Zai Lab (NASDAQ:ZLAB) Posts Earnings Results, Beats Expectations By $0.07 EPS

Zai Lab (NASDAQ:ZLAB) issued its quarterly earnings data on Thursday. The company reported ($0.46) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.53) by $0.07, Zacks reports. The business had revenue of $99.61 million during the quarter, compared to analyst estimates of $108.43 million. Zai Lab had a negative return on equity of 22.81% and a negative net margin of 38.15%.

Here are the key takeaways from Zai Lab’s conference call:

• At 1.6 mg/kg, zoci showed a confirmed intracranial ORR of 62.5% (best intracranial response ~69% including 4 CRs) with ~16% grade ≥3 treatment‑related AEs; the Phase III DLLEVATE study is on track to finish enrollment H1 2027 with an interim analysis/possible accelerated approval next year and a planned first global BLA submission in late 2027.
• Zai announced global collaborations with Amgen and Boehringer Ingelheim to explore zoci combined with DLL3 T‑cell engagers (and combinations with PD‑L1/chemo), with an Amgen triplet cohort already enrolling to potentially deepen and extend responses.
• Q1 total product revenue fell 6% YoY to $99.6M (driven by lower ZEJULA sales and class/generic pressures) and loss from operations widened 23% to $69.4M; management expects full‑year 2026 product revenue pressure with a return to growth in 2027.
• Zai ended the quarter with a strong cash position of $761.3M and a commercially profitable regional business, while planning AI‑driven efficiency measures and local XACDURO manufacturing in 2027 to ease supply constraints and improve margins.
• Other pipeline moves include ZL‑1503 (IL‑13/IL‑31 bispecific) with encouraging preclinical data and expected healthy‑volunteer/AD Phase I data in H2 2026, ZL‑1311 entering clinic by year‑end, ZL‑6201 in clinic, and regional submissions for Tumor Treating Fields and TIVDAK.

Zai Lab Price Performance

Shares of ZLAB opened at $19.76 on Friday. The firm’s 50 day moving average is $20.23 and its 200-day moving average is $20.12. Zai Lab has a 12-month low of $15.96 and a 12-month high of $44.34. The stock has a market capitalization of $2.24 billion, a P/E ratio of -12.27 and a beta of 0.85.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. JPMorgan Chase & Co. lowered their price target on Zai Lab from $39.00 to $32.00 and set an “overweight” rating on the stock in a report on Wednesday, March 18th. Jefferies Financial Group upgraded shares of Zai Lab to a “strong-buy” rating in a research report on Monday, January 19th. Zacks Research downgraded shares of Zai Lab from a “hold” rating to a “strong sell” rating in a research report on Friday, January 23rd. Weiss Ratings raised shares of Zai Lab from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, April 24th. Finally, Cantor Fitzgerald lowered their price objective on shares of Zai Lab from $55.00 to $37.00 and set an “overweight” rating on the stock in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $50.00.

Insider Transactions at Zai Lab

In related news, Director Richard Gaynor purchased 1,731 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were bought at an average price of $18.91 per share, with a total value of $32,733.21. Following the completion of the acquisition, the director owned 56,630 shares of the company’s stock, valued at approximately $1,070,873.30. This represents a 3.15% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Joshua L. Smiley sold 9,614 shares of the stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $20.39, for a total value of $196,029.46. Following the sale, the insider owned 120,619 shares of the company’s stock, valued at $2,459,421.41. This trade represents a 7.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 46,187 shares of company stock valued at $930,647 in the last 90 days. 4.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Zai Lab stock. Royal Bank of Canada increased its position in shares of Zai Lab Limited Unsponsored ADR (NASDAQ:ZLAB) by 214.3% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 13,771 shares of the company’s stock after acquiring an additional 9,390 shares during the quarter. Royal Bank of Canada’s holdings in Zai Lab were worth $498,000 as of its most recent SEC filing. Institutional investors and hedge funds own 41.65% of the company’s stock.

Zai Lab Company Profile

Zai Lab Ltd (NASDAQ: ZLAB) is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of innovative therapies. Headquartered in Shanghai, China, Zai Lab operates R&D centers in Asia and the United States and maintains commercial offices across Greater China, North America, Europe and Australia. The company’s end-to-end platform encompasses discovery biology, translational development, clinical research and global supply chain management.

The company’s marketed portfolio is anchored by Brukinsa (zanubrutinib), a next-generation Bruton’s tyrosine kinase inhibitor approved for several B-cell malignancies.