NASDAQ$ZLAB

Zai Lab Limited-ADR · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a revenue increase driven by ZEJULA® growth and pipeline expansion.

Zai Lab reported a 36% year-over-year increase in total product revenue, reaching $62.8 million for the first quarter of 2023. The company highlighted the expansion of its lung cancer franchise and global oncology pipeline, along with a strong cash position of $931.4 million.

  • Total product revenue reached $62.8 million, a 36% increase year-over-year.
  • ZEJULA® sales grew by 44% year-over-year.
  • Expanded lung cancer franchise with a next-generation antibody-drug conjugate (ADC) program (ZL-1310).
  • Cash position remained strong at $931.4 million as of March 31, 2023.

Headline financials

Total Revenue

$62.8M

Previous: $46.7M+34.4%
EPS (adj)

-$0.51

Previous: -$0.86+40.7%
Capital Expenditures

-$3.51M

Previous: -$9.74M+63.9%
Free Cash Flow

-$52.7M

Previous: -$92.1M+42.8%
Net Income

-$49.1M

Previous: -$82.4M+40.4%
Operating Income

-$69.5M

Previous: -$79.8M+12.8%
Gross Profit

$41.5M

Previous: $31.1M+33.4%
Cash & Equivalents

$880M

Previous: $847M+3.9%
Total Assets

$1.17B

Previous: $1.5B-22.0%
Stock-Based Comp

$16.7M

Previous: $12.4M+34.3%

Revenue & EPS history

Zai Lab · Revenue · Quarterly

$62.8M

Q1 2023+34.4%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Zai Lab · $48.2M total across 2 segments · Q1 2023

  • ZEJULA
    $42.7M+44.3%
  • NUZYRA
    $5.5M+685.7%

Forward guidance

Zai Lab is focused on strategic priorities including regulatory approvals for efgartigimod, initiating studies for KarXT and bemarituzumab, and advancing its proprietary pipeline.

Tailwinds

  • Potential BLA approval and commercial launch by the NMPA for efgartigimod alfa injection for the treatment of adult patients with gMG in China.
  • Potential BLA submission to the NMPA for SC efgartigimod for the treatment of adult patients with gMG in China in mid-2023.
  • Zai Lab to join the global Phase 3 FORTITUDE-101 study in first-line gastric cancer in China in mid-2023.
  • Zai Lab to join the global Phase 3 FORTITUDE-102 study in first-line gastric cancer in China.
  • Zai Lab to initiate a bridging study for KarXT for the treatment of patients with schizophrenia in China in mid-2023.

Headwinds

  • Risks related to commercializing approved products.
  • Risks associated with obtaining funding for operations.
  • Uncertainties in clinical and pre-clinical development.
  • Potential delays in regulatory approvals.
  • Impact of the COVID-19 pandemic on business 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 2023

Historical avgQ1 2023

-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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