Zai Lab (NASDAQ:ZLAB) Issues Quarterly Earnings Results

Key Points

• Zai Lab reported Q1 EPS of ($0.50), beating consensus by $0.03, but revenue missed at $99.6M versus $108.4M and loss from operations widened 23% to $69.4M, with management forecasting product‑revenue pressure in 2026 and a return to growth in 2027.
• Lead asset zoci showed a 62.5% confirmed intracranial ORR at 1.6 mg/kg; the Phase III DLLEVATE study is on track to finish enrollment H1 2027 with an interim analysis/possible accelerated approval next year and a planned global BLA submission in late 2027, and Zai has global collaboration agreements with Amgen and Boehringer Ingelheim for combination programs.
• Zai ended the quarter with a cash balance of $761.3M and is implementing AI‑driven efficiency measures and local XACDURO manufacturing in 2027 to ease supply constraints and improve margins.

Zai Lab (NASDAQ:ZLAB - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.50) EPS for the quarter, topping analysts' consensus estimates of ($0.53) by $0.03, FiscalAI reports. The company had revenue of $99.61 million during the quarter, compared to the consensus estimate of $108.43 million. Zai Lab had a negative net margin of 38.15% and a negative return on equity of 22.81%.

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

• At 1.6 mg/kg, zoci showed a confirmed intracranial ORR of 62.5% (best intracranial response ~69% including 4 CRs) with ~16% grade ≥3 treatment‑related AEs; the Phase III DLLEVATE study is on track to finish enrollment H1 2027 with an interim analysis/possible accelerated approval next year and a planned first global BLA submission in late 2027.
• Zai announced global collaborations with Amgen and Boehringer Ingelheim to explore zoci combined with DLL3 T‑cell engagers (and combinations with PD‑L1/chemo), with an Amgen triplet cohort already enrolling to potentially deepen and extend responses.
• Q1 total product revenue fell 6% YoY to $99.6M (driven by lower ZEJULA sales and class/generic pressures) and loss from operations widened 23% to $69.4M; management expects full‑year 2026 product revenue pressure with a return to growth in 2027.
• Zai ended the quarter with a strong cash position of $761.3M and a commercially profitable regional business, while planning AI‑driven efficiency measures and local XACDURO manufacturing in 2027 to ease supply constraints and improve margins.
• Other pipeline moves include ZL‑1503 (IL‑13/IL‑31 bispecific) with encouraging preclinical data and expected healthy‑volunteer/AD Phase I data in H2 2026, ZL‑1311 entering clinic by year‑end, ZL‑6201 in clinic, and regional submissions for Tumor Treating Fields and TIVDAK.

Zai Lab Price Performance

NASDAQ:ZLAB traded down $1.25 during trading hours on Thursday, reaching $19.76. 1,268,513 shares of the company were exchanged, compared to its average volume of 772,841. The business has a 50 day moving average of $20.23 and a 200 day moving average of $20.12. Zai Lab has a 1-year low of $15.96 and a 1-year high of $44.34. The company has a market capitalization of $2.24 billion, a P/E ratio of -12.27 and a beta of 0.85.

Insider Activity

In related news, Director Richard Gaynor purchased 1,731 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was acquired at an average price of $18.91 per share, with a total value of $32,733.21. Following the completion of the purchase, the director directly owned 56,630 shares in the company, valued at $1,070,873.30. This trade represents a 3.15% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Yajing Chen sold 5,199 shares of the company's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $20.39, for a total transaction of $106,007.61. Following the sale, the chief financial officer directly owned 32,558 shares of the company's stock, valued at $663,857.62. This represents a 13.77% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 46,187 shares of company stock worth $930,647. 4.96% of the stock is owned by insiders.

Hedge Funds Weigh In On Zai Lab

An institutional investor recently raised its position in Zai Lab stock. Royal Bank of Canada boosted its holdings in Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB - Free Report) by 214.3% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 13,771 shares of the company's stock after buying an additional 9,390 shares during the quarter. Royal Bank of Canada's holdings in Zai Lab were worth $498,000 at the end of the most recent reporting period. Hedge funds and other institutional investors own 41.65% of the company's stock.

Analyst Ratings Changes

ZLAB has been the subject of several research reports. JPMorgan Chase & Co. cut their price objective on shares of Zai Lab from $39.00 to $32.00 and set an "overweight" rating for the company in a research report on Wednesday, March 18th. Jefferies Financial Group upgraded Zai Lab to a "strong-buy" rating in a research note on Monday, January 19th. Cantor Fitzgerald dropped their price target on Zai Lab from $55.00 to $37.00 and set an "overweight" rating for the company in a report on Friday, February 27th. Zacks Research downgraded Zai Lab from a "hold" rating to a "strong sell" rating in a research note on Friday, January 23rd. Finally, UBS Group assumed coverage on Zai Lab in a research report on Wednesday, January 7th. They set a "buy" rating and a $35.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, Zai Lab presently has an average rating of "Moderate Buy" and an average price target of $50.00.

Zai Lab Company Profile

Zai Lab Ltd NASDAQ: ZLAB is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company's end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company's marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton's tyrosine kinase inhibitor approved for several B-cell malignancies.

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