Zai Lab : 2021 Annual Report

(incorporated in the Cayman Islands with limited liability) HKEX: 9688

NASDAQ: ZLAB

2021 Annual Report

CONTENTS

CHAIRPERSON'S STATEMENT	II
CORPORATE INFORMATION	V
FINANCIAL HIGHLIGHTS	VII
EXEMPTIONS AND WAIVERS	VIII
RESEARCH AND DEVELOPMENT ACTIVITIES	X
INDEPENDENT AUDITOR'S REPORT	XI
CONSOLIDATED FINANCIAL STATEMENTS	XVI
FORM 10-K	LXXII
ADDITIONAL INFORMATION	LXXIII

CHAIRPERSON'S STATEMENT

March 2, 2022

Dear Zai Lab Shareholders,

I'd like to begin by reminding you of who we are, and where we are going, at Zai Lab. Zai Lab is already a fully integrated and leading biopharma company in China. And we will leverage our China strength to become a leading global biopharmaceutical company.

China is the second largest and a fast-growing pharmaceutical market. The Chinese population accounts for nearly one fifth of the world population, and it is aging rapidly. The need for innovative medicines that can transform treatment in areas of high unmet need in China has never been greater.

We at Zai Lab were the first to see the opportunity to bring an unmatched portfolio of medicines to China to address this great need. We rapidly and purposefully seized a once-in-a-generation opportunity to build Zai Lab into a biopharma leader, first in China, and then in the world. We built our business around four key elements: a biotech mindset, pharma quality, Zai lab speed, and global talent.

Samantha Du, PhD

Founder, Chairperson

and Chief Executive Officer

Since I founded the company eight years ago, we have built a portfolio and pipeline of 28 products, including 11 that were internally developed and have global rights and four that are now marketed. We believe few companies can achieve this kind of growth in such a short period of time. But what we are most proud of is not the quantity of our products, but the quality. They are all potential first-in-class and best-in-class in areas of significant unmet need around the world.

Our portfolio of products has unmatched potential in China, organized around the therapeutic areas of cancer, autoimmune disorders, infectious diseases, and neurological disorders. We have focused on differentiated assets addressing large patient populations with unmet needs in China. For example, we have a world-class portfolio in GI cancer and lung cancer, the two largest tumor types in China.

Our leading portfolio consists of products with large market potential. We acquire assets that are substantially de-risked, because most of them had already achieved proof of concept and many had generated impressive pivotal data. We purposely built our portfolio to achieve a leadership position in our disease strongholds and to maximize intra-pipeline synergies.

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CHAIRPERSON'S STATEMENT

Our stated strategy today is to make Zai Lab a leading global biopharmaceutical company, developing and commercializing medicines for patients not only in China but around the world.

2021 marked another year of strong growth and execution for Zai Lab as we significantly expanded our portfolio of potential first-in-class and/or best-in-class assets:

• We established eight new partnerships to expand our pipeline of in-licensed products.
• We deepened our world-class gastric and lung cancer franchises with four additional promising drug candidates, including adagrasib.
• We bolstered our autoimmune franchise with efgartigimod, a pipeline-in-a-product opportunity.
• We expanded into a new therapeutic area, neuroscience, with an exciting anchor asset KarXT.
• We made meaningful advances with our global pipeline of 11 assets, including achieving proof of concept for ZL-1102, our internally developed anti-IL-17A Humabody® for chronic plaque psoriasis with global rights.

• We achieved additional regulatory submissions and approvals, including our first non-oncology approval for
  Nuzyra.
• Our commercial execution continued to gain strong momentum for our four marketed products-Zejula, Optune, Qinlock, and Nuzyra.
• Zejula was included in the NRDL for first-line ovarian cancer maintenance treatment, and we expect it to become the leading PARP inhibitor in ovarian cancer in
  China given its unique label for ovarian cancer patients regardless of biomarker status.
• We further grew our talented global team both in the
  United States and China, building a solid foundation for continuing growth and excellent execution.

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