Zai Lab Stock Has Fallen to Value Levels


Global commercial biotechnology company Zai Lab (NASDAQ: ZLAB) Shares have fallen (-82%) from a 52-week high of $ 178.91. Biotechnology generates revenue from licensing drugs established to be marketed in China, in addition to its own pipeline of drugs for cancer treatment. The drug licensing model to fund its own research has resulted in higher prepayment of fees among declining health care reimbursement rates. This explains why revenues have increased but losses have increased even faster. However, the company has 11 products in the process ranging from psoriasis treatments to lung cancer medications. Zai Lab expects to have 15 products on the market by 2025 and a large number of fundamental studies and clinical results published in 2022. The company has nearly $ 1.3 billion in cash and cash equivalents. Prudent investors seeking exposure in a potential multi-bagger in the space of cancer therapy can watch for opportunistic setbacks in Zai Lab’s actions.



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Publication of results for the first quarter of 2022

On May 10, 2022, Zai Lab released its fiscal results for the first quarter of 2022 for the quarter ending March 2022. The company reported an adjusted loss of earnings per share (EPS) of (- $ 0.86) excluding non-recurring items compared to the analyst consensus estimates for a loss of ($ 1.23), exceeding estimates by $ 0.37. Revenue rose to $ 46.7 million year-over-year (YOY) to $ 45.72 million. Samantha Du, CEO of Zai Lad, commented, “Our first-quarter results reflect Zai’s solid foundation and consistent execution track record, and were marked by progress across the portfolio,” Dr. Samantha Du, founder, president and CEO of Zai. Laboratories. “Today, Zai’s extensive patented portfolio consists of 11 global rights assets. Based on the achievement of last year’s proof of concept for ZL-1102, our anti-IL Humabody® 17A for chronic plaque psoriasis, Zai recently released preclinical data from four key oncology programs at the 2022 AACR annual meeting.With these assets just beginning to enter early clinical trials human and proof-of-concept, we are in the first exciting days to demonstrate Zai’s commitment to its internal discovery and translational research .. And, of course, this patented pipeline complements the advances of our associated pipeline at a later stage, which is expected to produce numerous readings of fundamental studies throughout 2022 ”.

Takeaway calls

CEO Du provided updates on five of the 11 internally developed products with global rights. It updated the 2022 strategic priorities aimed at positioning Zai as a leader in the net wave of biopharmaceutical innovation. The company will file the NDA for efgartigimod in China in mid-2022. The bemarituzumab registration study for first-line gastric cancer in Greater China will begin in mid-2022. first line for KarXT of its EMERGENT-2 phase 3 test for the third quarter of 2022. R&D continues to advance its patented pipeline with global rights, moving ZL-1102 to full development and driving significant growth for the four currently marketed products. in China.

Innovative therapy labels

On June 10, 2022, the National Administration of Medical Products of China awarded two innovative designations for the treatment of Zai Lab repotrectinib for patients with non-small cell lung cancer (NSCLC). The designations returned to phase 1 and 2 of the TRIDENT-1 test. The designation is to treat patients with ROS1-positive metastatic NSCLC who have already received a previous line of ROS1 tyrosine kinase inhibitor and previous treatment with EXP-2. It is also for patients who experience a spread of NSCLC to other parts that test positive for fusions in the ROS1 gene after receiving a previous line of ROS1 TKI without EXP-4, chemotherapy, or immunotherapy.

Zai Lab’s stock has fallen to value levels

Opportunistic withdrawal levels of ZLAB

The use of rifle charts in weekly and daily time periods provides an accurate view of the landscape for ZLAB stock. The weekly rifle chart placed an initial fund close to $ 22.38 Fibonacci level (fib). before organizing a rally. The weekly downtrend has a moving average (MA) of 5 periods down to $ 30.28, followed by the 15-period MA to $ 36.05. Weekly lower Bollinger Bands (BB) bands are at $ 15.41. The weekly stochastic has fallen and stagnated in the band of 20. The weekly Low market structure (MSL) buys activators to break $ 33.86. The downward trend of the daily rifle chart is attempting a reversal of the stochastic rebound towards the band of 20. The 5-period daily MA increases to $ 24.91 and the 15-period MA flattens to $ 27.32 . The 50-period daily MA is at $ 34.58 and the 200-period MA at $ 64.46 with daily BB tops at $ 38.73. Prudent investors can monitor opportunistic withdrawal levels at the level of $ 24.29 fib, $ 22.38 fib, $ 20.47 fib, $ 17.75 fib, $ 16.13 fib, $ 14.29 fib and the $ 12.49 fib level. Rising trajectories range from $ 34.84 fib to the level of $ 48.14 fib.



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