0001628280-23-005832 | 10-K | XBRL Viewer

Inventories, Net

12 Months Ended

Dec. 31, 2022

The Company’s net inventory balance was $31.6 million and $19.0 million as of December 31, 2022 and 2021, respectively, and mainly consisted of finished goods purchased from Tesaro Inc., now GlaxoSmithKline plc (“GSK”), for distribution in Hong Kong, from NovoCure Limited (“NovoCure”) for distribution in Hong Kong and mainland China, and from Deciphera Pharmaceuticals, LLC (“Deciphera”) for distribution in Hong Kong, mainland China, and Taiwan, as well as finished goods and certain raw materials for ZEJULA and NUZYRA commercialization in mainland China.

The following table presents the Company’s inventories, net (in thousands):


	December 31,
	2022	2021
	$	$
Finished goods	12,156	5,632
Raw materials	19,029	13,231
Work in progress	436	88
Inventories	31,621	18,951

The Company writes down inventory for any excess or obsolete inventories or when the Company believes that the net realizable value of inventories is less than the carrying value. The Company recorded write-downs in cost of sales of $0.5 million, $1.4 million, and nil during the years ended December 31, 2022, 2021, and 2020, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

In March 2015, the Board of Directors of the Company approved an Equity Incentive Plan (the “2015 Plan”), pursuant to which the Board of Directors could grant options to purchase ordinary shares to management including officers, directors, employees, and individual advisors who rendered services to the Company. In August 2017, in connection with the completion of the Company’s initial public offering on Nasdaq (the “IPO”), the Board of Directors approved the 2017 Equity Incentive Plan (the “2017 Plan”). All equity-based awards subsequent to the IPO would be granted under the 2017 Plan. The 2017 Plan provided for an automatic annual increase to the number of ordinary shares reserved under the 2017 Plan on each January 1st between January 1, 2018 and January 1, 2027 equal to the lesser of 4% of the number of ordinary shares outstanding as of the close of business on the immediately prior December 31st or such number as approved by the Board on or prior to such date each year.

On June 22, 2022, at the 2022 Annual General Meeting of Shareholders of the Company, the Company’s shareholders approved the 2022 Equity Incentive Plan (the “2022 Plan”), which was previously approved by the Board of Directors on April 20, 2022, conditioned on and subject to (i) the dual primary listing of the Company on the Main Board of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) and (ii) the granting of a waiver on Note 1 to Rule 17.03(9) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Company’s voluntary conversion of its secondary listing status to primary listing status on the Hong Kong Stock Exchange became effective on June 27, 2022, and the waiver was granted to the Company in connection with the primary conversion. As such, the 2022 Plan became effective on June 27, 2022, and the aggregate number of shares that may be delivered in satisfaction of awards under the 2022 Plan is 97,908,743 ordinary shares as of June 22, 2022. No new grants will be made under the 2015 Plan or the 2017 Plan as of the effective date of the 2022 Plan.

The options granted have a contractual term of ten years and generally vest ratably over a five-year period, with 20% of the awards vesting on each anniversary of the grant date. The non-vested restricted shares granted vest ratably over a five- or four-year period, with 20% or 25% of the awards vesting on each anniversary of the grant date. The restricted shares will be released from the restrictions once they vest. Upon termination of the award holders’ service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited unless otherwise set forth in an agreement between the Company and the award holder.

Upon each settlement date of the share awards, shares were withheld to cover the required withholding tax, which was based on the value of a share on the settlement date as determined by the closing price of the ADSs on the trading day of the applicable settlement date. The remaining shares after the withholding were delivered to the recipient. The amount remitted to the tax authorities for employee tax obligations was reflected as a financing activity on the consolidated statements of cash flows. These shares withheld by the Company as a result of the net settlement were accounted for as treasury stock and considered issued but not outstanding.

Stock Option Activity

The following table presents a summary of option activity and related information during the year ended December 31, 2022:


	Number of options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Outstanding at December 31, 2021	81,015,590	$	2.79	5.98	$	339,570
Granted	22,571,050	$	4.37
Exercised	(5,151,190)	$	1.14
Forfeited	(7,254,030)	$	5.66
Outstanding at December 31, 2022	91,181,420	$	3.05	5.89	$	115,969
Vested and exercisable as of December 31, 2022	54,682,520	$	1.48	4.22	$	112,582

The aggregate intrinsic value of stock options exercised during 2022, 2021, and 2020 was $14.3 million, $170.4 million, and $64.8 million, respectively.

Stock Option Valuation Assumptions

The following table presents the assumptions used to estimate the fair values of the share options granted:


	2022	2021	2020
Risk-free rate of return	1.4%-4.0%	0.9%-1.4%	0.4%-0.8%
Expected term (in years)	6.5	6, 6.25 or 6.5	6 or 6.5
Estimated volatility rate	65%	65%	70%
Expected dividend rate	0%	0%	0%

Non-Vested Restricted Shares Activity

The following table summarized the Company’s non-vested restricted share activity in 2022:


	Numbers of non-vested restricted shares	Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Non-vested as of December 31, 2021	9,567,360	3.36	$	60,131
Granted	30,663,040
Vested	(1,940,680)
Forfeited	(4,855,830)
Non-vested as of December 31, 2022	33,433,890	3.55	$	102,642

Stock-Based Compensation Expenses

Options granted are measured based on grant-date fair value estimated using the Black-Scholes option pricing model. The grant-date fair value of restricted shares is the fair value of the underlying stock on the award’s grant date. Compensation expense is recognized over the vesting period of the applicable awards on a straight-line basis. The weighted-average grant-date fair value per share for options granted during 2022, 2021, and 2020 were $2.74, $12.60, and $4.06 per share, respectively. The weighted-average grant-date fair value per share for restricted shares granted in 2022, 2021, and 2020 were $3.71, $10.55, and $7.46 per share, respectively.

The following table presents the stock-based compensation expense which has been reported in the Company’s consolidated statements of operations (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Selling, general and administrative	38,118	23,194	15,718
Research and development	23,184	17,520	9,112
Total	61,302	40,714	24,830

As of December 31, 2022, there was unrecognized share-based compensation expense related to unvested share options and unvested restricted shares of $101.3 million and $128.6 million, respectively, which the Company expects to recognize over a weighted-average period of 3.34 years and 3.59 years, respectively.

Short-Term Investments	12 Months Ended
Short-Term Investments	Dec. 31, 2022
Short-Term Investments [Abstract]
Short-Term Investments	Short-Term InvestmentsShort-term investments are primarily comprised of time deposits with original maturities between three months and one year. The short-term investments balance was nil as of December 31, 2022. The Company’s short-term investments balance was $445.0 million as of December 31, 2021 and consisted entirely of short-term held to maturity debt instruments with high credit ratings, which were determined to have remote risk of expected credit loss. Accordingly, no allowance for credit loss was recorded as of December 31, 2021.

Organization and Principal Activities

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Principal Activities

Zai Lab Limited was incorporated on March 28, 2013 in the Cayman Islands as an exempted company with limited liability under the Companies Act of the Cayman Islands (as amended). Zai Lab Limited and its subsidiaries (collectively referred to as the “Company”) are focused on discovering, developing, and commercializing products and product candidates that address medical conditions with significant unmet needs, including in the areas of oncology, autoimmune disorders, infectious diseases, and neuroscience.

The Company’s principal operations and geographic markets are in Greater China. The Company has a substantial presence in Greater China and the United States.

As of December 31, 2022, the Company’s significant operating subsidiaries were as follows:

Name of Company

Place of
Incorporation

Date of
Incorporation

Percentage of
Ownership

Principal Activities

Zai Lab (Hong Kong) Limited

Hong Kong

April 29, 2013

100%

Operating company for business development and R&D activities and commercialization of innovative medicines and device

Zai Lab (Shanghai) Co., Ltd.

Mainland
China

January 6, 2014

100%

Development and commercialization of innovative medicines and devices

Zai Lab (AUST) Pty. Ltd.

Australia

December 10, 2014

100%

Clinical trial activities

Zai Lab (Suzhou) Co., Ltd.

Mainland
China

November 30, 2015

100%

Development and commercialization of innovative medicines

Zai Biopharmaceutical (Suzhou) Co., Ltd.

Mainland
China

June 15, 2017

100%

Development and commercialization of innovative medicines

Zai Lab (US) LLC

the United
States

April 21, 2017

100%

Operating company for business development, R&D activities and certain business activities, including legal, compliance and communication functions of the Company

Zai Lab International Trading (Shanghai) Co., Ltd.

Mainland
China

November 6, 2019

100%

Commercialization of innovative medicines and devices

Zai Auto Immune (Hong Kong) Limited

Hong Kong

November 4, 2020

100%

Operating company for business development and R&D activities

Zai Lab (Taiwan) Limited

Taiwan

December 10, 2020

100%

Commercialization of innovative medicines and devices

Zai Lab Trading (Suzhou) Co., Ltd.

Mainland
China

October 27, 2020

100%

Commercialization of innovative medicines and devices

Revenue - Schedule of Disaggregation of Net Product Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue
Total product revenue — net	$ 212,672	$ 144,105	$ 48,958
ZEJULA
Disaggregation of Revenue
Total product revenue — net	145,194	93,579	32,138
Optune
Disaggregation of Revenue
Total product revenue — net	47,321	38,903	16,418
QINLOCK
Disaggregation of Revenue
Total product revenue — net	14,957	11,620	402
NUZYRA
Disaggregation of Revenue
Total product revenue — net	$ 5,200	$ 3	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Financial Statements Schedule I - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from Operating activities:
Net loss	$ (443,286)	$ (704,471)	$ (268,905)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred income	(2,602)	(521)	(312)
Share-based compensation	61,302	40,714	24,830
Loss from fair value changes of equity investment of readily determinable fair value	8,952	14,617	0
Changes in operating assets and liabilities:
Prepayments and other current assets	(19,258)	(7,086)	(4,199)
Other current liabilities	7,392	30,142	10,682
Net cash used in operating activities	(367,642)	(549,231)	(216,055)
Cash flows from investing activities
Purchases of short-term investments	(260,274)	(445,000)	(949,161)
Proceeds from maturity of short-term investments	705,274	743,902	405,000
Purchase of investment in equity investee	0	(30,000)	0
Net cash provided by (used in) investing activities	420,016	249,957	(554,830)
Cash flows from financing activities
Proceeds from exercises of stock options	5,870	7,417	6,664
Proceeds from issuance of ordinary shares upon public offerings	0	818,875	1,137,683
Payment of public offering costs	0	(1,837)	(5,380)
Employee taxes paid related to settlement of equity awards	(7,600)	(4,253)	0
Net cash (used in) provided by financing activities	(1,730)	820,202	1,132,440
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(6,274)	1,116	4,862
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	44,370	522,044	366,417
Cash, cash equivalents and restricted cash — beginning of the year	964,903	442,859	76,442
Cash, cash equivalents and restricted cash — end of the year	1,009,273	964,903	442,859
Parent Company
Cash flows from Operating activities:
Net loss	(443,286)	(704,471)	(268,905)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred income	(234)	(312)	(312)
Share-based compensation	3,724	3,435	3,025
Equity in loss of subsidiaries	427,514	676,099	266,334
Loss from fair value changes of equity investment of readily determinable fair value	8,952	14,617	0
Changes in operating assets and liabilities:
Prepayments and other current assets	(7,839)	(439)	2,253
Other current liabilities	1,648	(376)	738
Net cash used in operating activities	(9,521)	(11,447)	3,133
Cash flows from investing activities
Purchases of short-term investments	(260,274)	(445,000)	(949,161)
Proceeds from maturity of short-term investments	705,274	743,902	405,000
Purchase of investment in equity investee	0	(30,000)	0
Investment in subsidiaries	(80,942)	(884,342)	(256,097)
Net cash provided by (used in) investing activities	364,058	(615,440)	(800,258)
Cash flows from financing activities
Proceeds from exercises of stock options	5,870	7,418	6,664
Proceeds from issuance of ordinary shares upon public offerings	0	818,875	1,137,683
Payment of public offering costs	0	(1,692)	(4,541)
Employee taxes paid related to settlement of equity awards	(7,600)	(4,253)	0
Net cash (used in) provided by financing activities	(1,730)	820,348	1,139,806
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0	773	(515)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	352,807	194,234	342,166
Cash, cash equivalents and restricted cash — beginning of the year	591,842	397,608	55,442
Cash, cash equivalents and restricted cash — end of the year	$ 944,649	$ 591,842	$ 397,608

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

The following table presents the Company’s cash and cash equivalents (in thousands):


	December 31,
	2022	2021
	$	$
Cash at bank and in hand	1,007,423	663,472
Cash equivalents (note (i))	1,047	300,628
	1,008,470	964,100
Denominated in:
US$	957,824	932,888
RMB (note (ii))	45,486	23,791
Hong Kong dollar (“HK$”)	4,378	6,674
Australian dollar (“A$”)	598	475
Taiwan dollar (“TW$”)	184	272
	1,008,470	964,100

Notes:

(i)Cash equivalents represent short-term and highly liquid investments in a money market fund.

(ii)Certain cash and bank balances denominated in RMB were deposited with banks in mainland China. The conversion of these RMB denominated balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the Chinese government.

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 7.7	$ 6.0	$ 4.3

License and Collaboration Agreements	12 Months Ended
License and Collaboration Agreements	Dec. 31, 2022
Licenses And Collaborative Arrangement [Abstract]
License and Collaboration Agreements	License and Collaboration Agreements The Company may enter into collaboration agreements with third parties to license intellectual property. These agreements may require the Company to make payments related to certain future development, regulatory, and sales-based milestones as well as tiered royalties on future sales of licensed products in the licensed territory. Payments under these agreements generally become due and payable upon the achievement of such milestones or sales. These commitments are not recorded as liabilities on the consolidated balance sheet because the achievement and timing of these milestones are not fixed and determinable. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item when we become obligated to pay, which is generally in the same fiscal year of payment unless otherwise noted. The following is a description of the Company’s significant license and collaboration agreements as of December 31, 2022. License and Collaboration Agreement with GSK (Niraparib) In September 2016, the Company entered into a collaboration, development, and license agreement with Tesaro, Inc., a company later acquired by GSK, pursuant to which the Company obtained an exclusive sublicense under certain patents and know-how of GSK to develop, manufacture, and commercialize GSK’s proprietary PARP inhibitor, niraparib, in mainland China, Hong Kong, and Macau for the diagnosis and prevention of any human diseases or conditions (other than prostate cancer). To date, the Company has made an upfront payment of $15.0 million and has paid $16.5 million development, regulatory, and sales-based milestones, including a $1.0 million milestone payment accrued in 2020 and made in 2021, a $4.0 million milestone payment made in 2022, and a $3.5 million development milestone and $8.0 million sales-based milestone paid in 2022, which were accrued in 2019 and 2021, respectively. The Company may be required to pay an additional aggregate amount of up to $28.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentages rates ranging from mid- to high-teens on annual net sales of the licensed products in the licensed territories. License and Collaboration Agreement with Paratek Bermuda Ltd. (“Paratek”) (Omadacycline) In April 2017, the Company entered into a license and collaboration agreement with Paratek, pursuant to which the Company obtained both an exclusive license under certain patents and know-how of Paratek and an exclusive sub-license under certain intellectual property that Paratek licensed from Tufts University to develop, manufacture, and commercialize products containing omadacycline (ZL-2401) as an active ingredient in Greater China in the field of all human therapeutic and preventative uses other than biodefense. To date, the Company has made an upfront payment of $7.5 million and has paid $14.0 million in development and regulatory milestone payments, including a $5.0 million development milestone payment upon approval by the FDA of a New Drug Application (“NDA”) submission in 2018, a $3.0 million development milestone payment upon submission of the first regulatory approval application for a licensed product in the People’s Republic of China paid in 2020, and a $6.0 million development milestone upon regulatory approval of omadacycline for the treatment of adults with ABSSSI and CABP in the People’s Republic of China accrued in December 2021 and paid in 2022. The Company may be required to pay an additional aggregate amount of up to $40.5 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentages rates ranging from low- to mid-teens on annual net sales of licensed products in the licensed territory. License and Collaboration Agreement with Amgen (Bemarituzumab) In December 2017, the Company entered into a license and collaboration agreement with Five Prime Therapeutics, Inc. (later acquired by Amgen), pursuant to which it obtained an exclusive license under certain patents and know-how of Five Prime to develop and commercialize products containing Five Prime’s proprietary afucosylated FGFR2b antibody known as bemarituzumab (FPA144) as an active ingredient in the treatment or prevention of any disease or condition in humans in Greater China. To date, the Company has made an upfront payment of $5.0 million and a milestone payment of $2.0 million. The Company may be required to pay an additional aggregate amount of up to $37.0 million in development and regulatory milestones as well as certain royalties at tiered percentage rates ranging from high-teens to low twenties on annual net sales of the licensed product in the licensed territory. Under the terms of the agreement, provided that the Company enrolls and treats a specified number of patients in the bemarituzumab FPA144-004 study in mainland China, the Company is eligible to receive a low single-digit percentage quarterly royalty, on a licensed product-by-licensed product basis on net sales of all licensed product outside of the licensed territory until the tenth (10th) anniversary of the first commercial sale of each such licensed product outside the licensed territory. License and Collaboration Agreement with Entasis Therapeutics Holdings Inc.(“Entasis”) (SUL-DUR) In April 2018, the Company entered into a license and collaboration agreement with Entasis, pursuant to which it obtained an exclusive license under certain patents and know-how of Entasis to develop and commercialize products containing Entasis’ proprietary compounds known as durlobactam (ETX2514) and Sulbactam (ETX2514SUL) as an active ingredient with the possibility of developing and commercializing a combination of such compounds with Imipenem in all human diagnostic, prophylactic, and therapeutic uses in Greater China, Korea, Vietnam, Thailand, Cambodia, Laos, Malaysia, Indonesia, the Philippines, Singapore, Australia, New Zealand, and Japan. The Company’s rights to develop and commercialize the licensed products are limited to the lead product (Sulbactam) until such lead product receives initial FDA approval in the United States. To date, the Company has made an upfront payment of $5.0 million and two development milestone payments totaling $7.0 million. The Company may be required to pay an additional aggregate amount of up to $91.6 million in development and commercial milestones as well as certain royalties at tiered percentage rates ranging from high single digits to low-teens on annual net sales of the licensed products in the licensed territory. The Company is also responsible for a portion of the costs of the global pivotal Phase III clinical trial of SUL-DUR outside of the territory. The Company has the right to terminate this agreement at any time by providing written notice of termination to Entasis. License and Collaboration Agreement with Crescendo Biologics Ltd. (“Crescendo”) (ZL-1102) In May 2018, the Company entered into an agreement with Crescendo, pursuant to which the Company obtained an exclusive, worldwide license to develop, commercialize, and manufacture ZL-1102, a topical, innovative antibody VH domain therapeutic for all indications. Pursuant to the terms of the agreement, the Company will be responsible for conducting all regulatory filings, clinical studies, and commercialization activities, with both companies participating in a Joint Development Committee. In October 2020, the Company and Crescendo entered into a supplemental license agreement, under which Crescendo granted to the Company a non-exclusive, worldwide license to use the Crescendo VH HLEs in connection with the development, commercialization, manufacture, and other exploitation of VH HLE licensed products. To date, the Company has made two upfront fee payments totaling $4.5 million, including a $2.5 million payment in 2020, and three milestone payments totaling $6.0 million, including a $2.0 million payment in 2020 and a $4.0 million payment in 2021. The Company may be required to pay an additional aggregate amount of up to $298.1 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates on annual global sales. The Company has the right to terminate this agreement at any time by providing written notice of termination to Crescendo. License and Collaboration Agreement with NovoCure (Tumor Treating Fields) In September 2018, the Company entered into a license and collaboration agreement with NovoCure, pursuant to which it obtained an exclusive license under certain patents and know-how of NovoCure to develop and commercialize Tumor Treating Fields products in all human therapeutic and preventative uses in the field of oncology in Greater China. To date, the Company has made an upfront payment of $15.0 million in 2018 and two milestone payments totaling $10.0 million made in 2020. The Company may be required to pay an additional aggregate amount of up to $68.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from low- to mid-teens on annual net sales of the licensed products in the licensed territory. The Company will purchase licensed products exclusively from NovoCure at NovoCure’s fully burdened manufacturing cost. The Company has the right to terminate this agreement at any time by providing written notice of termination to NovoCure. License and Collaboration Agreements with MacroGenics (including Margetuximab and Tebotelimab) In November 2018, the Company entered into a collaboration agreement with MacroGenics, pursuant to which it obtained an exclusive license under certain patents and know-how of MacroGenics to develop and commercialize margetuximab, tebotelimab (MGD-013), and an undisclosed multi-specific TRIDENT molecule in pre-clinical development, each as an active ingredient in all human fields of use, except to the extent limited by any applicable third party agreement of MacroGenics in Greater China. To date, the Company has made an upfront payment of $25.0 million and three milestone payments totaling $9.0 million, including $4.0 million paid in 2020 and $5.0 million accrued in 2021 but paid in 2022. The Company may be required to pay an additional aggregate amount of up to $84.0 million in development and regulatory milestones as well as certain royalties at tiered percentage rates ranging from low-teens to twenties on annual net sales of the licensed products in the licensed territory. The tebotelimab program was terminated in 2022, but we continue to collaborate with respect to the other licensed products. The Company has the right to terminate this agreement at any time by providing written notice of termination to MacroGenics. In June 2021, the Company entered into another collaboration and license agreement with MacroGenics, pursuant to which the Company and MacroGenics made four collaboration programs involving up to four immuno-oncology molecules. The first collaboration program covers a lead research molecule that incorporates MacroGenics’ DART platform and binds CD3 and an undisclosed target that is expressed in multiple solid tumors. The second collaboration program will cover a target to be designated by MacroGenics. For both molecules, the Company received commercial rights in Greater China, Japan, and Korea, and MacroGenics received commercial rights in all other territories. For the lead molecule, the Company receives an option upon reaching a predefined clinical milestone to convert the regional arrangement into a global 50/50 profit share. The Company also obtained exclusive, global licenses from MacroGenics to develop, manufacture, and commercialize two additional molecules. For these four programs, each Company will contribute intellectual property to generate either CD3- or CD47-based bispecific antibodies. To date, the Company has made an upfront payment of $25.0 million in 2021. Further, on June 15, 2021, as partial consideration for the rights granted to us under this agreement, we entered into a stock purchase agreement with MacroGenics, pursuant to which we purchased from MacroGenics in a private placement an aggregate of 958,467 newly issued shares of common stock, par value $0.01 per share, of MacroGenics, with a per share purchase price of $31.30, for aggregate gross proceeds of approximately $30.0 million. The Company may be required to pay an additional aggregate amount of up to $1,386.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates on annual net sales of specified products, subject to reduction under specified circumstances. The Company also has an option to convert the royalty arrangement for the lead research molecule to a global 50/50 profit and loss sharing arrangement by making a payment of approximately $85.0 million. The Company has the right to terminate this agreement at any time by providing written notice of termination to MacroGenics. License and Collaboration Agreement with Deciphera (Ripretinib) In June 2019, the Company entered into a license agreement with Deciphera, pursuant to which it obtained an exclusive license under certain patents and know-how of Deciphera to develop and commercialize products containing ripretinib in the field of the prevention, prophylaxis, treatment, cure, or amelioration of any disease or medical condition in humans in Greater China. To date, the Company has made an upfront payment of $20.0 million and three milestone payments totaling $12.0 million, including $2.0 million paid in 2020 and $5.0 million paid in 2021. The Company may be required to pay an additional aggregate amount of up to $173.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from low- to high-teens on annual net sales of the licensed products in the licensed territory. The Company has the right to terminate this agreement at any time by providing written notice of termination to Deciphera. License and Collaboration Agreement with Incyte Corporation (“Incyte”) (Retifanlimab) In July 2019, the Company entered into a collaboration and license agreement with Incyte, pursuant to which it obtained an exclusive license under certain patents and know-how of Incyte to develop and commercialize products containing retifanlimab (INCMGA012) as an active ingredient in the treatment, palliation, diagnosis, or prevention of diseases in the fields of hematology or oncology in humans in Greater China. We terminated this license agreement, in accordance with its terms, effective January 11, 2023. Collaboration Agreement with Regeneron Pharmaceuticals, Inc (“Regeneron”) (Odronextamab) In April 2020, the Company entered into a collaboration agreement with Regeneron Ireland Designated Activity Company, an affiliate of Regeneron, pursuant to which it obtained oncology development and exclusive commercialization rights for products containing odronextamab as the sole active ingredient in Greater China. We also obtained a right of first negotiation for additional indications outside the field of cancer. To date, the Company has made an upfront payment of $30.0 million in 2020. The Company may be required to pay an additional aggregate amount of up to $160.0 million in regulatory and sales-based milestones. Additionally, the Company will make payments to Regeneron based on annual net sales, such that Regeneron shares in a significant portion of any potential profits. The Company is also responsible for contributing to the global development costs of odronextamab for certain trials and will purchase odronextamab exclusively from Regeneron. The Company has the right to terminate this agreement at any time by providing written notice of termination to Regeneron. License Agreement with BMS (Formerly Turning Point Therapeutics Inc (“Turning Point”)) (Repotrectinib and TPX-0022) In July 2020, the Company entered into an exclusive license agreement with Turning Point (a company later required by BMS) pursuant to which the Company received an exclusive license to develop and commercialize products containing repotrectinib as an active ingredient in all human therapeutic indications in Greater China. To date, the Company has made an upfront payment of $25.0 million in 2020 and three milestone payments in 2021 totaling $5.0 million. The Company may be required to pay an additional aggregate amount of up to $146.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from mid- to high-teens on annual net sales of the licensed product in the licensed territory. The Company has the right to terminate this agreement at any time by providing written notice of termination. In January 2021, the Company entered into an additional license agreement with Turning Point, which expanded their collaboration. Under the terms of this agreement, the Company obtained an exclusive license under certain patents and know-how to develop and commercialize products containing Turning Point’s product candidate, TPX-0022, as an active ingredient in all human therapeutic indications in Greater China. To date, the Company has made an upfront payment of $25.0 million. We may be required to pay an additional aggregate amount of up to $336.0 million in development, regulatory, and sales-based milestone payments as well as certain royalties at tiered percentage rates ranging from mid-teen to low twenties on annual net sales of the licensed products in the licensed territory. In addition, Turning Point will have the right of first negotiation to develop and commercialize an oncology product candidate discovered by the Company. License Agreement with Taiho Pharmaceutical Co., Ltd. (“Taiho”) (formerly Cullinan Pearl Corp. (“Cullinan Pearl”)) (Zipalertinib, formerly CLN-081) In December 2020, the Company entered into a license agreement with Cullinan Pearl, a subsidiary of Cullinan Oncology, Inc., pursuant to which it obtained an exclusive license under certain patents and know-how of Cullinan Pearl to develop, manufacture, and commercialize products containing CLN-081 as an active ingredient in all uses in humans and animals in Greater China. To date, the Company has made an upfront payment of $20.0 million, which was accrued in 2020 and paid in 2021. The Company may be required to pay an additional aggregate amount of up to $211.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from high-single-digit to low-teens on annual net sales of the licensed product in the licensed territory. Cullinan Pearl received worldwide rights for CLN-081, excluding Japan, from Taiho in 2018. In June 2022, Taiho acquired Cullinan Pearl and obtained exclusive global rights to CLN-081 outside of the United States. In December 2022, we agreed with Taiho on the assignment of our license agreement with Cullinan Pearl to Taiho. The Company has the right to terminate this agreement at any time by providing written notice of termination to Taiho. License Agreement with Takeda Pharmaceutical Company Limited (“Takeda”) (Simurosertib) In December 2020, the Company entered into an exclusive license agreement with Takeda. Under the terms of the license agreement, Takeda exclusively licensed to the Company the right to research, develop, and commercialize the licensed products in the licensed field during the term. To date, the Company has made an upfront payment of $6.0 million to Takeda, which was accrued in 2020 and paid in 2021. This program was terminated in 2022. Collaboration and License Agreement with argenx BV (“argenx”) (Efgartigimod) In January 2021, the Company entered into a collaboration and license agreement with argenx pursuant to which the Company received an exclusive license under certain patients and know-how of argenx to develop and commercialize products containing efgartigimod as an active ingredient in all human and animal uses for any preventative or therapeutic indications in Greater China. Pursuant to the collaboration and license agreement, the Company and argenx entered into a share issuance agreement. The Company issued as an upfront payment to argenx 5,681,820 ordinary shares of the Company. In determining the fair value of the ordinary shares at closing, the Company considered the closing price of the ordinary shares on the closing date and included a lack of marketability discount because the shares were subject to certain restrictions. The fair value of the shares on the closing date was determined to be $62.3 million in the aggregate. In addition, the Company made a $75.0 million cash payment as a guarantee for non-creditable, non-refundable development cost-sharing payment in 2021. The Company has made a milestone payment of $25.0 million in 2022 which was accrued in the fourth quarter of 2021 related to the first regulatory approval for the licensed product by the U.S. Food and Drug Administration (“FDA”) in December 2021. The Company may be required to pay certain royalties at tiered percentages rates ranging from mid-teen to low-twenties on annual net sales of the licensed products in the licensed territory. Collaboration and License Agreement with Mirati Therapeutics, Inc. (“Mirati”) (Adagrasib) In May 2021, the Company entered into a collaboration and license agreement with Mirati pursuant to which the Company obtained the right to research, develop, manufacture, and exclusively commercialize adagrasib in all indications in Greater China, with Mirati retaining exclusive rights for the development, manufacturing, and commercialization of adagrasib outside of Greater China and certain co-commercialization, manufacture, and development rights in Greater China. To date, the Company has made an upfront payment of $65.0 million to Mirati in 2021 and two development milestone payments totaling $10.0 million in 2022. The Company may be required to pay an additional aggregate amount of up to $263.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from high-teens to low-twenties on annual net sales of the licensed product in the licensed territory. Collaboration and License Agreement with Blueprint Medicines Corporation (“Blueprint”) (BLU-945 and BLU-701) In November 2021, the Company entered into a collaboration and license agreement with Blueprint, pursuant to which the Company obtained rights to develop and exclusive commercialize BLU-701 and BLU-945 and BLU-701 and certain other forms thereof, including backup compounds, for the treatment of patients with EGFR-driven NSCLC in Greater China. To date, the Company has made an upfront payment of $25.0 million in 2021. The Company may be required to pay an additional aggregate amount of up to $590.0 million in clinical, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from the low- to mid-teens on annual net sales of the licensed products in the licensed territory. Blueprint deprioritized BLU-701 in 2022, but we continue to collaborate with respect to BLU-945. The Company has the right to terminate this agreement after the second anniversary of the effective date by providing written notice of termination to Blueprint. License Agreement with Karuna Therapeutics, Inc. (“Karuna”) (KarXT) In November 2021, the Company entered into a license agreement with Karuna, pursuant to which the Company obtained an exclusive license to develop, manufacture, and commercialize KarXT (xanomeline-trospium) in Greater China. To date, the Company has made an upfront payment of $35.0 million in 2021 and two development milestone payments totaling $10.0 million in 2022. The Company may be required to pay an additional aggregate amount of up to $142.0 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates ranging from low- to high-teens on annual net sales of the licensed products in Greater China. Collaboration and License Agreement with Seagen Inc. (“Seagen”) (TIVDAK) In September 2022, the Company entered into a collaboration and license agreement with Seagen, pursuant to which the Company and Seagen agreed to collaboratively develop and commercialize TIVDAK (tisotumab vedotin). Under the agreement, the Company obtained an exclusive license to develop and commercialize TIVDAK in Greater China. To date, the Company has made an upfront payment of $30.0 million in 2022. The Company may be required to pay an additional aggregate amount of up to $263.0 million in development, regulatory, and sales-based milestone payments as well as certain royalties at tiered percentage rates ranging from mid-teens to low-twenties on annual net sales of the licensed products in Greater China. The agreement will remain in effect, unless earlier terminated, until the expiration of the last-to-expire royalty term for the last licensed product. The agreement contains customary provisions for termination by either party, including in the event of a material breach by the other party that remains uncured, by the Company for convenience, for certain bankruptcy events, and by Seagen upon a challenge of the licensed patent rights. Aggregate Potential Payments under License and Collaboration Agreements As noted above, the Company has entered into various license and collaboration agreements with third party licensors to develop and commercialize product candidates. Based on the terms of these agreements, the Company is contingently obligated to make additional material payments upon the achievement of certain contractually defined milestones. Based on management’s evaluation of the progress of each project noted above, as of December 31, 2022, the Company may be required to pay licensors an aggregate additional amount of up to approximately $5,300.4 million in development, regulatory, and sales-based milestones as well as certain royalties at tiered percentage rates on annual net sales. The development milestones, such as regulatory approval for the product candidates, may occur before the Company has commercialized the product or received any revenue from sales of such product candidate. These milestone payments are subject to uncertainties and contingencies and may not occur.

Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, ¥ in Millions			1 Months Ended			12 Months Ended
	Mar. 30, 2022 USD ($) $ / shares shares	Mar. 29, 2022	Feb. 28, 2022 CNY (¥)	Apr. 30, 2020 CNY (¥)	Mar. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($) segment $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares
Significant Accounting Policies [Line Items]
Share Subdivision ratio	10
Ordinary shares, authorized share capital	$ 30,000
Ordinary shares, shares authorized (in shares) \| shares	5,000,000,000					5,000,000,000	5,000,000,000			5,000,000,000	5,000,000,000
Ordinary shares, par value (in dollars per share) \| $ / shares	$ 0.000006					$ 0.000006	$ 0.000006
ADS to ordinary shares conversion ratio	10	1
Allowance for credit loss						$ 0	$ 0
Land use rights lease term									30 years
Amortization expenses						500,000	500,000	$ 300,000
Finite-lived intangible assets, Amortization expense, year one						600,000
Finite-lived intangible assets, Amortization expense, year two						500,000
Finite-lived intangible assets, Amortization expense, year three						300,000
Finite-lived intangible assets, Amortization expense, year four						100,000
Finite-lived intangible assets, Amortization expense, year five						0
Finite-lived intangible assets, Amortization expense, after year five						0
Government grants recognized						11,471,000	4,113,000	7,289,000
Deferred income						$ 21,360,000	27,486,000
Reimbursement recognized period						5 years
Reimbursements recognized						$ 200,000	300,000	300,000
Collaboration revenue						2,368,000	207,000	0
Unrecognized tax benefits and related interest and penalties						$ 0
Number of operating segments \| segment						1
Number of reportable segments \| segment						1
Aggregate amount of cash and cash equivalents						$ 1,008,470,000	964,100,000	$ 442,116,000
Government Grants
Significant Accounting Policies [Line Items]
Deferred income						900,000	2,400,000
ADR program Reimbursements
Significant Accounting Policies [Line Items]
Deferred income						$ 0	$ 200,000
Foreign Currency Risk \| Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Aggregate amount of cash and cash equivalents \| ¥										¥ 316.8	¥ 151.7
China \| Foreign Currency Risk \| Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Concentration risk percentage						5.00%	2.00%
Level 1
Significant Accounting Policies [Line Items]
Equity investments with readily determinable fair value						$ 6,400,000	$ 15,400,000
Hanhui
Significant Accounting Policies [Line Items]
Upfront payment \| ¥			¥ 70.0	¥ 90.0	¥ 230.0
Hanhui \| Collaborative Agreement
Significant Accounting Policies [Line Items]
Deferred income						$ 20,500,000	$ 24,900,000
Amortization period for deferred income						10 years
Minimum
Significant Accounting Policies [Line Items]
Intangible assets amortization period						3 years
Maximum
Significant Accounting Policies [Line Items]
Intangible assets amortization period						5 years

Income Tax

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Tax

Cayman Islands

Zai Lab Limited, ZLIP Holding Limited, Zai Auto Immune Limited, and Zai Anti Infectives Limited are incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, Zai Lab Limited, ZLIP Holding Limited, Zai Auto Immune Limited, and Zai Anti Infectives Limited are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

British Virgin Islands Taxation

ZL Capital Limited is incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, ZL Capital Limited is not subject to income tax.

Australia

Zai Lab (AUST) Pty. Ltd. is incorporated in Australia and is subject to corporate income tax at a rate of 30%. Zai Lab (AUST) Pty. Ltd. had no taxable income for the periods presented; therefore, no provision for income taxes is required.

United States

Zai Lab (US) LLC is incorporated in the United States and is subject to U.S. federal corporate income tax at a rate of 21%. Zai Lab (US) LLC is also subject to state income tax in Delaware. Zai Lab (US) LLC had no taxable income for the periods presented; therefore, no provision for income taxes is required.

Taiwan

Zai Lab (Taiwan) Limited is incorporated in Taiwan and is subject to corporate income tax at a rate of 20%. Zai Lab (Taiwan) Limited had no taxable income for the periods presented; therefore, no provision for income taxes is required.

Hong Kong

Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited are incorporated in Hong Kong. Companies registered in Hong Kong are subject to Hong Kong profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. Under the two-tiered profits tax rates regime in Hong Kong, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. For the years ended December 31, 2022, 2021, and 2020, Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited are exempted from income tax on its foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of dividends.

People’s Republic of China

Under EIT Law, the statutory income tax rate is 25%, and the EIT rate will be reduced to 15% for state-encouraged High and New Technology Enterprises (“HNTE”). Zai Lab (Shanghai) Co., Ltd., first obtained a HNTE certificate in 2018 and began to enjoy the preferential tax rate of 15% from 2018 to 2020 and further extended the certificate in 2021 effective for 2021 to 2023. Zai Lab International Trading (Shanghai) Co., Ltd., Zai Lab (Suzhou) Co., Ltd., Zai Biopharmaceutical (Suzhou) Co., Ltd., and Zai Lab Trading (Suzhou) Co., Ltd. are subject to the statutory rate of 25%.

No provision for income taxes has been required to be accrued because the Company and all of its subsidiaries are in cumulative loss positions for the periods presented.

The following table presents loss (income) before income taxes (in thousands):


	Year Ended December 31,
	2022	2021	2020

	$	$	$
Cayman Islands	19,454	28,401	2,612
British Virgin Islands	2	2	3
Mainland China	290,056	340,865	220,813
Hong Kong	53,425	243,400	20,022
United States	79,620	89,374	24,616
Australia	(260)	1,758	839
Taiwan	989	671	—
	443,286	704,471	268,905

Reconciliations of the differences between the Chinese statutory income tax rate and the Company’s effective income tax rate are as follows:


	Year Ended December 31,
	2022		2021		2020
Statutory income tax rate	25	%	25	%	25	%
Share-based compensation	(1.40	%)	(0.92	%)	(1.36	%)
Research and development super deduction	2.51	%	—	%	—	%
Non-deductible expenses	(2.31	%)	(5.78	%)	(1.17	%)
Prior year tax filing adjustment	6.33	%	1.50	%	1.78	%
Effect of different tax rate of subsidiary operation in other subsidiaries	(2.85	%)	(4.60	%)	(1.04	%)
Preferential tax rate	(6.26	%)	(4.30	%)	(7.48	%)

Changes in valuation allowance	(21.02	%)	(10.90	%)	(15.73	%)
Effective income tax rate	—	%	—	%	—	%

The following table presents the principal components of deferred tax assets and liabilities (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Deferred tax assets:
Depreciation of property and equipment, net	98	108	84
Research and experimental capitalization	22,476	—	—
Share-based compensation	1,787	—	—
Accrued expenses	1,800	—	—
Government grants	189	496	400
Deferred revenue	3,378	3,733	2,069
Qualified donation	12,947	10,246	7,627
Net operating loss carry forwards	241,397	175,101	94,954
Less: valuation allowance	(284,072)	(189,684)	(105,134)
Deferred tax assets, net	—	—	—

The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency, and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment, and the forecasts of future taxable income are consistent with the plans and estimates the Company is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. In 2022 and 2021, the Company determined that the deferred tax assets on temporary differences and net operating loss carry forwards were related to certain subsidiaries, for which the Company is not able to conclude that the future realization of those net operating loss carry forwards and other deferred tax assets are more likely than not. As such, it has fully provided valuation allowance for the deferred tax assets as of December 31, 2022 and 2021. As of December 31, 2022, 2021 and 2020, the Company had net operating losses of approximately $1,483.2 million, $1,089.7 million, and $605.2 million, respectively. As of December 31, 2022, net operating loss carryforwards related to the Company’s subsidiaries in mainland China, Hong Kong, Taiwan, the United States, and Australia are $1,225.9 million, $43.9 million, $1.5 million, $208.1 million, and $3.8 million, respectively. Net operating loss carryforwards in mainland China and Taiwan expire through 2032 and those in Hong Kong, the United States, and Australia do not expire.

The following table presents that movement of the valuation allowance:


	2022	2021
	$	$
Balance as of January 1,	(189,684)	(105,134)
Additions	(94,388)	(84,550)
Balance as of December 31,	(284,072)	(189,684)

Uncertainties exist with respect to how the current income tax law in mainland China applies to the Company’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of mainland China will be considered residents for Chinese income tax purposes if the place of effective management or control is within mainland China. The implementation rules to the EIT Law provide that non-resident legal entities will be considered Chinese residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, and properties occurs within mainland China. Despite the present uncertainties resulting from the limited Chinese tax guidance on the issue, the Company does not believe that the legal entities organized outside of mainland China within the Company should be treated as residents for EIT Law purposes. If the Chinese tax authorities subsequently determine that the Company and its subsidiaries registered outside of mainland China should be deemed resident enterprises, the Company and its subsidiaries registered outside of mainland China will be subject to Chinese income taxes, at a rate of 25%. The Company is not subject to any other uncertain tax position.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (443,286)	$ (704,471)	$ (268,905)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments	49,330	(9,121)	(19,144)
Comprehensive loss	$ (393,956)	$ (713,592)	$ (288,049)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Share-Based Compensation - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of options
Outstanding, beginning balance (in shares)	81,015,590
Granted (in shares)	22,571,050
Exercised (in shares)	(5,151,190)
Forfeited (in shares)	(7,254,030)
Outstanding, ending balance (in shares)	91,181,420	81,015,590
Weighted average exercise price
Outstanding, beginning balance (in dollars per share)	$ 2.79
Granted (in dollars per share)	4.37
Exercised (in dollars per share)	1.14
Forfeited (in dollars per share)	5.66
Outstanding, ending balance (in dollars per share)	$ 3.05	$ 2.79
Additional Disclosures
Number of options, Vested and exercisable (in shares)	54,682,520
Weighted average exercise price, Vested and exercisable (in dollars per share)	$ 1.48
Weighted average remaining contractual term, Outstanding	5 years 10 months 20 days	5 years 11 months 23 days
Weighted average remaining contractual term, Vested and exercisable	4 years 2 months 19 days
Aggregate intrinsic value, Outstanding	$ 115,969	$ 339,570
Aggregate intrinsic value, Vested and exercisable	$ 112,582

Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2017	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 22, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate intrinsic value of stock options exercised		$ 14.3	$ 170.4	$ 64.8
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant-date fair value of options granted (in dollars per share)		$ 2.74	$ 12.60	$ 4.06
Unrecognized compensation expense related to unvested share options granted		$ 101.3
Recognized over a weighted-average period		3 years 4 months 2 days
Non-vested restricted shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant-date fair value of non-option awards granted (in dollars per share)		$ 3.71	$ 10.55	$ 7.46
Unrecognized share-based compensation		$ 128.6
Recognized over a weighted-average period		3 years 7 months 2 days
Two Thousand Seventeen Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Threshold annual increase to the number of ordinary shares reserved as a percentage of number of ordinary shares outstanding	4.00%
Two Thousand Seventeen Equity Incentive Plan \| Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted contractual term		10 years
Vesting period		5 years
Two Thousand Seventeen Equity Incentive Plan \| Stock options \| Tranche one
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Stock options \| Tranche two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Stock options \| Tranche three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Stock options \| Tranche four
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Stock options \| Tranche five
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		5 years
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche one \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche one \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		25.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche two \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche two \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		25.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche three \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche three \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		25.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche four \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche four \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		25.00%
Two Thousand Seventeen Equity Incentive Plan \| Non-vested restricted shares \| Tranche five \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		20.00%
Two Thousand Twenty Two Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized (in shares)					97,908,743

Loss Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Loss Per Share

The following table presents the computation of the basic and diluted net loss per share (in thousands, except share and per share data):


	Year Ended December 31,
	2022	2021	2020
Numerator:
Net loss attributable to ordinary shareholders	(443,286)	(704,471)	(268,905)
Denominator:
Weighted average number of ordinary shares - basic and diluted	958,067,140	929,921,120	776,677,430
Net loss per share-basic and diluted	(0.46)	(0.76)	(0.35)

As a result of the Company’s net loss for the years ended December 31, 2022, 2021, and 2020, share options and non-vested restricted shares outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.


	December 31,
	2022	2021	2020
Share options	91,181,420	81,015,590	87,559,200
Non-vested restricted shares	33,433,890	9,567,360	5,417,500

Organization and Principal Activities (Details)	12 Months Ended
Organization and Principal Activities (Details)	Dec. 31, 2022
Zai Lab (Hong Kong) Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab (Shanghai) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab (AUST) Pty. Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab (Suzhou) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Biopharmaceutical (Suzhou) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab (US) LLC
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab International Trading (Shanghai) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Auto Immune (Hong Kong) Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab (Taiwan) Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%
Zai Lab Trading (Suzhou) Co., Ltd.
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Percentage of Ownership	100.00%

Income Tax - Reconciliation of the Effective Income Tax Rate (Details) - Mainland China	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Taxes [Line Items]
Statutory income tax rate	25.00%	25.00%	25.00%
Share-based compensation	(1.40%)	(0.92%)	(1.36%)
Research and development super deduction	2.51%	0.00%	0.00%
Non-deductible expenses	(2.31%)	(5.78%)	(1.17%)
Prior year tax filing adjustment	6.33%	1.50%	1.78%
Effect of different tax rate of subsidiary operation in other subsidiaries	(2.85%)	(4.60%)	(1.04%)
Preferential tax rate	(6.26%)	(4.30%)	(7.48%)
Changes in valuation allowance	(21.02%)	(10.90%)	(15.73%)
Effective income tax rate	0.00%	0.00%	0.00%

Organization and Principal Activities (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Significant Operating Subsidiaries

As of December 31, 2022, the Company’s significant operating subsidiaries were as follows:

Name of Company

Place of
Incorporation

Date of
Incorporation

Percentage of
Ownership

Principal Activities

Zai Lab (Hong Kong) Limited

Hong Kong

April 29, 2013

100%

Operating company for business development and R&D activities and commercialization of innovative medicines and device

Zai Lab (Shanghai) Co., Ltd.

Mainland
China

January 6, 2014

100%

Development and commercialization of innovative medicines and devices

Zai Lab (AUST) Pty. Ltd.

Australia

December 10, 2014

100%

Clinical trial activities

Zai Lab (Suzhou) Co., Ltd.

Mainland
China

November 30, 2015

100%

Development and commercialization of innovative medicines

Zai Biopharmaceutical (Suzhou) Co., Ltd.

Mainland
China

June 15, 2017

100%

Development and commercialization of innovative medicines

Zai Lab (US) LLC

the United
States

April 21, 2017

100%

Operating company for business development, R&D activities and certain business activities, including legal, compliance and communication functions of the Company

Zai Lab International Trading (Shanghai) Co., Ltd.

Mainland
China

November 6, 2019

100%

Commercialization of innovative medicines and devices

Zai Auto Immune (Hong Kong) Limited

Hong Kong

November 4, 2020

100%

Operating company for business development and R&D activities

Zai Lab (Taiwan) Limited

Taiwan

December 10, 2020

100%

Commercialization of innovative medicines and devices

Zai Lab Trading (Suzhou) Co., Ltd.

Mainland
China

October 27, 2020

100%

Commercialization of innovative medicines and devices

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

The following table presents the components of the Company’s property and equipment, net (in thousands):


	December 31,
	2022	2021
	$	$
Office equipment	977	836
Electronic equipment	7,416	5,036
Vehicles	202	220
Laboratory equipment	18,726	17,069
Manufacturing equipment	17,055	14,600
Leasehold improvements	11,300	10,432
Construction in progress	24,251	11,334
	79,927	59,527
Less: accumulated depreciation	(22,064)	(16,425)
Property and equipment, net	57,863	43,102

Financial Statements Schedule I - Condensed Balance Sheets (Details) - USD ($)	Dec. 31, 2022	Mar. 30, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 1,008,470,000		$ 964,100,000	$ 442,116,000
Short-term investments	0		445,000,000
Prepayments and other current assets	35,674,000		18,021,000
Total current assets	1,124,336,000		1,500,881,000
Total assets	1,220,140,000		1,609,956,000
Current liabilities
Other current liabilities	66,818,000		60,811,000
Total current liabilities	139,842,000		192,901,000
Deferred income	21,360,000		27,486,000
Total liabilities	174,545,000		230,000,000
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)	6,000		6,000
Additional paid-in capital	2,893,120,000		2,825,948,000
Accumulated deficit	(1,861,360,000)		(1,418,074,000)
Accumulated other comprehensive income (loss)	25,685,000		(23,645,000)
Treasury stock	(11,856,000)		(4,279,000)
Total shareholders’ equity	1,045,595,000		1,379,956,000	$ 1,169,345,000	$ 294,660,000
Total liabilities and shareholders’ equity	$ 1,220,140,000		$ 1,609,956,000
Stockholders' equity, par value and number of shares
Ordinary shares, par value (in dollars per share)	$ 0.000006	$ 0.000006	$ 0.000006
Ordinary shares, shares authorized (in shares)	5,000,000,000	5,000,000,000	5,000,000,000
Ordinary shares, shares outstanding (in shares)	960,219,570		954,981,050
Ordinary shares, shares issued (in shares)	962,455,850		955,363,980
Parent Company
Current assets
Cash and cash equivalents	$ 944,649,000		$ 591,842,000
Short-term investments	0		445,000,000
Prepayments and other current assets	10,203,000		2,364,000
Total current assets	954,852,000		1,039,206,000
Investment in subsidiaries	93,363,000		341,980,000
Total assets	1,048,215,000		1,381,186,000
Current liabilities
Other current liabilities	2,620,000		996,000
Total current liabilities	2,620,000		996,000
Deferred income	0		234,000
Total liabilities	2,620,000		1,230,000
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)	6,000		6,000
Additional paid-in capital	2,893,120,000		2,825,948,000
Accumulated deficit	(1,861,360,000)		(1,418,074,000)
Accumulated other comprehensive income (loss)	25,685,000		(23,645,000)
Treasury stock	(11,856,000)		(4,279,000)
Total shareholders’ equity	1,045,595,000		1,379,956,000
Total liabilities and shareholders’ equity	$ 1,048,215,000		$ 1,381,186,000
Stockholders' equity, par value and number of shares
Ordinary shares, par value (in dollars per share)	$ 0.000006		$ 0.000006
Ordinary shares, shares authorized (in shares)	5,000,000,000		5,000,000,000
Ordinary shares, shares outstanding (in shares)	960,219,570		954,981,050
Ordinary shares, shares issued (in shares)	962,455,850		955,363,980

Revenue (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Net Product Sales

The table below presents the Company’s net product sales (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Product revenue — gross	234,009	190,180	57,355
Less: Rebates and sales returns	(21,337)	(46,075)	(8,397)
Product revenue — net	212,672	144,105	48,958

Schedule of Disaggregation of Net Revenue

The following table presents net revenue by product (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
ZEJULA	145,194	93,579	32,138
Optune	47,321	38,903	16,418
QINLOCK	14,957	11,620	402
NUZYRA	5,200	3	—
Total product revenue — net	212,672	144,105	48,958

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

The following table presents the components of the Company’s property and equipment, net (in thousands):


	December 31,
	2022	2021
	$	$
Office equipment	977	836
Electronic equipment	7,416	5,036
Vehicles	202	220
Laboratory equipment	18,726	17,069
Manufacturing equipment	17,055	14,600
Leasehold improvements	11,300	10,432
Construction in progress	24,251	11,334
	79,927	59,527
Less: accumulated depreciation	(22,064)	(16,425)
Property and equipment, net	57,863	43,102

Depreciation expense was $7.7 million, $6.0 million, and $4.3 million for 2022, 2021, and 2020, respectively.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net loss	$ (443,286)	$ (704,471)	$ (268,905)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for credit loss	1	10	1
Inventory write-down	477	1,368	29
Depreciation and amortization expenses	8,227	6,487	4,640
Amortization of deferred income	(2,602)	(521)	(312)
Share-based compensation	61,302	40,714	24,830
Non-cash research and development expenses	0	62,250	0
Share of loss from equity method investment	221	1,057	1,119
Loss from fair value changes of equity investment with readily determinable fair value	8,952	14,617	0
Loss (gain) on disposal of property and equipment	560	29	(21)
Non-cash lease expenses	8,350	6,119	4,318
Foreign currency remeasurement loss (gain)	56,403	(10,679)	(21,659)
Changes in operating assets and liabilities:
Accounts receivable	4,330	(42,319)	(1,375)
Notes receivable	(1,976)	(7,335)	0
Inventories	(15,382)	(7,174)	(7,168)
Prepayments and other current assets	(19,258)	(7,086)	(4,199)
Long-term deposits	(527)	(8)	(485)
Value added tax recoverable	22,781	(1,717)	(8,404)
Accounts payable	(53,773)	63,522	39,981
Other current liabilities	7,392	30,142	10,682
Operating lease liabilities	(8,455)	(5,385)	(3,416)
Deferred income	(1,379)	11,149	14,289
Net cash used in operating activities	(367,642)	(549,231)	(216,055)
Cash flows from investing activities
Purchases of short-term investments	(260,274)	(445,000)	(949,161)
Proceeds from maturity of short-term investments	705,274	743,902	405,000
Purchases of investment in equity investee	0	(30,000)	0
Purchases of property and equipment	(24,585)	(18,295)	(10,130)
Proceeds from disposal of property and equipment	0	3	0
Purchases of intangible assets	(399)	(653)	(539)
Net cash provided by (used in) investing activities	420,016	249,957	(554,830)
Cash flows from financing activities
Repayment of short-term borrowings	0	0	(6,527)
Proceeds from exercises of stock options	5,870	7,417	6,664
Proceeds from issuance of ordinary shares upon public offerings	0	818,875	1,137,683
Payment of public offering costs	0	(1,837)	(5,380)
Employee taxes paid related to settlement of equity awards	(7,600)	(4,253)	0
Net cash (used in) provided by financing activities	(1,730)	820,202	1,132,440
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(6,274)	1,116	4,862
Net increase in cash, cash equivalents and restricted cash	44,370	522,044	366,417
Cash, cash equivalents and restricted cash — beginning of the year	964,903	442,859	76,442
Cash, cash equivalents and restricted cash — end of the year	1,009,273	964,903	442,859
Supplemental disclosure on non-cash investing and financing activities
Payables for purchase of property and equipment	5,269	2,568	788
Payables for purchase of intangible assets	163	191	70
Payables for public offering costs	0	0	1,063
Payables for treasury stock	2	26	0
Right-of-use asset acquired under operating leases	14,801	2,183	6,393
Receivables for disposal of property and equipment	64	0	0
Supplemental disclosure of cash flow information
Cash and cash equivalents	1,008,470	964,100	442,116
Restricted cash, non-current	803	803	743
Total cash and cash equivalents and restricted cash	1,009,273	964,903	442,859
Interest paid	$ 0	$ 0	$ 189

Long-Term Investments	12 Months Ended
Long-Term Investments	Dec. 31, 2022
Investments [Abstract]
Long-Term Investments	Long-Term Investments In July 2021, the Company made an equity investment in MacroGenics Inc. (“MacroGenics”), a biopharmaceutical company focused on developing and commercializing innovative monoclonal antibody-based therapeutics for the treatment of cancer, in a private placement with total contributions of $30,000 and obtained 958,467 newly issued common shares of MacroGenics at $31.30 per share. The Company recorded this investment at acquisition cost and subsequently measured it at fair value, with the changes in fair value recognized in other income (expenses), net in the consolidated statements of operations. The equity investments with readily determinable fair value are measured using level 1 inputs and were $6.4 million and $15.4 million as of December 31, 2022 and 2021, respectively. The Company recognized a fair value loss of $9.0 million, $14.6 million, and nil for 2022, 2021, and 2020, respectively.

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 8,084	$ 5,840	$ 4,056
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets	$ 14,801	$ 2,183	$ 6,393

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Estimated Useful Lives of Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets as follows:


			Useful life
Office equipment			3 years
Electronic equipment			1.25-3 years
Vehicles			4 years
Laboratory equipment			5 years
Manufacturing equipment			10 years
Leasehold improvements			lesser of useful life or lease term

Schedule of Concentration of Risks

The following customers accounted for 10% or more of revenue (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
A	52,534	40,634	15,774

The following debtors accounted for 10% or more of accounts receivable balances (in thousands):


	December 31,
	2022	2021
	$	$
A	9,342	10,293
B	*	10,979


*			Represents less than 10% of accounts receivable as of the applicable date.

Suppliers Accounted for 10% or More of Research and Development Expenses and Inventory Purchases

The following suppliers accounted for 10% or more of research and development expenses and inventory purchases (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
C	*	*	33,564
D	*	*	26,710
E	*	165,431	*
F	*	66,650	*

*Represents less than 10% of research and development expenses and inventory purchases for the period.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

Other Income (Expenses), Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Government grants	$ 11,471	$ 4,113	$ 7,289
Loss on equity investments with readily determinable fair value	(8,952)	(14,617)	0
Others miscellaneous gain	594	303	128
Total	$ 3,113	$ (10,201)	$ 7,417

Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2022 USD ($)
Property and Equipment
Loss Contingencies [Line Items]
Purchase obligation to be incurred within one year	$ 9.0

Employee Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Mainland China Government Plan
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan expense	$ 23.6	$ 17.6	$ 4.4
401(k) Plan
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan expense	$ 0.5	0.0	0.0
Employer matching contribution percentage	50.00%
Percentage of employee contribution that the employer matches	5.00%
Mandatory Provident Fund
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan expense	$ 0.2	$ 0.0	$ 0.0
Maximum \| 401(k) Plan
Defined Contribution Plan Disclosure [Line Items]
Percentage of employees eligible compensation the employer matches	2.50%

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

The following table presents the Company’s inventories, net (in thousands):


	December 31,
	2022	2021
	$	$
Finished goods	12,156	5,632
Raw materials	19,029	13,231
Work in progress	436	88
Inventories	31,621	18,951

Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss attributable to ordinary shareholders — basic	$ (443,286)	$ (704,471)	$ (268,905)
Net loss attributable to ordinary shareholders — diluted	$ (443,286)	$ (704,471)	$ (268,905)
Denominator:
Weighted average number of ordinary shares - basic (in shares)	958,067,140	929,921,120	776,677,430
Weighted average number of ordinary shares - diluted (in shares)	958,067,140	929,921,120	776,677,430
Net loss per share — basic (in dollars per share)	$ (0.46)	$ (0.76)	$ (0.35)
Net loss per share — diluted (in dollars per share)	$ (0.46)	$ (0.76)	$ (0.35)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Loss Per Share - Anti-Dilutive Shares Excluded from Calculation of Diluted Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of diluted loss per share	91,181,420	81,015,590	87,559,200
Non-vested restricted shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of diluted loss per share	33,433,890	9,567,360	5,417,500

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Purchase Commitments The Company’s commitments related to purchase of property and equipment contracted but not yet reflected in the consolidated financial statements were $9.0 million as of December 31, 2022 and were expected to be incurred within one year. (b) Legal Proceedings The Company is not currently a party to any material legal proceedings. Each quarter, the Company evaluates whether there have been any developments in legal proceedings that would require an accrual. In accordance with the accounting guidance for contingencies, the Company will accrue for losses that are both probable and reasonably estimable. (c) Indemnifications In the normal course of business, the Company enters into agreements that indemnify others for certain liabilities that may arise in connection with a transaction or certain events and activities. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, the Company may be required to reimburse the loss. These indemnifications are generally subject to various restrictions and limitations. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations.

Share-Based Compensation - Summary of Non-vested Restricted Share Activity (Details) - Non-Vested Restricted Shares - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numbers of non-vested restricted shares
Non-vested, Beginning balance (in shares)	9,567,360
Granted (in shares)	30,663,040
Vested (in shares)	(1,940,680)
Forfeited (in shares)	(4,855,830)
Non-vested, Ending balance (in shares)	33,433,890	9,567,360
Weighted average remaining contractual term (years)	3 years 6 months 18 days	3 years 4 months 9 days
Aggregate intrinsic value (thousands)	$ 102,642	$ 60,131

Inventories, Net - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 12,156	$ 5,632
Raw materials	19,029	13,231
Work in progress	436	88
Inventories	$ 31,621	$ 18,951

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(a) Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

Effective as of March 30, 2022, the Company subdivided each of its issued and unissued ordinary shares into ten ordinary shares (the “Share Subdivision”). Following the Share Subdivision, the Company’s authorized share capital became $30,000 divided into 5,000,000,000 shares with a par value of $0.000006 per share. The numbers of issued and unissued ordinary shares and per share data as disclosed elsewhere in these consolidated financial statements and notes thereto are presented on a basis after taking into account the effects of the Share Subdivision and have been retrospectively adjusted, where applicable. In connection with the Share Subdivision, the conversion ratio of our ADSs to ordinary shares changed from one ADS to one ordinary share to a new ratio of one ADS to ten ordinary shares (the “ADS Ratio Change”). The Share Subdivision and ADS Ratio Change did not result in any change to the number of outstanding ADSs of the Company.

In 2022, the Company began to separately present foreign currency (loss) gain on our consolidated statements of operations. This amount was previously included in other income (expense), net. Additionally, the Company began to provide a breakdown of other income (expense), net in Note 17. We also began to separately present the amount of foreign currency remeasurement loss (gain) on our consolidated statements of cash flows. This amount was previously included in changes in other current liabilities. This change did not have any impact on net cash used in operating activities. Corresponding amounts in the prior periods of the consolidated financial statements have been presented to conform to the current period presentation.

(b) Principles of Consolidation

The consolidated financial statements include the financial statements of the Company. All intercompany transactions and balances are eliminated upon consolidation.

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to, accrual of rebates, recognition of research and development expenses to the appropriate financial reporting period based on the progress of the research and development projects, fair value of share-based compensation expenses, recoverability of deferred tax assets, and a lack of marketability discount of the ordinary shares issued in connection with license and collaboration arrangements (Note 16). These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.

(d) Foreign Currency Translation

The functional currency of Zai Lab Limited, Zai Lab (Hong Kong) Limited, Zai Lab (US) LLC, and Zai Auto Immune (Hong Kong) Limited are the U.S. dollar (“$”). The Company’s Chinese mainland subsidiaries determined their functional currency to be the Chinese Renminbi (“RMB”). The Company’s Australia subsidiary determined its functional currency to be the Australian dollar (“A$”). The Company’s Taiwan subsidiary determined its functional currency to be the Taiwan dollar (“TWD”). The determination of the respective functional currency is based on the criteria of Accounting Standard Codification (“ASC”) 830, Foreign Currency Matters. The Company uses the U.S. dollar as its reporting currency.

Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains, and losses are translated using the average rate for the period presented. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive loss in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statements of changes in shareholders’ equity.

Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date.

Non-monetary assets and liabilities are translated into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations.

(e) Cash, Cash Equivalents, and Restricted Cash

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of cash on hand, demand deposits, and highly liquid investments with maturity of less than three months and are stated at cost, which approximates fair value.

Restricted Cash

Restricted cash mainly consists of bank deposits held as collateral for issuances of letters of credit.

(f) Short-Term Investments

Short-term investments are time deposits with original maturities between three months and one year. Short-term investments are stated at cost, which approximates fair value. Interest earned is included in interest income.

(g) Accounts Receivable

The Company’s accounts receivable arise from product sales and represent amounts due from its customers. In addition, the Company records accounts receivable arising from its collaborative agreements. From January 1, 2020, the Company adopted the ASU 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments. Accounts receivable are recorded at the amounts net of allowances for credit losses. The allowance for credit losses reflects the Company’s current estimate of credit losses expected to be incurred over the life of the receivables. The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses including the aging of receivables and aging trends, customer creditworthiness, and specific exposures related to particular customers. The Company also monitors other risk factors and forward-looking information, such as country-specific risks and economic factors that may affect a debtor’s ability to pay in establishing and adjusting its allowance for credit losses. Accounts receivable are written off when deemed uncollectible.

(h) Notes Receivable

Notes receivable is equal to contractual amounts owed from signed, secured promissory notes issued from customers to the Company. The Company considers the notes receivable to be fully collectible. Accordingly, no allowance for credit loss has been established as of December 31, 2022 and 2021.

(i) Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a weighted average basis. The Company periodically reviews the composition of inventory and shelf life of inventory to identify obsolete, slow-moving, or otherwise non-saleable items. The Company will record a write-down to its net realizable value in cost of sales in the period that the decline in value is first identified.

(j) Prepayments for Equipment

The prepayments for equipment purchase are recorded in long-term prepayments considering the prepayments are all related to property and equipment.

(k) Property and Equipment


			Useful life
Office equipment			3 years
Electronic equipment			1.25-3 years
Vehicles			4 years
Laboratory equipment			5 years
Manufacturing equipment			10 years
Leasehold improvements			lesser of useful life or lease term

Construction in progress represents property and equipment under construction and pending installation and is stated at cost less impairment losses, if any.

(l) Leases

The Company leases facilities for its offices, research and development center, and manufacturing facilities in mainland China, Hong Kong, and the United States. On January 1, 2019, the Company adopted the ASC 842, Leases using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating historical periods before the adoption date.

The Company assessed whether an arrangement contains a lease at inception. The Company’s leases are all classified as operating leases with fixed lease payments, or minimum payments, as contractually stated in the lease agreements. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

Operating leases are included in operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Operating lease liabilities that become due within one year of the balance sheet date are classified as current operating lease liabilities. Operating lease expense is recognized on a straight-line basis over the lease term.

At the commencement date of a lease, the Company recognizes a lease liability for future fixed lease payments and a right-of-use (“ROU”) asset representing the right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes periods for which the Company is reasonably certain that the renewal options will be exercised and the termination options will not be exercised. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The incremental borrowing rate is reevaluated upon a lease modification. The Company considered information available at the adoption date of ASC 842 to determine the incremental borrowing rate for leases in existence as of this date.

The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Company, and lease incentives. Under ASC 842, land use rights agreements are also considered to be operating lease contracts.

The Company elected to apply each of the practical expedients described in ASC 842 which allow companies (i) not to reassess prior conclusions on whether any expired or existing contracts are or contain a lease, lease classification, and initial direct costs upon adoption of ASC 842, (ii) combine lease and non-lease components for all underlying assets groups, and (iii) not recognize ROU assets or lease liabilities for short term leases. A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

(m) Land Use Rights

All land in mainland China is subject to government or collective ownership. Land use rights can be purchased for a specified period of time. The purchase price of land use rights represents the operating lease prepayments under ASC 842 and is recorded as land use rights on the balance sheet, which is amortized over the remaining lease term.

In 2019, the Company acquired land use rights for a term of 30 years from the local Bureau of Land and Resources in Suzhou for the purpose of constructing and operating the research center and biologics manufacturing facility in Suzhou.

(n) Long-Term Deposits

Long-term deposits represent amounts paid in connection with the Company’s long-term lease agreements.

(o) Value Added Tax Recoverable

Value added tax recoverable represents amounts paid by the Company for purchases. The amounts were recorded as long-term assets considering they were expected to be deducted from future value added tax payables arising on the Company’s future revenues.

(p) Intangible Assets

Intangible assets mainly consist of externally purchased software which are amortized over three to five years on a straight-line basis. Amortization expenses for 2022, 2021, and 2020 were $0.5 million, $0.5 million, and $0.3 million, respectively. Amortization expenses of the Company’s intangible assets are expected to be approximately $0.6 million, $0.5 million, $0.3 million, $0.1 million, insignificant amount, and nil for 2023, 2024, 2025, 2026, 2027, and thereafter, respectively.

(q) Impairment of Long-Lived Assets

The Company evaluates long-lived assets, which includes intangible assets, tangible assets, and ROU assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the related asset group to its future undiscounted cash flows. The Company measures any amount of impairment based on the difference between the carrying value and the estimated fair value of the impaired asset group. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. Impairment of the Company’s long-lived assets was not material for 2022, 2021, and 2020.

(r) Fair Value Measurements

The Company applies ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value, and requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (i) market approach; (ii) income approach; and (iii) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Equity investments with readily determinable fair value are measured using level 1 inputs and were $6.4 million and $15.4 million as of December 31, 2022 and 2021, respectively. The unrealized gains and losses from fair value changes are recognized in other income (expenses), net in the consolidated statements of operations.

Financial instruments of the Company primarily include cash, cash equivalents and restricted cash, short-term investments, accounts receivable, notes receivable, prepayments, and other current assets, accounts payable, and other current liabilities. As of December 31, 2022 and 2021, the carrying values of cash and cash equivalents, short-term investments, accounts receivable, notes receivable, prepayments, and other current assets, accounts payable, and other current liabilities approximated their fair values due to the short-term maturity of these instruments, and the carrying value of restricted cash approximated its fair value based on the nature of the assessment of the ability to recover these amounts.

(s) Revenue Recognition

In 2018, the Company adopted ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration expected to be received in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied.

The Company’s revenue is mainly from product sales. The Company recognizes revenue from product sales when the Company has satisfied the performance obligation by transferring control of the product to the customers. Control of the product generally transfers to the customers when the delivery is made and when title and risk of loss transfers to the consumers. Cost of sales mainly consists of the acquisition cost of products, the manufacturing cost of products, royalty fees, and sales-based milestone payments.

The Company has applied the practical expedients under ASC 606 with regard to assessment of financing component and concluded that there is no significant financing component given that the period between delivery of goods and payment is generally one year or less. The Company’s product revenues were mainly generated from the sale of ZEJULA (niraparib), Optune (Tumor Treating Fields), QINLOCK (ripretinib), and NUZYRA (Omadacycline) to customers.

In mainland China, the Company sells the products to distributors, who ultimately sell the products to health care providers. Based on the nature of the arrangements, the performance obligations are satisfied upon the delivery of the products to distributors. Rebates are offered to distributors, consistent with pharmaceutical industry practices. The estimated amount of unpaid or unbilled rebates are recorded as a reduction of revenue, if any. Estimated rebates are determined based on contracted rates and sales volumes and to a lesser extent, distributor inventories. The Company regularly reviews the information related to these estimates and adjusts the amount accordingly.

In Hong Kong, the Company sells the products to customers, which are typically healthcare providers such as oncology centers. The Company utilizes a third party for warehousing services. Based on the nature of the arrangements, the Company has determined that it is a principal in the transaction since the Company is primarily responsible for fulfilling the promise to provide the products to the customers, maintains inventory risk until delivery to the customers, and has latitude in establishing the price. Revenue was recognized at the amount to which the Company expected to be entitled in exchange for the sale of the products, which is the sales price agreed with the customers. Consideration paid to the third party is recognized in operating expenses.

The Company didn’t recognize any contract assets and contract liabilities as of December 31, 2022 and 2021.

(t) Collaborative Arrangements

The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC Topic 808, Collaborative Arrangements (ASC 808). This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement.

For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. For elements of collaboration arrangements that are accounted pursuant to ASC 808, an appropriate recognition method is determined and applied consistently.

(u) Research and Development Expenses

Elements of research and development expenses primarily include (i) payroll and other related costs of personnel engaged in research and development activities; (ii) in-licensed patent rights fees of exclusive development rights of products granted to the Company; (iii) costs related to pre-clinical testing of the Company’s technologies under development and clinical trials such as payments to contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), investigators, and clinical trial sites that conduct our clinical studies; (iv) costs to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility-related expenses; and (v) other research and development expenses. Research and development expenses are charged to expense as incurred and have no alternative future uses.

The Company has acquired rights to develop and commercialize product candidates. Upfront payments that relate to the acquisition of a new product compound, as well as pre-commercial milestone payments, are immediately expensed as acquired in-process research and development in the period in which they are incurred, provided that the new product compound did not also include processes or activities that would constitute a “business” as defined under U.S. GAAP, and the product candidate has not achieved regulatory approval for marketing and, absent obtaining such approval, has no established alternative future use. Milestone payments made to third parties subsequent to regulatory approval which meet the capitalization criteria would be capitalized as intangible assets and amortized over the estimated remaining useful life of the related product. If the conditions enabling capitalization of development costs as an asset have not yet been met, all development expenditures are recognized in profit or loss when incurred.

(v) Deferred Income

Deferred income mainly consists of deferred income from government grants, American Depositary Receipts (the “ADR”) Program Agreement with ADR depositary bank (the “DB”) in July 2017, and the upfront payments received from Huizheng.

Government grants consist of cash subsidies received by the Company’s subsidiaries in mainland China from local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. We included $11.5 million, $4.1 million, and $7.3 million of cash grants in other income for 2022, 2021, and 2020, respectively. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. If such obligations are not satisfied, the Company may be required to refund the subsidy. We recorded $0.9 million and $2.4 million of cash grants in deferred income as of December 31, 2022 and 2021, respectively, which will be recognized when the government specified performance obligation is satisfied.

According to the ADR Program Agreement, the Company has the right to receive reimbursements for using DB’s services, subject to the compliance by the Company with the terms of the agreement. The Company performed a detailed assessment of the requirements and recognizes the reimbursements it expects to be entitled to over the five-year contract term as other income. We recorded $0.2 million, $0.3 million, and $0.3 million in other income for 2022, 2021, and 2020, respectively. We recorded nil and $0.2 million in deferred income as of December 31, 2022 and 2021, respectively.

In March 2020, the Company entered into an exclusive promotion agreement with Huizheng. Under the terms of the agreement, the Company will leverage Hanhui’s existing infrastructure to optimize an anticipated future commercial launch of NUZYRA in mainland China given that NUZYRA is a broad-spectrum antibiotic in both hospital and community care facilities. In exchange for the exclusive promotion rights in mainland China, Huizheng has agreed to pay the Company a non-creditable, upfront payment in the amount of RMB230.0 million. The Company received RMB90.0 million in April 2020 and received RMB70.0 million in February 2022. The Company assessed and determined to record the upfront payment as deferred income and amortize it over 10 years from the date when the income recognition criteria were met. In December 2021, the Company obtained the regulatory approval for the commercialization of NUZYRA in mainland China which triggered the income recognition criteria and therefore the Company started to amortize the deferred income into collaboration revenue on monthly basis. We recorded $2.4 million, $0.2 million, and nil in collaboration revenue for 2022, 2021, and 2020, respectively. We recorded $20.5 million and $24.9 million in deferred income as of December 31, 2022 and 2021, respectively.

(w) Comprehensive Loss

Comprehensive loss is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. For each of the periods presented, the Company’s comprehensive loss includes net loss and foreign currency translation adjustments, which are presented in the consolidated statements of comprehensive loss.

(x) Share-Based Compensation

The Company grants share options and non-vested restricted shares to eligible employees, non-employees, and directors and accounts for these share-based awards in accordance with ASC 718, Compensation-Stock Compensation.

Share-based awards are measured at grant date fair value using the Black–Scholes model. In accordance with ASC 718, the Company has elected to use the straight-line method to recognize compensation expense for share awards with graded vesting based on service conditions, subject to the minimum amount of cumulative compensation expense recognized is not less than the portion of the award vested to date. The Company recognized as expenses (i) immediately at grant date if no vesting conditions are required; or (ii) using a straight-line method over the requisite service period, which is the vesting period.

All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

To the extent the required vesting conditions are not met, resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

The Company determines the fair value of stock options granted to employees using the Black-Scholes option valuation model.

(y) Income Taxes

Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax currently payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes.

The Company recognizes deferred tax assets and liabilities for temporary differences between the financial statement and income tax bases of assets and liabilities, which are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company evaluates its uncertain tax positions using the provisions of ASC 740, Income Taxes, which requires that realization of an uncertain income tax position be recognized in the financial statements. The benefit to be recorded in the financial statements is the amount most likely to be realized assuming a review by tax authorities having all relevant information and applying current conventions. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. No unrecognized tax benefits and related interest and penalties were recorded in any of the periods presented.

(z) Earnings (Loss) Per Share

Basic earnings (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Diluted earnings (loss) per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options and non-vested restricted shares, which could potentially dilute basic earnings (loss) per share in the future. To calculate the number of shares for diluted earnings (loss) per share, the effect of the stock options and non-vested restricted shares is computed using the treasury stock method. The computation of diluted earnings (loss) per share does not assume exercise or conversion of securities that would have an anti-dilutive effect.

(aa) Segment Information

In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and therefore, the Company has only one operating and reportable segment.

(ab) Concentration of Risks

Concentration of Customers

The following customers accounted for 10% or more of revenue (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
A	52,534	40,634	15,774

Concentration of Suppliers

The following suppliers accounted for 10% or more of research and development expenses and inventory purchases (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
C	*	*	33,564
D	*	*	26,710
E	*	165,431	*
F	*	66,650	*

*Represents less than 10% of research and development expenses and inventory purchases for the period.

Concentration of Credit Risk

Financial instruments that are potentially subject to significant concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable, and notes receivable.

The carrying amounts of cash and cash equivalents and short-term investments represent the maximum amount of loss due to credit risk. As of December 31, 2022 and 2021, all of the Company’s cash and cash equivalents and short-term investments were held by major financial institutions located in mainland China and international financial institutions outside of mainland China which management believes are of high credit quality and continually monitors the credit worthiness of these financial institutions.

The following debtors accounted for 10% or more of accounts receivable balances (in thousands):


	December 31,
	2022	2021
	$	$
A	9,342	10,293
B	*	10,979


*			Represents less than 10% of accounts receivable as of the applicable date.

Accounts receivable are typically unsecured and are derived from product sales and collaborative arrangements. The Company manages credit risk of accounts receivable through ongoing monitoring of the outstanding balances and limits the amount of credit extended based upon payment history and credit worthiness. Historically, the Company has collected receivables from customers within the credit terms with no significant credit losses incurred.

Certain accounts receivable balances may be settled in the form of notes receivable. As of December 31, 2022, notes receivable represented bank acceptance promissory notes that are non-interest bearing and due within six months. Notes receivable were used to collect the receivables based on an administrative convenience, given these notes are readily convertible to be known amounts of cash. In accordance with the sales agreements, whether to use cash or bank acceptance promissory notes to settle the receivables is at the Company’s discretion, and this selection does not impact the agreed contractual purchase prices.

Foreign Currency Risk

RMB is not a freely convertible currency. The State Administration of Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Company included aggregated amounts of RMB316.8 million and RMB151.7 million, which were denominated in RMB, as of December 31, 2022 and 2021, respectively, representing 5% and 2% of cash and cash equivalents as of December 31, 2022 and 2021, respectively.

(ac) Recent Accounting Pronouncements

Adopted Accounting Standards

In November 2021, the FASB issued ASU2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance. The amendments in this ASU require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this ASU are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Company adopted this standard as of January 1, 2022. There was no material impact on the Company’s financial position or results of operations upon the adoption.

Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Other comprehensive (loss) income, tax	$ 0	$ 0	$ 0

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Summary of Supplemental Information Related to Leases

The following table presents operating lease costs (in thousands). Total lease expense related to short-term leases was insignificant for those periods presented.


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Operating fixed lease cost	8,774	6,263	4,539

Summary of Cash Flow Information Related to Leases

The following table presents operating cash flows related to leases (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Cash paid for amounts included in measurement of lease liabilities	8,084	5,840	4,056
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets	14,801	2,183	6,393

Summary of Maturities of Lease Liabilities

The maturities of lease liabilities in accordance with ASC Topic 842, Leases in each of the next five years and thereafter were as follows:


			Year Ended December 31,
			$
2023			7,561
2024			6,184
2025			4,586
2026			1,734
2027			822
Thereafter			391
Total lease payments			21,278
Less: imputed interest			(885)
Present value of minimum operating lease payments			20,393

Summary of Weighted-Average Remaining Lease Terms and Discount Rates

Weighted-average remaining lease terms and discount rates are as follows:


	December 31,
	2022		2021
Weighted-average remaining lease term	2.6 years		4.2 years
Weighted-average discount rate	3.4	%	2.3	%

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 1,008,470,000	$ 964,100,000
Short-term investments	0	445,000,000
Accounts receivable (net of allowance for credit loss of $11 as of December 31, 2022 and 2021, respectively)	39,963,000	47,474,000
Notes receivable	8,608,000	7,335,000
Inventories, net	31,621,000	18,951,000
Prepayments and other current assets	35,674,000	18,021,000
Total current assets	1,124,336,000	1,500,881,000
Restricted cash, non-current	803,000	803,000
Long-term investments (including the fair value measured investment of $6,431 and $15,383 as of December 31, 2022 and 2021, respectively)	6,431,000	15,605,000
Prepayments for equipment	1,396,000	989,000
Property and equipment, net	57,863,000	43,102,000
Operating lease right-of-use assets	19,512,000	14,189,000
Land use rights, net	6,892,000	7,811,000
Intangible assets, net	1,511,000	1,848,000
Long-term deposits	1,396,000	870,000
Value added tax recoverable	0	23,858,000
Total assets	1,220,140,000	1,609,956,000
Current liabilities
Accounts payable	65,974,000	126,163,000
Current operating lease liabilities	7,050,000	5,927,000
Other current liabilities	66,818,000	60,811,000
Total current liabilities	139,842,000	192,901,000
Deferred income	21,360,000	27,486,000
Non-current operating lease liabilities	13,343,000	9,613,000
Total liabilities	174,545,000	230,000,000
Commitments and contingencies (Note 20)
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)	6,000	6,000
Additional paid-in capital	2,893,120,000	2,825,948,000
Accumulated deficit	(1,861,360,000)	(1,418,074,000)
Accumulated other comprehensive income (loss)	25,685,000	(23,645,000)
Treasury stock (at cost, 2,236,280 and 382,930 shares as of December 31, 2022 and 2021, respectively)	(11,856,000)	(4,279,000)
Total shareholders’ equity	1,045,595,000	1,379,956,000
Total liabilities and shareholders’ equity	$ 1,220,140,000	$ 1,609,956,000

Other Current Liabilities

12 Months Ended

Dec. 31, 2022

Other Liabilities, Current [Abstract]

Other Current Liabilities

The following table presents the Company’s other current liabilities (in thousands):


	December 31,
	2022	2021
	$	$
Payroll	31,689	25,685
Accrued professional service fee	4,080	4,319
Payables for purchase of property and equipment	5,269	2,568
Accrued rebate to distributors	8,443	15,001
Tax payables	13,283	8,817
Others (i)	4,054	4,421
Total	66,818	60,811

(i)Others mainly include accrued travel and business-related expenses.

Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Summary of Basic and Diluted Net Loss Per Share

The following table presents the computation of the basic and diluted net loss per share (in thousands, except share and per share data):


	Year Ended December 31,
	2022	2021	2020
Numerator:
Net loss attributable to ordinary shareholders	(443,286)	(704,471)	(268,905)
Denominator:
Weighted average number of ordinary shares - basic and diluted	958,067,140	929,921,120	776,677,430
Net loss per share-basic and diluted	(0.46)	(0.76)	(0.35)

Summary of Anti-Dilutive Shares Excluded from Calculation of Diluted Loss Per Share


	December 31,
	2022	2021	2020
Share options	91,181,420	81,015,590	87,559,200
Non-vested restricted shares	33,433,890	9,567,360	5,417,500

Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Issuance costs	$ 839	$ 746
Global Offering
Issuance costs		$ 5,698

Restricted Cash, Non-Current (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restricted Cash [Abstract]
Restricted cash, non-current	$ 803	$ 803	$ 743

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2022	Feb. 28, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38205
Entity Registrant Name	ZAI LAB LIMITED
Entity Incorporation, State or Country Code	E9
Entity Tax Identification Number	98-1144595
Entity Address, Address Line One	4560 Jinke Road
Entity Address, Address Line Two	Bldg. 1, Fourth Floor Pudong
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Entity Address, Postal Zip Code	201210
City Area Code	86 21
Local Phone Number	6163 2588
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 3.2
Documents Incorporated by Reference	The registrant intends to file a definitive proxy statement pursuant to Regulation 14A within 120 days of the end of the fiscal year ended December 31, 2022. Portions of such definitive proxy statement are incorporated by reference into Part III of this Annual Report on Form 10-K.
Amendment Flag	false
Document Fiscal Period Focus	FY
Entity Central Index Key	0001704292
Document Fiscal Year Focus	2022
American Depositary Shares
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing 10 Ordinary Shares, par value $0.000006 per share
Trading Symbol	ZLAB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		743,576,320
Ordinary shares
Document Information [Line Items]
Title of 12(b) Security	Ordinary Shares, par value $0.000006 per share
Trading Symbol	9688
Entity Common Stock, Shares Outstanding		979,087,430

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 79,927	$ 59,527
Less: accumulated depreciation	(22,064)	(16,425)
Property and equipment, net	57,863	43,102
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	977	836
Electronic equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,416	5,036
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	202	220
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,726	17,069
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	17,055	14,600
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,300	10,432
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,251	$ 11,334

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Product revenue, net	$ 212,672,000	$ 144,105,000	$ 48,958,000
Collaboration revenue	2,368,000	207,000	0
Total revenues	215,040,000	144,312,000	48,958,000
Expenses
Cost of sales	(74,018,000)	(52,239,000)	(16,736,000)
Research and development	(286,408,000)	(573,306,000)	(222,711,000)
Selling, general and administrative	(258,971,000)	(218,831,000)	(111,312,000)
Loss from operations	(404,357,000)	(700,064,000)	(301,801,000)
Interest income	14,582,000	2,190,000	5,120,000
Interest expenses	0	0	(181,000)
Foreign currency (loss) gain	(56,403,000)	4,661,000	21,659,000
Other income (expenses), net	3,113,000	(10,201,000)	7,417,000
Loss before income tax and share of loss from equity method investment	(443,065,000)	(703,414,000)	(267,786,000)
Income tax expense	0	0	0
Share of loss from equity method investment	(221,000)	(1,057,000)	(1,119,000)
Net loss	$ (443,286,000)	$ (704,471,000)	$ (268,905,000)
Loss per share — basic (in dollars per share)	$ (0.46)	$ (0.76)	$ (0.35)
Loss per share — diluted (in dollars per share)	$ (0.46)	$ (0.76)	$ (0.35)
Weighted-average shares used in calculating net loss per ordinary share — basic (in shares)	958,067,140	929,921,120	776,677,430
Weighted-average shares used in calculating net loss per ordinary share —diluted (in shares)	958,067,140	929,921,120	776,677,430
American Depositary Shares
Expenses
Loss per share — basic (in dollars per share)	$ (4.63)	$ (7.58)	$ (3.46)
Loss per share — diluted (in dollars per share)	$ (4.63)	$ (7.58)	$ (3.46)
Weighted-average shares used in calculating net loss per ordinary share — basic (in shares)	95,806,714	92,992,112	77,667,743
Weighted-average shares used in calculating net loss per ordinary share —diluted (in shares)	95,806,714	92,992,112	77,667,743

Financial Statements Schedule I (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheets


	December 31,
	2022	2021
	$	$
Assets
Current assets:
Cash and cash equivalents	944,649	591,842
Short-term investments	—	445,000
Prepayments and other current assets	10,203	2,364
Total current assets	954,852	1,039,206
Investment in subsidiaries	93,363	341,980
Total assets	1,048,215	1,381,186
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities	2,620	996
Total current liabilities	2,620	996
Deferred income	—	234
Total liabilities	2,620	1,230
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)	6	6
Additional paid-in capital	2,893,120	2,825,948
Accumulated deficit	(1,861,360)	(1,418,074)
Accumulated other comprehensive income (loss)	25,685	(23,645)
Treasury stock	(11,856)	(4,279)
Total shareholders’ equity	1,045,595	1,379,956
Total liabilities and shareholders’ equity	1,048,215	1,381,186

Condensed Statements of Operations and Comprehensive Loss


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Operating Expenses:
Research and development	(178)	(6)	(437)
General and administrative	(19,773)	(12,074)	(7,345)
Loss from operations	(19,951)	(12,080)	(7,782)
Interest income	12,857	1,881	4,899
Other (expenses) income, net	(8,678)	(18,173)	312
Profit (Loss) before income tax and equity in loss of subsidiaries	(15,772)	(28,372)	(2,571)
Equity in loss of subsidiaries	(427,514)	(676,099)	(266,334)
Income tax expense	—	—	—

Net loss	(443,286)	(704,471)	(268,905)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustment	49,330	(9,121)	(19,144)
Comprehensive loss	(393,956)	(713,592)	(288,049)

Condensed Statements of Cash Flows


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Cash flows from operating activities:
Net loss	(443,286)	(704,471)	(268,905)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred income	(234)	(312)	(312)
Share based compensation	3,724	3,435	3,025
Equity in loss of subsidiaries	427,514	676,099	266,334
Loss from fair value changes of equity investment of readily determinable fair value	8,952	14,617	—
Changes in operating assets and liabilities:
Prepayments and other current assets	(7,839)	(439)	2,253
Other current liabilities	1,648	(376)	738
Net cash provided by (used in) operating activities	(9,521)	(11,447)	3,133
Cash flows from investing activities:
Purchases of short-term investments	(260,274)	(445,000)	(949,161)
Proceeds from maturity of short-term investments	705,274	743,902	405,000
Purchase of investment in equity investee	—	(30,000)	—
Investment in subsidiaries	(80,942)	(884,342)	(256,097)
Net cash provided by (used in) investing activities	364,058	(615,440)	(800,258)
Cash flows from financing activities:
Proceeds from exercises of stock options	5,870	7,418	6,664
Proceeds from issuance of ordinary shares upon public offerings	—	818,875	1,137,683
Payment of public offering costs	—	(1,692)	(4,541)
Employee taxes paid related to settlement of equity awards	(7,600)	(4,253)	—
Net cash provided by (used in) financing activities	(1,730)	820,348	1,139,806
Effect of foreign exchange rate changes on cash and cash equivalent	—	773	(515)
Net increase in cash and cash equivalents	352,807	194,234	342,166
Cash and cash equivalents-beginning of the year	591,842	397,608	55,442
Cash and cash equivalents-end of the year	944,649	591,842	397,608

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2022
Related Party Transactions [Abstract]
Related party transactions	Related Party Transactions The Company incurred research and development expenses for product research and development services provided by MEDx (Suzhou) Translational Medicine Co., Ltd (“MEDx”), over which an immediate family member of our Chief Executive Officer and Chairperson of the Board held significant influence. The Company incurred development expenses with MEDx of $0.4 million, $0.7 million, and $0.7 million during the years ended December 31, 2022, 2021, and 2020, respectively.

Long-Term Investments (Details) - USD ($)	1 Months Ended	12 Months Ended
Long-Term Investments (Details) - USD ($)	Jul. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity And Cost Method Investments
Fair value loss on equity investments with readily determinable fair value		$ 8,952,000	$ 14,617,000	$ 0
MacroGenics
Equity And Cost Method Investments
Issuance of common stock (in shares)	958,467
Issue price per share (in dollars per share)	$ 31.30
MacroGenics
Equity And Cost Method Investments
Capital contribution commitment	$ 30,000,000
Fair value loss on equity investments with readily determinable fair value		$ 9,000,000.0	$ 14,600,000	$ 0

Income Tax - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Depreciation of property and equipment, net	$ 98	$ 108	$ 84
Research and experimental capitalization	22,476	0	0
Share-based compensation	1,787	0	0
Accrued expenses	1,800	0	0
Government grants	189	496	400
Deferred revenue	3,378	3,733	2,069
Qualified donation	12,947	10,246	7,627
Net operating loss carry forwards	241,397	175,101	94,954
Less: valuation allowance	(284,072)	(189,684)	(105,134)
Deferred tax assets, net	$ 0	$ 0	$ 0

Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating fixed lease cost	$ 8,774	$ 6,263	$ 4,539

License and Collaboration Agreements (Details) $ / shares in Units, $ in Millions	1 Months Ended			2 Months Ended	4 Months Ended		6 Months Ended	7 Months Ended	8 Months Ended	12 Months Ended				24 Months Ended	43 Months Ended	50 Months Ended	56 Months Ended	57 Months Ended	61 Months Ended	69 Months Ended	76 Months Ended
	Jul. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) program molecule	Jan. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2022 USD ($) payment $ / shares	Dec. 31, 2021 USD ($) payment $ / shares	Dec. 31, 2020 USD ($) payment	Dec. 31, 2018 USD ($)	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($) payment $ / shares	Dec. 31, 2022 USD ($) payment $ / shares	Dec. 31, 2022 USD ($) payment $ / shares	Dec. 31, 2022 USD ($) payment $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Mar. 30, 2022 $ / shares
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Maximum additional milestone payments					$ 5,300.4					$ 5,300.4				$ 5,300.4	$ 5,300.4	$ 5,300.4	$ 5,300.4	$ 5,300.4	$ 5,300.4	$ 5,300.4	$ 5,300.4
Common stock, par value (in dollars per share) \| $ / shares				$ 0.000006	$ 0.000006			$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006			$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006	$ 0.000006
MacroGenics
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Issuance of common stock (in shares) \| shares	958,467
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01
Issue price per share (in dollars per share) \| $ / shares	$ 31.30
MacroGenics
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Equity investment	$ 30.0
GSK
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment																					$ 15.0
Milestone payment										$ 4.0	$ 1.0										16.5
Development milestone payment										3.5
Sales-based milestone payment										8.0
Maximum additional milestone payments					$ 28.0					28.0				$ 28.0	$ 28.0	$ 28.0	$ 28.0	$ 28.0	$ 28.0	$ 28.0	28.0
Paratek
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment																				7.5
Milestone payment																				14.0
Development milestone payment										6.0		$ 3.0	$ 5.0
Maximum additional milestone payments					40.5					40.5				40.5	40.5	40.5	40.5	40.5	40.5	40.5	40.5
Amgen
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment																			5.0
Milestone payment																			2.0
Maximum additional milestone payments					37.0					37.0				37.0	37.0	37.0	37.0	37.0	37.0	37.0	37.0
Entasis
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment																		5.0
Development milestone payment																		7.0
Maximum additional milestone payments					91.6					91.6				91.6	91.6	91.6	91.6	$ 91.6	91.6	91.6	91.6
Number of milestone payments \| payment																		2
Crescendo
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment												2.5					4.5
Milestone payment											4.0	2.0					6.0
Maximum additional milestone payments					298.1					298.1				298.1	298.1	298.1	$ 298.1	$ 298.1	298.1	298.1	298.1
Number of milestone payments \| payment																	3
Number of up front payments \| payment																	2
Novocure
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment						$ 15.0
Milestone payment												$ 10.0
Maximum additional milestone payments					68.0					68.0				68.0	68.0	68.0	$ 68.0	68.0	68.0	68.0	68.0
Number of milestone payments \| payment												2
MacroGenics Inc, November 2018 Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment																25.0
Milestone payment										5.0		$ 4.0				9.0
Maximum additional milestone payments					84.0					84.0				84.0	84.0	$ 84.0	84.0	84.0	84.0	84.0	84.0
Number of milestone payments \| payment																3
MacroGenics Inc. June 2021 Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment								$ 25.0
Maximum additional milestone payments					1,386.0					1,386.0				1,386.0	1,386.0	$ 1,386.0	1,386.0	1,386.0	1,386.0	1,386.0	1,386.0
Number of programs \| program		4
Profit share percentage upon reaching clinical milestone		50.00%
Number of additional molecules \| molecule		2
Profit share percentage as an alternative to the royalty arrangement		50.00%
Profit share payment to be made as an alternative to the royalty arrangement		$ 85.0
Deciphera
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment															20.0
Milestone payment											5.0	2.0			12.0
Maximum additional milestone payments					173.0					173.0				173.0	$ 173.0	173.0	173.0	173.0	173.0	173.0	173.0
Number of milestone payments \| payment															3
Regeneron
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment												$ 30.0
Maximum additional milestone payments					160.0					160.0				160.0	$ 160.0	160.0	160.0	160.0	160.0	160.0	160.0
Turning Point Therapeutics Inc, July 2020 Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment							$ 25.0
Milestone payment											$ 5.0
Maximum additional milestone payments					146.0					146.0				146.0	146.0	146.0	146.0	146.0	146.0	146.0	146.0
Number of milestone payments \| payment											3
Turning Point Therapeutics Inc, January 2021 Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment														25.0
Maximum additional milestone payments					336.0					336.0				336.0	336.0	336.0	336.0	336.0	336.0	336.0	336.0
Cullinan Pearl Corp
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment											$ 20.0
Maximum additional milestone payments					211.0					211.0				211.0	211.0	211.0	211.0	211.0	211.0	211.0	211.0
Takeda
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment											6.0
argenx
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment			$ 62.3
Milestone payment										25.0
Issuance of ordinary shares in connection with collaboration and license arrangement (in shares) \| shares			5,681,820
Development cost sharing payment											75.0
Mirati
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment									$ 65.0
Development milestone payment										10.0
Maximum additional milestone payments					263.0					$ 263.0				263.0	263.0	263.0	263.0	263.0	263.0	263.0	263.0
Number of milestone payments \| payment										2
Blueprint
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment											$ 25.0
Maximum additional milestone payments					590.0					$ 590.0				590.0	590.0	590.0	590.0	590.0	590.0	590.0	590.0
Karuna
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment				$ 35.0
Development milestone payment										10.0
Maximum additional milestone payments					142.0					$ 142.0				142.0	142.0	142.0	142.0	142.0	142.0	142.0	142.0
Number of milestone payments \| payment										2
Seagen
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment					30.0
Maximum additional milestone payments					$ 263.0					$ 263.0				$ 263.0	$ 263.0	$ 263.0	$ 263.0	$ 263.0	$ 263.0	$ 263.0	$ 263.0

Leases - Weighted-Average Remaining Lease Terms and Discount Rates (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term	2 years 7 months 6 days	4 years 2 months 12 days
Weighted-average discount rate	3.40%	2.30%

Leases - Additional Information (Details)	Dec. 31, 2022
Minimum
Lease
Operating lease remaining lease term	1 year
Maximum
Lease
Operating lease remaining lease term	7 years

Other Income (Expenses), Net (Tables)

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Other Income (Expense), Net

The following table presents other income (expenses), net (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Government grants	11,471	4,113	7,289
Loss on equity investments with readily determinable fair value	(8,952)	(14,617)	—
Others miscellaneous gain	594	303	128
Total	3,113	(10,201)	7,417

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

The following table presents the Company’s cash and cash equivalents (in thousands):


	December 31,
	2022	2021
	$	$
Cash at bank and in hand	1,007,423	663,472
Cash equivalents (note (i))	1,047	300,628
	1,008,470	964,100
Denominated in:
US$	957,824	932,888
RMB (note (ii))	45,486	23,791
Hong Kong dollar (“HK$”)	4,378	6,674
Australian dollar (“A$”)	598	475
Taiwan dollar (“TW$”)	184	272
	1,008,470	964,100

Notes:

(i)Cash equivalents represent short-term and highly liquid investments in a money market fund.

Restricted Cash, Non-Current	12 Months Ended
Restricted Cash, Non-Current	Dec. 31, 2022
Restricted Cash [Abstract]
Restricted Cash, Non-Current	Restricted Cash, Non-CurrentThe Company’s restricted cash balance was $0.8 million as of both December 31, 2022 and 2021 and consisted of long-term bank deposits held as collateral for issuance of letters of credit. These deposits will be released when the related letters of credit are settled by the Company.

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Lessee, Operating Lease, Liability, to be Paid [Abstract]
2023	$ 7,561
2024	6,184
2025	4,586
2026	1,734
2027	822
Thereafter	391
Total lease payments	21,278
Less: imputed interest	(885)
Present value of minimum operating lease payments	$ 20,393

Restricted Net Assets (Details) - Mainland China - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restricted net assets
Statutory reserves	$ 0	$ 0	$ 0
Restricted amount by subsidiaries	$ 456,000,000.0	$ 406,000,000.0

Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Liabilities, Current [Abstract]
Payroll	$ 31,689	$ 25,685
Accrued professional service fee	4,080	4,319
Payables for purchase of property and equipment	5,269	2,568
Accrued rebate to distributors	8,443	15,001
Tax payables	13,283	8,817
Others	4,054	4,421
Total	$ 66,818	$ 60,811

Financial Statements Schedule I - Condensed Statements of Operations and Comprehensive Loss (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating Expenses:
Research and development	$ (286,408,000)	$ (573,306,000)	$ (222,711,000)
Loss from operations	(404,357,000)	(700,064,000)	(301,801,000)
Interest income	14,582,000	2,190,000	5,120,000
Other (expenses) income, net	3,113,000	(10,201,000)	7,417,000
Loss before income tax and share of loss from equity method investment	(443,065,000)	(703,414,000)	(267,786,000)
Income tax expense	0	0	0
Net loss	(443,286,000)	(704,471,000)	(268,905,000)
Other comprehensive income (loss) , net of tax of nil:
Other comprehensive (loss) income, tax	0	0	0
Foreign currency translation adjustments	49,330,000	(9,121,000)	(19,144,000)
Comprehensive loss	(393,956,000)	(713,592,000)	(288,049,000)
Parent Company
Operating Expenses:
Research and development	(178,000)	(6,000)	(437,000)
General and administrative	(19,773,000)	(12,074,000)	(7,345,000)
Loss from operations	(19,951,000)	(12,080,000)	(7,782,000)
Interest income	12,857,000	1,881,000	4,899,000
Other (expenses) income, net	(8,678,000)	(18,173,000)	312,000
Loss before income tax and share of loss from equity method investment	(15,772,000)	(28,372,000)	(2,571,000)
Equity in loss of subsidiaries	(427,514,000)	(676,099,000)	(266,334,000)
Income tax expense	0	0	0
Net loss	(443,286,000)	(704,471,000)	(268,905,000)
Other comprehensive income (loss) , net of tax of nil:
Other comprehensive (loss) income, tax	0	0	0
Foreign currency translation adjustments	49,330,000	(9,121,000)	(19,144,000)
Comprehensive loss	$ (393,956,000)	$ (713,592,000)	$ (288,049,000)

Employee Defined Contribution Plans	12 Months Ended
Employee Defined Contribution Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Defined Contribution Plans	Employee Defined Contribution Plans Full time employees of the Company in mainland China participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund, and other welfare benefits are provided to employees. Chinese labor regulations require that the Company’s subsidiaries in China mainland make contributions to the government for these benefits primarily based on certain percentages of the employees’ salaries subject to certain caps and other government requirements. The total amounts for such employee benefits, which were expensed as incurred, were $23.6 million, $17.6 million, and $4.4 for 2022, 2021, and 2020, respectively. The Company's employees who are U.S. taxpayers and who meet certain age and service requirements are eligible to participate in a broad-based, defined contribution retirement plan which is qualified under Section 401 of the Internal Revenue Code (“the 401(k) plan”). In 2022, the Company makes a matching contribution equal to 50% of the first 5% of the employee’s elective contributions under the plan, up to 2.5% of an employee’s eligible compensation. Contributions made by the Company vest 100% upon contribution. The total amounts for such employee benefits, which were expensed as incurred, was $0.5 million in 2022 and was not material in 2021 and 2020. The Company also provides required Mandatory Provident Fund contribution for its full-time employees located in Hong Kong and provides social benefits contribution for its full-time employees located in Taiwan. The total amounts for these contributions, which were expensed as incurred, was $0.2 million in 2022 and was not material in 2021, and 2020.

Income Tax (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Loss (Income) Before Income Taxes

The following table presents loss (income) before income taxes (in thousands):


	Year Ended December 31,
	2022	2021	2020

	$	$	$
Cayman Islands	19,454	28,401	2,612
British Virgin Islands	2	2	3
Mainland China	290,056	340,865	220,813
Hong Kong	53,425	243,400	20,022
United States	79,620	89,374	24,616
Australia	(260)	1,758	839
Taiwan	989	671	—
	443,286	704,471	268,905

Schedule of Reconciliations

Reconciliations of the differences between the Chinese statutory income tax rate and the Company’s effective income tax rate are as follows:


	Year Ended December 31,
	2022		2021		2020
Statutory income tax rate	25	%	25	%	25	%
Share-based compensation	(1.40	%)	(0.92	%)	(1.36	%)
Research and development super deduction	2.51	%	—	%	—	%
Non-deductible expenses	(2.31	%)	(5.78	%)	(1.17	%)
Prior year tax filing adjustment	6.33	%	1.50	%	1.78	%
Effect of different tax rate of subsidiary operation in other subsidiaries	(2.85	%)	(4.60	%)	(1.04	%)
Preferential tax rate	(6.26	%)	(4.30	%)	(7.48	%)

Changes in valuation allowance	(21.02	%)	(10.90	%)	(15.73	%)
Effective income tax rate	—	%	—	%	—	%

Schedule of Components of Deferred Tax Assets and Liabilities

The following table presents the principal components of deferred tax assets and liabilities (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Deferred tax assets:
Depreciation of property and equipment, net	98	108	84
Research and experimental capitalization	22,476	—	—
Share-based compensation	1,787	—	—
Accrued expenses	1,800	—	—
Government grants	189	496	400
Deferred revenue	3,378	3,733	2,069
Qualified donation	12,947	10,246	7,627
Net operating loss carry forwards	241,397	175,101	94,954
Less: valuation allowance	(284,072)	(189,684)	(105,134)
Deferred tax assets, net	—	—	—

Schedule of Movement of Valuation Allowance

The following table presents that movement of the valuation allowance:


	2022	2021
	$	$
Balance as of January 1,	(189,684)	(105,134)
Additions	(94,388)	(84,550)
Balance as of December 31,	(284,072)	(189,684)

Inventories, Net - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory balance	$ 31,621,000	$ 18,951,000
Inventory write-down	$ 500,000	$ 1,400,000	$ 0

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Ordinary shares	Additional paid in capital	Accumulated deficit	Accumulated other comprehensive income (loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2019		682,372,470
Beginning balance at Dec. 31, 2019	$ 294,660	$ 4	$ 734,734	$ (444,698)	$ 4,620
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares upon vesting of restricted shares (in shares)		2,257,680
Issuance of ordinary shares upon vesting of restricted shares	0	$ 0	0
Exercise of shares option (in shares)		8,993,610
Exercise of shares option	6,664	$ 0	6,664
Issuance of ordinary shares upon follow-on public offering, net of issuance cost (in shares)		63,000,000
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	280,549	$ 0	280,549
Issuance of ordinary shares upon secondary listing/ in connection with collaboration and license arrangement, net of issuance cost (in shares)		121,486,500
Issuance of ordinary shares upon secondary listing/ in connection with collaboration and license arrangement, net of issuance cost	850,691	$ 1	850,690
Share-based compensation	24,830		24,830
Net loss	(268,905)			(268,905)
Foreign currency translation	(19,144)				(19,144)
Ending balance (in shares) at Dec. 31, 2020		878,110,260
Ending balance at Dec. 31, 2020	1,169,345	$ 5	1,897,467	(713,603)	(14,524)	$ 0
Ending balance (in shares) at Dec. 31, 2020						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares upon vesting of restricted shares (in shares)		2,054,500
Issuance of ordinary shares upon vesting of restricted shares	0	$ 0	0
Exercise of shares option (in shares)		12,353,400
Exercise of shares option	7,417	$ 0	7,417
Issuance of ordinary shares upon follow-on public offering, net of issuance cost (in shares)		57,164,000
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	818,036	$ 1	818,035
Issuance of ordinary shares upon secondary listing/ in connection with collaboration and license arrangement, net of issuance cost (in shares)		5,681,820
Issuance of ordinary shares upon secondary listing/ in connection with collaboration and license arrangement, net of issuance cost	62,250	$ 0	62,250
Issuance cost adjustment for secondary listing	65		65
Receipt of employees' shares to satisfy tax withholding obligations related to share-based compensation (in shares)						(382,930)
Receipt of employees’ shares to satisfy tax withholding obligations related to share-based compensation	(4,279)					$ (4,279)
Share-based compensation	40,714		40,714
Net loss	(704,471)			(704,471)
Foreign currency translation	$ (9,121)				(9,121)
Ending balance (in shares) at Dec. 31, 2021	954,981,050	955,363,980
Ending balance at Dec. 31, 2021	$ 1,379,956	$ 6	2,825,948	(1,418,074)	(23,645)	$ (4,279)
Ending balance (in shares) at Dec. 31, 2021	(382,930)					(382,930)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares upon vesting of restricted shares (in shares)		1,940,680
Issuance of ordinary shares upon vesting of restricted shares	$ 0	$ 0	0
Exercise of shares option (in shares)	5,151,190	5,151,190
Exercise of shares option	$ 5,870	$ 0	5,870
Receipt of employees' shares to satisfy tax withholding obligations related to share-based compensation (in shares)						(1,853,350)
Receipt of employees’ shares to satisfy tax withholding obligations related to share-based compensation	(7,577)					$ (7,577)
Share-based compensation	61,302		61,302
Net loss	(443,286)			(443,286)
Foreign currency translation	$ 49,330				49,330
Ending balance (in shares) at Dec. 31, 2022	960,219,570	962,455,850
Ending balance at Dec. 31, 2022	$ 1,045,595	$ 6	$ 2,893,120	$ (1,861,360)	$ 25,685	$ (11,856)
Ending balance (in shares) at Dec. 31, 2022	(2,236,280)					(2,236,280)

Income Tax - Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets, Valuation Allowance [Roll Forward]
Balance as of January 1,	$ (189,684)	$ (105,134)
Additions	(94,388)	(84,550)
Balance as of December 31,	$ (284,072)	$ (189,684)

Restricted Net Assets	12 Months Ended
Restricted Net Assets	Dec. 31, 2022
Restricted net assets
Restricted Net Assets	Restricted Net Assets The Company’s ability to pay dividends may depend on the Company receiving distributions of funds from its Chinese subsidiaries. Relevant Chinese laws and regulations permit payments of dividends by the Company’s Chinese subsidiaries only out of its retained earnings, if any, as determined in accordance with Chinese accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s Chinese subsidiaries. In accordance with the Company Law of the People’s Republic of China, a domestic enterprise is required to provide statutory reserves of at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s Chinese statutory accounts. A domestic enterprise may provide discretionary surplus reserve, at the discretion of the Board of Directors, from the profits determined in accordance with the enterprise’s Chinese statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The Company’s Chinese subsidiaries were established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits. No appropriation to statutory reserves was made during the years ended December 31, 2022, 2021, and 2020 because the Chinese subsidiaries had substantial losses during such periods. As a result of these Chinese laws and regulations, subject to the limits discussed above that require annual appropriations of 10% of after-tax profit to be set aside, prior to payment of dividends, as a general reserve fund, the Company’s Chinese subsidiaries are restricted in their ability to transfer out a portion of their net assets. Foreign exchange and other regulation in mainland China may further restrict the Company’s Chinese subsidiaries from transferring out funds in the form of dividends, loans, and advances. As of December 31, 2022 and 2021, amounts restricted are the paid-in capital of the Company’s Chinese subsidiaries, which amounted to $456.0 million and $406.0 million, respectively.

Share-Based Compensation - Assumptions Used to Estimate Fair Values of Share Options Granted (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free rate of return, minimum	1.40%	0.90%	0.40%
Risk-free rate of return, maximum	4.00%	1.40%	0.80%
Expected term (in years)	6 years 6 months
Estimated volatility rate	65.00%	65.00%	70.00%
Expected dividend rate	0.00%	0.00%	0.00%
Stock options, batch one
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)		6 years	6 years
Stock options, batch two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)		6 years 3 months	6 years 6 months
Stock options, batch three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)		6 years 6 months

Summary of Significant Accounting Policies - Concentration of Risks (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Revenue	$ 212,672	$ 144,105	$ 48,958
Revenue \| Customer Concentration Risk \| A
Concentration Risk [Line Items]
Revenue	52,534	40,634	15,774
Accounts Receivable \| Lender Concentration Risk \| A
Concentration Risk [Line Items]
Accounts receivable	$ 9,342	10,293
Accounts Receivable \| Lender Concentration Risk \| B
Concentration Risk [Line Items]
Accounts receivable		10,979
Research and Development Expenses \| Supplier Concentration Risk \| C
Concentration Risk [Line Items]
Research and development expenses and inventory purchases			33,564
Research and Development Expenses \| Supplier Concentration Risk \| D
Concentration Risk [Line Items]
Research and development expenses and inventory purchases			$ 26,710
Research and Development Expenses \| Supplier Concentration Risk \| E
Concentration Risk [Line Items]
Research and development expenses and inventory purchases		165,431
Research and Development Expenses \| Supplier Concentration Risk \| F
Concentration Risk [Line Items]
Research and development expenses and inventory purchases		$ 66,650

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

Principles of ConsolidationThe consolidated financial statements include the financial statements of the Company. All intercompany transactions and balances are eliminated upon consolidation.

Use of Estimates

Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to, accrual of rebates, recognition of research and development expenses to the appropriate financial reporting period based on the progress of the research and development projects, fair value of share-based compensation expenses, recoverability of deferred tax assets, and a lack of marketability discount of the ordinary shares issued in connection with license and collaboration arrangements (Note 16). These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.

Foreign Currency Translation

Foreign Currency Translation The functional currency of Zai Lab Limited, Zai Lab (Hong Kong) Limited, Zai Lab (US) LLC, and Zai Auto Immune (Hong Kong) Limited are the U.S. dollar (“$”). The Company’s Chinese mainland subsidiaries determined their functional currency to be the Chinese Renminbi (“RMB”). The Company’s Australia subsidiary determined its functional currency to be the Australian dollar (“A$”). The Company’s Taiwan subsidiary determined its functional currency to be the Taiwan dollar (“TWD”). The determination of the respective functional currency is based on the criteria of Accounting Standard Codification (“ASC”) 830, Foreign Currency Matters. The Company uses the U.S. dollar as its reporting currency.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

Cash and Cash Equivalents

Restricted Cash

Restricted cash mainly consists of bank deposits held as collateral for issuances of letters of credit.

Short-term Investments

Short-Term Investments Short-term investments are time deposits with original maturities between three months and one year. Short-term investments are stated at cost, which approximates fair value. Interest earned is included in interest income.

Accounts Receivable

Accounts Receivable The Company’s accounts receivable arise from product sales and represent amounts due from its customers. In addition, the Company records accounts receivable arising from its collaborative agreements. From January 1, 2020, the Company adopted the ASU 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments. Accounts receivable are recorded at the amounts net of allowances for credit losses. The allowance for credit losses reflects the Company’s current estimate of credit losses expected to be incurred over the life of the receivables. The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses including the aging of receivables and aging trends, customer creditworthiness, and specific exposures related to particular customers. The Company also monitors other risk factors and forward-looking information, such as country-specific risks and economic factors that may affect a debtor’s ability to pay in establishing and adjusting its allowance for credit losses. Accounts receivable are written off when deemed uncollectible.

Notes Receivable

Notes Receivable Notes receivable is equal to contractual amounts owed from signed, secured promissory notes issued from customers to the Company.

Inventories

Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a weighted average basis. The Company periodically reviews the composition of inventory and shelf life of inventory to identify obsolete, slow-moving, or otherwise non-saleable items. The Company will record a write-down to its net realizable value in cost of sales in the period that the decline in value is first identified.

Prepayments for Equipment

Prepayments for Equipment The prepayments for equipment purchase are recorded in long-term prepayments considering the prepayments are all related to property and equipment.

Property and Equipment


			Useful life
Office equipment			3 years
Electronic equipment			1.25-3 years
Vehicles			4 years
Laboratory equipment			5 years
Manufacturing equipment			10 years
Leasehold improvements			lesser of useful life or lease term

Construction in progress represents property and equipment under construction and pending installation and is stated at cost less impairment losses, if any.

Leases

Land Use Rights

Land Use Rights All land in mainland China is subject to government or collective ownership. Land use rights can be purchased for a specified period of time. The purchase price of land use rights represents the operating lease prepayments under ASC 842 and is recorded as land use rights on the balance sheet, which is amortized over the remaining lease term.In 2019, the Company acquired land use rights for a term of 30 years from the local Bureau of Land and Resources in Suzhou for the purpose of constructing and operating the research center and biologics manufacturing facility in Suzhou.

Long-term Deposits

Long-Term Deposits Long-term deposits represent amounts paid in connection with the Company’s long-term lease agreements.

Value Added Tax Recoverable

Value Added Tax Recoverable Value added tax recoverable represents amounts paid by the Company for purchases. The amounts were recorded as long-term assets considering they were expected to be deducted from future value added tax payables arising on the Company’s future revenues.

Intangible Assets

Intangible Assets Intangible assets mainly consist of externally purchased software which are amortized over three to five years on a straight-line basis.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets The Company evaluates long-lived assets, which includes intangible assets, tangible assets, and ROU assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the related asset group to its future undiscounted cash flows. The Company measures any amount of impairment based on the difference between the carrying value and the estimated fair value of the impaired asset group. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell.

Fair Value Measurements

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

Revenue Recognition

The Company didn’t recognize any contract assets and contract liabilities as of December 31, 2022 and 2021.

Collaborative Arrangements

Collaborative Arrangements The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC Topic 808, Collaborative Arrangements (ASC 808). This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. For elements of collaboration arrangements that are accounted pursuant to ASC 808, an appropriate recognition method is determined and applied consistently.

Research and Development Expenses

Research and Development Expenses Elements of research and development expenses primarily include (i) payroll and other related costs of personnel engaged in research and development activities; (ii) in-licensed patent rights fees of exclusive development rights of products granted to the Company; (iii) costs related to pre-clinical testing of the Company’s technologies under development and clinical trials such as payments to contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), investigators, and clinical trial sites that conduct our clinical studies; (iv) costs to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility-related expenses; and (v) other research and development expenses. Research and development expenses are charged to expense as incurred and have no alternative future uses. The Company has acquired rights to develop and commercialize product candidates. Upfront payments that relate to the acquisition of a new product compound, as well as pre-commercial milestone payments, are immediately expensed as acquired in-process research and development in the period in which they are incurred, provided that the new product compound did not also include processes or activities that would constitute a “business” as defined under U.S. GAAP, and the product candidate has not achieved regulatory approval for marketing and, absent obtaining such approval, has no established alternative future use. Milestone payments made to third parties subsequent to regulatory approval which meet the capitalization criteria would be capitalized as intangible assets and amortized over the estimated remaining useful life of the related product. If the conditions enabling capitalization of development costs as an asset have not yet been met, all development expenditures are recognized in profit or loss when incurred.

Deferred Income

Comprehensive Loss

Comprehensive Loss Comprehensive loss is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. For each of the periods presented, the Company’s comprehensive loss includes net loss and foreign currency translation adjustments, which are presented in the consolidated statements of comprehensive loss.

Stock-Based Compensation

Share-Based Compensation

To the extent the required vesting conditions are not met, resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

The Company determines the fair value of stock options granted to employees using the Black-Scholes option valuation model.

Income Taxes

Earnings (Loss) Per Share

Earnings (Loss) Per Share Basic earnings (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options and non-vested restricted shares, which could potentially dilute basic earnings (loss) per share in the future. To calculate the number of shares for diluted earnings (loss) per share, the effect of the stock options and non-vested restricted shares is computed using the treasury stock method. The computation of diluted earnings (loss) per share does not assume exercise or conversion of securities that would have an anti-dilutive effect.

Segment Information

Segment Information In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and therefore, the Company has only one operating and reportable segment.

Concentration of Risks

Concentration of Credit Risk

Financial instruments that are potentially subject to significant concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable, and notes receivable.

Foreign Currency Risk

Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted Accounting Standards In November 2021, the FASB issued ASU2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance. The amendments in this ASU require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this ASU are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Company adopted this standard as of January 1, 2022. There was no material impact on the Company’s financial position or results of operations upon the adoption.

Income Tax - Loss (Income) Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	$ 443,286	$ 704,471	$ 268,905
Cayman Islands
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	19,454	28,401	2,612
British Virgin Islands
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	2	2	3
Mainland China
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	290,056	340,865	220,813
Hong Kong
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	53,425	243,400	20,022
United States
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	79,620	89,374	24,616
Australia
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	(260)	1,758	839
Taiwan
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	$ 989	$ 671	$ 0

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

The Company leases facilities for its offices, research and development center, and manufacturing facilities in mainland China, Hong Kong, Taiwan, and the United States. Lease terms vary based on the nature of operations and market dynamics; however, all leased facilities are classified as operating leases with remaining lease terms between one and seven years.

The following table presents operating lease costs (in thousands). Total lease expense related to short-term leases was insignificant for those periods presented.


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Operating fixed lease cost	8,774	6,263	4,539

The following table presents operating cash flows related to leases (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Cash paid for amounts included in measurement of lease liabilities	8,084	5,840	4,056
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets	14,801	2,183	6,393

The maturities of lease liabilities in accordance with ASC Topic 842, Leases in each of the next five years and thereafter were as follows:


			Year Ended December 31,
			$
2023			7,561
2024			6,184
2025			4,586
2026			1,734
2027			822
Thereafter			391
Total lease payments			21,278
Less: imputed interest			(885)
Present value of minimum operating lease payments			20,393

Weighted-average remaining lease terms and discount rates are as follows:


	December 31,
	2022		2021
Weighted-average remaining lease term	2.6 years		4.2 years
Weighted-average discount rate	3.4	%	2.3	%

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022	Dec. 31, 2021
Audit Information [Abstract]
Auditor Firm ID	185	1113
Auditor Name	KPMG LLP	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Location	New York, New York	Shanghai, the People’s Republic of China

Revenue - Additional Information (Details) - USD ($)	12 Months Ended
Revenue - Additional Information (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Collaboration revenue	$ 2,368,000	$ 207,000	$ 0
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	39,963,000	47,474,000
Accounts Receivable From Collaborative Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 0	$ 11,000,000.0

Related party transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and development \| MEDx (Suzhou) Translational Medicine Co., Ltd.
Related Party Transaction [Line Items]
Transactions between its related party	$ 0.4	$ 0.7	$ 0.7

Financial Statements Schedule I

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Financial Statements Schedule I

Additional Financial Information of Parent Company -

Financial Statements Schedule I

Zai Lab Limited

Financial Information of Parent Company

Condensed Balance Sheets

(In thousands of U.S. dollars (“$”) except for number of shares and per share data)


	December 31,
	2022	2021
	$	$
Assets
Current assets:
Cash and cash equivalents	944,649	591,842
Short-term investments	—	445,000
Prepayments and other current assets	10,203	2,364
Total current assets	954,852	1,039,206
Investment in subsidiaries	93,363	341,980
Total assets	1,048,215	1,381,186
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities	2,620	996
Total current liabilities	2,620	996
Deferred income	—	234
Total liabilities	2,620	1,230
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)	6	6
Additional paid-in capital	2,893,120	2,825,948
Accumulated deficit	(1,861,360)	(1,418,074)
Accumulated other comprehensive income (loss)	25,685	(23,645)
Treasury stock	(11,856)	(4,279)
Total shareholders’ equity	1,045,595	1,379,956
Total liabilities and shareholders’ equity	1,048,215	1,381,186

Additional Financial Information of Parent Company -

Financial Statements Schedule I

Zai Lab Limited

Financial Information of Parent Company

Condensed Statements of Operations and Comprehensive Loss

(In thousands of U.S. dollars (“$”) except for number of shares and per share data)


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Operating Expenses:
Research and development	(178)	(6)	(437)
General and administrative	(19,773)	(12,074)	(7,345)
Loss from operations	(19,951)	(12,080)	(7,782)
Interest income	12,857	1,881	4,899
Other (expenses) income, net	(8,678)	(18,173)	312
Profit (Loss) before income tax and equity in loss of subsidiaries	(15,772)	(28,372)	(2,571)
Equity in loss of subsidiaries	(427,514)	(676,099)	(266,334)
Income tax expense	—	—	—

Net loss	(443,286)	(704,471)	(268,905)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustment	49,330	(9,121)	(19,144)
Comprehensive loss	(393,956)	(713,592)	(288,049)

Additional Financial Information of Parent Company -

Financial Statements Schedule I

Zai Lab Limited

Financial Information of Parent Company

Condensed Statements of Cash Flows

(In thousands of U.S. dollars (“$”) except for number of shares and per share data)


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Cash flows from operating activities:
Net loss	(443,286)	(704,471)	(268,905)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred income	(234)	(312)	(312)
Share based compensation	3,724	3,435	3,025
Equity in loss of subsidiaries	427,514	676,099	266,334
Loss from fair value changes of equity investment of readily determinable fair value	8,952	14,617	—
Changes in operating assets and liabilities:
Prepayments and other current assets	(7,839)	(439)	2,253
Other current liabilities	1,648	(376)	738
Net cash provided by (used in) operating activities	(9,521)	(11,447)	3,133
Cash flows from investing activities:
Purchases of short-term investments	(260,274)	(445,000)	(949,161)
Proceeds from maturity of short-term investments	705,274	743,902	405,000
Purchase of investment in equity investee	—	(30,000)	—
Investment in subsidiaries	(80,942)	(884,342)	(256,097)
Net cash provided by (used in) investing activities	364,058	(615,440)	(800,258)
Cash flows from financing activities:
Proceeds from exercises of stock options	5,870	7,418	6,664
Proceeds from issuance of ordinary shares upon public offerings	—	818,875	1,137,683
Payment of public offering costs	—	(1,692)	(4,541)
Employee taxes paid related to settlement of equity awards	(7,600)	(4,253)	—
Net cash provided by (used in) financing activities	(1,730)	820,348	1,139,806
Effect of foreign exchange rate changes on cash and cash equivalent	—	773	(515)
Net increase in cash and cash equivalents	352,807	194,234	342,166
Cash and cash equivalents-beginning of the year	591,842	397,608	55,442
Cash and cash equivalents-end of the year	944,649	591,842	397,608

Additional Financial Information of Parent Company -

Financial Statements Schedule I

Zai Lab Limited

Financial Information of Parent Company

Notes

1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

2. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, Zai Lab Limited records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries”. Ordinarily under the equity, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses.

3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures provide certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements.

4. As of December 31, 2022 and 2021, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of Zai Lab Limited.

Revenue - Schedule of Net Product Sales (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Product revenue — gross	$ 234,009	$ 190,180	$ 57,355
Less: Rebates and sales returns	(21,337)	(46,075)	(8,397)
Product revenue — net	$ 212,672	$ 144,105	$ 48,958

- Definition

+ References

+ Details

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Office equipment
Property, Plant and Equipment [Line Items]
Useful life	3 years
Electronic equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	1 year 3 months
Electronic equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Vehicles
Property, Plant and Equipment [Line Items]
Useful life	4 years
Laboratory equipment
Property, Plant and Equipment [Line Items]
Useful life	5 years
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Useful life	10 years

Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Product Revenue, Net

The Company’s product revenue is primarily derived from the sales of ZEJULA, Optune, QINLOCK, and NUZYRA in mainland China and Hong Kong. The table below presents the Company’s net product sales (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Product revenue — gross	234,009	190,180	57,355
Less: Rebates and sales returns	(21,337)	(46,075)	(8,397)
Product revenue — net	212,672	144,105	48,958

Sales rebates are offered to distributors in mainland China, and the amounts are recorded as a reduction of revenue. Estimated rebates are determined based on contracted rates, sales volumes, and level of distributor inventories.

The following table presents net revenue by product (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
ZEJULA	145,194	93,579	32,138
Optune	47,321	38,903	16,418
QINLOCK	14,957	11,620	402
NUZYRA	5,200	3	—
Total product revenue — net	212,672	144,105	48,958

Collaboration Revenue

The Company’s collaboration revenue was $2.4 million, $0.2 million, and nil for 2022, 2021, and 2020, respectively. Accounts receivable arising from the Company’s collaborative arrangement were nil and $11.0 million as of December 31, 2022 and 2021, respectively. The collaboration revenue was from the Company’s exclusive promotion arrangement with Huizheng.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Option Activity

The following table presents a summary of option activity and related information during the year ended December 31, 2022:


	Number of options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Outstanding at December 31, 2021	81,015,590	$	2.79	5.98	$	339,570
Granted	22,571,050	$	4.37
Exercised	(5,151,190)	$	1.14
Forfeited	(7,254,030)	$	5.66
Outstanding at December 31, 2022	91,181,420	$	3.05	5.89	$	115,969
Vested and exercisable as of December 31, 2022	54,682,520	$	1.48	4.22	$	112,582

Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted

The following table presents the assumptions used to estimate the fair values of the share options granted:


	2022	2021	2020
Risk-free rate of return	1.4%-4.0%	0.9%-1.4%	0.4%-0.8%
Expected term (in years)	6.5	6, 6.25 or 6.5	6 or 6.5
Estimated volatility rate	65%	65%	70%
Expected dividend rate	0%	0%	0%

Summary of Non-vested Restricted Share Activity

The following table summarized the Company’s non-vested restricted share activity in 2022:


	Numbers of non-vested restricted shares	Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Non-vested as of December 31, 2021	9,567,360	3.36	$	60,131
Granted	30,663,040
Vested	(1,940,680)
Forfeited	(4,855,830)
Non-vested as of December 31, 2022	33,433,890	3.55	$	102,642

Allocation of Compensation Expense Related to Options

The following table presents the stock-based compensation expense which has been reported in the Company’s consolidated statements of operations (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Selling, general and administrative	38,118	23,194	15,718
Research and development	23,184	17,520	9,112
Total	61,302	40,714	24,830

Share-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 61,302	$ 40,714	$ 24,830
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	38,118	23,194	15,718
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 23,184	$ 17,520	$ 9,112

Other Income (Expenses), Net

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Income (Expenses), Net

The following table presents other income (expenses), net (in thousands):


	Year Ended December 31,
	2022	2021	2020
	$	$	$
Government grants	11,471	4,113	7,289
Loss on equity investments with readily determinable fair value	(8,952)	(14,617)	—
Others miscellaneous gain	594	303	128
Total	3,113	(10,201)	7,417

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 11	$ 11
Investments, fair value	$ 6,431	$ 15,383
Ordinary shares, par value (in dollars per share)	$ 0.000006	$ 0.000006
Ordinary shares, shares authorized (in shares)	5,000,000,000	5,000,000,000
Ordinary shares, shares issued (in shares)	962,455,850	955,363,980
Ordinary shares, shares outstanding (in shares)	960,219,570	954,981,050
Treasury stock (in shares)	2,236,280	382,930

Income Tax - Additional Information (Details) - USD ($)	12 Months Ended
Income Tax - Additional Information (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Taxable income	$ (443,286,000)	$ (704,471,000)	$ (268,905,000)
Provision for income taxes	0	0	0
Net operating loss carry forwards	1,483,200,000	1,089,700,000	605,200,000
Mainland China
Income Tax Disclosure [Line Items]
Taxable income	(290,056,000)	(340,865,000)	(220,813,000)
Net operating loss carry forwards	1,225,900,000
Hong Kong
Income Tax Disclosure [Line Items]
Taxable income	(53,425,000)	(243,400,000)	(20,022,000)
Net operating loss carry forwards	43,900,000
Taiwan
Income Tax Disclosure [Line Items]
Taxable income	(989,000)	(671,000)	0
Net operating loss carry forwards	1,500,000
United States
Income Tax Disclosure [Line Items]
Taxable income	(79,620,000)	(89,374,000)	(24,616,000)
Net operating loss carry forwards	208,100,000
Australia
Income Tax Disclosure [Line Items]
Taxable income	260,000	(1,758,000)	(839,000)
Net operating loss carry forwards	3,800,000
Zai Lab (AUST) Pty. Ltd.
Income Tax Disclosure [Line Items]
Taxable income	0
Provision for income taxes	0
Zai Lab (US) LLC
Income Tax Disclosure [Line Items]
Taxable income	0
Provision for income taxes	0
Zai Lab (Taiwan) Limited
Income Tax Disclosure [Line Items]
Taxable income	0
Provision for income taxes	0
Zai Lab (Hong Kong) and ZL China Holding Two and Zai Auto Immune (Hong Kong) and Zai Anti Infectives (Hong Kong) Limited
Income Tax Disclosure [Line Items]
Taxable income	0	0	0
Provision for income taxes	0	0	0
Withholding taxes on remittance of dividends	$ 0	$ 0	$ 0

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash And Cash Equivalents [Line Items]
Cash at bank and in hand	$ 1,007,423	$ 663,472
Cash equivalents	1,047	300,628
Cash and cash equivalents	1,008,470	964,100	$ 442,116
US$
Cash And Cash Equivalents [Line Items]
Cash and cash equivalents	957,824	932,888
RMB
Cash And Cash Equivalents [Line Items]
Cash and cash equivalents	45,486	23,791
Hong Kong dollar (“HK$”)
Cash And Cash Equivalents [Line Items]
Cash and cash equivalents	4,378	6,674
Australian dollar (“A$”)
Cash And Cash Equivalents [Line Items]
Cash and cash equivalents	598	475
Taiwan dollar (“TW$”)
Cash And Cash Equivalents [Line Items]
Cash and cash equivalents	$ 184	$ 272

Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Other Liabilities, Current [Abstract]

Schedule of Other Current Liabilities

The following table presents the Company’s other current liabilities (in thousands):


	December 31,
	2022	2021
	$	$
Payroll	31,689	25,685
Accrued professional service fee	4,080	4,319
Payables for purchase of property and equipment	5,269	2,568
Accrued rebate to distributors	8,443	15,001
Tax payables	13,283	8,817
Others (i)	4,054	4,421
Total	66,818	60,811

(i)Others mainly include accrued travel and business-related expenses.

Short-Term Investments (Details) - USD ($)	12 Months Ended
Short-Term Investments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Held-to-Maturity Securities [Line Items]
Short-term investments	$ 0	$ 445,000,000
Allowance for credit loss		$ 0
Minimum
Schedule of Held-to-Maturity Securities [Line Items]
Original maturities of time deposits	3 months
Maximum
Schedule of Held-to-Maturity Securities [Line Items]
Original maturities of time deposits	1 year