Zai Lab (NASDAQ:ZLAB) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Zai Lab reported a quarterly loss of $0.41 per share, beating the $0.59 loss analysts expected by $0.18; revenue of $108.21 million also slightly topped estimates.
• Early data for zoci plus atezolizumab in small-cell lung cancer showed an 81.8% confirmed response rate among 33 evaluable patients. The study is small and early-stage; the company plans a global Phase III trial and is targeting a potential U.S. filing in 2027.
• China product revenue rose 2% sequentially, and Zai Lab ended the quarter with $659.7 million in cash before raising about $250 million in October. Management expects a return to year-over-year product revenue growth in 2027.

Zai Lab (NASDAQ:ZLAB - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.41) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.59) by $0.18, Zacks reports. The business had revenue of $108.21 million during the quarter, compared to analyst estimates of $107.90 million. Zai Lab had a negative return on equity of 27.43% and a negative net margin of 41.86%.

Here are the key takeaways from Zai Lab's conference call:

• Zoci’s early first-line small cell lung cancer data were encouraging: In 33 evaluable patients, zoci plus atezolizumab produced an 81.8% confirmed response rate and estimated six-month progression-free survival of 81.9%, with grade 3 or higher zoci-related adverse events in 9.1%. The results are from a small early-stage study; Zai Lab plans a global phase III trial and is targeting a potential U.S. BLA submission in 2027.
• Zai Lab expects three registrational studies to be underway by year-end and anticipates two registrational readouts in 2027. For zoci, a potential accelerated-approval filing in second-line or later small cell lung cancer depends on the DLLEVATE interim analysis, while an epNEC filing would depend on forthcoming data and durability follow-up.
• China product revenue increased 2% sequentially, and the commercial business remained profitable. Management expects a return to year-over-year product revenue growth in 2027, citing potential NRDL access expansion and demand across priority brands; that outlook remains a company forecast.
• Zai Lab reported $659.7 million in cash at quarter-end and raised approximately $250 million in October. Management said stable R&D and SG&A expenses, operational efficiencies, and the financing support investment in its global pipeline.
• The company plans to present the first human data for its internally developed atopic dermatitis candidate ZL-1503 next week, with patient efficacy data and an IV-to-subcutaneous bridging study expected in 2027. Zai Lab is also advancing additional oncology and immunology assets, though these programs remain at earlier development stages.

Zai Lab Price Performance

NASDAQ:ZLAB traded down $0.20 during trading hours on Thursday, reaching $22.60. 813,969 shares of the stock were exchanged, compared to its average volume of 885,390. Zai Lab has a twelve month low of $15.96 and a twelve month high of $27.50. The firm has a 50 day moving average of $24.71 and a 200 day moving average of $21.00. The stock has a market cap of $2.57 billion, a PE ratio of -13.22 and a beta of 0.77.

Insider Buying and Selling at Zai Lab

In other news, Director William Lis sold 8,506 shares of Zai Lab stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $25.00, for a total value of $212,650.00. Following the sale, the director directly owned 41,931 shares in the company, valued at $1,048,275. This trade represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders have sold 9,385 shares of company stock worth $235,145. 4.88% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

ZLAB has been the topic of a number of research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zai Lab in a research note on Tuesday, October 27th. Citigroup increased their price objective on shares of Zai Lab from $44.00 to $45.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Cantor Fitzgerald restated an "overweight" rating on shares of Zai Lab in a report on Tuesday, October 6th. Finally, Wall Street Zen raised shares of Zai Lab from a "sell" rating to a "hold" rating in a research report on Saturday, September 26th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $37.25.

Key Stories Impacting Zai Lab

Here are the key news stories impacting Zai Lab this week:

• Positive Sentiment: Zai Lab reported a Q3 loss of $0.41 per ADS, narrower than the roughly $0.58–$0.59 loss analysts expected. Revenue of $108.21 million also slightly exceeded the $107.90 million consensus. Earnings Flash
• Positive Sentiment: The company highlighted progress toward bringing its first internally developed medicines to patients globally; coverage also pointed to the pipeline’s potential first U.S. drug filing as a future catalyst. Company results and updates Pipeline report
• Negative Sentiment: Some coverage characterized the quarter as having a wider loss and lower revenue versus the year-ago period. Continued losses and revenue pressure could weigh on sentiment despite the beat against analyst estimates. Quarterly results coverage

Zai Lab Company Profile

Zai Lab Ltd. NASDAQ: ZLAB is a biopharmaceutical company focused on discovering, developing and commercializing medicines for cancer and other serious diseases. Its research and development activities have included oncology, autoimmune and inflammatory disorders, neuroscience, infectious diseases and other areas of significant unmet medical need.

Founded in 2014, Zai Lab has built its business through a combination of internally developed programs and licensing or collaboration agreements with international pharmaceutical and biotechnology companies.

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