All right, let's go ahead and get started. Welcome, everyone, to the 44th Annual JPMorgan Healthcare Conference. My name's Anupam Rama. I am one of the Senior Biotech Analysts here at JPMorgan. I'm joined by my squad: Rafi Pinheiro , Joyce Zhao, and Priyanka Grover. Our next presenting company is Zai Lab, and presenting on behalf of the company is COO Josh Smiley.
Thanks, Anupam, and hello, everybody. Our founder and CEO, Samantha Du, had some unexpected travel challenges. I know she'd like to be here, but she sends her regards, and I know she'll be following along online. We've all been here now for a couple of days, and one of the questions I've been getting from investors for Zai is, what's more important, the China business or the global portfolio? And our answer is both, and it's by design. We were founded 11 years ago with the idea of having a dual engine: a commercial business and a commercial opportunity in China where we could be a partner for global biotechs who otherwise didn't have capabilities in China, and then a global portfolio engine to focus on our own innovation and to increasingly expose China innovation to the globe.
We're at an important point in the company where the commercial engine, by design, was moving faster. We now have eight products approved in China and headed towards somewhere around $460 million in sales. And that business is profitable, it's growing, it provides a financial foundation for the company, and we're at a really important inflection point for the global pipeline, where we now have our first global phase III trial up and running. This is for our DLL3-focused ADC, a potential first and best-in-class approach for small cell lung cancer. We've started a phase III study that's gotten an opportunity for an accelerated approval as early as 2028 in the U.S. We're really excited about that part of our business. It leverages the skill set and capabilities that we've developed and built in China over the last 11 years.
And I think what's something that's unique about our model is the efficiency that we can gain from the team and the expertise that we have in China. That's both for the opportunities we have to develop the drugs from commercial partners for China, but also increasingly to point those capabilities at global innovation. When you couple all of that with our strong balance sheet, I think we're in a really good position now to be able to invest in the portfolio and the pipeline and take advantage of the opportunities that we see either from our own internal discovery efforts or increasingly from business development and oftentimes from partners that we have just somewhere around the road or down the road in China. If we think about our R&D strategy, it's really focused on a couple of things. We try to balance focus, speed, and risk.
And this is now for the global part of our business. We're focused in two areas: immunology and oncology, with an emphasis then on advanced modalities like ADCs, bispecifics, and T-cell engagers. Of course, in this part of the business, we're leveraging the 11 years of experience we have in partnering with global MNCs among some of the best and most exciting immunology and oncology drugs in the world. We're able to leverage our China capabilities on a global basis to drive faster timelines. I think we've seen that with our DLL3 ADC, where we've been able to move very quickly from preclinical to a phase III study, taking advantage of the capabilities and expertise that we have in China.
And I think if you think about the 11 years' experience we have in most of the trials and work that we do in China, we're working as part of a global phase III program with some of the best drug developers and companies in the world. We're able to take that experience and apply it to our own innovation or to the partnered innovation that we're bringing forward now. Couple that experience with the team that we have today that, prior to coming to Zai, has got many years of experience in bringing drugs forward on a global basis and getting them registered. So we're quite excited about where we are. I think one of the really unique aspects of Zai is that we are a dual gateway partner of choice.
Again, we were founded with the idea of serving as an entry point for Western biotechs into China. Of course, that part of the business has moved and progressed really well. Increasingly, though, we're able to go the other way and to serve as a gateway or bridge for China biotechs who otherwise don't have global capabilities for their innovation to move to approvals and regulatory paths in the U.S. and China. I think if you look at 1310, I think that's a really good example. We partnered with a company in China. We in-licensed an asset that was in preclinical development, and within two years have been able to move into a phase III study, which we'll talk a little bit more about in a moment.
I think if we think about 2025, we're quite proud of the execution and the progress we made, particularly around the pipeline. We stand here now today with a program in phase III, clear visibility to an approval as early as 2028 in the U.S. This is in small cell lung cancer, and then with the opportunities as we move into this year to present data not only in a later-line setting in small cell lung cancer, but also in a first-line setting with the opportunity to start a global phase III first-line study, and we're also exploring the drug in neuroendocrine tumors. That's coupled then with our second global program. This is in immunology. This is our IL-13/31, where last year we started a phase I study in atopic dermatitis, starting with healthy patient volunteers, transitioning into patients this year.
We expect to have data on this, I think, really exciting program by the end of next year, followed by three other, I think, near-term potential clinical starts in oncology. You can see the LRRC15. It's an ADC that'll start a phase I study this year in solid tumors. ZL-1222, which is a PD-1/ IL-12, where we'll generate, I think, some interesting preclinical data this year. And then we recently in-licensed MUC17 x CD3 T-cell engager approach here, which we're quite excited about. In the China part of the business, I think two big pipeline progress pieces we made as we acquired the rights to both Pove and TED. These are two immunology opportunities in China with Pove looking forward to a data readout the first half of this year in IgAN, which is an extremely important disease and opportunity in China.
On the commercial side, we continue to drive growth in the launch of VYVGART for gMG. In 2025, we were able to get VYVGART listed as a preferred agent for treating gMG in China and a focus on maintenance therapy. We are excited about that, and I think that's really important for patients. Similarly, and I think most recently, we had an approval for COBENFY in China. This is for schizophrenia, first new mechanism approved in 70 years, only drug in China approved without a black box for treatment of schizophrenia. We will launch that the first half of this year with an eye towards NRDL listing in 2027. I mentioned before, a strong cash position of $817 million, profitable business in China that will continue to strengthen the balance sheet over time.
Maybe just to spend a few minutes on the pipeline itself, first looking at the pipeline overall. You can see I think I've touched on many of these assets overall. These are all the products on the left-hand side of the chart here, or I guess my left, that we have global rights to. This is a mix of programs that we've discovered and developed from our own labs with programs that we've in-licensed from partners. I think if you think about this portfolio over the next three years or so, with Zoci, the ADC targeted DLL3, as I mentioned, we have a potential approval in 2028. We expect to start a phase III first-line study in combination later this year.
In 1503, which is for atopic dermatitis, we expect to have data in both healthy volunteers and patients with atopic dermatitis later this year, which will help to inform a phase II and phase III decision and program. And we're quite excited about that opportunity. And then I think if you think about over time, again, we'll have some other phase I starts this year. I think we're sized, from a discovery perspective, to start one to two new programs per year directly from our own discovery efforts, supplemented then by a few good business development opportunities. Our sweet spot really is sort of late preclinical to early clinical assets in immunology and oncology, looking at precedented targets where we think there's a lot of room to improve upon current therapies. So just a couple of points on Zoci, which is our lead asset.
First, I think we do see this as having best-in-class potential. I think many investors and stakeholders are increasingly seeing the opportunity in small cell lung cancer as new therapies are developed and new data is generated. We quite like what we have with Zoci in the phase I data that we've seen. We see a 68% ORR in second-line small cell lung cancer, a six-month duration, which is, I think, quite meaningful in this setting. I think one of the things that's a clear differentiation that we see so far relative to other mechanisms and other ADCs is 80% systemic ORR in patients with brain mets that haven't been treated with radiation. As many of you may know, this tends to be one of the things in patients with small cell lung cancer that leads to treatment interruptions and ultimately to morbidity.
So we're quite excited about this data and differentiation here. I think really importantly, as we think about this space over time, is the safety. You can see grade three or greater TRAEs of only 13% in our phase I studies, no drug discontinuation or death. So we think this makes this an optimal partner for first-line and combination therapy. And of course, we're exploring that in a combination setting now. And we do expect to also initiate other phase I novel combinations. I think the goal here, given the safety and efficacy profile, is for this drug to be the partner of choice in small cell lung cancer for combinations. We're really proud of the speed that we've been able to demonstrate from efficacy and execution perspective. We've been able to move from preclinical to first-in-human time in less than two years.
I think industry average, again, is somewhere probably in the three to four years. Again, this leverages our China expertise, access to investigator sites and patient populations. We initiated the phase III program in second and third-line patients in Q4 of last year. We have patients being screened and sites being opened now. We see this is about a 480-patient trial, two arms, of course, one with monotherapy for 1310 in patients either who have progressed from first-line standard of care, which is PD-1 and chemo, or patients who have progressed also on tarlatamab in a second-line setting. So we think this is very representative of real-world setting, and I think positions us really well for a good, fast trial and an opportunity for an approval in 2028. As I mentioned, I think the safety profile really positions this drug well in a first-line setting.
And I think, of course, that's what many investors are focused on in terms of the opportunity. We're in the process of developing data in both a doublet combination with a PD-1 as well as a triplet with chemo. We'll generate enough data by the second half of this year to make a decision around dosing and combination for a first-line phase III trial to be initiated by the end of the year. Again, I think the safety profile here, combined with what we see in terms of the overall response rate in the monotherapy setting, I think makes us quite excited about the opportunity. I think, as I mentioned, I think investors are increasingly seeing the opportunity in small cell lung cancer. Of course, that way is paved a little bit by tarlatamab or Imdelltra.
But I think when you look at small cell lung cancer and other neuroendocrine tumors that overexpress DLL3, I think the addressable market is somewhere in the range of $9 billion. And I think we're well positioned to capture some significant portion of that beginning in 2028 with an accelerated approval. I move on briefly to our other clinical asset today. That's our IL-13, IL-31 receptor program focused. Again, the idea here is to improve upon the profile of Dupi in atopic dermatitis. And of course, this is one of the bigger markets in the world, but there's still a lot of opportunity for improvement. And I think what we see here, of course, it's validated biology. We're going after two precedented targets.
I think the combination, the idea is based on the preclinical data that we're seeing, is an opportunity for rapid relief on itch, maybe longer-term duration than what you see with the current IL-4, IL-13s, and an opportunity for faster onset. So I think all of those data will have an opportunity to explore and to present by the second half of this year as a function of the phase I trial that we're running. So we're quite excited about this opportunity. Again, I don't have to spend much time on how big the market is for atopic dermatitis. It's about $15 billion now on a global basis, projected to grow to at least $30 billion by 2030. So some real differentiation in this space can present a pretty compelling opportunity. This is a drug that we discovered and developed from our own labs at Zai.
We have other programs in development, as I showed you on a couple of slides ago. Here are three that I would note. All pointed at oncology targets today. Most notable in terms of timing is the LRRC15 ADC. We'll initiate a phase I study in patients with solid tumors focused on sarcomas later this year. I think this is a first-in-class and hopefully best-in-class kind of opportunity that we're quite excited about. As I mentioned, we recently acquired MUC17 targeted program T-cell engager approach here. So all three of these, I think, are quite exciting, best-in-class kind of opportunities in line with the R&D strategy I mentioned. I'll spend just a minute or two on our regional business. As I mentioned, we have eight commercial products that are approved and marketed in China. The biggest is ZEJULA, and that's a function of how long it's been on the market.
It's the market share leader for ovarian cancer in China. The most notable recent launch is VYVGART for GMG. This is with our partner, Argenyx, and we partner with Argenyx on all of the phase III indications. We've got the rights to them in China. So we see this as a long-growing and durable franchise. I mentioned that we recently got approval for COBENFY, which represents a significant opportunity in China. So I think when we think about the next number of years in China, we already are profitable today with the commercial business. We'll be layering in lots of interesting new opportunities, COBENFY, followed by other immunology products like Pove and the TED asset from Viridian. And I think there are a lot of things that day-to-day challenges in China from a commercial perspective are real, and many of you know and understand those.
I think, though, from a long-term perspective, we continue to see good signs of optimism in China, whether it be the growth in commercial insurance, the emphasis on a commercial insurance drug list, transparency around NRDL, and of course, the size of the population in China. These are all things that are really attractive. So we see the business in China as continuing to grow and be robust, and I think quite exciting as we get through the remainder of the decade. I'll just spend a moment on our next big launch in China, and that is COBENFY. This is a product we partnered with Karuna on for schizophrenia. Karuna, of course, then was acquired by Bristol Myers. We got an approval a few weeks ago, really good label, no black box. The size of the opportunity here in China is quite significant.
Eight million patients with schizophrenia, I think somewhere over two billion days of antipsychotic prescription use in 2024. Monotherapies, 90-plus% of the standard of care. So what we're introducing here is the first new mechanism in 70 years. But we're not asking physicians to change how they think about treating patients with schizophrenia. Really, we're still going to continue to monitor and try to manage positive symptoms, negative symptoms, and safety. And I think COBENFY clearly has some benefits around the negative symptom and safety side. So we're quite excited to get this product up and running. In 2026, the goal will be to get physicians' experience using this drug with patients with schizophrenia. It won't be on NRDL this year. 2027 is the landing point for NRDL. But I think we'll be in a really good position in 2027 to see a really strong commercial sales and launch.
And I think when you put all of that together, it does lead to really strong financial strength for the business. If you look at our cash position, we ended September with $817 million on the balance sheet. We're quite disciplined in how we manage the business. We're making the investments that make sense for long-term value in the R&D pipeline. But I think in the rest of the business, we're really looking at managing tightly our sales and marketing expenses and our other corporate expenses, which is leading to a clear path of profitability. If you just follow the chart, these are half-year kind of numbers. We've gone from a $148 million loss in the first half of 2022 to cut that in half to about 70 in the first half of 2025. We continue to see progression there.
So very modest cash burn today, path to profitability, strong balance sheet gives us the opportunity to invest in the pipeline and the opportunities that we see today. I'm going to try to close quickly here with the catalysts that we see for 2026. I think you'll hear a lot from us from an external perspective about the pipeline in 2026. The regional business is going to perform well. We'll talk more about that as we get into our year-end calls and things like that. But really, for 2026, we see a really exciting catalyst-rich year around the pipeline. Rafael will come up with me in a moment and talk about some of that, I'm sure, in response to questions. And then I think if we just step back and put that in perspective for the business overall, we're really excited about where we are.
Again, continuing to grow, scale, and deliver financial results in the commercial business in China. But now we are at a point with the global pipeline where you can see in a real way the opportunities to launch and deliver value for patients outside of China and certainly for shareholders as a function of being able to get approved and sell drugs in the U.S., Europe, and Japan. So I think with that, Anupam, I'll ask Rafael to come up. Rafael leads our R&D organization and take questions.
Sure. Thanks, Josh. As always, I'll ask the first couple of questions. But to the extent that you have a question when prompted, I can call on you. I just want to start out with a broader strategic question here. We've heard from so many biotechs already this week. What makes Zai Lab different in terms of, in particular, you're rolling out your internal global strategy more and more now, right? So what makes your R&D engine different and why should we be paying attention to it?
I'll start, and of course, Rafael will jump in with lots of discussion about the pipeline. I think we are unique in that certainly many of the companies you talk to here have either a really strong one or two assets from a biotech perspective that you're looking at and sort of betting on and/or have a commercial business that's modest growth. I think we have a little bit of both. We have a portfolio of drugs that you can easily sort of look at and make your assessment around where we are, probabilities of success, and opportunities, but we couple that with a strong commercial engine in China that will grow at certainly double-digit kind of rates through the end of the decade and help to fund the R&D opportunities that we see.
I think finally, I would then couple that with the role we play bridging China and the West. Again, a lot of success in bringing great drugs into China. But I think as we all see the opportunities in China for innovative programs to really proliferate, we serve as a partner of choice, I think, for Chinese companies that want to innovate and get their drugs approved in markets outside of China. So I think if you like the innovation story in China, Zai is an interesting company to understand. If you like small cell lung cancer, if you like atopic dermatitis, I think we've got a little bit there to focus on as well.
Yeah. In addition to that, I think in the global side, we've built capabilities for global development, but still capitalizing on really the capabilities that we have in China, so we have the ability to move drugs to go and not go decisions very fast because of the relationships and as well as the capabilities and resources that we have there and make decisions as to which products to move forward, and meanwhile, we've been building an internal pipeline. Some of the products, the majority of them, are actually internally discovered, which are relatively unknown, but they have really good pharmaceutical properties, and so we're actually pretty excited about the fact that even though they're early, we can move them very fast, and the DLL3 was actually acquired pre-IND within two years. We're in phase III.
So I think this is something that without our China engine, we wouldn't have been able to do.
Are we at a point now in the company's evolution where we should be thinking about more of a focus on the internal pipeline and less of a focus on BD because your commercial franchise has largely been from the opposite, right, bringing U.S. products into China?
I think it's a balance of both, and Rafael will talk about the strategy. I think we think about what are the targets to go after from an innovative perspective, and then where's the best way to what's the best way to prosecute that target. In some cases, it's going to be our internal team, and as Rafael mentioned, if you look at our portfolio, we have a lot of examples of bringing forward a potentially first or best-in-class asset, but in many cases, we'll look around and see something better from a partner that we can acquire, so I think we're agnostic as to the source. We want the best innovation possible that we can move fast.
Yeah. I mean, I think the main criteria is this novel mechanism. Can it make a big difference in the natural history of the disease, or is it really a truly differentiated product that actually drives clinical benefits? So we're very focused on that rather than incremental benefit. And we are very used to doing that in China. So we're applying that in the global business as well.
Then with this focus on sort of your internal pipeline and bringing it forward, how do we think about R&D expenses over the next couple of years as well as now you have the COBENFY launch? So maybe on SG&A as well for the next couple of years.
I think on expenses overall, first, as we think about R&D, we're going to make the investments that Rafael and the team see as compelling and opportunities to bring these assets forward fast and in many cases in parallel indications. But I think given where we are, it's probably fair to think that the growth in R&D for the next year or so is probably modest relative to where we've been. We're transitioning a lot of our spend from finalizing and finishing the phase III studies in China for the regional portfolio. We can now redirect a lot of that to the global portfolio. Hopefully, over time, that number gets bigger and bigger as we have the opportunities with the portfolio that we see. But I think for the near term, relatively modest growth in R&D is fair. On the SG&A side, I think we'll manage that very closely.
We've built the business in China such that as we bring new things forward as they're approved, mostly they're going to be incremental, and I think certainly as we think about profitability or percentage of sales for SG&A, that's going to improve for the foreseeable future as we continue to scale.
Question from the audience.
Thank you. I'm very, very impressed by the clinical data that ZL-1310 has generated. Question, do you see complications coming from the fact that tarlatamab as well as lurbinectedin are going to be used more frequently, at least in Western patients with regards to lurbinectedin cross-resistance, topoisomerase cross-resistance, and in the case of tarlatamab, possible downregulation of the DLL3 surface target?
Yeah. Thanks for the question. I mean, clearly, tarlatamab has been a great advance in the treatment of small cell lung cancer. We have tested 1310 in patients that have failed tarlatamab. The first thing that we wanted to do is to make sure that the target was still there. And indeed, repeatedly, we see the same level of expression pre and post tarlatamab. So the target is not lost. So there may be a different reason for resistance to Imdeltra. And we've treated right now over a dozen patients with tarlatamab, and we see responses in the 50% range or so.
So that cross-resistance really doesn't exist to the point that that's prompted us to actually consider combinations with T-cell engagers as a potentially positioning 1310 as a centerpiece of these kinds of combinations whereby you can induce immunogenic cell death and then attract T-cells to the tumor bed to try to enhance cell killing. So with regards to lurbinectedin, lurbinectedin is one of the drugs in our phase III studies that is available for use. We have a lot of patients that have been treated with lurbinectedin, and we actually don't see any cross-resistance.
Questions from the audience? Maybe following up on the last question, just maybe a broader question about Zoci. There's a lot of DLL3s kind of preclinical, some in the clinic. How is your strategy and the product different than the competitive landscape?
I think it starts with the product. The product is highly active. We've done a lot of work to try to hone into the dose. The therapeutic window of ADCs remains narrow in spite of all the renaissance of these products. Even 0.5 mg per kg can make a difference. We've done actually very careful work. 1.6 is actually the best dose in terms of efficacy in the brain and toxicity. The same dose is actually effective in neuroendocrine carcinoma. All that data will be presented in the first half of this year. We also have been doing this for about two years before we got into the first phase III study. We have about a year-plus advantage over the competition. There's really one DLL3 that is really advanced and comparable, perhaps. The rest of them are B7H3 and other targets.
Those targets tend to be present in normal tissue, so the toxicity tends to be higher. And actually, 13% grade three allows us to combine it with other drugs and position it in first line or even do chemosparing regimens, which is, I think, what physicians really would like to do, have a chemosparing regimen with immunotherapy, which has been shown to be successful with other ADCs. So I think all these characteristics plus the way in which it's developed, that is first line, second line, post-tarlatamab, and then in neuroendocrine carcinomas and potentially other DLL3 expressing tumors, and then in combination with things like bispecifics, would make this a product with broad projection across a number of tumor types.
And then you mentioned one of your partner pipeline programs, Pove, that's going to have some proteinuria data here pretty soon. I think the partner biotechs talked about 1Q. If that data is positive, and how would you define positive? What would be the next steps in China?
Yeah. We have finished the portion of the study in China already. And the data is supposed to be available in the first half of the year, perhaps even as early as the first quarter. And the plan is to file for accelerated approval. We plan to follow the same strategy as Vertex. The drug is a BAFF/APRIL binder, and it's very potent, very avid for the receptors. It reduces proteinuria, particularly the IgA, Gd-IgA1, hematuria, and it stabilizes renal function. So I think the discussions with FDA have been positive. The discussions with CDE continue to see whether we can attain accelerated approval, just like Vertex is seeking in the United States and Europe. So stay tuned to see how those discussions go, but the data should be available soon.
Questions from the audience?
Yeah. Very nice work, and congratulations on your really rapid and fast progress. The question I have is for your LRC15. I noticed sarcoma. But as you well know, sarcoma is not one disease. It's undifferentiated pleomorphic osteosarcoma. How are you going to tease that out? And then the second one is, do you think that there's an optimal DAR for these payloads as you're kind of building out your ADC portfolio?
Yeah. Two separate questions, but very good ones. LRC15 is a very exciting drug, I think, because if it works in tumors in which the target is not expressed, but it's expressed in the CAF, in the cancer-associated fibroblasts, then it would prove the concept that the target is actually a flag for these products. And if you actually have a bystander effect, which we've proven in animals as well as in vitro in multiple models, that the tumors actually don't express LRC15, but the fibroblasts do, and they melt away with this ADC. So if that was the case, then it becomes a broad-spectrum ADC. And the tumors that have fibroblasts that express the most LRC15 are head and neck, breast, pancreatic, which is a very fibroblastic tumor, as you know, and lung.
We have designed the study in a way where sarcomas is one cohort, and these other epithelial tumors is another. Now, with regards to the differentiation of different sarcomas, the sarcoma that expresses the highest is osteo, but many soft tissue sarcomas do as well because they are of mesenchymal origin. With regards to the DAR question, this is debated in the field backwards and forwards. My view is that the DAR is offset by the dose. There are some that are using DARs four, DARs six, and they're able to get away with higher doses. When you use DAR eight, then the doses have to be more restricted. Obviously, it also depends on the epitope, the antibody, and other characteristics.
But I think DAR 8 tends to hit the tumor, I think, higher and prevent the emergence of early resistance, particularly tumors that have been heavily pretreated before. So physicians that we deal with and investigators, they prefer DAR 8 to lower drug-to-antibody concentration.
Hi there, team. Tinasha from Nandi Life Sciences, a family office, interested in cancer. Help us to think through lessons learned from Stemcentrx and AbbVie. What's particularly strong about this program as we enter the late stages? We know there were pitfalls with that. And just thinking, the US market rewards efficacy above everything else. How are you thinking about radiopharmaceuticals targeting DLL3? Obviously, expensive to scale up. But tell us more than scale-up advantages, right? Capital's there. We're doing data centers. We can scale up radioisotope supply. So just talk us through raw efficacy and how you see that impacting commercial sales and competitiveness of Zoci.
Yeah. I mean, I think in particular in small cell lung cancer, it's been a dreadful, it is a dreadful disease. I mean, it is one of the worst non-small cell lung cancer diagnoses and one of the metastatic solid tumors that have the worst prognosis. So I think, first and foremost, the advent of more drugs is actually a benefit for the field. So we are actually happy that there are more and more companies interested in this. I think the field itself will sort itself out with regards to how these drugs are going to be cycled and combined. Just like we saw in prostate, for instance, with the entrance of the radioligands, it's mostly still in castrate-sensitive disease, but there's obviously a progression towards castrate resistance. It will take some time to actually figure out where these indications will happen.
But I think for the foreseeable future, it's going to be the evolution of tarlatamab in second line and beyond, the entrance of the most potent ADCs, and then how first line is going to shape up with the entrance of, there are three studies with tarlatamab, as you know, and then how the ADCs will position in front line. So I think there will be room for other agents. Many of these patients cannot get to second line of therapy right now. A lot of the patients drop after the first. So if we have more drugs that are able to get patients through and become more of a chronic disease, then I think it would be best for all patients.
Just final quick question from me. Just on the commercial franchise, as we look to 2026, what do you see as some of the top-line drivers of growth?
Yeah. I think number one will be VYVGART and continuing to drive. I think we see good volume growth in the second half of the year. We expect that to sustain through 2026 and beyond. So I think that's number one. As I mentioned, preparing COBENFY while we'll see modest, I think, commercial sales in 2026. The opportunity to educate physicians and have them ready for NRDL listing, I think, is probably the most important thing for the long term for us. We have a portfolio outside of those of, I think, good growth opportunities, including Xacduro, which is our hospital-based antibiotic, which we launched really last year and faced some supply constraints. We've worked through those. So I think that's one that's probably underappreciated, that we should see some good growth.
Again, I think for 2026, we expect good, stable business in China on the commercial side, good growth, and hopefully can focus a lot on the data that's going to emerge from the global pipeline in 2026.
All right. We're up on time. Thank you, Josh and Rafael.
Thank you.