J.P. Morgan analyst Anupam Rama has maintained their bullish stance on ZLAB stock, giving a Buy rating yesterday.
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Anupam Rama has given his Buy rating due to a combination of factors surrounding Zai Lab’s recent developments. The phase 3 FORTITUDE-101 trial, which tested bemarituzumab in combination with chemotherapy for FGFR2b+ first-line gastric cancer, successfully met its primary endpoint of overall survival. This outcome is significant for Zai Lab, as it holds the rights to bemarituzumab in China, a market with a substantial unmet need for effective gastric cancer treatments.
Furthermore, the potential market size is considerable, with approximately 360,000 gastric cancer cases in China, of which a significant portion is FGFR2b+. The successful trial results suggest a promising revenue stream, with bemarituzumab expected to generate over $500 million in the region. Additionally, the company is poised for further growth with upcoming product launches and an expanding internal pipeline, reinforcing the long-term potential of its commercial franchise.
According to TipRanks, Rama is an analyst with an average return of -6.5% and a 39.31% success rate. Rama covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Vera Therapeutics, and Neurocrine.
In another report released yesterday, Leerink Partners also maintained a Buy rating on the stock with a $75.00 price target.