Zai Lab (ZLAB) AI Stock Analysis

• Market Cap: $4.08B
• Dividend Yield: N/A
• Average Volume (3M): 773.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 43.59%
• EPS Growth: 28.72%
• 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: 970,068
• 30 Day Avg. Volume: 773,182
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 7.75
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: -13.14
• 1Y Price Target: $56.70
• Price Target Upside: 53.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $34.00 ▼(-7.66%Downside)

Zai Lab's overall stock score is primarily influenced by its strong revenue growth and positive earnings call sentiment, despite liquidity challenges and a negative valuation perspective. Technical indicators are neutral, and recent corporate events provide minor support.

Positive Factors

Market Potential

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

Product Development

Zai Lab announced positive results from phase 1a/1b data on ZL-1310 for patients with ES-SCLC, showing a high response rate and a well-tolerated safety profile.

Regulatory Approval

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

Negative Factors

Competitive Pressure

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

Growth Slowdown

Despite the solid progress in the pipeline, there is a growth slowdown of core products, leading to a neutral recommendation.

Sales Decline

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

Zai Lab Business Overview & Revenue Model

Company Description

Zai Lab (ZLAB) is a biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines. The company primarily operates in the sectors of oncology, autoimmune disorders, and infectious diseases. Zai Lab builds a portfolio of proprietary and in-licensed drug candidates, aiming to address major unmet medical needs by introducing cutting-edge therapies to patients in China and globally.

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 demonstrates strong revenue growth and efficient production, but faces significant profitability and liquidity challenges. The balance sheet is robust due to low leverage and substantial equity, but consistent operating losses threaten future stability. Addressing cash flow issues and improving profitability are crucial for sustainable growth.

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

Zai Lab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZLAB, the sentiment is Positive. The current price of 36.82 is above the 20-day moving average (MA) of 36.19, above the 50-day MA of 35.84, and above the 200-day MA of 31.32, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 45.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZLAB.

Zai Lab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	78 Outperform	$3.94B	17.13	37.24%	―	22.42%	―
KRYS	77 Outperform	$4.54B	37.80	13.90%	―	247.53%	118.34%
PTCT	74 Outperform	$4.13B	8.01	33.08%	―	91.12%	―
MRUS	61 Neutral	$4.88B	―	-58.66%	―	42.77%	-51.27%
ACLX	58 Neutral	$3.92B	―	-35.56%	―	-41.66%	-180.15%
ZLAB	52 Neutral	$4.08B	―	-32.01%	―	43.59%	28.72%
Sector *	51 Neutral	$7.37B	0.33	-68.94%	2.37%	16.27%	0.42%

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.