Zai Lab Limited (ZLAB) Earnings Call Transcript & Summary

Okay. Great. Welcome, everyone, to the Fireside Chat with Zai Lab. I'm Yigal Nochomovitz, one of the biotech analysts at Citi. It's my pleasure to have with me Tao Fu, who is the Chief Strategy Officer at Zai Lab. Welcome, Tao.

Thank you, Yigal. Thanks for having us.

Of course. So I think to start out, maybe a good place to start would be to summarize Zai Lab's broad strategy for those listening that are less familiar with the story. What is the near-term mission of the company? And also, what is the long-term mission of Zai Lab?

Yes. Thanks for that question. So Zai Lab is still a relatively young company, just founded 7 years ago by our CEO, Samantha Du. We started from really being a partner of choice for U.S. and EU biotech companies and licensing their innovative assets, develop and commercialize those products in China. And we built a very strong development and commercial platform with end-to-end capabilities and quickly transform the company to a fully integrated biopharma leader in China. We launched 3 oncology products in the last 16 months. We operated in 3 therapeutic areas: oncology, autoimmune disease and infectious disease. And within oncology, we have built 5 tumor franchises that cover over 50% of all cancer patients. We had a broad portfolio of 25 assets with 12 in base stage development and among which 5 are U.S. FDA approved products. And we really have a very strong track record of execution so far and delivered all the milestones we set for ourselves. So the near-term mission for the company is to continue to extend our current position as the partner of choice for developing and commercializing best medicines in China. In doing so, we aim to further increase our portfolio and pipeline of products in China, but in the meantime, strengthen our leadership position. Importantly, we have built a pipeline of 11 assets we actually own global rights and substantial R&D capabilities. So the long-term mission for the company is actually becoming a leading global biopharmaceutical company with a substantial portfolio of pipeline of products, not only with Greater China rise but globally.

That makes a lot of sense. Thank you. So you've been on pace for -- as I've counted, about 2 to 3 business development deals annually. And that's very much in keeping with the business objectives that you outlined at the IPO. So I get this question a lot from investors, and they'd like to know, and I'd like to know whether this pace of BD, 2 to 3 deals a year is something that we should expect to continue? And in what therapeutic areas do you expect to focus? And then related to that, at what point in the company's trajectory, would you start to decelerate the external asset acquisition and focus more heavily on internal discovery?

Yes. It's a very good question. Yes, we do have a consistent record of in-licensing 2 to 4 new products per year in the last few years, and we expect to be continuing to be very active in this development. But what's -- really the quality of the assets we bring in is a lot more important than the quantity. Quantity is not a metric for us. We're highly selective and only take in first-in-class and best-in-class assets from a global perspective, but also have a good strategic fit with Zai. I think it will make a lot of sense for us to continue to expand vertically within our existing disease franchises to bringing synergistic assets like our recent deal with Mirati on their KRAS asset. But we also are open to horizontally expanding to new areas, right? If you can find a great anchor asset, addressing big unmet medical need, we can build around it. So our recent partnership with argenx on efgartigimod is a good example of that. So we expanded to the severe autoimmune disease area. And we don't plan to decelerate in-licensing while we're focusing more heavily on internal discovery. I think both are important to us. We have open innovation model and platform and really like to source products both internally and externally, whatever the best science we can find. So I think we did a couple discovery deal recently with MacroGenics and with Schrodinger, I think are pretty good examples of that. We're leveraging external innovation to our global pipeline.

And in terms of therapeutic areas, I mean, you're in oncology, you've got a big footprint in oncology, emerging footprint in autoimmune, good footprint in anti-infectives and then medical devices, too, with Optune. Is that mix of therapeutic areas, kind of how you're going to continue? Or would you gravitate to 1 or more of those?

Yes. I think we are -- certainly, launch continue to strengthen the franchise already have. I mean, it just makes a lot of sense to create synergistic assets, right? But we're open to looking at new areas. I think the bar is just going to be higher for those areas, right? I think it took a long time for us to find efgartigimod and really decide to enter into this severe autoimmune area, right? But we think we had a great asset, and we can build around it.

Now another part of your strategy, which is very interesting is that, as I understand that you're contributing Chinese patients to global clinical trial efforts, for example, in the work you're doing with MacroGenics. So how does that help you, to have data in the Chinese patient population? How does that enhance the value proposition when you're pitching your drugs to Chinese physicians, especially when you're competing against medicines that were not evaluated in -- within the local population?

Yes. It's -- maybe I first would comment that there's an important benefit of participating in global trials by contributing to Chinese patients in China. It's actually a benefit for both us and our partner. So by doing that, we can leverage the same global data set and accelerate the speed of regulatory approval in both China and worldwide potentially for our partner. So we, as a company, actually have the most extensive experience doing this. We have about 15 global trials ongoing with different partners. And we have cases where we contributed up to 50% of patients with a global trial or actually at least enrolled the first patient in a global trial. So that's a very important element. I would say generating local data and have the experience in Chinese patient is critical, one, to secure regulatory approval. And it's pretty difficult to get your drug approval in China without any local experience. But importantly, it's very helpful to secure the support of the local KOLs, having them participate in your trials, really create the support for the product and the brand that certainly benefits you in the commercialization process as well.

Okay. Great. And you mentioned the Schrodinger deal. I'd like to just explore that one a little bit more. Very interesting. Obviously, they're focused on AI and computational drug discovery. Just talk a little bit about your interest in why you wanted to partner with Schrodinger, and how will the clinical responsibilities be divided between you and Schrodinger and time lines for when you might expect a drug candidate to emerge from this collaboration?

As you know, Schrodinger is the industry leader in AI and computational drug discovery, and they had a great track record with a couple of marketed products already through their work. And we have a portfolio strength in DNA damage repair as a company. So this collaboration focused on a novel target or the program targeting DNA damage repair. So really leveraging the strength of both companies from that perspective. So the research portion will be conducted jointly by the scientific teams of both companies. Schrodinger will focus on AI and computational chemistry to generate leads, and we will focus on DDR biology and pharmacology. And following a selection of the development candidate, we will assume the primary responsibility for global development, manufacturing, and commercialization. So we can't provide a timetable for when the first product candidate at this time. But I would just say that the advantage of Schrodinger's computational platform is a turnaround time and also the ability to select best-in-class compounds that are unique for the competition.

So you have Schrodinger, which is the discovery stage collaboration. You also have, I believe, some discovery collaboration work with MacroGenics. Am I missing any? And then should investors expect additional discovery focused deals or the deal is going to be more with assets that where you already have POC from, say, U.S. clinical trials?

Yes. I mean, we're always looking for new discovery focused collaborations. That's a big focus of the company. And yes, we certainly have earned a reputation to be a great partner. So if you look at those 2 examples, MacroGenics give us access to a leading bispecific and multi-specific platform. Schrodinger obviously give us access to AI and computational chemistry. We have a couple of other smaller collaborations we entered into recently as well in another AI collaboration. There's an antibody generation collaboration. I mean, we're going to continue to use external partnerships on the way to access cutting-edge technology to complement our internal efforts.

Makes sense. So by my count, you have 14 -- 14 oncology assets in your clinical pipeline, 3 of which are approved, which is great. So that obviously begs the question as to whether there are any opportunities for natural combinations of those assets to study various combinations. I'd be curious to know if there are any that are being considered to do those kind of combination clinical trials with your own assets?

Yes. It's a great opportunity for us. And we're willing to explore combinations whenever certainly the rationale is strong. I think there are some examples we publicly disclosed already. For example, we're looking into combinations with our I-O portfolio, whether it be in the PD-1 or PD-1 and LAG-3 bispecific with niraparib. We have tumor treating field combinations with niraparib. We have our internal portfolio like the CDC7 inhibitor, which could also be combined with PARP inhibitors. So there's many, many examples I can point to. So this is a very important strategy for the company. Just as you point out, we have this broad and synergistic portfolio. So we're actually having an R&D day, Yigal, on September 22. So our Head of R&D will talk more extensively about this.

Okay. That's actually one of my questions as far as what to expect there, but we'll get to that a little bit later. So if we could do a little bit of a more of a deep dive into ZEJULA, which is obviously your first commercial product. So help us understand the commercial landscape in China for ovarian cancer. What do you need to get right to make the ZEJULA launch a success? Obviously, you're off to a very good start. But what do you need to continue that positive trajectory? How much of the ovarian market do you believe you have right now in terms of market share? And just throwing one other question, what are you hearing anecdotally in the physician community about choosing ZEJULA over your competitor, LYNPARZA?

Yes. No, we believe probably the most important factor is the product profile and the label. We feel we have a big advantage there. And so LYNPARZA, as you know, is only approved for GBRCA mutant, patients in first-line ovarian cancer. That's about 15% of the local patient population. And ZEJULA is actually approved for first-line for all-comers irrespective of mutational status. So we have a big advantage there, and that's also supported by the national guideline. So we're -- we think we're poised to become the leading PARP inhibitor in ovarian cancer in China. We don't have comprehensive offshore data to dispose right now, but I believe we're actually taking market share from LYNPARZA. And over time, we will be the market share leader, at least in this indication.

Okay. How many hospitals do you know -- do you have this sort of this level of detail in terms of how many hospitals currently have access to ZEJULA, how many provinces in China have -- where you have a sales force representation? Just curious how broadly we've launched so far?

Yes. So we had extended our sales coverage pretty significantly. So now we have about close to 400 people and really covering the vast majority of the country and the market potential. We discussed for the second quarter because we implemented NRDL in March 1. And at the end of the second quarter was the June 30. Just during that implementation period, we increased our hospital listing by sevenfold to more than 800 hospitals. So that's actually pretty impressive set of almost an industry record in that regard. So the product has been very well received, and we also have been very proactively trying to maximize not only market access but our coverage.

So that was -- that's interesting. I don't think I've heard that statistic before. So sevenfold increase from when to when?

From March 1, that's when officially the NRDL started the implementation, through the end of second quarter. Yes.

On March 1, 2021?

2021, yes.

So that's a very rapid, wow.

Correct. Yes.

Okay. Interesting. My next question is about pricing and reimbursement and the landscape for pricing and reimbursement in China for ZEJULA. You mentioned the NDRL. I'd be curious to know what steps were necessary to get ZEJULA on the NDRL? And how has that helped you in terms of better net price for ZEJULA?

Yes. So our discussion for NRDL really kind of centered around the value of ZEJULA can provide to ovarian cancer patients, based on the published clinical data and our approved label. So post NRDL, I think the net price for ZEJULA for 300-milligram dose is about $2,700 per month. And it's lower if you have an individual dose of 200 milligrams. But as you know, our revenue increased about 80% for the first quarter to the second quarter. So -- and I talked about the effect of NRDL in terms of increasing hospital listing. So it's very clear that we have seen a significant increase in volume, not far more than offset any impact on price.

Okay. And you have a dedicated manufacturing facility in Suzhou. I've been there. I've seen it. How has that helped you with the launch? I mean, has that made things a lot more streamlined? And how has it improved your margins for this product?

Yes. So I think you may know, Yigal, that ZEJULA was actually marketed in China as a Category 1 drug, so local innovation. So one of the requirements is to have the product manufactured locally. I don't think we have disclosed details of our product cost for manufacturing ZEJULA in China, but I think we feel very good about the decision to source product locally in our own facility, was the right decision from a cost standpoint, but also importantly, to give us much better control of the supply chain, right, which is always quite important.

Okay. I know this is probably a question that's better for Billy, who's the CFO, but I'll -- you can defer to him if you want. But I'm just curious what -- any thoughts on when the management team would be ready to give revenue guidance for ZEJULA? Do you need more quarters to get a better sense of the trajectory before you're willing to give revenue guidance?

Yes. I don't want to predict that timing. I think it's probably a question for Billy. But we understand the pros and cons, Yigal.

Okay.

Yes, we'll keep you posted on that. Yes.

Okay. And let's -- okay, let's move over to Optune, which is another one of your marketed products, the Tumor treating fields for glioblastoma. So help us understand that one strategy for launch was different. You decided to focus initially on the private pay market as opposed to going the NDRL route. So help everyone understand the strategic thinking as to why you did it that way for this product for brain cancer?

Yes. So that decision was actually not by our choice. So it's a medical device, Optune. And currently, there isn't NRDL framework for medical device. Yes. So we'll have to see how the reimbursement landscape will evolve for therapeutic devices. But for now, we have a comprehensive market asset strategy focus on private pay, commercial insurance and also supplemental local insurance. So you might know this, Optune was already covered by several commercial insurance plans, and we're covered by supplemental insurance fund in large cities like Shanghai and Hangzhou. These are cities with 20 million, 50 million people, right? So that's an important strategy in addition to the private pay market.

Okay. So you're not going the NDRL route, even for other indications for Optune, is that correct?

There isn't a framework for device right now. But that obviously could change in the future. But obviously, right now, there is no framework for that, yes.

Okay. And what about Optune for mesothelioma? So that's -- that one is already on the market in Hong Kong, what have you learned from the Hong Kong launch that will help you when you launch in Mainland China for mesothelioma for Optune?

Yes. I'll just say, really, if you look at mesothelioma indication, the significance of that is really the validation of the mechanism of action of TTFields in sort of the torso indications, right? I think the market itself is not significant, really, but it provides an important technical approval principle for future indications like non-small cell lung cancer, the LUNAR cloud indication. That's probably the significance of mesothelioma. But we certainly will have some user experience for the torso indication of how you apply that. That will be very interesting and good learning when we get into those much bigger indications in the torso area.

Okay. So which -- I think there's 6 indications that you're studying with Novocure: non-small cell, brain mets, pancreatic, ovarian, gastric, liver cancer. Can you provide any kind of prioritization of which ones are going to launch first? Or are they all kind of in parallel?

Well, we're excited about all these indications. So that's why we like Optune, right? It's a pipeline and a product opportunity. Can -- when it also be successful can touch over 2 million patients potentially in China. Obviously, the lung and gastric markets are very large in China. And LUNAR is because of the acceleration, it will be more advanced, you can probably get data readout sometime next year. Liver cancer is also very big in China, disproportionately big in the Asian countries. And Novocure, as you know, just this week, received FDA breakthrough designation for liver in the first-line liver cancer in combination of atezo and Avastin, which is exciting. And we will also be participating in the Phase III liver cancer trial. So we'll follow the data, Yigal, in making these clinical decisions, but it's very clear that there's a broad range of potential applications for this technology.

And we have -- we talked about the Category 1 status for ZEJULA and the local manufacture. As I currently understand it, you're importing Optune into China. Is there any point where you would consider manufacturing that device yourself? Or is the structure where you import the best and most efficient way to do this?

Yes. We would need to discuss that with our partner and come to a mutual decision. So I don't think we want to say anything publicly until we have something aligned with Novocure on that, yes.

Okay. Sure. And then let's move on to your final commercial product, QINLOCK, for gastrointestinal stromal tumor. So you've launched in fourth line, fourth line GIST, what have been the learnings from that launch? What's worked, what hasn't worked? Have there been any surprises? And how is this going to help you launch in second-line GIST, which -- well, we're still waiting for the data. But let's stick with the question about the launch of fourth line GIST.

Yes. The launch has gone pretty well from our perspective. We did a lot of prelaunch preparations, including the name patient program we did in the Hainan province. We actually got approval in all regions of Greater China, including Hong Kong and Taiwan in 6 months. And we have reached thousands of health care professional face-to-face and online. And the product was recommended by the CSCO guideline. This is the equivalent of ASCO for fourth-line GIST with 1A recommendation. And it's also recommended for second-line GIST already. So we're receiving good supplemental insurance coverage. And then so far, we are actually quite pleased with the initial uptake. It's still early days, obviously.

Okay. And then, again, this question may be better suited for the Chief Medical Officer of the company. So you can pass on this one if you want. But I'd be curious to know what are the reasons why we should expect a positive outcome for the INTRIGUE trial in second-line GIST?

Yes. Yigal, I think you're very tuned into the data. I think their Phase I/Phase II data is actually very robust across all lines, right, pretty impressive PFS data. We think we provide a pretty large margin compared to what's available. But obviously, we're eagerly waiting for the INTRIGUE trial results. And I think hopefully will be available in the second half of this year, right?

Yes. I believe the fourth quarter of this year.

Yes.

Okay. Let's keep going. There's a lot of topics to cover here. You have a lot of stuff in the pipeline. So for omadacycline, you're getting close to a decision from NPMA on that one, which would be obviously the first infectious disease product to reach the market from your pipeline. How much are you doing currently in terms of launch preparations? And what are the key factors in the antibiotic space that you need to get right to make this a successful launch.

Yes. Just remind investors that when NUZYRA, which is a brand name, is approved, we will be using a contract sales force through our partnership with [ Henan Lvyuan Pharmaceutical ]. So this is a company that has significant experience in detailing antibiotics and have a large, dedicated sales force for antibiotic -- novel antibiotics in China. So we will be promoting NUZYRA as really the best-in-class tetracycline has many benefits, once-daily oral and IV, broad spectrum, have 2 indications. So we'll be working closely with our partner Henan Lvyuan on this product.

Okay. And then I believe you have some other antibiotics that are further behind in the pipeline. Could you remind us about those and how they're different from omadacycline?

Yes. So we have a partnership with Entasis on a treatment for Acinetobacter baumannii, which is very deadly pathogen and very -- actually, not very common in the U.S., but actually sadly pretty prevalent in China. So this is a disease with very little treatment options. So we have an ongoing Phase III trial with our partner called Attack trial. We actually expect to read out actually in the second half of this year as well. So if the trial is successful, that will be our second antibiotic product potentially, but it's a very good product for China because of the big unmet medical need.

Okay. And are -- is that one being manufactured in your manufacturing plant or not?

We're still working through the manufacturing strategy, Yigal. Yes.

Okay. So let's talk about the partnership with Mirati, which was just recently struck for adagrasib, which is the G12C, KRAS G12C inhibitor. Curious what your thought -- how did you -- how did that partnership come about? Why did you decide to partner with Mirati on this asset? And what's the size of the G12C opportunity in China?

Yes. We obviously like the asset. So we have been talking to them for quite a while. And we're glad we're able to cement this important partnership. We're attracted to it because there's significant unmedical need in KRAS G12C mutant patients. And we also like the product profile. It's very differentiated and potentially best-in-class. So the annual incidents for G12C mutations in China in non-small cell lung cancer is about 3% to 5%. But we also feel this could be also the possibility of underdiagnosis because in the past, there is just no effective treatment. So it's a significant opportunity. And adagrasib has demonstrated very compelling efficacy and favorable tolerability from our perspective. So we will be working with Mirati very comprehensively on the entire development program for both monotherapy and combinations in non-small cell, in CRC, including several of the registrational studies. And we may also have unique opportunity. Actually, this is important because we command have opportunity to lean far in China because the other G12C agent, but hasn't started KRAS studies in China yet.

So you -- so am I correct that you will do studies with Mirati adagrasib in China, in Chinese patients, is that the plan?

Yes. For multiple tropical trials, yes. Yes, both monotherapy and combinations. Yes.

And then you mentioned combinations. Obviously, Mirati is doing many combinations with PD-1 with cetuximab with a variety of -- with a SHIP1 inhibitor, I think, and others. Are you considering any combos with the existing oncology assets in your pipeline? Or would you just follow the plan that Mirati outlined with their combo work?

Yes. We -- certainly, to the extent we can, we will support the global programs. But we will -- we're also looking to any unique local combination we can do. We have an exclusive -- we have the development right in China to do those other combinations. I think we just need to go through a scientific evaluation.

Okay. And then switching to autoimmune and efgartigimod, which is also very interesting. And then you've kind of characterized that as a pipeline and a product. Are there certain activities that are -- sorry, are there certain indications that are on the top of your priority list for efgartigimod in China? And to what extent do you believe you'll be able to leverage the data that argenx has already generated for filing in China?

Yes. I would say our priority indications are pretty much the same as those for that. So we will participate in multiple trials. In fact, we already have 5 CTAs approved in China since we signed the partnership. So it's a very rapid progress on the clinical front. For gMG, it's too late for us to participate in the pivotal trial because they've already completed. So we expect to leverage that data set, and we're having ongoing discussions with NMPA about what the best regulatory path will be in China.

Okay. Are there any other assets that you wanted to highlight in your pipeline before we move on and talk about some of your internal discovery work?

Yes. I think you covered pretty comprehensively already, but I would just point to maybe our gastric cancer franchise and the lung cancer franchise, bemarituzumab, the FGFR2b is a very large opportunity in China. There's 700,000 gastric cancer -- new gastric cancer patients per year in China and FGFR2b cover about 30% of those, right? So it's a massive opportunity. We obviously had a successful Phase II trial, and we're working with our partner, Amgen, for this program. So that's potentially a massive opportunity. And in the lung cancer area, we have this very nice precision medicine portfolio covering all different kind of mutations. We talk about KRAS, but we also have repo for ROS1 and TRK, we have c-MET, we have the Cullinan product that cover exon 20 insertion mutation. So very nice, almost like a unique suite of products that cover different mutations within non-small cell lung cancer. So maybe I'll highlight those 2.

And there's -- I think there's another one, we're probably both forgetting. What about the Regeneron, the CD3, CD20?

Yes. Exactly. That's our [ heme-onc ] franchise, so the anchor there. So we like the product and especially DLBCL is a very large opportunity in China with large unmet medical needs. So yes, we're working with Regeneron very closely on that as well.

And one other question that just kind of popped into my mind is that you've obviously have a very, very good track record now with multiple partnerships with very well recognized biotech's Amgen, Regeneron, Mirati, the list goes on. So I mean, are you getting -- I mean, in the early days, I imagine it was more outreach from the BD department at Zai. How much more is it now more of an inbound situation where you're getting a lot of inbound interest in terms of in-licensing? Is that a true statement? Or are you still doing a lot of scouting for assets?

Well, we do both. We're always being very proactive. But it's fair to say we're actually getting more inbounds, just because the track record we established for ourselves, right? And the platform we already built, now we have 3 products that are proved and commercialized with early success. I just don't think anybody else has that type of track record. And Zai is certainly on the top of the list when companies are thinking about partnering the assets in China. So that's very helpful. But we're not going to sit on our worlds, and we continue to be proactive.

And then another question that I get a lot from people that are learning the Zai Lab story. Can you say, just if you can say quantitatively great, otherwise, just kind of qualitatively. For every asset that you do in license, how many do you look at? Is it 1 in 10, 1 in 20, 1 in 100? Can you just give us a sense as to what the filtering looks like as far as your BD efforts?

Yes. I don't think we track that way. Like I mentioned earlier, I mean, the quality is lot more important than quantity. So I think we have a great team to do these evaluations. I think our track record speaks for itself. So we're going to continue to be very active in this area.

Okay. And then let's finally, let's just talk about your internal R&D, which is also gaining steam. So what are the priorities in the internal discovery efforts? And then a very important question is, how do you decide strategically whether to pursue the target internally with your R&D group or just do a deal and access the target through a deal?

Yes. We'll also go into this in our R&D Day. But in general terms, I think our decision to invest in the program internally depend on several factors. We would like to invest in area that we have deep scientific expertise, right? DDR is a very good example, and of those selected areas of immuno-oncology, for large molecules. We have light programs that have strong synergies with our existing pipeline. For example, the CDC inhibitor could be combined with niraparib. In terms of internal versus external, as I discussed earlier, we really embrace this open innovation platform and source the best science wherever we can find it. So really, we're agnostic to where the product candidate comes.

Okay. And then in terms of the pace of IND filings, I think you've guided to 1 to 2 IND filings per year. Is that something that we should expect to continue over time?

Yes. With the capabilities we built, we're pretty comfortable with that. We'll generate at least 1 IND filing per year. And we certainly aim for more than that.

And then just if you could spend just a couple of minutes, just what was interesting about CD47, CDC7 and IL-17 that you just -- were the targets that you decided to pursue first as I understand it.

Yes. I think I already talk about philosophically, we -- how we think about doing our internal pipeline, really focusing on the areas we have a deep understanding of the science and also how existing capabilities we can leverage. And certainly, if there's any synergies with our existing pipeline, that's very helpful. So I think CDC7 is a very good example of that. So that's really kind of generally how we think about why we take these targets, but we're actually going to do a deeper dive in our R&D Day, Yigal. So our Head of R&D for both oncology and autoimmune disease will talk about these programs, Yigal.

Okay. Well, that's my -- that will be my last question is just given -- you've mentioned the R&D day a few times. Obviously, there's -- a lot of work goes into those events. Tell us what are the categories of new information or pipeline progress that you should expect from the R&D Day?

Yes, we will do a deep dive into the whole product portfolio and pipeline result, including our internal pipeline. So we'll work through each product, one by one, and discuss the science, the key clinical data, the differentiation, the market opportunity we see and the timetable. We'll also discuss the significant capabilities we have in R&D, what we have built globally and our strategy. So I think we have become a pretty complex company. And we'll say so given the depth of our portfolio. So we appreciate sometimes it's difficult for investors to absorb all of that. So what we try to do is really help them go through our pipeline and our capabilities through the R&D Day. So we really encourage all our investors to join.

And then -- sorry, I just got one more housekeeping question.

Yes.

You also broke ground on building a biologics therapeutics plant next -- near or next to the manufacturing facility for ZEJULA. Would you just give us a status update? Where does that -- the construction stand with the biologics manufacturing plan? Is it ready to go? Or is it still being built?

It's still in the work. So I think, Yigal, what we have talked about is we're breaking ground, I will call it an R&D center in Suzhou. So we have actually a pretty big piece of land we acquired favorably through the Suzhou government. So we're building a new sort of R&D center. And the biologic manufacturing is a big part of that. We expand -- expect to extend our existing capability, which is more manufacturing clinical trial materials. So we'll give you more information in the future. That's going to work.

Okay. Well, Tao, thank you. Thank you very, very much for the insights. Much appreciated. I look forward to returning to Shanghai at some point, hopefully not-too-distant future to see all the progress.

Yes. We look forward to welcome you again, Yigal. Thanks very much for having me.

Okay. Take care.

Yes. Bye-bye.