NASDAQ$ZLAB

Zai Lab Limited-ADR · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Zai Lab's first quarter 2021 financial results were reported, showing solid revenue growth and strategic collaborations.

Zai Lab reported a net product revenue increase to $20.1 million, driven by ZEJULA and Optune, along with strategic collaborations to strengthen their oncology and autoimmune franchises. The company also significantly bolstered its capital position with a global public offering, but reported a net loss of $232.9 million due to increased R&D expenses from new business development activities.

  • Entered strategic collaborations to strengthen gastric and lung cancer disease strongholds.
  • Bolstered autoimmune franchise with an exclusive agreement for efgartigimod.
  • Gained regulatory approval for QINLOCK, marking the third innovative oncology product approval in 15 months in China.
  • Completed a global public offering with gross proceeds of nearly $860 million.

Headline financials

Total Revenue

$20.1M

Previous: $4.92M+308.6%
EPS (adj)

-$2.64

Previous: -$1.03-156.3%
Capital Expenditures

-$1.68M

No prior period
Free Cash Flow

-$235M

No prior period
Net Income

-$233M

Previous: -$48M-385.4%
Operating Income

-$227M

Previous: -$46.3M-390.2%
Gross Profit

$12.6M

Previous: $6.13M+105.4%
Cash & Equivalents

$1.01B

No prior period
Total Assets

$1.13B

No prior period

Revenue & EPS history

Zai Lab · Revenue · Quarterly

$20.1M

Q1 2021+308.6%vs Q1 2020
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Zai Lab · $52M total across 3 segments · Q3 2023

  • ZEJULA
    $41.6M+6.1%
  • NUZYRA
    $5.5M+266.7%
  • VYVGART franchise
    $4.9M

Forward guidance

Zai Lab anticipates several milestones throughout 2021, including potential approval of Nuzyra, regulatory filings for margetuximab, Tumor Treating Fields, and ZEJULA in China, and numerous data readouts from ongoing clinical trials.

Tailwinds

  • Expect approval of Nuzyra for CABP and ABSSSI by the NMPA.
  • Plan to file margetuximab for Her2-positive breast cancer in China.
  • Plan to file Tumor Treating Fields for mesothelioma in China.
  • Plan to file ZEJULA for late-line ovarian cancer in China.
  • Anticipate numerous data readouts for various assets in different cancer types.

Headwinds

  • Potential delays in regulatory approvals.
  • Uncertainties in clinical trial outcomes.
  • Risks associated with commercializing new products.
  • Dependence on partners for certain milestones.
  • Impact of the COVID-19 pandemic on operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.5%

Avg return

30 days after

45%

13 / 29 earnings

Positive

+26.0%

Q1 2024

Best reaction

-11.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.9%-7.0%-20.9%
Q4 2025+1.7%-8.6%-7.2%
Q3 2025-6.4%-11.3%-21.4%
Q1 2025+2.5%+0.9%+34.4%
Q4 2024-2.0%-3.1%+6.3%
Q3 2024-3.7%-13.0%-14.1%
Q2 2024-5.6%-7.8%+11.3%
Q1 2024+26.0%+29.0%+19.9%
Q4 2023-0.9%+0.5%-23.7%
Q3 2023+7.4%+0.9%-1.5%
Q2 2023-11.2%-5.4%+3.5%
Q1 2023+1.4%-9.3%-24.2%
Q4 2022-0.6%+7.3%-10.5%
Q3 2022+1.9%+23.9%+18.7%
Q2 2022-5.0%-6.2%-8.0%
Q1 2022-2.1%+30.0%+5.6%
Q4 2021-4.0%-26.0%-19.6%
Q3 2021+0.7%-2.3%-22.3%
Q2 2021+0.6%+0.9%+0.4%
Q1 2021-5.1%-3.3%+8.3%
Q4 2020+0.3%-7.0%-9.6%
Q4 2019-1.4%-2.7%+17.0%
Q1 2020-8.7%+3.1%+18.3%
Q2 2019+4.3%+4.1%-4.0%
Q1 2019+3.7%+6.7%-9.7%
Q4 2018+10.4%+10.4%+1.6%
Q3 2018+6.7%+13.6%+13.1%
Q4 2017-5.3%-8.8%+22.8%
Q3 2017-2.2%-0.6%+0.3%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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