Results of Operation

Comparison of Years Ended December 31, 2025 and 2024

Product Net Sales

Product net sales increased by $2.0 billion to $4.2 billion for the year ended December 31, 2025, compared to $2.2 billion for the year ended December 31, 2024. Our product net sales have increased in the U.S. and other countries as the Company continues to execute on the global commercialization of VYVGART and obtain further approvals worldwide.

Revenue by country arising from the commercial sale of VYVGART is presented under “Note 16 Segment Reporting” in our consolidated financial statements which are appended to our Annual Report for the period ended December 31, 2025.

Other Operating Income

Other operating income increased by $31 million to $97 million for the year ended December 31, 2025, compared to $66 million for the year ended December 31, 2024. The other operating income recognized in the year ended December 31, 2025 was mainly the result of research and development tax incentives, payroll tax rebates and the clinical supply of product on product net sales of VYVGART in Greater China through Zai Lab.

Other operating income is presented under “Note 15 Other Operating Income” in our consolidated financial statements which are appended to our Annual Report for the period ended December 31, 2025.

Research and Development Expenses

Research and development expenses consist principally of:

• external research and development expenses related to (i) chemistry, manufacturing and control costs for our product candidates, both for preclinical and clinical testing, all of which is conducted by specialized contract manufacturers, (ii) fees and other costs paid to CROs in connection with preclinical testing and the performance of clinical trials for our product candidates, (iii) costs associated with regulatory submissions and approvals, QA and pharmacovigilance and (iv) costs associated with post-approval clinical trials;
• personnel expenses related to compensation of research and development staff and related expenses, including salaries, benefits and share‑based payment expenses; and
• other expenses.

Our research and development expenses totaled $1.4 billion and $1.0 billion for the years ended December 31, 2025 and 2024, respectively. The increase of $0.4 billion in 2025 as compared to 2024 is primarily driven by an increase in personnel expenses and external research and development expenses.

Our external research and development expenses for the year ended December 31, 2025 totaled to $0.4 billion, compared to $0.3 billion for the year ended December 31, 2024. The expenses reflect clinical trial costs and manufacturing expenses related to the development of our product candidate portfolio.

Personnel expenses relate to internal and external R&D personnel. The expenses also include share-based compensation expenses related to our research and development employees.

Our research and development expenses may vary substantially from period to period based on the timing of our research and development activities, including the timing of the initiation of clinical trials, material used in R&D phase and enrollment of patients in clinical trials. Research and development expenses are expected to increase as we advance the clinical development of efgartigimod, empasiprubart, adimanebart and further advance the research and development of our other early-stage pipeline candidates. The successful development of our product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing and estimated costs of the efforts that will be necessary to complete the development of, or the period, if any, in which material net cash inflows may commence from any of our product candidates. This is due to numerous risks and uncertainties associated with developing drugs, as further described in “Section 2 Risk Factors”.

Research and development expenses are presented under “Note 17 Research and Development Expenses” in our consolidated financial statements which are included to our Annual Report for the period ended December 31, 2025.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of:

• personnel expenses related to commercial and enabling functions, as well as their related expenses, including salaries, benefits and share‑based payment expenses;
• marketing and promotional activities related to the global commercialization of VYVGART;
• professional fees related to commercial and enabling functions;
• Board of Directors expenses consisting of directors’ fees, travel expenses and share-based compensation for non-executive directors; and
• other expenses.

Our selling, general and administrative expenses totaled $1.4 billion and $1.1 billion for the years ended December 31, 2025 and 2024, respectively. The increase of $0.3 billion for the year ended December 31, 2025 principally resulted from:

• increased professional and marketing fees, including promotional and marketing costs primarily due to the scaling of our commercial operations relating to VYVGART;
• increased costs of personnel expenses, related to planned increase in the headcount of our Selling, general and administrative employees recruited to strengthen our enabling functions and the scaling of our commercial operations relating to VYVGART; and
• continued investment in our Digital Technology infrastructure.

Selling, general and administrative expenses are presented under ‘Note 18 Selling, General and Administrative Expenses” in our consolidated financial statements which are included to our Annual Report for the period ended December 31, 2025.

Financial Income and (Expense)

For the year ended December 31, 2025, financial income amounted to $163 million compared to $158 million for the year ended December 31, 2024. The increase of $6 million in 2025 related primarily to the capital increase of our cash, cash equivalents, and current financial assets.