Zai Lab (NASDAQ:ZLAB) Announces Earnings Results

by · The Cerbat Gem

Zai Lab (NASDAQ:ZLAB – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.46) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.44) by ($0.02), Zacks reports. Zai Lab had a negative return on equity of 25.83% and a negative net margin of 46.83%.The company had revenue of $127.60 million during the quarter, compared to analyst estimates of $122.67 million.

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

  • Zoci has advanced from IND to a global registrational Phase 3 in under two years for 2L/3L small cell lung cancer, with management targeting an accelerated approval submission in 2027 and first global approval in 2028; clinical data show intracranial activity (80% ORR in 10 patients) and a favorable safety profile supporting planned first-line combination programs.
  • R&D momentum is strong with multiple global programs progressing — IND clearance for ZL-6201, IND-enabling work for ZL-1222, an IND plan for TCE ZL-1311 by year-end, and expected first-in-human data this year for immunology bispecific ZL-1503 — signaling a broadened pipeline beyond oncology.
  • The China commercial business continues to stabilize the company: full-year revenue rose 15% to $460.2M and Q4 revenue grew 17% to $127.6M, operating leverage improved (R&D and SG&A down as a percentage of revenue), and the company ended the quarter with a strong cash position of $790M.
  • Management calls 2026 a transition year and declined to give full-year guidance, citing near-term headwinds from pricing/NRDL dynamics and hospital purchasing patterns (notably affecting VYVGART and ZEJULA) as well as launch timing and modest incremental SG&A investment needs, introducing execution and timing risk for near-term profitability.

Zai Lab Stock Performance

Zai Lab stock traded up $0.30 during midday trading on Thursday, reaching $19.69. The company’s stock had a trading volume of 527,044 shares, compared to its average volume of 745,575. Zai Lab has a fifty-two week low of $15.96 and a fifty-two week high of $44.34. The firm has a market capitalization of $2.22 billion, a PE ratio of -10.10 and a beta of 0.88. The stock’s 50 day simple moving average is $18.37 and its 200 day simple moving average is $24.45.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on ZLAB shares. JPMorgan Chase & Co. dropped their price objective on shares of Zai Lab from $46.00 to $39.00 and set an “overweight” rating on the stock in a research note on Thursday, February 5th. Weiss Ratings reissued a “sell (d-)” rating on shares of Zai Lab in a research note on Wednesday, January 21st. UBS Group assumed coverage on shares of Zai Lab in a research report on Wednesday, January 7th. They set a “buy” rating and a $35.00 price objective on the stock. Jefferies Financial Group upgraded Zai Lab to a “strong-buy” rating in a research note on Monday, January 19th. Finally, Zacks Research downgraded shares of Zai Lab from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $51.59.

Get Our Latest Report on Zai Lab

Insider Activity at Zai Lab

In related news, insider Rafael Amado sold 10,787 shares of the company’s stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $17.43, for a total transaction of $188,017.41. Following the completion of the transaction, the insider directly owned 52,391 shares in the company, valued at $913,175.13. This represents a 17.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.96% of the stock is currently owned by insiders.

Institutional Trading of Zai Lab

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

About Zai Lab

(Get Free Report)

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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