Zai Lab (ZLAB, Financial) has unveiled encouraging new findings from its preclinical research on ZL-1503, a promising IL-13/IL-31R bispecific antibody. The study underscores the potential of ZL-1503 to simultaneously inhibit inflammatory and itching pathways associated with atopic dermatitis (AD). This development was highlighted in a poster session at the European Academy of Allergy and Clinical Immunology Congress 2025 in Glasgow, Scotland.
The data suggest that ZL-1503 could offer a novel treatment pathway for patients with moderate-to-severe AD. While existing therapies that target IL-4/IL-13 signaling have advanced AD management, they offer only partial relief for symptoms controlled by IL-31. The new findings show that a single intravenous dose of ZL-1503 effectively blocked IL-13-mediated pSTAT6 and IL-31-related scratching for at least 76 days in all tested non-human primates. Moreover, two of three subjects showed extended inhibition of IL-13-mediated signaling for over 118 days, with one subject experiencing reduced itching for more than 133 days.
The study also revealed a strong correlation between the pharmacokinetic properties of ZL-1503 and its pharmacodynamic effects, demonstrating effective pathway suppression. The antibody was well-tolerated at doses up to 150 mg/kg. Additionally, in vitro research confirmed that targeting one pathway did not impede ZL-1503's effectiveness on the other.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Zai Lab Ltd (ZLAB, Financial) is $54.22 with a high estimate of $73.00 and a low estimate of $38.20. The average target implies an upside of 26.01% from the current price of $43.03. 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 $63.17, suggesting a upside of 46.8% from the current price of $43.03. 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: May 08, 2025
- Total Revenue: $106.5 million, a 22% year-over-year increase.
- Operating Loss: $56.3 million, a 20% improvement year-over-year.
- Adjusted Operating Loss: $37.1 million, a 25% improvement year-over-year.
- R&D Expenses: Increased 11% year-over-year due to $20 million in upfront fees.
- SG&A Expenses: Decreased 8% year-over-year.
- Cash Position: $857.3 million at the end of the quarter.
- Full Year Revenue Guidance: Reaffirmed at $560 million to $590 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zai Lab Ltd (ZLAB, Financial) reaffirmed its full-year revenue guidance of $560 million to $590 million, anticipating profitability by Q4 2025.
- The company has a differentiated portfolio with potential blockbusters like VYVGART, povetacicept, bemarituzumab, KarXT, and TTFields.
- Zai Lab Ltd (ZLAB) is advancing its global R&D pipeline, with ZL-1310 positioned for potential FDA approval in 2027.
- The company reported a 22% year-over-year revenue growth in Q1 2025, driven by increased sales for VYVGART, ZEJULA, and NUZYRA.
- Zai Lab Ltd (ZLAB) is optimizing its commercial footprint and leveraging existing infrastructure to support future launches efficiently.
Negative Points
- VYVGART sales were impacted by seasonality and inventory dynamics, leading to a temporary decline in patient volumes in January and February.
- The company faces competitive dynamics in the gMG market in China, with other therapies potentially gaining approval soon.
- Zai Lab Ltd (ZLAB) experienced a 20% operating loss in Q1 2025, although it improved compared to the previous year.
- There are uncertainties regarding the impact of FDA changes and geopolitical tensions on Zai Lab Ltd (ZLAB)'s operations and strategy.
- The company is still in the process of negotiating NRDL pricing for VYVGART, which could lead to potential price discounts.
