Zai Lab (NASDAQ:ZLAB) Issues Earnings Results

Zai Lab (NASDAQ:ZLAB) posted its quarterly earnings data on Thursday. The company reported ($0.46) earnings per share for the quarter, missing the consensus estimate of ($0.44) by ($0.02), Zacks reports. Zai Lab had a negative net margin of 46.83% and a negative return on equity of 25.83%. 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 Trading Up 1.5%

Shares of ZLAB opened at $19.69 on Friday. The stock has a market cap of $2.22 billion, a P/E ratio of -10.10 and a beta of 0.88. The stock’s 50-day moving average price is $18.42 and its two-hundred day moving average price is $24.42. Zai Lab has a 1 year low of $15.96 and a 1 year high of $44.34.

Wall Street Analyst Weigh In

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

Insider Buying and Selling at Zai Lab

In related news, insider Rafael Amado sold 10,787 shares of Zai Lab stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $17.43, for a total transaction of $188,017.41. Following the transaction, the insider owned 52,391 shares of the company’s stock, valued at $913,175.13. This trade represents a 17.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 4.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zai Lab

A hedge fund recently raised its stake in Zai Lab stock. Royal Bank of Canada lifted its holdings in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 13,771 shares of the company’s stock after acquiring an additional 9,390 shares during the quarter. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 41.65% of the company’s stock.

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.