Zai Lab (ZLAB) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: N/A
• Average Volume (3M): 843.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 43.72%
• EPS Growth: 28.63%
• Country: US
• Employees: 1,869
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 111,078,380
• 10 Day Avg. Volume: 525,995
• 30 Day Avg. Volume: 843,828
• PEG Ratio: 0.31
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.78
• Enterprise Value/Market Cap: 6.67
• Enterprise Value/Revenue: 17.13
• Enterprise Value/Gross Profit: 96.51
• Enterprise Value/Ebitda: -23.30
• 1Y Price Target: $54.70
• Price Target Upside: 67.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• Price Target: $38.00 ▲(16.10%Upside)

Zai Lab's overall score is driven primarily by its financial performance challenges, particularly its unprofitability and cash flow issues. However, the positive technical analysis and optimistic earnings call outlook provide some support. The corporate events further enhance the score by reflecting strong shareholder confidence.

Positive Factors

Regulatory Approval

The positive FORTITUDE-101 data support ZLAB’s plan to submit for regulatory approval in China as soon as possible.

Revenue Potential

Bemarituzumab is seen as having a $500M+ potential in China, offering significant long-term growth opportunities.

Negative Factors

Competitive Pressure

The entry of more competitors is affecting Zai Lab's core product market.

Sales Decline

Efgartigimod sales experienced a month-over-month decline of 6.0%.

Zai Lab Business Overview & Revenue Model

Company Description

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience primarily in Mainland China and Hong Kong. The company's commercial products include Zejula, a once-daily small-molecule poly polymerase 1/2 inhibitor; Optune, a device that delivers tumor treating fields; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; and Qinlock to treat gastrointestinal stromal tumors. It also develops Odronextamab to treat follicular lymphoma, diffuse large B-cell lymphoma, and other B-celllymphomas; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Margetuximab for the treatment of breast and gastroesophageal cancers; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, pancreatic cancer, and other solid tumors; and Bemarituzumab to treat gastric and gastroesophageal junction cancer. In addition, the company develops CLN-081 for the treatment of patients with EGFR exon 20 insertion NSCLC; Elzovantinib, an orally bioavailable multi-targeted kinase inhibitor; Tebotelimab, a tetravalent IgG4 monoclonal antibody; Retifanlimab that inhibits interactions between PD-1 and its ligands; ZL-2309, an orally active, selective, and ATP-competitive cell division cycle 7 (CDC7) kinase inhibitor; ZL-1201, a humanized IgG4 monoclonal antibody; Efgartigimod to reduce disease-causing immunoglobulin G antibodies; ZL-1102, a human nanobody targeting interleukin- 17A; KarXT for the treatment of psychiatric and neurological conditions; ZL-2313, an investigational inhibitor of triple-mutant EGFR harboring; ZL-2314, an investigational inhibitor of double-mutant EGFR harboring; and Sulbactam/durlobactam for the treatment of serious infections caused by Acinetobacter. Zai Lab Limited was incorporated in 2013 and is headquartered in Shanghai, China.

How the Company Makes Money

Zai Lab makes money through the commercialization of its pharmaceutical products and drug candidates. The company generates revenue by obtaining regulatory approvals and subsequently marketing these drugs to healthcare providers, hospitals, and patients. Key revenue streams include sales of approved therapies in China and collaborations or licensing agreements with other pharmaceutical companies for the development and commercialization of drug candidates. Significant partnerships with global biopharmaceutical firms also contribute to its earnings by providing milestone and royalty payments.

Zai Lab Financial Statement Overview

Summary

Zai Lab shows strong revenue growth and a robust balance sheet with low leverage, but faces significant profitability and liquidity challenges. The company remains unprofitable with negative net margins, and negative free cash flow poses liquidity risks.

Income Statement

Zai Lab's revenue has shown consistent growth over the years, with a revenue growth rate of 7.8% from 2024 to TTM (Trailing-Twelve-Months). However, the company remains unprofitable, with negative net and EBIT margins, indicating ongoing operational challenges. The gross profit margin is relatively high at 63.4% for TTM, suggesting efficient production processes but overshadowed by larger operational losses.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 69.1% in TTM, reflecting financial stability. The debt-to-equity ratio remains low at 0.24, indicating conservative leverage. However, declining stockholder equity and consistent net losses pose potential risks to long-term financial health.

Cash Flow

Zai Lab's cash flow position is concerning, with negative free cash flow and operating cash flow. The operating cash flow to net income ratio is positive, showing some alignment between cash flow and accounting profits, but the free cash flow to net income ratio is negative, highlighting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.33M	398.99M	266.72M	215.04M	144.31M	48.96M
Gross Profit	265.44M	251.13M	170.90M	141.02M	92.07M	32.22M
EBITDA	-246.64M	-234.57M	-365.11M	-384.66M	-689.46M	-262.96M
Net Income	-252.07M	-257.10M	-334.62M	-481.99M	-692.44M	-298.16M
Balance Sheet
Total Assets	355.15M	1.19B	1.04B	1.22B	1.61B	1.30B
Cash, Cash Equivalents and Short-Term Investments	275.93M	779.67M	806.45M	1.01B	1.41B	1.19B
Total Debt	21.78M	153.47M	15.15M	20.39M	15.54M	18.60M
Total Liabilities	60.49M	344.86M	240.18M	174.54M	230.00M	128.29M
Stockholders Equity	294.66M	840.90M	796.12M	1.05B	1.38B	1.17B
Cash Flow
Free Cash Flow	-238.84M	-276.39M	-206.67M	-392.63M	-568.18M	-226.72M
Operating Cash Flow	-186.46M	-214.87M	-198.18M	-367.64M	-549.23M	-216.06M
Investing Cash Flow	-52.35M	-375.19M	-10.78M	420.02M	249.96M	-554.83M
Financing Cash Flow	345.48M	349.89M	-6.43M	-1.73M	820.20M	1.13B

Zai Lab Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZLAB, the sentiment is Negative. The current price of 32.73 is below the 20-day moving average (MA) of 36.49, below the 50-day MA of 33.88, and above the 200-day MA of 30.37, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZLAB.

Zai Lab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPCH	78 Outperform	$5.02B	24.35	15.38%	―	16.98%	-17.76%
ELAN	71 Outperform	$7.34B	20.07	6.01%	―	1.42%	―
PTCT	69 Neutral	$3.86B	7.61	33.08%	―	91.12%	―
SHC	63 Neutral	$3.30B	137.30	5.88%	―	2.78%	-54.72%
RNA	53 Neutral	$3.79B	―	-34.19%	―	-17.87%	-1.89%
ZLAB	53 Neutral	$3.84B	―	-32.05%	―	43.72%	28.63%
Sector *	52 Neutral	$7.59B	0.30	-61.86%	2.27%	16.72%	1.10%

Zai Lab Corporate Events

Zai Lab Shareholders Approve Key Proposals at AGM

On June 18, 2025, Zai Lab Limited held its 2025 Annual General Meeting of Shareholders, where holders of more than one-tenth of all voting share capital participated. The meeting resulted in the approval of Proposals 1 to 11 and 13 to 14, including the re-election of directors and the appointment of KPMG as auditors. The shareholders also approved an advisory vote on executive compensation and authorized the board to issue and repurchase shares up to 10% of the total issued shares, reflecting strong shareholder support for the company’s governance and strategic initiatives.

The most recent analyst rating on (ZLAB) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Zai Lab stock, see the ZLAB Stock Forecast page.