How Investors Are Reacting To Zai Lab (ZLAB) Advancing ZL-1503 And Securing Key NRDL Renewals

• Zai Lab Limited recently dosed the first participant in a global Phase 1/1b trial of ZL-1503, its internally discovered IL-13/IL-31R bispecific antibody for moderate-to-severe atopic dermatitis, and secured 2025 National Reimbursement Drug List renewal in China for VYVGART, NUZYRA, and ZEJULA.
• Together, these developments highlight Zai Lab’s efforts to build proprietary immunology assets while preserving broad reimbursement for key in-licensed therapies in China’s healthcare system.
• We’ll now examine how launching the global ZL-1503 trial could reshape Zai Lab’s investment narrative built around pipeline breadth and market access.

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Zai Lab Investment Narrative Recap

To own Zai Lab today, I think you need to believe that its mix of in-licensed products and an emerging internal pipeline can eventually support profitable growth, despite continued losses and competitive pressure in China. The ZL-1503 Phase 1/1b start modestly strengthens the long term pipeline story, while the 2025 NRDL renewals for VYVGART, NUZYRA, and ZEJULA are more immediately relevant to the key short term catalyst of revenue growth and the key risk around pricing and reimbursement.

Among the recent announcements, the renewal of VYVGART, NUZYRA, and ZEJULA on China’s 2025 NRDL looks most important right now, because it helps protect near term revenue that underpins Zai Lab’s guidance of at least US$460,000,000 for 2025. Against that backdrop, ZL-1503’s first-in-human trial marks a step toward reducing reliance on externally sourced assets, even though its outcome will matter more to Zai Lab’s profile several years from now than to the next few quarters.

Yet even with NRDL visibility, investors should be aware that China’s evolving reimbursement rules and price pressures could still...

Read the full narrative on Zai Lab (it's free!)

Zai Lab's narrative projects $1.5 billion revenue and $250.1 million earnings by 2028.

Uncover how Zai Lab's forecasts yield a $49.49 fair value, a 160% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community valuations cluster between US$49.49 and US$93.13, underlining how differently individual investors view Zai Lab’s prospects. Against this backdrop, China NRDL and pricing risk could materially influence whether those growth assumptions are eventually met.

Explore 3 other fair value estimates on Zai Lab - why the stock might be worth over 4x more than the current price!

Build Your Own Zai Lab Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zai Lab research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Zai Lab research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zai Lab's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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