Market Cap
US$5.2b
Last Updated
2020/06/06 06:51 UTC
Data Sources
Company Financials +
Executive Summary
Zai Lab Limited, a biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, autoimmune, and infectious diseases in China.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
Share Price & News
How has Zai Lab's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ZLAB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.8%
ZLAB
-1.5%
US Biotechs
3.8%
US Market
1 Year Return
151.8%
ZLAB
22.1%
US Biotechs
9.7%
US Market
Return vs Industry: ZLAB exceeded the US Biotechs industry which returned 23.9% over the past year.
Return vs Market: ZLAB exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| ZLAB | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.8% | -1.5% | 3.8% |
| 30 Day | 8.2% | 3.5% | 11.4% |
| 90 Day | 30.9% | 9.0% | 6.8% |
| 1 Year | 151.8%151.8% | 23.3%22.1% | 12.1%9.7% |
| 3 Year | n/a | 26.1%22.1% | 36.2%27.2% |
| 5 Year | n/a | -5.5%-11.0% | 63.7%45.4% |
Price Volatility Vs. Market
How volatile is Zai Lab's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
An Intrinsic Calculation For Zai Lab Limited (NASDAQ:ZLAB) Suggests It's 48% Undervalued2 months ago | Simply Wall St
Zai Lab Limited's (NASDAQ:ZLAB) Shift From Loss To Profit3 months ago | Simply Wall St
What Kind Of Share Price Volatility Should You Expect For Zai Lab Limited (NASDAQ:ZLAB)?Valuation
Is Zai Lab undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZLAB ($71.72) is trading below our estimate of fair value ($145.75)
Significantly Below Fair Value: ZLAB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ZLAB is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.
PE vs Market: ZLAB is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ZLAB's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ZLAB is overvalued based on its PB Ratio (16.6x) compared to the US Biotechs industry average (3.7x).
Next Steps
Future Growth
How is Zai Lab forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
53.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZLAB is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ZLAB is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ZLAB is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ZLAB's revenue (53.3% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: ZLAB's revenue (53.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZLAB is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Zai Lab performed over the past 5 years?
-54.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZLAB is currently unprofitable.
Growing Profit Margin: ZLAB is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ZLAB is unprofitable, and losses have increased over the past 5 years at a rate of -54.7% per year.
Accelerating Growth: Unable to compare ZLAB's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ZLAB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).
Return on Equity
High ROE: ZLAB has a negative Return on Equity (-66.2%), as it is currently unprofitable.
Next Steps
Financial Health
How is Zai Lab's financial position?
Financial Position Analysis
Short Term Liabilities: ZLAB's short term assets ($292.5M) exceed its short term liabilities ($46.6M).
Long Term Liabilities: ZLAB's short term assets ($292.5M) exceed its long term liabilities ($13.9M).
Debt to Equity History and Analysis
Debt Level: ZLAB's debt to equity ratio (2.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if ZLAB's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ZLAB has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: ZLAB has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of 60.3% each year.
Next Steps
Dividend
What is Zai Lab's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZLAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZLAB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ZLAB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZLAB's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ZLAB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Samantha Du (53yo)
6.42yrs
Tenure
Dr. Ying Du, also known as Samantha, Ph.D., serves as Founding Managing Director at Quan Capital. She serves as Venture Partner at Sequoia Capital China. Dr. Du serves as an adjunct professor at Fudan Univ ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 6.42yrs | no data | 4.85% $253.9m | |
| President | 3.42yrs | no data | 0.32% $17.0m | |
| Chief Financial Officer | 2.25yrs | no data | 0.027% $1.4m | |
| Chief Scientific Officer | 1yr | no data | no data | |
| Chief Medical Officer of Autoimmune & Infectious Diseases | 3.42yrs | no data | no data | |
| Chief Commercial Officer & President of Greater China | 2yrs | no data | 0.022% $1.1m | |
| Chief Medical Officer of Oncology | 1.83yrs | no data | 0.029% $1.5m | |
| Executive VP and Head of Clinical & Regulatory Affairs | 6.42yrs | no data | no data | |
| Senior VP & Head of Business Development | 6.42yrs | no data | no data | |
| Chief Operating Officer of R&D | 5.42yrs | no data | no data |
2.8yrs
Average Tenure
50.5yo
Average Age
Experienced Management: ZLAB's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 6.42yrs | no data | 4.85% $253.9m | |
| President | 3.42yrs | no data | 0.32% $17.0m | |
| Director & Senior Advisor | 3.42yrs | no data | 0.44% $22.8m | |
| Independent Director | 3.42yrs | no data | 0.056% $2.9m | |
| Director | 6.42yrs | no data | no data | |
| Member of Scientific Advisory Board | 4.42yrs | no data | no data | |
| Member of Scientific Advisory Board | 3.42yrs | no data | no data | |
| Member of Scientific Advisory Board | 1.33yrs | no data | no data | |
| Independent Director | 1.83yrs | no data | 0.020% $1.1m | |
| Independent Director | 1.67yrs | no data | 0.033% $1.8m |
3.4yrs
Average Tenure
65.5yo
Average Age
Experienced Board: ZLAB's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.8%.
Top Shareholders
Company Information
Zai Lab Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Zai Lab Limited
- Ticker: ZLAB
- Exchange: NasdaqGM
- Founded: 2013
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$5.236b
- Shares outstanding: 74.68m
- Website: https://www.zailaboratory.com
Number of Employees
Location
- Zai Lab Limited
- Building 1, Jinchuang Plaza
- 4th Floor
- Shanghai
- 201210
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ZLAB | NasdaqGM (Nasdaq Global Market) | Yes | Ordinary Shares | US | USD | Sep 2017 |
Biography
Zai Lab Limited, a biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, autoimmune, and infectious diseases in China. The company offers Niraparib, an oral small molecule poly ADP ribose polymerase 1/2 inhibitor for the treatment of multiple solid tumors, including ovarian and other types of lung cancer; and Optune, a cancer therapy for the treatment of glioblastoma multiforme. It also develops Ripretinib, a switch control inhibitor for the treatment of KIT and/or PDGFRa-driven cancers, including gastrointestinal stromal tumors, systemic mastocytosis, and other cancers; REGN1979 for the treatment of diffuse large B-cell lymphoma and follicular lymphoma; Margetuximab an immune-optimized anti-HER2 monoclonal antibody for the treatment of breast and gastric cancers; and INCMGA0012, an investigational monoclonal antibody for the treatment of MSI-high endometrial cancer. In addition, the company develops Bemarituzumab, a humanized monoclonal antibody for the treatment of gastric and gastroesophageal cancers; Omadacycline, an antibiotic to treat acute bacterial skin and skin structure, and community-acquired bacterial pneumonia infections; and Durlobactam for the treatment of acinetobacter baumannii bacterial infections. Zai Lab Limited has license and collaboration agreements with the TESARO Inc.; Paratek Bermuda, Ltd.; Five Prime Therapeutics, Inc.; Entasis Therapeutics Holdings, Inc.; Crescendo Biologics Ltd.; Novocure Limited; MacroGenics Inc.; Deciphera Pharmaceuticals, LLC; and Incyte Corporation. The company was founded in 2013 and is headquartered in Shanghai, China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 06:51 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.