Will Expedited Approval of TTFields for Pancreatic Cancer Shift Zai Lab's (ZLAB) Market Outlook?

• In August 2025, Zai Lab Limited announced that the China National Medical Products Administration (NMPA) granted Innovative Medical Device Designation for Tumor Treating Fields (TTFields) in pancreatic cancer, based on positive Phase 3 PANOVA-3 trial results.
• This designation enables expedited regulatory review for TTFields, potentially accelerating patient access to a new therapy for one of the most challenging cancers in China.
• We'll now explore how expedited approval for TTFields in pancreatic cancer could impact Zai Lab's future market expansion and earnings outlook.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Zai Lab Investment Narrative Recap

To be a shareholder in Zai Lab right now, you need to believe that the company’s bet on accelerating innovative therapies in China, backed by a pipeline of in-licensed products, will translate into sustainable market growth before competitors erode its edge or margin constraints set in. The recent expedited review for TTFields in pancreatic cancer is a positive sign for short-term catalysts, as it could accelerate new revenue, but does not remove the structural margin risk from royalty and licensing costs, which remains the biggest drag on near-term earnings improvement.

Among recent announcements, the Phase 3 success of bemarituzumab in gastric cancer stands out because it further supports Zai Lab’s near-term revenue diversification and validates its strategy centered on late-stage clinical successes and expedited approvals as earnings catalysts. The recent launch of the Oncology Scientific Advisory Board also reflects an emphasis on deepening expertise, but the financial impact will likely hinge on execution in converting pipeline wins into reimbursed, high-volume therapies.

However, investors should also be aware of the ongoing risk that as Zai Lab accelerates launches through partnerships, persistent royalty and milestone payments could continue to limit net margin recovery as revenue grows...

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

Zai Lab's outlook anticipates $1.5 billion in revenue and $250.1 million in earnings by 2028. This projection relies on an annual revenue growth rate of 51.7% and a $462.6 million increase in earnings from the current level of -$212.5 million.

Uncover how Zai Lab's forecasts yield a $56.31 fair value, a 70% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Zai Lab’s fair value between US$56.31 and US$117.98, across two unique perspectives. Ongoing margin limitations from royalty payments remain top of mind for many as Zai Lab expands its in-licensed pipeline, reinforcing the need to weigh future profitability alongside near-term launches.

Explore 2 other fair value estimates on Zai Lab - why the stock might be worth just $56.31!

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.

Contemplating Other Strategies?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• The latest GPUs need a type of rare earth metal called Dysprosium and there are only 29 companies in the world exploring or producing it. Find the list for free.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com