NasdaqGM:ZLAB

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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.


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

-3.6%

ZLAB

0.07%

US Biotechs

2.9%

US Market


1 Year Return

157.5%

ZLAB

23.9%

US Biotechs

8.9%

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

ZLABIndustryMarket
7 Day-3.6%0.07%2.9%
30 Day12.1%4.8%10.6%
90 Day33.9%10.5%5.1%
1 Year157.5%157.5%25.1%23.9%11.4%8.9%
3 Yearn/a32.9%28.5%34.3%25.4%
5 Yearn/a-4.4%-10.0%60.7%42.7%

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

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

NamePositionTenureCompensationOwnership
Ying Du
Founder6.42yrsno data4.85% $259.6m
Tao Fu
President3.42yrsno data0.32% $17.4m
Ki Chul Cho
Chief Financial Officer2.25yrsno data0.027% $1.4m
Valeria Fantin
Chief Scientific Officer1yrno datano data
Harald Reinhart
Chief Medical Officer of Autoimmune & Infectious Diseases3.42yrsno datano data
Yi Liang
Chief Commercial Officer & President of Greater China2yrsno data0.022% $1.2m
Yong-Jiang Hei
Chief Medical Officer of Oncology1.83yrsno data0.029% $1.6m
Ning Xu
Executive VP and Head of Clinical & Regulatory Affairs6.42yrsno datano data
Jonathan J. Wang
Senior VP & Head of Business Development6.42yrsno datano data
James Yan
Chief Operating Officer of R&D5.42yrsno datano 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

NamePositionTenureCompensationOwnership
Ying Du
Founder6.42yrsno data4.85% $259.6m
Tao Fu
President3.42yrsno data0.32% $17.4m
Peter Wirth
Director & Senior Advisor3.42yrsno data0.44% $23.3m
John Diekman
Independent Director3.42yrsno data0.056% $3.0m
Wing Yu Leung
Director6.42yrsno datano data
Neal Rosen
Member of Scientific Advisory Board4.42yrsno datano data
Richard Flavell
Member of Scientific Advisory Board3.42yrsno datano data
Lieping Chen
Member of Scientific Advisory Board1.33yrsno datano data
Kai-Xian Chen
Independent Director1.83yrsno data0.020% $1.1m
William Lis
Independent Director1.67yrsno data0.033% $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$5.356b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZLABNasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 05:51
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.