Zai Lab Limited Unsponsored ADR (ZLAB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The po ...

Zai Lab Limited Unsponsored ADR (ZLAB) shares soared 21.5% in the last trading session to close at $29.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.7% loss over the past four weeks.The sudden rise in stock price can be attributed to Zai Lab meeting the requirements of Holding Foreign Companies Accountable Act (HFCAA). Per management, the possible risk of delisting Chinese companies in the United States does not apply to ...

If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth . Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. I hope to see you there.The share price of Zai Lab Limited (NASDAQ: ZLAB ) is up >105% on a 12-month basis, and up nearly 50% year-to-date. At the time of writing, the company markets and sells se ...

Zai Lab Limited (NASDAQ: ZLAB ) continues to develop treatments for oncology, autoimmune disorders, infectious diseases, and neurological conditions. In my view, their most important value driver today is Vyvgart for generalized myasthenia gravis [gMG], which showed significant revenue growth in 2024. Also, the recent approval in ChinaMy name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degre ...

Investment Rating - The report assigns a "Buy" rating to Zai Lab (ZLAB US) with a target price of US$62.32, indicating an upside potential of 80% from the current price of US$34.64 [1]. Core Insights - The company is expected to experience significant revenue growth, with a projected revenue of US$5.60-5.90 billion for 2025, following a strong performance in 2024 where revenue reached US$399 million, a 50% year-over-year increase [3][8]. - The inclusion of key products in the National Reimbursement Drug List (NRDL) has driven rapid revenue growth, particularly for Weiqijia and Weilian, which achieved sales of US$93.6 million in 2024 [4]. - The company has effectively controlled expenses, with R&D spending decreasing by 11.6% to US$235 million in 2024, contributing to improved operational efficiency [5][8]. Financial Summary - The financial projections for Zai Lab are as follows: - Revenue (US$ million): 2022A: 215, 2023A: 267, 2024E: 398, 2025E: 562, 2026E: 920 [7]. - Gross Profit (US$ million): 2022A: 141, 2023A: 171, 2024E: 259, 2025E: 364, 2026E: 593 [7]. - Net Profit (US$ million): 2022A: (443), 2023A: (334), 2024E: (307), 2025E: (205), 2026E: 22 [7]. - Earnings per Share (US$): 2022A: (4.63), 2023A: (3.42), 2024E: (3.13), 2025E: (2.10), 2026E: 0.22 [7].

Core Viewpoint - Zai Lab Limited (ZLAB) has seen a 15.9% increase in share price over the past four weeks, closing at $31.73, with a potential upside of 64.4% based on Wall Street analysts' mean price target of $52.17 [1] Price Targets - The average price target consists of six estimates ranging from a low of $25 to a high of $74, with a standard deviation of $17.94, indicating variability among analysts [2] - The lowest estimate suggests a decline of 21.2% from the current price, while the highest indicates a potential upside of 133.2% [2] - A low standard deviation signifies a higher agreement among analysts regarding price movement direction [7] Analyst Sentiment - Analysts are optimistic about ZLAB's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 29.6%, with two estimates moving higher and no negative revisions [10] - ZLAB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [5] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [8][12]

Financial Data and Key Metrics Changes - Total revenue for 2024 grew 50% year-on-year, with a remarkable 66% growth in Q4 [9][16] - Loss from operations improved by 45% in Q4 and 23% for the full year [14][57] - Cash position at the end of the quarter was $879.7 million, supporting future growth [14][58] Business Line Data and Key Metrics Changes - VYVGART generated $93.6 million in sales for 2024, marking a successful launch [9][17] - ZEJULA and NUZYRA also contributed to revenue growth, with ZEJULA being the leading PARP inhibitor for ovarian cancer in China [27][31] - New product launches, including VYVGART Hytrulo, AUGTYRO, and XACDURO, are expected to drive future revenue [30][31] Market Data and Key Metrics Changes - VYVGART's market penetration in China is currently under 10%, indicating significant growth potential [24] - Approximately 170,000 gMG patients in China present a large market opportunity for VYVGART [24] - The upcoming update to national gMG guidelines in mid-2025 is expected to enhance VYVGART's market position [25] Company Strategy and Development Direction - The company aims for a five-year CAGR of 50% through 2028, with a target of reaching $2 billion in revenue by 2028 [8][14] - Focus on advancing a global pipeline with multiple product launches and regulatory submissions planned for 2025 [10][12] - Emphasis on optimizing cost structure while investing in key growth drivers [13][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability by Q4 2025, supported by strong revenue growth and operational efficiency [14][59] - The company is positioned at a major value inflection point, with a commitment to innovation and execution excellence [14][32] - Anticipated strong performance across brands, particularly VYVGART, ZEJULA, and NUZYRA, in 2025 [31] Other Important Information - The company has made significant advancements in its global pipeline, including promising results for ZL-1310 in small cell lung cancer [34][35] - Regulatory discussions for accelerated approval of ZL-1310 are ongoing, with plans to initiate pivotal studies [38][74] - The company is actively exploring additional indications for its products to maximize patient benefit [12][39] Q&A Session Summary Question: Regarding 2025 revenue guidance and potential growth products - Management highlighted ZEJULA and NUZYRA as key growth drivers alongside VYVGART, with expectations for strong performance across all brands [63] Question: Growth trajectory for VYVGART in 2025 - Management expects stronger growth in the second half of 2025, driven by new patient starts and updates to treatment guidelines [70] Question: Regulatory strategy for DLL3 and pivotal study plans - Management confirmed plans to start a pivotal study this year, with confidence in achieving accelerated approval [74] Question: Observations on CIDP and KarXT's commercial potential - Management noted limited impact from CIDP in 2025 due to lack of NRDL listing, focusing on gMG instead [98] - Excitement about KarXT's potential in schizophrenia treatment, with plans for a dedicated sales force [100] Question: Strategy for povetacicept and key catalysts for 2025 - Management indicated participation in global trials for povetacicept, aiming for accelerated approval [121] - Key catalysts include data updates for DLL3 assets and regulatory submissions for bemarituzumab [126]

February 2025 Fourth Quarter and Full Year 2024 Financial Results and Recent Corporate Updates NASDAQ:ZLAB | HKEX:9688 © 2025. Zai Lab. All Rights Reserved. Forward-Looking Statements This presentation contains forward-looking statements, including statements relating to our strategy and plans; potential of and expectations for our business, commercial products, and pipeline programs; our goals, objectives, and priorities and our expectations under our growth strategy (including our expectations regarding o ...

Financial Performance - In 2024, the company reported a total revenue of $399.0 million, representing a 50% increase compared to $266.7 million in 2023[445]. - The net loss decreased by 23% to $257.1 million in 2024 from $334.6 million in 2023[445]. - Product revenue increased by $130.9 million to $397.6 million, driven primarily by VYVGART, which saw an 835% increase in sales since its launch[458][460]. - ZEJULA maintained its position as the leading PARP inhibitor for ovarian cancer, with sales of $187.1 million, an 11% increase from the previous year[458][460]. - Net loss for 2024 was $257.1 million, a reduction from the $334.6 million loss in 2023, resulting in a loss per ordinary share of $0.26[471]. Research and Development - Research and development expenses decreased by 12% to $234.5 million in 2024, down from $265.9 million in 2023[461]. - Research and development expenses decreased by $31.4 million (12%) in 2024, totaling $234.5 million, primarily due to a $26.0 million decrease in clinical program expenses[462]. - The company has multiple late-stage product candidates and ongoing pivotal trials, indicating a strong pipeline for future growth[442][446]. - The company aims to achieve profitability by the end of 2025 while continuing to invest in research and development[448]. Cash Flow and Investments - Net cash used in operating activities increased by $16.7 million in 2024, totaling $214.9 million, influenced by a decrease in net loss and adjustments to reconcile net loss[490]. - Net cash used in investing activities surged by $364.4 million in 2024, primarily due to increased purchases of short-term investments and acquisition of intangible assets[491]. - Net cash provided by financing activities was $349.9 million in 2024, a significant increase from a net cash used of $6.4 million in 2023, mainly due to proceeds from public offerings[492]. - As of December 31, 2024, the company had cash and cash equivalents of $879.7 million, expected to meet cash requirements for at least the next 12 months[486]. Expenses - Selling, general, and administrative expenses increased by $17.1 million (6%) in 2024, reaching $298.7 million, driven by higher costs associated with the launch of VYVGART and NUZYRA[464]. Interest and Currency Risks - Interest income decreased by $2.7 million in 2024, primarily due to reduced cash and cash equivalents[466]. - Interest expense increased by $2.3 million in 2024, attributed to new short-term debt incurred during the year[467]. - Foreign currency losses increased by $0.3 million in 2024, mainly due to the depreciation of the RMB against the U.S. dollar[468]. - The company is exposed to interest rate risks on its short-term debt, which amounted to $131.7 million as of December 31, 2024[507]. - A hypothetical 10% relative change in interest rates would not have a material impact on future interest income due to the short-term nature of the company's deposits and investments[506]. - The value of the company's ADSs and ordinary shares is affected by foreign exchange rates between U.S. dollars, HK dollars, and RMB[499]. - The HK dollar has been pegged to the U.S. dollar at approximately HK$7.80 to US$1.00 since 1983, but there is no assurance this will continue[500]. - The company has not used derivative financial instruments to hedge foreign exchange risk, as it believes its exposure is limited[497]. - The conversion of RMB into foreign currencies is based on rates set by the PBOC, which can fluctuate due to political and economic conditions in Greater China[498]. Customer and Credit Risk - The company's two largest customers accounted for approximately 23% of total accounts receivable as of December 31, 2024[503]. - The company has not incurred significant credit losses historically, managing credit risk through ongoing monitoring of outstanding balances[503]. - The company manages its investment portfolio to preserve principal, provide liquidity, and maximize income without significantly increasing risk[506].

Exhibit 99.1 Zai Lab Announces Fourth Quarter and Full Year 2024 Financial Results and Recent Corporate Updates Conference call and webcast today, February 27, 2025, at 8:00 a.m. ET (9:00 p.m. HKT) SHANGHAI & CAMBRIDGE, Mass., February 27, 2025 -- Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) today announced financial results for the fourth quarter and full-year 2024, along with recent product highlights and corporate updates. "2024 was a defining year for Zai Lab, marked by strong sales growth, financial stre ...