Zai Lab (ZLAB) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: N/A
• Average Volume (3M): 921.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 23.73%
• EPS Growth: 30.16%
• Country: US
• Employees: 1,869
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.33
• Shares Outstanding: 111,962,810
• 10 Day Avg. Volume: 912,923
• 30 Day Avg. Volume: 921,023
• PEG Ratio: 0.11
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 6.50
• P/FCF Ratio: -9.38
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 7.10
• Enterprise Value/Gross Profit: 11.59
• Enterprise Value/Ebitda: -16.90
• 1Y Price Target: $54.74
• Price Target Upside: 180.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.54
• Revenue Forecast (FY): $481.58M

• Rating: 46 Neutral
• Price Target: $19.00 ▼(-2.56% Downside)

Zai Lab's overall stock score reflects significant financial and technical challenges, with ongoing losses and bearish technical indicators. However, the company's strong pipeline developments and strategic financial moves provide some optimism for future growth.

Positive Factors

Pipeline Development

Rapid advancement of Zoci and other programs highlights Zai Lab's strong R&D capabilities and potential for future growth, enhancing its competitive position.

Commercial Profitability

Profitability in China provides a stable financial base, supporting Zai Lab's long-term growth and ability to invest in new opportunities.

Strong Efficacy in Trials

Promising trial results for Zoci indicate potential for successful market entry and revenue generation, strengthening Zai Lab's product portfolio.

Negative Factors

Profitability Challenges

Ongoing losses indicate significant challenges in achieving profitability, which could hinder long-term financial stability and growth potential.

Cash Flow Issues

Negative cash flow highlights difficulties in sustaining operations and funding growth, potentially limiting strategic flexibility and investment capacity.

Supply Constraints

Supply issues can limit revenue growth and damage customer relationships, impacting Zai Lab's ability to capitalize on market opportunities.

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 generates revenue primarily through the sale of its proprietary drugs and therapies once they receive regulatory approval. The company engages in commercializing its products in China and collaborates with global pharmaceutical firms to co-develop and market treatments, thus sharing revenue streams. Key revenue sources include product sales from its marketed drugs, milestone payments from partners upon achieving specific development or regulatory goals, and royalties from licensed products. Significant partnerships with established pharmaceutical companies enhance Zai Lab's pipeline and provide additional financial resources, contributing to its overall earnings.

Zai Lab Financial Statement Overview

Summary

Zai Lab demonstrates growth in revenue but faces significant challenges in profitability and cash flow generation. The company maintains a strong equity position with low leverage, which provides some financial stability. However, the persistent negative margins and cash flow issues highlight the need for strategic improvements to achieve sustainable profitability.

Income Statement

Zai Lab shows modest revenue growth with a TTM increase of 3.23%. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains healthy at 62.39%, indicating efficient cost management, but the persistent negative net profit margin highlights ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is low at 0.24, suggesting conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the balance sheet indicates a stable equity base relative to total assets.

Cash Flow

Zai Lab's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in converting net income to cash flow, but the overall negative cash flow growth rate suggests difficulties in generating cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.63M	398.99M	266.72M	215.04M	144.31M	48.96M
Gross Profit	270.79M	251.13M	170.90M	141.02M	92.07M	-190.49M
EBITDA	-185.62M	-234.57M	-365.11M	-434.84M	-689.46M	-297.16M
Net Income	-206.81M	-257.10M	-334.62M	-443.29M	-704.47M	-268.90M
Balance Sheet
Total Assets	1.16B	1.19B	1.04B	1.22B	1.61B	1.30B
Cash, Cash Equivalents and Short-Term Investments	717.15M	779.67M	806.45M	1.01B	1.41B	1.19B
Total Debt	219.36M	153.47M	15.15M	20.39M	15.54M	18.60M
Total Liabilities	399.00M	344.86M	240.18M	174.54M	230.00M	128.29M
Stockholders Equity	759.95M	840.90M	796.12M	1.05B	1.38B	1.17B
Cash Flow
Free Cash Flow	-206.79M	-276.39M	-206.67M	-392.63M	-568.18M	-226.72M
Operating Cash Flow	-180.54M	-214.87M	-198.18M	-367.64M	-549.23M	-216.06M
Investing Cash Flow	-28.59M	-375.19M	-10.78M	420.02M	249.96M	-554.83M
Financing Cash Flow	310.60M	349.89M	-6.43M	-1.73M	820.20M	1.13B

Zai Lab Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 19.5 is below the 20-day moving average (MA) of 20.60, below the 50-day MA of 25.86, and below the 200-day MA of 31.98, indicating a bearish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 25.48 is Positive, neither overbought nor oversold. The STOCH value of 27.54 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
KRYS	79 Outperform	$6.79B	35.12	19.66%	―	54.51%	275.94%
ACAD	75 Outperform	$4.64B	17.65	34.95%	―	12.69%	100.80%
PTCT	72 Outperform	$6.20B	9.03	―	―	97.54%	―
MRUS	52 Neutral	$7.29B	―	-51.57%	―	57.54%	-36.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZLAB	46 Neutral	$2.24B	―	-28.96%	―	23.73%	30.16%
ACLX	41 Neutral	$4.02B	―	-47.18%	―	-76.96%	-425.41%

Zai Lab Corporate Events

Zai Lab Secures RMB300 Million Debt Facility

On October 13, 2025, Zai Lab Limited secured a debt facility with Industrial Bank Co., Ltd. to access RMB-denominated capital, enhancing its working capital in China. The agreement includes a guarantee for loans up to RMB300 million for its subsidiary, Zai Lab Shanghai, with a revolving credit facility available until May 5, 2026. This strategic move aims to strengthen Zai Lab’s financial flexibility and support its operations in the competitive biopharmaceutical market.