Operator
Hello ladies and gentlemen, thank you for standing by and welcome to Xylead's first quarter 2023 financial results conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, today's call is being recorded. It is now my pleasure to turn the floor over to Billy Cho. Chief Financial Officer of Xyleb, who will make introductory comments.
Billy Cho
Thank you, operator. Good morning, good evening, and welcome, everyone. Xyleb recently issued a press release providing the details of the company's first quarter of 2023 financial results, as well as some recent product highlights and corporate updates. The press release is available in the investor relations section of the company's website at ir.xylebatory.com. Today's call will be led by Dr. Samantha Duke. ZyLabs founder, chief executive officer, and chairperson. She'll be joined by Josh Smiley, president and chief operating officer, Dr. Rafael Amado, president and head of global oncology research and development, who will discuss advances with our oncology product candidates, Dr. Harold Reinhart, president and head of global development, neuroscience, autoimmune, and infectious diseases, who will speak about progress we have made in those three therapeutic areas. And I will discuss the performance of our market products and conclude with comments on our first quarter financial results. Additional executives will also be available to answer questions during the Q&A portion of the call. As a reminder, during today's call, Xilab will be making certain phone listing statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to our business plans and objectives, clinical trials, sales and revenue forecasts for our products and product candidates, regulatory applications, and commercial launches. But forward-looking statements are not guarantees of future performance, and therefore we should not put undue reliance upon them. These statements are subject to numerous risks and uncertainties, and actual results could differ materially from what we expect due to a variety of factors, including those discussed in our SEC filings. At this time, it is my pleasure to turn the call over to Xyleps founder, chief executive officer, and chairperson, Dr. Samantha Du.
Samantha Duke
Thank you, Billy. Hello, everyone. Thank you all for joining us today. Our first quarter results and progress continue to demonstrate Satellite's potential global banking class portfolio and track record of execution despite challenges from China's reopening at the beginning of the year. The positive top-line results from the Phase III emergency trial of CAR-XT in schizophrenia and the positive interim analysis from the SIS2-ENOVA-TB207 study from TDAB in head and neck cancer. Further support our belief that this product provides important treatment options for patients in China and globally. We're very excited about the unanimous recommendation of the U.S. Food and Drug Administration's Advisory Committee in support approval of Subectum and Durabectum, the first pathogen targeted therapy for patients with severe and less threatening infections caused by Acinetobacter. Recently, we expanded our lung cancer franchise, and we reached our global oncology pipeline with a next-generation DLL3 antibody drug conjugate, or ADC program, DL1310. This global ADC program demonstrates our continuous focus on the ADC space and our extension to the global market. This product complements our lung cancer franchise. We will leverage our strong capabilities to develop CL1310. We look forward to seeing results in patients. I look forward to leading Zai into its next transformational stage of growth productivity, and global opportunities. To better support me and help meet the strategic and operational needs of our business during the next phase of growth, we are happy to announce that we have promoted JustSmiley to President and Chief Operating Officer. Just's rich experience and strategic vision will help us further grow as a leading global pharmaceutical company deliver on our mission to improve human health and on our corporate strategic goals of driving innovation in China and beyond. I'd like now to turn the call over to Josh. Josh?
Billy
Thank you, Samantha. I look forward to taking on this new role for the company and continue to work with Samantha and the rest of our team to move our company forward. I'm very excited about what is in store for us for the next few years that positions Zylab to be a leader in biopharma innovation. We're pleased with the overall environment this year in China for companies like Xilab with innovative therapies that meet significant unmet medical needs. As Samantha mentioned, as a result of the proactive steps taken by our team, Xilab has established a good foundation for future commercial execution and strong financial performance. Despite challenges from the COVID-19 reopening in China during the first two months of the quarter, Xilab continues to deliver solid growth and overall financial results. Our net loss in the first quarter of 2023 decreased 40% compared to the same period last year, primarily attributable to the increase in product revenue and non-operating income. And we expect strong growth momentum to continue throughout the remainder of this year. Zajula continues to perform well with increased PARP sales for ovarian cancer, and we believe Zajula remains on track to become the leader in its asset class for ovarian cancer in China starting this year. For Optune, our team continued to improve market access by expanding commercial insurance and supplemental insurance coverage. As of March 31st, 2023, Optune was covered by 96 municipal or provincial supplemental insurance plans, up from 37 as of March 31st, 2022. We're pleased to have added Kinloch and New Zyra to China's national reimbursement drug list effective in March 2023. As discussed earlier, we expect a strong revenue ramp up for these products as a result of their NRDL inclusion. For EFGAR Kijamod, the first and only U.S. approved FCRN blocker with a pipeline and a product potential, we're getting ready for a commercial launch later this year. As we communicated earlier, we plan to have a specialized and experienced team for EFGAR with approximately 100 employees at launch. We're excited about its potential in China. With respect to our 2023 strategic priorities, we've made progress towards the BLA approval of efcar-tigemod for generalized myasthenia gravis, or GMG, and the BLA submission for subcutaneous efcar-tigemod for GMG in China. The initiation of a bridging study for CAR-XT in schizophrenia in Greater China, the initiation of a registrational study for bemerituzumab in first-line gastric cancer in Greater China, and a full data readout of the tumor-treating field's lunar phase III study in non-small cell lung cancer. We're also advancing our proprietary pipeline with global rights, including by initiating a global phase one study for ZL1218, or CCR8, and moving ZL1102, our IL-17 hemo body, into full global development. We recently released our 2022 ESG report that details our ESG strategy, which we call Trust for Life. It has three commitments. First, improve human health. Second, create better outcomes. And third, act right now. We're benchmarking ourselves against commonly accepted standards and major indexes. We're continuing to reach more patients with our existing commercial products and are preparing to launch eight additional products as we take this step to achieve overall corporate profitability by the end of 2025 and reach 1 million patients by 2030. And now I will turn the call over to Dr. Amato. Rafael?
Samantha
Thank you, Josh. In the first quarter of 2023, Dyer Labs Oncology franchise continued to make progress on all fronts, and we expect to have a very productive year. Recall that earlier this year, our partner Novocare announced that the Lunar Clinical Trial met its primary endpoint, demonstrating a statistically significant and clinically meaningful improvement in overall survival when DT field therapy was added to standard therapies compared to standard therapies alone in patients with platinum-resistant non-small cell lung cancer. We recently announced that the lunar data will be presented on the morning of Tuesday, June 6, as a late-breaking abstract in NASCO's metastatic non-small cell lung cancer session. We are pleased to have contributed and be part of the lunar study. In China, the incidence of non-small cell lung cancer is well over 700,000 new cancers per year, or 37% of all non-small cell lung cancer diagnosed worldwide. And it accounts for 39% of global deaths due to non-small cell lung cancer each year. We look forward to the presentation of the data at ASCO and are excited about the potential to address such enormous needs for patients with lung cancer, as well as for patients with other tumor types as subsequent results read out. As Samantha mentioned, in April, our partner CJEN presented encouraging efficacy results from the Phase II INNOVA-TV207 study of TIFTAC in patients with treatment refractory head and neck cancer at the 2023 ASDR annual meeting. At the data cutoff, the confirmed overall response rate was 40% with one complete response and five partial responses. The safety profile was generally consistent with that observed across diphthag monotherapy clinical study. Treatments for head and neck cancer remain a significant and met need in China with approximately 71,000 new cancers annually. Following progression on first-line standard therapy, there are limited treatment options. Immunotherapy and chemotherapy have low objective response rates with poor outcomes. While more data are required to expand on this result, we believe GIFT-APP could be a promising treatment option for patients with recurrent and or metastatic head and neck cancer. And we are planning to pursue this indication in China in collaboration with Segen. Moving now to Crisati or Atagrasis. Our partner, Mirati, presented updated phase two data on the CRYSTAL-1 study in patients with pancreatic adenocarcinoma, biliary tract cancer, another solid tumor, carbureting KRAS G12C mutations, at the plenary series program of the April session of ASCO, and subsequently published the results as a rapid communication in the Journal of Clinical Oncology. Results showed an objective response rate of 35% for the overall cohort. In patients with pancreatic cancer, the objective response rate was 33%, and for patients with biliary tract cancer, it was 42%. Notably, the safety profile of adagracia was aligned with that previously reported in patients with pre-treated non-small cell lung cancer and colorectal cancer. These findings demonstrate a meaningful improvement relative to the historically reported standard of care for these cancers. And we are very pleased to see the results of this phase two study, which demonstrate a marked improvement on the current standard of care for patients with unresectable or metastatic KRAS T2LC mutated solid tumors including gastrointestinal cancers, where few treatment options exist. We look forward to closely working with MIRADI to advance adagracis as a potential best-in-class treatment option for patients with tumors harboring KRAS T12C mutations. Moving to our internal global research and development programs, we presented new translation on clinical biomarker data from our global oncology program, VL1211. And anti-clotting 18.2 specific antibody at AACR showing the ZL1211 as monotherapy seemed to be tolerated well and showed early signs of anti-tumor activity. In addition to TIFDAC, we're expanding our pipeline into the antibody drug conjugate or ADC space and building a portfolio of potential first and or best in class ADCs through both internal discovery and external collaboration. Last month, we increased our lung cancer franchise and enriched our global oncology pipeline with a next-generation ADC program, DL1310. This compound is an innovative DLL3 ADC discovered by using MediLink's proprietary TamLyn platform. TamLyn is a next-generation ADC platform designed to leverage the tumor microenvironment to overcome the challenges in current ADC drugs. DOL3 is an inhibitor of the notch ligand that is overexpressed in small cell lung cancer and neuroendocrine tumors. We will leverage our global development capabilities to advance this product into clinical studies. We are on track to meet all the milestones this year, including the initiation of the marituzumab gastric cancer trial in China and the filing of Reputrectinase for ROS1 mutated non-small cell lung cancer with an abundance of potentially best-in-class and first-in-class products both in China and globally, we are very excited about our expanding oncology pipeline at ZyLab. And now I will turn the floor over to Dr. Harold Reinhart to discuss the progress in our autoimmune, infectious disease, and neuroscience therapeutic areas. Harold?
Josh
Thank you, Rafael. I'm excited for the opportunity to share with you today progress across our autoimmune, infectious diseases, and neuroscience therapeutic areas. Let's start with CARX-T, the combination of xenomaline and traspium, which we are developing with our partner, Corona, in acute schizophrenia. Results from Corona's EMERGEN3 trial were released in March 2023. This is now the third positive registration trial that has made its primary endpoint, with CARX-T demonstrating a reduction of 8.4 points in PAMS total score compared to placebo at week five. CARX-T also demonstrated reductions in positive and negative symptoms of schizophrenia as measured by PANS-positive, PANS-negative, and PANS-negative-marder factor subscales, which are secondary endpoints in the trial. Karuna plans to submit a new drug application to the FDA in the third quarter of 2023 with launch in the second half of 2024 if approved. As Samantha mentioned, CAR-CT could be a very important treatment option as a new class of medicine for schizophrenia patients in China and globally. Our proposed development plan for China has been accepted by the NMPA, and we're on track to start a clinical bridging project in June. Regarding our infectious diseases portfolio, the FDA Advisory Committee recently unanimously voted in favor of approval of Sulbactam-Dolabactam We're excited about the committee's strong vote of confidence. We submitted an NDA for the treatment of carbapenem-resistant Acinetobacter baumannii infection to the NMPA in December 2022, with priority review granted one month later. And in February, the NDA was officially accepted by the NMPA. We look forward to bringing this novel drug to China into Asia Pacific, where severe Crab infections are frequent and often can no longer be adequately treated because of multidrug resistance. Much progress was made this past quarter in VivGuard or Evgatigamot. We submitted the BLA for Evgatigamot IV for the treatment of patients with generalized myasthenia gravis or GMG in China in the second quarter of 2022. and expect approval in commercial launch this year. We also expect to submit a BLA for FGAT-Tigamot SC sub-Q for GMG in mid-2023. We continue to support our partner Argenix on indication expansion in China and worldwide. Last but not least, for our internally developed topical IL-17 product, CL1102, We are moving forward with preclinical and regulatory activities in preparation for our global phase two trial. Let me now hand over to Billy, who will speak about progress with our commercial products and financial results. Billy?
Billy Cho
Thank you, Harold. Now I will discuss our first quarter of 2023 financial results compared to the prior year period. Total net product revenues for the first quarter of 2023 were $62.8 million, compared to $46.1 million for the same period in 2022, representing 36% year-over-year growth. This included net product revenue of $42.7 million for Tejula, compared to $29.6 million for the same period in 2022, representing 44% year-over-year growth. $13.3M for Optum compared to $12.8M for the same period in 2022, $1.3M for Kinloch compared to $3M for the same period in 2022, and $5.5M for Muzaira compared to $0.7M for the same period last year. Note that net product revenue in the first quarter of 2023 included a negative $3.9M non-recurring adjustment to compensate distributors for sales of Kinloch and Nuzara at prices prior to the price reductions made in connection with their initial inclusion in the NRDL. Such sales rebates to distributors on previously purchased products are customary in our industry to compensate those distributors for the new NRDL summing price. Research and development expenses were $48.5 million for the first quarter of 2023, compared to $53.9 million for the same period last year. The decrease in R&D expenses was primarily due to cost-sharing compensation from collaboration partners related to our clinical trials, partly offset by higher payroll and payroll-related expenses from increased R&D headcounts. SG&A expenses were $62.5 million for the first quarter of 2023 compared to $57 million for the same period in 2022. The increase was primarily due to higher professional service fees and in connection with sales of our products in Greater China. and higher payroll and payroll-related expenses for increased commercial headcount, as ZyLab continues to expand and invest in its commercial operations in China and infrastructure in the United States in anticipation of substantial growth over the next few years. ZyLab reported a net loss of $49.1 million, or a loss per share attributable to common stockholders of 5 cents for the first quarter of 2023, compared to a net loss of $82.4 million for the same period in 2022, or a loss per share attributable to common stockholders of 9 cents. The decrease in net loss was primarily due to product revenue growing faster than operational expenses and the increase in non-operating income, including interest income and foreign currency gains. As of March 31st, 2023, cash and cash equivalent, short-term investments, and restricted cash totaled $931.4 billion, compared to $1 billion as of December 31st, 2022. We would now like to turn the call back over to the operator to open up the line for questions. Operator?
Operator
Thank you. We would now like to open the line for questions. If you have a question, please press star 11 at this time. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Michael E. from Jefferies. Please ask your question, Michael.
Michael E.
Thanks. Good morning. And we had two quick questions. On FGAR-Teja Mod, I know that you guys are waiting for approval.
Michael
Can you give us an update on your expected timing and ramifications or your expectations for getting that in for NRDL and what the timelines are for that and what our expectations should be for NRDL for 2024 and how that would work with the timing of approval? That would be our first question. And the second question is, obviously, there are a lot of focus on the TTF lung cancer data coming up at ASCO. You mentioned that in your prepared remarks. Can you help us understand the ramifications of that result for China, particularly as it relates to the strength of the data with combination PD-1 but not docetaxel and the use of PD-1 in second line and how you expect that to be important for China? Thank you.
Billy
Hi, Michael. It's Josh. Good to hear from you. I'm going to direct the questions to our executives this morning. So I'll start on F-Cartigimod and direct it to me. And then Rafael can talk a little bit about your question on Lunar. On F-Cartigimod, as you know, there's not a PDUFA date in China for reviews or approvals. What I can say is we're in discussions with the regulators that they're going well. And we're looking forward to a potential approval. And once we have that, we're prepared to move quickly to launch. As we mentioned in my comments, we have a plan to have about 100 sales reps at launch ready to promote the product and we'll be moving quickly then. toward developing packages and strategies for NRDL. You know, we need an approval, you know, sometime over the summer to, I think, fit into that window. But again, we'll keep you updated as we continue to go through. Everything's going well, and we're excited about the opportunity. Rafael, maybe you could address Lunar, please.
Samantha
Hi, Michael. So this is about the implications of the data for China. Clearly, this is a second-line study, so the question is, you know, have most patients received checkpoint inhibitors in front line, and therefore, the data would, you know, data that is significant and clinically meaningful with IO applicable if patients have received it in first line. I think the answer to that is that not every patient actually receives checkpoint inhibitors in front line, particularly patients with mutations, with EGFR mutations and resistant mutations. Oftentimes, the additional checkpoints don't tend to add that much benefit, and they may get it in second line. So there is some applicability there. There's also some evidence I think which is really demonstrated in this study of synergy between PTP fields and checkpoint inhibitors. And I think we will be able to corroborate this in the frontline study, which is Keynote B36. I think that that study would really establish, you know, this synergy that we believe is observing in lunar. And as you know, the standard of care in non-small cell lung cancer is really evolving. And, you know, there will be new agents and, you know, different ways of treating patients as new entrants come in. So I think we are pretty excited and share the enthusiasm of NovoCure on this data set that really shows particularly the synergy with ICIs and DT fields and, you know, based on the pattern of treatment in China, there will be patients that will definitely benefit from this combination.
Michael
Thank you. Just to be clear for Josh, we acknowledge we do want to get approval by summer and that there's a deadline that we need to hit for NRDL. That's correct?
Billy
Yeah, I mean, we would like approval as quickly as possible for sure. And as I say, we're at, reviews are going well. Yeah, I think to be eligible for a 2024 negotiation, we would need to have an approval over the summer. And again, things are going well, but we don't know until we get it. So, we'll keep everybody updated. Got it. Thank you, guys. Operator, next question, please.
Operator
Thank you. Our next question comes from the line of Igor Notromovic from CT Group. Please ask your question, Igor.
Igor Notromovic
Oh, hi. Yes, thank you. For Bama, can you just talk about the timelines for running the phase 3 and first-line gastric? When could that trial read out, and what is the current view on when that drug could launch in China? And then you also mentioned in the press release that you're joining two global phase 3s, Fortitude 101 and Fortitude 102. Can you just explain the differences between those two trials, please, both in first-line gastric?
Billy
Sure, yeah, thanks for the question. I think, Rafael, these are both for you.
Samantha
Yeah, so I'll start with the second part of the question, Igor. There are two studies in gastric cancer. The standard of care tends to be 446 plus a PD-1 inhibitor, either Optivo or Pembrolizumab. That is really the way that You know, most patients are treated, you know, some kind of variation of chemotherapy, such as Xelox, is sometimes used. There have been studies that have not used PD-1 because they started before these results really came about. So that's why we have two studies. One uses Folfox-6 with pembretuzumab, and the other uses pembretuzumab with chemotherapy plus PD-1. The second one hasn't started. We're in the process of getting it going on both Amgen and ourselves, but we obviously have made the decision to participate in that trial. So the first approval will be with chemotherapy alone, and that trial is ongoing from Amgen. There's been some discussion about the level of expression of SCFR2-alpha And we will enter that study imminently, actually. You know, we're just automating issues, you know, having to do with a diagnostic, et cetera. But the study is ready to start, and it will be shortly after followed by the ticket study, which is, you know, normal in China. So, with regards to timelines, you know, this study will follow its course and, you know, we'll have a filing in, you know, sometime in 25.
Igor Notromovic
Okay, great. Thank you very, very much.
Operator
Thank you. Well, our next question comes from the line of Anupam Rama from JP Morgan. Please ask a question, Anupam.
Anupam Rama
Hi, this is Priyanka on for Anupam. We just have one question. Can you give us a preview on what to expect at the investor day and if they're going to be more of a pipeline or development focused or is it more focused on commercial dynamics and potential for the pipeline products in China. Thanks.
Billy
Hi, Priyanka. It's Josh. I'll start and then Billy, please jump in. But, you know, we have not had an in-person investor day for quite some time and thought this was a good time to do it, particularly coming out of ASCO and some of the updates that we'll have there. So we will focus on, you know, the eight launches that are coming, as well as a look into our discovery strategy and some of our earlier global developments. We will talk about commercial dynamics and outlook for the medium term for the firm. But really, I think our primary goal here is to give investors a little bit deeper insight into the breadth and depth of our pipeline and the things that are coming sometime soon. Billy, if you have anything to add, please do.
Billy Cho
No, that was well covered, Josh. We'll be sending out a phase of date to all of our investors and sell side, you know, probably sometime this month and followed by, you know, some more details around the agenda. So stay tuned.
Operator
Thanks so much. Great. Thank you. Our next question comes from the line of Jonathan Chang from SVB Securities. Please go ahead, Jonathan.
Jonathan Chang
Hi guys, thanks for taking my questions and congrats to Josh and Christine. First question, in the context of a broad and expanding pipeline of commercial and clinical stage assets, what do you see as the most meaningful growth drivers for the company in 2023 and beyond? And my second question, can you tell us more about ZL1310, the construct itself and the timelines associated with the program? and discuss your thoughts on pursuing DLL-3 with an ADC versus a bispecific T-cell engager. Thank you.
Billy
Great. Thank you, Jonathan, and thanks for the congratulations. I think on growth drivers, I'll make a couple comments, ask Samantha to weigh in, and then we'll turn it to Rafael to talk about the DLL-3. I think on growth drivers, obviously, we're quite excited about the upcoming launch, hopefully, of F-Gar Tijamod. And as I mentioned, we're well prepared to hit the ground running there. We've learned, I think, a lot from the very successful launch in the U.S. And I think a lot of the dynamics that led to success in the U.S. actually can and should play out in China. We're looking forward to that as a new growth driver. Zajula continues to perform well, and we would expect, as we mentioned up front, to continue to grow share in that class, secure a place as the market leader, and continue to drive penetration, particularly in the first-line setting. And, of course, New Zyra and Kinloch on NRDL. beginning in March will drive good volume and good revenue growth for the remainder of 2023. I think as we get into 2024 then, looking forward to the next wave of potential launches in that period, which could include TT fields for lung cancer, Repo-Trexanib. And then, you know, we've talked a little bit about that as we get a little bit farther out, Membrutuzumab, Adagras of CAR-XT. So, you know, there are a lot of growth drivers. I think, again, for this year, it's execute on the four products that we have in the market and be ready to launch well with F-Cortegemods. Samantha, I don't know if you want to make any other comments on 2023 and beyond.
Samantha Duke
Well, you have covered pretty well.
Billy
Maybe we can go to Rafael to talk a little about our most recent deal with DLL3.
Samantha
Yeah. Hi, Jonathan. So, yeah, this is ZL1310. We were pretty impressed with the preclinical activity of this product. And as you know, we have TID-DAC, so this is a complement to our ADC pipeline. And as you know, ADCs are based on antibody, you know, the specificity and ability of the antibody are quite good for the target DLL3. And then the payload and linter tend to dictate the benefit-risk of the product. This payload is a topoisomerase inhibitor, and it has really high potency and high clearance and better permeability. So, we saw as a consequence very good efficacy and tolerability in preclinical studies, you know, as opposed to other ADCs that have less stable linkers that are not covalent. So this is, again, a covalent linker, and it actually releases in the tumor microenvironment. There are other linkers that actually don't allow, you know, the payload to remain bound, and therefore, you know, are fraught with toxicity, such as high toxicity, rash, myelosuppression, et cetera. And here we could see a very stable PK and be able to increase the doses to a relatively higher level. So, because of that, and also because, you know, this company also has a more advanced product, you know, that they're also moving ahead with, and, you know, it seems like it was a technology that was superior to many other ADC technologies that we've seen out there. That's how we chose it. We could have chosen perhaps a bispecific. You know, Amgen has biotechnology there. They've demonstrated actually impressive activity in, you know, difficult settings such as refractory or second line small cell lung cancer. And we have our own bispecific in the CB20 space with Regeneron. But here, because of the potency and the potential higher benefit risk given the stability of the linker, and, you know, trying to affect the avoidance of CRS and other IELTS-type toxicity from biospecifics, we opted to use an ADC. And then in terms of why we chose DLL-3, well, it's a target that's been validated by Amgen's data, and it's a real unmet medical need, and I think also has the opportunity to expand to neuroendocrine tumors, which is an area where there hasn't been really a lot of progress. So I think this, you know, this is a collection of information that led us to really choose this product as our next ADC to move into IMD, you know, in the near future.
Jonathan Chang
Got it. Thank you.
Operator
Thank you. Our next question comes from the line of Ziyi Chen from Goldman Sachs. Please ask your question, Ziyi.
Ziyi Chen
Hey, thank you. Thank you for taking my questions. A couple questions. Number one is, you know, now you're running more than 15 assets in a clinical stage, while based on first quarter and also third quarter, fourth quarter, you have been controlling the budget pretty tight. So we try to understand that how would you allocate the resources properly to make sure the programs, the progress of those programs could potentially make you ahead of peers in competition and how you're going to prioritize some of the key assets. Second question is more specific on Adagracib. Is there any updates on the regulatory timeline for Adagracib in China? When should we expect more visibility on the China filing strategy, you know, particularly what are the factors that management is considering while trying to determine the filing plan in China. A quick one also on ADC is this is probably the first time that we saw Scilab is partnering with one of the local players licensing their assets. So does that mean that you have been changing your strategies? You have been more looking into potentially domestic biotech company to collaborate with? Those are my three questions. Thank you.