside of your therapeutic areas and I think you have the very strong focus on oncology et cetera, and that's pretty well known and can you just maybe expand upon the idea of 2 to go beyond oncology.

unknown: Unsponsored ADR

And to what other areas you know should.

Should we expect or could anticipate so we're not surprised and thank you so much.

unknown: Anticipate it, so we're not surprised. Thank you so much.

Thank you and Michael.

unknown: Thank you, Michael. How do you want to comment on AI and the so-called Schrodinger deal? Collaboration is a pretty exciting new partnership for us. As you may know, they are the industry leader in physics-based computational chemistry platforms and really have a very strong existing track record. So we have this collaboration with them, and we really focus on a key area of R&D interest for Zai Lab, the DNA damage repair pathway on a very interesting target, which we will discuss later. So really trying to leverage the capabilities of both companies and, obviously, get Zai Lab global rights on this particular target. Yeah, so the AI area is a new promising field.

How do you want to come and on the AI and administer showing of the champion.

Yeah, Yeah, sure and I'm, sorry myself that thank you very much for your questions. So yeah.

The film and the collaboration of the pretty exciting new partnership for Us.

And they know they are the industry of either in physics space.

Computational chemistry.

Platform and.

Really of how long they're of a strong existing and the solid track record.

So we have this collaboration with them really focus on our key area of the R&D interest for bylaw of the DNA damage repair pathway on the dairy.

Interest and target, which we will disclose later on.

And so really trying to leverage the capabilities of both companies and.

And obviously get the dialogue.

The global rights on all of this particular.

Particular part of it yeah. So the the AI area is of the new promising area and we'll try to stay on the cutting edge, we're really trying to use of external collaboration to complement our existing capabilities.

unknown: We'll try to stay on the cutting edge. We're really trying to use external collaboration to complement our existing capabilities in areas such as AI design. Yeah, I think just to elaborate on what Paul was saying, the Discovery Technology Platform collaboration, like Michael you mentioned, is a way for us to extend our discovery capabilities and to complement our existing discovery technology platforms for us to do internal global discovery and development. But having said so, we will continuously do what we have done very well, which is bring access, we see differentiation, we see unmet medical needs, whether for China or for the world. It's based on the seats that are out of the pipeline.

Areas, such as such as the AI discovery.

Yeah, I think gets too and that's great on the call.

And the savings.

The discovery channel.

And I did put some calculation.

Michael.

So there's lots of debate.

I mentioned is on lease loss expense.

The discovery capability.

And just country of amongst others. It seem you could probably of technologies and platforms.

So after the channel globally.

And that's it for me because on <unk>.

But having said so we're continuously to what they have done very well, which is D and can we see.

See different shapes and is the unmet medical need rather than from China over global.

And from what.

And it does hit the ball out of home.

Thank you for cash.

And number 1.

And and go ahead of it.

unknown: Thank you. For question number one, Unsponsored ADR: Yeah, we actually have many opportunities, more and more yin-tang interests from Unsponsored ADR, Unsponsored ADR. That I made horizontally, but vertically, we're always looking for more opportunities to complement our existing pipelines. We have the next question. This is coming from the line of Seamus Fernandez from Guggenheim Securities. Please go ahead.

Makes sense, yes, both are important and it makes sense. Both are important and then the idea of expanding therapeutically could you comment on what areas could be of interest.

Yeah.

We actually have.

The many opportunities more and more and even found interest from D. A.

From a potential classmates, who have really all the.

And so a lot of credit for what they have planned for the partnerships.

And so we are actively looking.

Let me expand.

All of them today, we want to expand the untracked it into a piece of the new therapeutic area. So that tends to have on such as the example is from.

Into the transmission from.

Archie makes the pick them up.

And which also is a pipeline of products from the opportunity. So that's kind of feel mainly the expense and they're looking for.

And that made it.

Some of them, but equally it all the blue people more opportunity the competing in all of these 15 type 1.

Thank you.

And do you have the next question is coming from the line of seniors Fernandez from Guggenheim Securities. Please go ahead.

Oh, great. Thanks for the question so.

unknown: Oh, great, thanks for the question. So maybe just a few things around just investor questions that we've gotten, and concerns that have been raised with regard to some of the volatility in shares in China, and where biotech fits strategically, in terms of the Chinese government's focus on certain areas. I think, Samantha, you're uniquely well positioned to comment on, you know, those concerns. Obviously, Zai is well outside of some of the concerns that have been raised for other companies with regard to, you know, how the company's accounting has been executed, things like that.

Maybe just.

If we could cover the dynamics there.

Around just the investor questions that we've gotten and.

And the concerns that have been raised.

With regard to.

Some of that's the.

The volatility and share in China and.

We're a biotech and strategically.

And in terms of the Chinese governments are focused on certain areas I think the man.

And so you're uniquely well positioned to the comment on you know those concerns.

The free die is it.

Well outside of some of the concerns that have been raised for other companies.

With regard to how.

The company's accounting has been executed and things like that.

unknown: But maybe it could help us understand the importance and strategic positioning of the biotech industry in China and its importance to the continued growth and local growth of China. And then, you know, a second question. Billy, I was just hoping you could give us a sense of the, you know, potential payments that we could see to collaboration partners as it relates to the milestones that we should be thinking about for 2021 and 2022, given the very robust, you know, series of pipeline opportunities.

And maybe help us understand the importance and strategic positioning of the biotech industry and.

In China and it's.

Important to the continued growth.

And local growth in China, and then the second question.

I was just hoping you could give us a sense of the potential payment.

And that we could see to collaboration partners.

As it relates the milestone.

And that we should be thinking about for 2021 and 2022, given the very robust series of pipeline opportunities and then just 1 final question should we see a meaningful.

unknown: Should we see a meaningful data set, particularly either Lunar or one of the other major data sets come forward? How are you guys thinking about manufacturing capabilities with your partner, Novacure, in the context of CTF, and how do you hope to address that? Thanks. Thank you, Seamus.

And dataset, particularly either lunar.

And 1 of the other major datasets come forward.

How are you guys thinking about manufacturing capabilities with your partner another pure and the context of Tcf and and how do you hope to address that and thanks. So much.

Thank you I've seen the.

And the first question and that is Uh huh.

unknown: The first question is, since you asked me to speak about this sector, and actually, we do agree, we have seen a lot of volatility in the market around Chinese concept companies listed on MedStar. Unsponsored ADR, Understanding, and I'm not sure they are representing any government body. So we believe that the actions that caused the recent market volatility are unrelated to China's particular business and also recent ones, including the Chinese government's continuous support of innovative biotech industries.

Do I see we have to think about the sector.

And you guys actually and we do agree we have seen lots of volatility in the motive.

The wrong kind of concept kooky, let's sit down and my staff and.

And so we and you'd have found of credit Lubbock and see it.

Hum.

And then myself also on home.

And it's sometimes not with.

And if an agency to discuss it on what does that mean 2 satellites and.

And also of course the satellites flow.

Countries like France and south.

I would kind of companies like that now.

So the.

Some other diseases and of course from out of the.

And the pending and I'm not sure on that.

Preventing any kind of and 5 days a.

A week day, meaning that the action the cost of equity market volatility and get.

And they did supply to get the offensive.

And also the recent events, including the Chinese government continues to the.

And you're getting paid the banking industry.

And for example, the view of CPE and Chocolate guidelines issued on July 2nd on title.

unknown: And, for example, the new CBE draft guideline issued on July 2nd on quality drafts. Leave the bar for universities to drop the announcement. These actually are very helpful for companies really focusing on differentiated first or backup class product portfolios instead of focusing on maybe new tools that may not work. And he also recently reviewed the ACH Guidelines, Membership Status, which shows their continued strong commitment to harmonization, global harmonization. And also, quite honestly, other sectors are already very heavily regulated.

The trucks and meets the bar for innovation do drop the value.

And they actually aren't there and hopeful for a company of really focusing on differentiated first or best in class product portfolios and you said the full focus on to maybe the Youtube and email works.

Most of the recently reviewed the 8 th VIP membership status.

And it shows their continued strong net harmonization and global harmonization.

And also quite humbling for me on.

And as expected the already various hesitate rank and navy.

And but if you're looking at the same.

unknown: But if you're looking at the 15th time of the Economic Five-Year Plan, and the biotech sector is considered one with a very strong supportive pillar industry. The focus really is on innovation and promoting integration, innovation with biotech, and accelerate biotech and biopharmaceuticals, and we boost the, you know, in China and Unsponsored ADR. So from all the activities we are involved in, also including some minor details like, you know, for this sector's search data piloting, tax reduction plans in Shanghai, Pudong, Guilin, and Beifeng.

Timeless and economical and.

5 year plan on.

And.

The tech sector is considered 1 of the daily some supportive and the industry.

And that.

The focus really is the.

On the innovation and promote the integration utilization of about tax and the Saturday, the biotech and pharmaceutical and the fact the boost.

And in China and debt.

Even though they shouldn't capability from yeah from the medical side.

And so from all the activities leading volume.

And the including some minor details like you know from this sector is here and.

And I'm kind of PD type of reduction plan and 8 you're Shanghai Pudong go and based on the there are many types of deals of course based on on the right now keeping to the company.

unknown: So, there are many positive news. Of course, those are perhaps only now hidden to the public. But from what we have seen so far, we're very confident in Zai Lab's fundamental growth. So, did you want to address the second question?

Well, we have seen so far is very focused and I'm sorry last from fundamental of growth.

But Peter you want to address the second question.

Yeah, sure Hey share minutes I'll take a stab of that second and third question. So the question is related to upcoming milestone.

unknown: Yes, sure. Hey, Seamus, I'll take a second and third question. So, the question related to the upcoming milestone type of payment, as you know, Seamus, we don't get guidance, forward-looking guidance on those figures, but rest assured, it's immaterial compared to, let's say, the upfront portion or the actual road.

Type of payment and as you know Sam is we don't give guidance forward looking guidance on those figures, but the rest assured it's a it's immaterial compared to let's say the upfront portion or the actual royalty that kicked in after the commercialization. So you would have seen some disclosures along the way.

unknown: Unsponsored ADR

The attorney point announced yesterday and they did disclose.

We made of 5 million dollar payment because we achieved a certain development milestones.

And you can expect something kind of along with that ZIP code when we'd have a notable sort of development of regulatory milestone achieved but.

And I get a sense right Seamus that are in terms of materiality is quite limited compared to the upfronts and royalties.

Which is that the the 1.

1 time upfront and then at the back and in terms of your question on sort of the.

To wrap it up volume and what that means in terms of.

Manufacturing capabilities for tumor treating fields and I'll, let Paul adding the additional comments, but yeah.

I mean youre right.

Observation is right and the lunar trial is successful with final phase II data out next year.

And you know we're ticking, we're talking about different level of scale.

And are the opportunities to drive operating leverage at that volume at that scale, especially China scale and the use of the questions that are.

unknown: And are there opportunities to drive operating leverage at that volume, at that scale, especially, you know, the Chinese scale? And these are the questions that we have, and we've been having these discussions with our partners.

We've been having these discussions with our partner.

Okay.

Thank you okay. Thank you you have the next question.

unknown: Thank you. Okay, thank you. We have the next question.

Okay.

The next question from the line of and from Rama from J P. M. East go ahead.

unknown: We have the next question from the line of Anupam Rama from JPM. Please go ahead. Hey guys, thanks so much for taking the question. A couple of broader macro questions following up on the last question, but specifically, there's been a lot of headlines about Chinese regulators' proposed rules on oncology trials. Maybe you can talk about what the implications for development here are in the region for your broader pipeline. And then, Samantha, digging into your comments a little bit more on the PTA-OB auditing and sort of what's going on in China there. You guys have PTA-OB not reviewing your financials as a 10K sort of risk. How are you strategically thinking about this situation and kind of addressing it over the long term? Thanks so much.

Hey, guys. Thanks, so much for taking the question a couple of broader macro question. Following up on the last question, but specifically there's been a lot of headlines on sort of Chinese regulators proposed rules on the oncology trials and maybe you can talk about what the implications for development here or in the region for your broader pipeline.

And then the Samantha digging into your comments, a little bit more on the PTA, Ob auditing and and and sort of what's going on and China. There you guys had TCA it'll be not reviewing your financials of the 10-K sort of risk what's the.

How do you strategically thinking about the situation and and and and kind of addressing it.

Over the long term and so much.

And so slow.

unknown: First of all, Anupam, thank you for the question. So you're asking me to elaborate on the July 2nd guidelines? Is that the first question?

And the phone. Thank you for the question so you're asking about 2 of the last week on the July 2nd type loan growth.

Is that the from session.

On the oncology propose yeah.

unknown: on the oncology proposed. Yeah. Right, right. Okay.

Right right.

unknown: So, as I mentioned earlier, we think that guidance for industry, first of all, is actually still guidance for soliciting industry input. We really think that they're going to raise the bar for innovation, for oncology development. And, as we all know, China has many, many PD-1s, and PD-1s like the bioclinic. We choose me, not worse, right?

So as I mentioned earlier, we think that's the guidance for the industry say sort of a sense.

Yeah, it's still kind of in those.

And the cheap input.

And they think that's going to leave the bar.

And so utilization, so I'm kind of get the value for each day.

And as we all know China has many many people wont need for the PD lone by the bank.

[laughter] me choose on me not book right on and I think it sounds from many angles and smiles.

unknown: And I think it's, from many angles, it's not only that you are not really responsive. If CPE continues to support it, that really means it's not helpful for patients who already should have been exposed to many approved products. And secondly... Unsponsored ADRs. And number one, you have to show differentiation to address medical needs. Secondly, if there is already a gold standard established, you need to do comparative studies instead of procedural trials. I think that's the fundamental point of that particular guideline.

You know maybe be the from that at least from you.

Seabee continues to support it and I really mean, it doesn't fit and.

Hopefully, it's not helpful for patients who are already.

And I should have been exposed to the true.

Many of food products.

And instead of the exposed to the placebo arm.

And secondly.

Yes.

Well, so what the I'm really trying to emphasize is actually closer to I E. The assembly.

And quality.

Great.

And you Wonder why do we have to show differentiation and to address unmet medical needs.

And then secondly is there where do you go from there is that this when do the ETP compared to Savi instead of a super Charles I think that's the fundamentals.

That particularly the 5 months, so debt seats near well with sunlight sort of strategy and novel pipeline and when.

unknown: So that fits very well with Zai Lab's strategy and other pipelines. And from day one, we evaluate internally or externally to develop products. That's how we use the global standard to see whether it ranks first or second class or only in class.

And from day, 1 we and if you had.

And maybe why the 8 internally or externally developed products and how we deal.

The growth with some day.

Right and it shows.

The first of all types of Clos and Oh.

First of all of the criteria.

unknown: That's our criteria. Unsponsored ADR Unsponsored ADR Unsponsored ADR, And overall, Zai Lab, we believe we are very well positioned for the future generation of biopharmaceutical companies, have China exposure, but also continually expanding in the U.S., continuously, instead of just China for China but really China for the world and world for the world. Those directions we're taking, I think they're all on a very positive trajectory, especially for companies that are already at Zai Lab's side. We believe that this gives us a strong opportunity to continue to see growth and strong growth from Zai Lab. And if you want to comment on anything else,

And in terms of yeah.

Has the board of the World the countries now and.

And the future right about the timing issue and excellent.

The policy.

And again, both of them really well and.

Has the allowed to do with that.

The overall count and mentor.

[laughter] policies.

Erection and China's growth over the last for the year. They also want to on finding a different industry and talk to controlling the cotton and how to be you.

And Ted and the top of mammography, we'd have to find that the.

And the population, which we see then the agitation and factor of how to be a D day.

And provide the equal opportunities the 1 point of organic population and have.

And that's why it's both of them out of an area of expertise and I'm on the today those has the bank for a long time and all of them.

And if it's.

The price actually the market reacted.

But that's the kind of swap activity because the base has not been 1 and I believe you kind of seen long.

Even since 2018.

And Oh.

Although the notes I like we are.

And you need the cares applications. So the feature.

Generation on a small biopharmaceutical companies and try and make floating but always the companion day extending the life.

And even snake instead of.

China, the triangle, and leading China for global and the global for global those erections, and we're taking and seems like it's.

Along the very positive trajectory.

She leaves the companies that and already outside of Lifesize, We believe the bumps on it.

The strong opportunity to continue to want to.

She is slowly starting to see of growth and that's shrunk from fan out and you want to come from them on anything else Yeah sure thing from at the end up on you asked about <unk>. So I'm just kind of mentioned 2 quick broad points. The first just wanted to as you know, but remind everyone here that we already have.

unknown: Sure, thanks, Samantha. Anupam, you asked about PCAOB, so I'm just going to mention two quick broad points. First, I just want to, as you know, remind everyone here that we are a 100% privately owned enterprise.

100% privately owned enterprise with the very simple and legal structure No V I E.

unknown: Unsponsored ADR Unsponsored AD

unknown: Unsponsored ADR

And never have never will.

And on our financial reporting has historically been and continues to be on the U S GAAP basis and in accordance with PCA Ob standards.

unknown: As a domestic issue now, which is why we're having a quarterly call with quarterly filings, we have also completed full targeting.

As a domestic issuer now which is why were having a quarterly call with quarterly filings. We have also completed a pool of start things off of Sox audit historically escrow and ongoing and the second broad point is at where of course, we have a.

unknown: Unsponsored ADR Unsponsored AD

Same with the infrastructure in China, but we do have 8 offices around the world and we're making investments in the U S as well and that I.

And I guess without going through the details I can make the statement that we do plan to have options available to us.

The significant limit.

And the risk that's been.

Publicly kind of published so far and you can also look towards our 10-Q filings for additional info on those but and.

unknown: Unsponsored ADR

Thanks for your question.

Thank you.

unknown: Thank you. We have our next question. This is coming from Jonathan Chang from SBB Earring. Please go ahead.

We have on next question is coming from Jonathan Chang from <unk>.

The <unk> Leerink. Please go ahead.

Hi, guys. Thanks for taking my questions.

unknown: Hi guys, thanks for taking my questions. First question: are there certain subsectors or areas within Chinese biopharma that could be more or less vulnerable to changes in the regulatory landscape in the future? Well, I think so.

First question are there certain subsectors or spaces within Chinese biopharma that could be more or less vulnerable to changes and the regulatory landscape and the future.

Well I think of companies like that.

unknown: Well, I think of companies like Zilog, as I said, and focusing on innovation, focusing on meeting the needs of patients and patients globally. I think, I personally believe we are in the best place.

And that life right and that's it.

And kind of focusing on innovation and continue on.

And that met the needs of patients.

And that piece.

Patients globally.

I think I personally believe we aren't even the fact well thank you.

Okay.

Got it and and maybe the second question.

unknown: I got it. And maybe just a second question. Can you provide any additional color on how investors should be thinking about second half revenues? You know, maybe specific to Zazula. Are there additional metrics you can provide to give us a sense of how Zazula is performing relative to competitor programs? Thank you.

I can't provide any additional color on around how investors should be thinking about second half revenues you know maybe specific to the shoe huh.

Are there additional metrics you can provide to give us a sense of how the shoe is performing relative to competitor of programs. Thank you.

The leap.

Yeah sure.

unknown: Yeah, sure. So, thanks, Jonathan. We're obviously quite pleased with the sales momentum that we're seeing so far this year. We saw a nice volume uptake and market share gains. Our NRDO implementation, while early, is off to a fast start. And you saw our press release citing that, you know, starting from the implementation date of March 1st till the end of June, we actually increased the number of hospital listings by over 7x, or about sevenfold, which is actually closer to a kind of more close to 850 than 800.

So.

It takes on it then we're obviously you know.

Pleased with the sales momentum that we're seeing so far year to date, we saw a nice volume uptake.

And market share gains on.

And our deal of implementation while early.

It's off to a fast start and you saw our press release.

Siding starting from the implementation date of March 1st until the end of June we actually increased the number of hospital listing by over 7 X all.

All of our 7 fold.

Which is actually actually closer to a kind of more of close to 8.5 and 800. So.

And we're quite happy with the implementation going so far and the forward to of course kind of.

unknown: So, you know, we're quite happy with the implementation so far and look forward to, of course, kind of building on the momentum for the back half of the year as well. And we're pretty confident, we're actually very confident, you know, that we'll hit our internal goals. So, Jonathan, we're not yet giving any kind of full year sales guidance just yet. But, you know, you can see some statistics that we shared around hospital listings.

Building on the momentum of.

For the back half of the year as well and we're we're pretty confident a rush of very confident.

And I will hit our internal goals.

So we're not yet, giving a kind of full year sales guidance just yet.

But you could see some statistics that we shared around hospital listings of hospital coverage is also expanding as well and now we have over 2000 hospitals and our coverage.

unknown: Unsponsored ADR

Got it thanks for taking the question.

unknown: Got it. Thanks for taking the question.

Yes.

We have the next question is coming from the Chen from Goldman Sachs. Please go ahead.

unknown: We have the next question. This is coming from Ziyi Chen from Goldman Sachs. Please go ahead.

Sure. Thank you. Thank you for it give me the opportunity to raise questions.

unknown: Sure. Thank you. Thank you for giving me the opportunity to raise questions. I looked at the pipeline. Actually, this time, we specifically listed out the internal R&D pipeline, which now we counted about 13 projects in target identification and about 10 projects in the range of

And I look at the pipeline actually at this time, we have of specifically left out the in internal R&D pipeline.

Now, we count at about 13 projects and target and I think identification and about 10 projects.

From in the range of lead optimization 2 phase 1 studies. So a couple of the Hopper car transaction regarding the aim of house discovery strategy number..1 is siloed came up we saw on top of the air companies that chase not only Charlotte Charlotte and Garner Brett If I came March I see the risk of collaboration also with the Alpha.

unknown: Unsponsored ADR Unsponsored AD

So.

And I'm trying to understand and more about and Tricia beauty and the in house by flying and we'll external collaboration on the discovery side will be of 1 of the major drivers are still we are beating your bidding off of pretty strong and in house team. If we can know the and I'm sure you know how big the discovery team and now with inside of lab, and particularly I think of it.

And in terms of of the pipeline.

Covering the oncology autoimmune.

But in terms of of target selection. So is there any specific strategy youre going to be following com and tricia picking the right and you're right target to work on.

unknown: But in terms of target selection, so is there any specific strategy you're going to be following in terms of picking the right target to work on? My second question is still trying to get a sense of the power of competition.

My second question and you were trying to get a sense on the PARP competitions.

unknown: Particularly towards the end of this year, I think Zai Lab will have a very good chance to get into an R&D for first-line education. But at the same time, we are starting to see some of the local competitors, including Honorary Medicine in Beijing, they are also being pretty aggressive in terms of marketing for their products. But of course, it's a third-line education instead of a second-line or first-line. And based on our track, you know, in the second quarter, well, first half of this year, probably Zai Lab already got about 25% to 30% market share in the market. So if you guys get the first-line education, what kind of market share we should be looking at in two to three years' time? Thank you.

Out of Kimberly.

Towards end of this year I think side of that would have a very good chance of getting to the anarchy al for the first of all of the indication.

But at the same time and we start to see some of the local competitor of XI and quality of Hungary, and medicine, Beijing and they are also being pretty aggressive and treasurer on marketing for their product, but of course, it's a third eye indication instead of the <unk>.

Second life first fly and based on our track and the second quarter and first half. This year, probably is that I've already got about 25% and 30% market share and the apartment market. So if you guys got out of the first of all I indication and what kind of market share we should be looking at.

And you can see years' time, thank you.

Thank you Jamie first of.

unknown: Thank you, Ziyi. We will start with our first question related to Adler Reinhart's discovery. I think as we... As you can see, in the news release, we announced our pipeline, our internal discovery pipeline, with global rights. As well, I'd just like to remind the audience that this is a seven-year-old company, and we have invested in internal discovery for five years. We have increasingly invested in internal discovery with our in-house platforms. As well as the extension of, like we talked about earlier, microchemistry by specific platforms.

First question related to in House discovery.

I think that's the.

And.

And you can see the in the.

Each of these.

Amongst all of the pipeline of internal discovery platform.

The simple rights on small I, just like the remind the audience. This is small.

On the company.

And we 5 years and connect and told them from.

The increasingly investing just get the tune of exactly with allergy and how it transforms and as well and the expansion on from that all the talk about linear macrogenics, the sushi and the pet phones with talk of box on what you gave on shortly and crews and.

The other universities, which we did not really feels that it's on.

Our materials and have not too long.

True to extend and true.

And that really well.

And that's what I'm trying to stay in zone.

unknown: We talked about working with Schrodinger's and other universities, which we did not really feel was material enough to expand on or to elaborate. But having said so, what I'm trying to say is, I'm very pleased with the five years of internal discovery efforts. We started with a very small team in Shanghai, and now the team is expanding not only in Shanghai but in Suzhou, in the San Francisco Bay Area. We're also going to, very soon, announce our opening in Boston, Cambridge, Massachusetts.

I'm very pleased with the size of the U K.

And with the Sky, we actually started.

Scott is the very small team and Shanghai now with the team with the extended mobile the strong high of <unk>.

So in the sense, even the San Francisco Bay area.

And so going to Oh, they're showing amongst all the opening of thoughtfully census at phosphate in the market.

The 10 breach and lots of interesting stuff.

And that more folks from global development and also focusing on the wall.

unknown: We're more focused on global development and also focusing on... Unsponsored ADR. So that's, I think, the first thing I want to say. And secondly, I think we are no longer working within the walls for R and for D because we're in a different phase of drug development. There are constantly technologies which we, as one company, cannot handle all. And so with that, we understand we need to collaborate. We need to collaborate with companies that have AI capabilities or companies that have strong computational chemistry capabilities or, you know, companies that have strong bi-specific platforms, and which complement what we don't have but which doesn't mean we will not continue to add internally other technology platforms. And all of this, I am saying, going forward, you will continue to see us have more and more collaboration, some with the, I mean, some with the...

All kinds of business activities.

So and that's I think the first thing on once you see and secondly, I think on.

unknown: Yeah, so I'll take your second question about the doula in relation to NRBL and...

unknown: Unsponsored ADR

We are no longer and we're working within the war for Orange for art and fatigue, because we're eating the different phases cat events of which the company technology and <unk>.

And the 1 company can now having the palm.

And so that we understand we need to craft, which the need to collaborate with the companies have day actually facilities. The company has shrunk computation of the kind of capability.

Or you know of companies and have shown by specific platforms.

And which complement the weighting has the which doesn't mean, we will not continue the 2 at internally all of the technology platform.

And the other day, and saying that going forward.

And we'll continue the sea Ray.

And more and more transmission.

And I'm goodness and means some without.

And that the index.

The mature punky.

And I read the patient is now say not wanted to continue on with 19, you can model what.

We have not been to fix it and we'll continue to.

And you know continuous.

Continuous like as the accelerated internal discovery, the ocean and continue to look for the best.

And I think it could be and.

The first in class.

Thanks to computing and now the only for all the time of flight type of bonds and also a global platform and say life now and in the scale.

We have the capacity and have the people and I think the business, where we thought we'd.

In terms of the statistic target.

And those details and hopefully we.

We kind of because of the time of the day, we completed and gets on the sidebar of what kind of talked about this the upcoming R&D day. Thank you Jim.

And the people you want to attack Yeah sure. Thanks, Jamie.

Yeah. So the I'll take your second question about the jeweler and relates to our deal and some competition that you referenced and Hungary and other domestic companies.

unknown: So, just to reiterate, Zijula is the only PARP approved for all comers for the first time. It is a once-daily model therapy, excellent safety profile, and has the ability to cross the blood-brain barrier. And we already have it in the second line for NRDL, and we actually believe that it's already been positioned as the best-in-class treatment for all brain cancer patients.

So just to reiterate and secure is the only PARP approved for all comers and the first line setting.

It is the once daily monotherapy excellent safety profile and has the ability to cross the blood brain barrier and you already have it in the second line for NR deal and we'd strongly we actually believe that's already been positioned as the best in class part for all of the Varian kinds of patients.

So.

unknown: Unsponsored ADR

And I also like true.

Kind of you also mentioned in the next year with first line you know volume picking off potentially what does it look like in terms of market share.

While we don't give guidance I know you've heard us historically say that we're confident that we can see the market share leader and we stick by that also like to point you towards some ex China statistics in.

And the U S right now.

2 of the has a 51% market share of personal lines and the Japan to have 68% market share.

So.

Yeah, we're not giving the exact kind of percentage for China, but we have a very robust strategy on how to firmly establish by virtue of a as the best in class PARP inhibitor and the 1 thing.

And we're making very good progress towards that and and also on NR deal.

The first line ovarian cancer. It is eligible for negotiation this year and and <unk> actually on at the end of July the <unk>.

And I say published a review of risk right for the for the for the drugs that are indeed the.

And that are eligible for energy on negotiation and Institute of that's included so we'll.

And we'll leave it at that.

Thank you for your question yes.

unknown: [inaudible]

Yeah, Thank God and he also correctly pointed out and that's where the only way.

unknown: Unsponsored ADR Thank you for your question.

On the Oklahoma first line monotherapy approved and time and I gave the go for and 19 on inflation for next year.

unknown: Yeah, I think actually you also correctly pointed out that we're the only eCommerce first-line monotherapy approved in China and eligible for NRDL inclusion for next year. Yeah, sure. Thank you so much.

Yeah sure. Thank you so much on bidding.

unknown: Yeah, sure. Thank you so much for having me.

Thank you. The next question comes from young Wang from Credit Suisse. Please go ahead.

unknown: Thank you. The next question comes from Yang Wang of Ted Swift. Please go ahead.

Ah Thanks, and congrats on management for for the nice commercial progress in China, and even the second on clutter.

unknown: Thanks, and congratulations to management for the nice commercial progress in China in the second quarter. I have two questions.

And I have 2 questions per se of tumor treating a feel of the competitive landscape in China. So you and the last year the.

unknown: First, the tumor treating field competitive landscape in China. So in the last year, we have started to see a few Chinese, domestic Chinese companies starting to conduct their tumor treating field device, clinical trial in China.

Starting to see a few of our China domestic of trying to accompany a thought and conducting a verity of tumor treating field device coming on and try and China and.

But I think the next few years Walgreens with the clinical data and offer on those sort of so I just want to.

unknown: Unsponsored ADR

unknown: We are going to see clinical data from those studies.

unknown: Unsponsored ADR I have a management comment on the competitive landscape in the long term, in terms of a tumor treating field device in China. That's my first question.

Kind of a management of the comments on competitive landscape.

And the long term of from terminal.

Tumor treating fields.

Tobias from China, that's on.

My first question.

Yeah, I think and.

unknown: Yeah, I think that's a good question. First of all, as you correctly mentioned, it's a local company, still in the clinical development stage, and still focused on a very narrow indication, for which we do not know how the result will come out, and that's in the next couple of years. So it's too early for us to say whether there is any competition, because we are expanding, and as you've seen, we have many other indications, large trials ongoing, and some already past Phase II going into Phase III. Those are all large indications.

And that's a good question you asked me on.

And all of it.

First of all you guys do cracking had mentioned and.

It's a local company.

Good evening that the value states and sort of focus on what their admirer of indication.

And all of which meet the and I'll note that it's hard to resolve the come out and that's in the next couple of years, you'll see some of it's too early tomorrow and see blending.

And the competition.

We also use of sandy and.

And that you seem to have many other indications large trials on pony and there's some already.

<unk> phase II to.

3 of those.

Lots of indications. So we are very comfortable and these days with our OEM and the.

unknown: So we are very comfortable at this stage with our own data, and even if there are any drugs, we welcome any treatment options. I'm sure if it's proven to be successful, there are going to be people who want to come up with new treatments. But whether it's Me Too or Me Not Worse, or whether it's even qualified as Me Not Worse, we'll see. Unsponsored ADR, So basically, patients and doctors have already put this into the treatment guidelines. So we'll see, but we are very optimistic.

Data and even.

And eat there I mean any drugs and the worldcom.

And the treatment options, where I'm sure he's from it's proven to be successful and I'm going to be.

And people want to come up but on.

And whether it's at the true or meat on the worst or whether it's even quantified and the malware, we'll see and the weather itself and then side will have very strong ship Pope cringe.

And in the areas we are in.

We have very strong confidence in this in this particular opportunity.

And we've been working on opt to every seat.

In maintenance, we got scared of creep approval based on each of the clinical.

Clinical guidance so they want.

So basically patients and Thats true.

The into law and its guidance of treatment guidelines and so.

Well, let's see and we have there.

Optimistic.

Great. Thanks for color on mine.

unknown: And my second question is about our KRAS drug. So I noticed in our press release, we did not mention our kind of clinical plan for KRAS. We just licensed it from Variety. So can you comment on that?

Second question is about our K.

The restaurant, because so I noticed you know of crossroads, the northern National all of our kind of.

The critical path for K, Ras and when and if that's the license from from Rogers.

So kind of comment on that.

And then and you want to cover that.

unknown: Eileen, do you want to cover that? Sure. Thanks, Samantha.

Sure Thanks, Matt and thanks for the question so our.

unknown: And thanks for the question. I have made a couple of comments. One, we're extremely excited, Ed and I, to be partnering with Murati on this very interesting and wonderful molecule for KRAS. And as a former thoracic oncologist, having spent over 20 years trying to come up with something for KRAS, this is extremely, extremely exciting. We have the opportunity to participate in all of the Mono and Combo global trials. We also have the potential to run exploratory local studies within our own pipeline assets, such as with the PD-1 and LAG-3 and PD-1, et cetera. And so it's a bit early to comment on what local studies will do, but what I'd like to emphasize is that we will be participating with Murati and in their global combination, in their global studies.

A couple of comments, 1 where we're extremely excited and at the high to the partnering with Marathi on this very interesting and wonderful molecule and the K Ras and as the former thoracic oncologists, having spent over 20 years are trying to come up with something for K Ras is extremely extremely exciting.

unknown: And there'll be more to comment on as we move further along. Thank you. Thank you for the questions. Thank you. That concludes our question and answer session for today. I would now like to hand the conference over to our host for any closing remarks.

unknown: I think maybe Samantha is on mute.

And we had the opportunity to participate and all of the mono and combo global trials.

And we also have the potential to run and exploratory local studies within our own pipeline assets such as with the.

The PD, 1 lag 3 and PD, 1 on the et cetera.

And.

So it's a it's a bit early to comment on what local studies, we're doing but what I'd like to emphasize and he said, we will be participating with Marathi and.

And there are global combination and the global studies on.

And that will be more more of the content as we move further along.

Okay. Thanks.

Thank you. Thank you for the question.

Thank you that concludes our question and answer session for today I would now like to on the conference or withdraw of host for any of the remarks.

Okay.

Yeah.

Yeah.

Yeah.

I think.

Maybe it's the methods on mute.

But oh so.

unknown: Unsponsored ADR Yeah, the Q&A's done tonight. Okay.

And there is absolutely the so basically a weird sounding of the Q&A.

Yeah, the Q&A, it's on some of them.

Okay. Thank you operator, and salary for and I was and if I'm reading and I didn't pick up the all the things and thank.

unknown: Thank you, operator. I'm sorry I was on mute, and I didn't pick up your sentence. Thank you, operator. And I want to thank everyone for taking the time to join us on the call today. We appreciate your support and look forward to updating you periodically on our progress throughout the year.

Thank you operator.

And I want to thank everyone.

unknown: Operator, you may now disconnect this call. Thank you all. Certainly. Ladies and gentlemen, that concludes our conference call for today. Thank you all for your participation. You may disconnect now.

Taking the time to join us on the call today.

We appreciate the support and look forward to updating you periodically on the progress throughout the year.

Operator, you may now disconnect the call. Thank you all.

Yeah.

And separately, because you've got them and that concludes our conference call for today. Thank you all for your participation you may disconnect now.