Zai Lab Limited (NASDAQ:ZLAB) Q4 2022 Earnings Call Transcript

Billy Cho: Yes, Seamus, the second part of your question about what kind of infrastructure the commercial is needed. We’re not yet in the — we could provide a specific number later on as we close to the approval and launch. But while the prevalence of disease in neuroscience is quite large, it’s pretty concentrated market. And so we believe that a sales team that’s focused and smaller than even an oncology product will be sufficient. And on top of that will be to leverage existing capabilities that we have, that we built for, for example, CDIP, as you know the neurology. And so I think it will provide specific details later on, but it’s going to be an efficient build out.

Josh Smiley: Thanks. On the — I’ll take the manufacturing question on TT Fields. Thanks, Seamus. I think first, this is hopefully a great problem to have. Of course, NovoCure has been focused on the breadth and size of the opportunity for many, many years, and have a series of strategies in place to work to bring down manufacturing costs for the device. And I think if we look at the China opportunity, of course, it’s going to be driven by the data. But if you look at the studies that are underway today across various tumors, as well as where the data could lead us, I think our view is there’s probably somewhere in the range of 1.8 million patients in China who could benefit from the benefits of technology over time. So the volumes that we’re considering and thinking about here could be quite significant with those volumes, I think there will be very good opportunities to bring down unit costs.

And we’re working closely with NovoCure on those strategies. And again, they’ve got the same view as they look at the world, not just China. But I think we’re excited about the commercial opportunity. We certainly believe that given the potential volumes here, and the supply chain and manufacturing strategies that NovoCure is working on, we’re partnering with them on that we’ll be able to have this be a very attractive economic proposition as well as gross margin as well as that at the bottom line. So again, I think the big focus for us, of course, will be to get through the LUNAR data to see the readouts from the studies in other tumors, but we’re well aligned with NovoCure and well prepared to supply the volumes that we think could benefit Chinese patients and to be able to do that at a reasonable gross margins.

Operator: Thank you for your question. We are now taking the next question. Please stand by. And the next question from Yang Huang from Credit Suisse. Please go ahead. Your line is open.

Yang Huang: Thanks for taking my questions. I have two. First one is about LUNAR trial. We know that we are going to be LUNAR data in the first half of this year. And I think people are probably including us more intimidating understanding, some subgroup analysis for LUNAR given LUNAR trial in first line, people only receive chemo and the people receive PD-1 plus chemo. So my question is, is that case that the subgroup analysis for the patients who receive PD-1 plus chemo in the first line is a kind of key to allow us to file? And in worst case, let’s assume a worst case scenario. If the subgroup analysis in the PD-1 plus chemo group is not that great, considering the tumor landscape is different between U.S and China. Well, that consider finding for the indication. That’s my first question. Thanks.

Billy Cho: Rafael, I think this is — this one for you.