Zai Lab (ZLAB) Remains a Buy Amid Strong Commercial and Pipeline Momentum

Core Viewpoint - Zai Lab Limited (NASDAQ:ZLAB) is identified as a strong investment opportunity with significant upside potential, driven by robust commercial performance and a promising pipeline of products [2][3]. Financial Performance - For Q3 2025, Zai Lab reported a 13.0% year-over-year increase in product revenue, reaching $115.4 million, primarily fueled by sales of NUZYRA and XACDURO, despite a decline in ZEJULA sales [3]. - VYVGART's sales amounted to $27.7 million, benefiting from extended therapy duration and increased market share, even after a voluntary price adjustment of $2.4 million for Hytrulo [3]. - The adjusted loss from operations improved to $28.0 million, while the net loss narrowed to $36.0 million, equating to $0.03 per share [3]. Pipeline Developments - Zai Lab's management highlighted advancements in pivotal studies for Zocilurtatug Pelitecan (zoci) in treating second-line extensive-stage small cell lung cancer and progress in povetacicept trials for IgA nephropathy [4]. - There is optimism regarding VYVGART's adoption in generalized myasthenia gravis, alongside the preparation of KarXT for schizophrenia, which is progressing with favorable new national treatment guidelines [4]. Market Position and Analyst Ratings - Zai Lab is currently rated as a consensus Buy by over 90% of analysts, with a 1-year average price target of $49.49, indicating a potential upside of 147.82% [2]. - UBS reiterated a "Buy" rating for Zai Lab's Hong Kong-listed shares with a price target of HK$33.50 [2]. Revenue Guidance - The company reaffirmed its full-year 2025 revenue guidance of at least $460 million, attributing this to disciplined execution and an expanding commercial presence in China [4].