So we’re really focused on getting a good price reflective of the value that VYVGART can bring to patients to get that for NRDL listing in 2024. And of course, we can’t say much more than that at this point, but more to come there as we proceed through the negotiations.
Anupam Rama: Thanks so much for taking my question.
Operator: Thank you for the questions. One moment for the next question. Next question comes from the line of Ziyi Chen from Goldman Sachs. Please go ahead.
Ziyi Chen: Thank you for taking my questions. Just two questions. One is on the full year guidance because I remember that you previously — earlier the year, you gave the guidance of USD 300 million revenue target this year. Now with all those anticorruption disruptions and third quarter, well of course, there has been foreign exchange impacts how should we think about the sales target for this year and what kind of level is really achievable? My second question is really on the margin because in the past few quarters or much it has been relatively stable, but into the third quarter this year on the year-over-year basis and a quarter-over-quarter basis, the margin has been declining by 2% to 3%. So trying to understand whether that was really because of the runoff of the efgartigimod?
If that’s the case then how should we think about efgartigimod gross margin and profit margin going forward? And particularly, this is going to be a really new drug still need a lot of investment into sales and marketing commercialization. So how — think about the return on these assets, is there any estimate on how big the drug could be to make it profitable? Thank you.
Josh Smiley: Thanks. I’ll start with the question on sort of outlook for the year and then Yajing you can comment on the second question. Yeah. When we did our Investor Day in June, what we said was consensus at the time for 2023 was approximately $300 million, we weren’t giving guidance where we said that we were comfortable with that outlook. I think the two things that have changed and you mentioned them since then have been the — sort of the full-year effect of the currency decline basically, the weakening versus the US dollar. So that’s now fully of course reflected in our Q3 results and expected in Q4. And then the impact from the anticorruption efforts which again, I think will be mostly concentrated in Q3 with as I mentioned a little lingering effect into Q4.
I think if you put both of those together, I think we’re — I think if I look at and I know consensus is not fully updated, but I think if I see the consensus today that’s in may be in that $270 million range I think that probably reflects those two events. Of course, we’re focused on say getting back to full strength as it relates to sales reps in front of physicians, driving VYVGART uptake continuing to drive outperformance for ZEJULA relative to the class. So I think all those — all the underlying dynamics that we talked about over the summer in our Investor Day all looks good. We’re just dealing with the currency effect which is what it is. And then impact that we saw in Q3 with that abating I think in Q4, but probably a little bit of an effect.
So I think those things probably put us on a reasonable long-term trend, but we are absorbing those two impacts in Q3 and Q4. Yajing you can comment on the profitability question.
Yajing Chen: Yeah. Thanks for the question. So first of all, I’m going to answer the question about the gross margin in the third quarter. So our gross margins usually get impacted by the product mix and sometimes one-time adjustment in the quarter so the timing of it. So we are going to see some variabilities quarter-over-quarter. So for third quarter, it is not because of efgar. So I just want to know that. And then I think we can focus on year-to-date, gross margin will be better than just picking up one quarter. And then, over the next couple of years, we are going to see a few new products launching by which is going to drive significant revenue growth. So our gross margin for the long run will continue to increase over time as the volume picks up.
And coming to specific question about at efgar and efgar will be the same the trend right the volume is going to increase. And our — I think the partner and us are working on the manufacturing process that’s going up to 20,000 and that will drive the cost — the unit cost very, very dramatically downward. So we are going to continue to see efgar gross margin to increase significantly over time. And then, sales marketing efforts for efgar, as Josh mentioned is a very concentrated effort, right? We’re talking about 600 hospitals, like just a limited number of the specialty physicians, so we’re talking about 150 reps, not a huge scale of that. And so in my case we’re very confident that we are on a trajectory to achieve the profitability very soon for efgar and also for the company as a whole.
Operator: Our next question comes from the line of Jonathan Chang from Leerink Partners. Please go ahead. Mr. Chang your line is open. You may unmute locally. Once again, Mr. Chang your line is now open. Please unmute locally. [Operator Instructions] I’m showing no further questions at this time. I will now turn the call back over to Zai Lab’s CEO, Samantha Du for closing remarks.
Samantha Du: Thank you, operator. I want to thank everyone for taking the time to join us on the call today. We appreciate your support. Look forward to update you again after the fourth quarter of 2023. We are very optimistic about the future of Zai Lab and we’ll work hard towards achieving our end goals as we all know what they are. Operator, you may now disconnect this call.
Operator: Thank you. Ladies and gentlemen that does conclude today’s conference call. Thank you for your participation. You may now disconnect your lines.
