Zai Lab (ZLAB) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: N/A
• Average Volume (3M): 837.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: 111,762,800
• 10 Day Avg. Volume: 1,015,142
• 30 Day Avg. Volume: 837,844
• 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: 1.28
• Enterprise Value/Revenue: 7.10
• Enterprise Value/Gross Profit: 11.59
• Enterprise Value/Ebitda: -16.90
• 1Y Price Target: $53.73
• Price Target Upside: 147.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -1.46
• Revenue Forecast (FY): $527.45M

• Rating: 45 Neutral
• Price Target: $22.50 ▲(3.45% Upside)

Zai Lab's overall stock score is primarily impacted by its financial performance, which shows growth in revenue but significant challenges in profitability and cash flow. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. The earnings call provided some positive insights into pipeline developments, but concerns about slower growth and program setbacks weigh heavily on the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective commercial strategies, supporting long-term business expansion.

Pipeline Advancements

Advancements in the drug pipeline enhance future revenue potential and strengthen competitive positioning in the oncology market.

Profitability on Horizon

Achieving profitability will improve financial stability and investor confidence, supporting sustainable growth and operational resilience.

Negative Factors

Negative Profit Margins

Persistent negative profit margins indicate ongoing financial challenges, potentially limiting reinvestment in growth and innovation.

Cash Flow Inefficiencies

Inefficient cash flow conversion can strain liquidity and limit the company's ability to fund operations and strategic initiatives.

Competitive Pressures

Increased competition in the PARP inhibitor market may impact market share and revenue growth, challenging Zai Lab's competitive edge.

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 through multiple streams primarily focused on the development and commercialization of its therapeutic products. The company earns money from product sales of its approved therapies, as well as milestone payments from partnerships with larger pharmaceutical companies. These partnerships often involve collaboration agreements where Zai Lab retains certain rights to develop and market drugs in specific territories, further enhancing its revenue potential. Additionally, Zai Lab may receive royalties on sales from partnered products, which contribute to its overall earnings. The company's strategic focus on innovative therapies, coupled with a strong pipeline of drug candidates, positions it to capitalize on growing market opportunities within the biopharmaceutical industry.

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: 21.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 21.75 is below the 20-day moving average (MA) of 25.09, below the 50-day MA of 29.21, and below the 200-day MA of 32.56, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 23.43 is Positive, neither overbought nor oversold. The STOCH value of 9.50 is Positive, 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	80 Outperform	$5.89B	30.18	19.66%	―	54.51%	275.94%
PTCT	74 Outperform	$6.05B	8.80	―	―	97.54%	―
ACAD	73 Outperform	$4.06B	15.45	34.95%	―	12.69%	100.80%
MRUS	52 Neutral	$7.28B	―	-51.57%	―	57.54%	-36.57%
ACLX	52 Neutral	$5.21B	―	-47.18%	―	-76.96%	-425.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZLAB	45 Neutral	$2.45B	―	-28.96%	―	23.73%	30.16%

Zai Lab Corporate Events

Zai Lab Reports Strong Q3 2025 Growth and Pipeline Progress

Zai Lab Limited is a biopharmaceutical company focused on developing and commercializing innovative therapies for oncology, immunology, neuroscience, and infectious diseases, with operations in China and the United States. In its third quarter of 2025, Zai Lab reported a 14% year-over-year increase in total revenues, reaching $116.1 million, while also reducing its operating loss by 28% year-over-year to $48.8 million. The company highlighted significant advancements in its pipeline, including the initiation of a global registrational study for its promising oncology candidate, zocilurtatug pelitecan, and the inclusion of KarXT in China’s national treatment guidelines for schizophrenia. Key financial metrics showed a net loss of $36.0 million, an improvement from the previous year, driven by increased product revenue and reduced R&D expenses. Looking ahead, Zai Lab is poised for continued growth with a revised revenue guidance of at least $460 million for the full year 2025, supported by its robust pipeline and expanding commercial operations.

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.

The most recent analyst rating on (ZLAB) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Zai Lab stock, see the ZLAB Stock Forecast page.

Zai Lab Ltd’s Earnings Call Highlights Growth and Profitability Path

Zai Lab Ltd’s recent earnings call conveyed a positive sentiment, underscored by notable revenue growth and strategic advancements in its pipeline. The company demonstrated a clear trajectory towards profitability, despite challenges such as ZEJULA’s performance and supply constraints for XACDURO. The strong performance of VYVGART emerged as a key growth driver, promising a bright future for the company.

Zai Lab Reports Growth and Strategic Progress in Q2 2025

Zai Lab Limited is a biopharmaceutical company focused on developing and commercializing innovative treatments in oncology, immunology, neuroscience, and infectious diseases, with operations in China and the United States.