Zai Lab (ZLAB, Financial) is set to unveil new findings from its ongoing research on two groundbreaking investigational oncology therapies at the American Association for Cancer Research Annual Meeting 2025 in Chicago. The company will present data on its proprietary treatments, ZL-6201 and ZL-1222, both of which are designed to target and combat multiple forms of cancer.
ZL-6201, a leucine-rich repeat-containing protein 15 (LRRC15) antibody-drug conjugate (ADC), is focused on treating several solid tumors, including sarcoma, glioblastoma, and melanoma. This ADC is notable for its high affinity and specificity for LRRC15, a protein commonly overexpressed in various cancers. The data, which will be presented on April 29, demonstrate ZL-6201’s ability to effectively penetrate and destroy tumor cells, exhibiting a "bystander effect" that enhances its impact in the tumor microenvironment. Zai Lab plans to move forward with Investigational New Drug-enabling studies for ZL-6201 in 2025, aiming to treat patients with LRRC15-positive cancers.
Meanwhile, ZL-1222 is an innovative anti-PD-1/interleukin-12 (IL-12) immunocytokine poised to boost cancer immunotherapy. Set to be showcased on April 28, ZL-1222 combines targeted PD-1 therapy with IL-12 to enhance anti-tumor effects while minimizing systemic toxicity. Preclinical findings indicate that this treatment is effective against both PD-1 sensitive and resistant tumors, offering a potential solution for patients who do not respond to existing immuno-oncology therapies.
These promising results reinforce Zai Lab’s commitment to advancing cancer treatment options and highlight the potential effectiveness of these therapies in tackling aggressive cancer types.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Zai Lab Ltd (ZLAB, Financial) is $54.42 with a high estimate of $74.00 and a low estimate of $36.10. The average target implies an upside of 69.58% from the current price of $32.09. More detailed estimate data can be found on the Zai Lab Ltd (ZLAB) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Zai Lab Ltd's (ZLAB, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Zai Lab Ltd (ZLAB, Financial) in one year is $68.51, suggesting a upside of 113.49% from the current price of $32.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Zai Lab Ltd (ZLAB) Summary page.
ZLAB Key Business Developments
Release Date: February 27, 2025
- Total Revenue Growth: 50% year-over-year increase for 2024; 66% growth in Q4 2024.
- VYVGART Sales: $93.6 million in 2024; $30 million in Q4 2024.
- Net Product Revenue: $397.6 million for 2024, reflecting a 49% year-over-year growth.
- Cash Position: $879.7 million at the end of Q4 2024.
- Loss from Operations: Decreased by 45% in Q4 2024 to $67.9 million; 23% decrease for the full year to $282.1 million.
- Adjusted Loss from Operations: $47.6 million in Q4 2024; $199.6 million for the full year, reflecting improvements of 53% and 28% respectively.
- R&D Expenses: Declined 36% year-over-year in Q4 2024; 12% decline for the full year.
- SG&A Expenses: Flat year-over-year in Q4 2024; 6% increase for the full year.
- 2025 Revenue Guidance: Expected to be in the range of $560 million to $590 million.
- Profitability Target: Expected to achieve profitability in Q4 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zai Lab Ltd (ZLAB, Financial) reported a 50% year-over-year revenue growth for 2024, with a 66% increase in the fourth quarter alone.
- The company successfully launched several new products, including VYVGART Hytrulo, AUGTYRO, and XACDURO, contributing to strong commercial performance.
- Zai Lab Ltd (ZLAB) is on track to reach profitability by the fourth quarter of 2025, supported by a robust cash position of $879.7 million.
- The company made significant advancements in its global pipeline, including promising data for ZL-1310 in small cell lung cancer and KarXT for schizophrenia.
- Zai Lab Ltd (ZLAB) has a clear path to achieving its $2 billion revenue target by 2028, driven by strong growth in its current commercial portfolio and expected new product launches.
Negative Points
- Despite the strong growth, Zai Lab Ltd (ZLAB) is still facing a loss from operations, although it has improved year-over-year.
- The company does not have NRDL listing for VYVGART Hytrulo or CIDP in 2025, limiting its immediate impact on sales.
- There are competitive pressures in the market, particularly with other DLL3 products potentially impacting ZL-1310's market position.
- Zai Lab Ltd (ZLAB) faces challenges in achieving market penetration, with current penetration under 10% for gMG patients in China.
- The company anticipates quarterly fluctuations in revenue due to seasonal factors and hospital purchasing patterns.
