How Investors May Respond To Zai Lab (ZLAB) Advancing ZL-1503 Into Global Phase 1/1b Atopic Dermatitis Trial

• Zai Lab Limited recently dosed the first participant in a global randomized, double-blind, placebo-controlled Phase 1/1b trial of ZL-1503, a potential first-in-class IL-13/IL-31R bispecific antibody for moderate-to-severe atopic dermatitis, following encouraging preclinical data presented at the 2025 EAACI Congress.
• The internally discovered ZL-1503, designed to suppress both inflammatory and itch-related pathways with an extended half-life, could meaningfully broaden Zai Lab’s immunology footprint if early safety and pharmacokinetic results support continued development.
• We’ll now examine how advancing ZL-1503 into global Phase 1/1b testing could influence Zai Lab’s diversified pipeline investment narrative.

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Zai Lab Investment Narrative Recap

To own Zai Lab, you need to believe its diversified pipeline can eventually offset current losses and intense competition in China. The ZL-1503 Phase 1/1b start modestly supports this thesis by showcasing internal innovation, but near term, it does not change that the key catalyst remains execution on late stage launches while the biggest risk is sustained high spending without clear profitability.

The most directly relevant recent event is the early halt of the FORTITUDE-102 bemarituzumab trial for inadequate efficacy, which underlines clinical risk across Zai Lab’s partnered and internal assets. Against that backdrop, ZL-1503’s progression highlights how each new program must justify ongoing R&D investment and help counterbalance setbacks that could pressure both sentiment and the path to break even.

Yet, while ZL-1503 broadens the story, investors should be aware that...

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 188% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently see Zai Lab’s fair value between US$49.49 and US$93.29, well above the recent share price. You may want to weigh those views against the risk that high R&D and SG&A spend, plus ongoing pipeline renewal needs, could keep earnings under pressure for longer than expected.

Explore 3 other fair value estimates on Zai Lab - why the stock might be worth just $49.49!

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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