FAST NEWS: Zai Lab’s loss narrows on growing revenue

The latest: Biotech company Zai Lab Ltd. (9688.HK; ZLAB.US) announced Wednesday that its loss narrowed 57% to $69.15 million in the third quarter from $161 million a year earlier.

Looking up: The company’s revenue rose 20.3% to $69.23 million for the quarter, led by higher revenue from its core Zejula, Optune and Nuzyra products.

Take Note: The company’s selling, general and administrative expenses increased by 3% to $68.6 million during the quarter, primarily due to an increase in expenses related to new product launches.

Digging Deeper: Zai Lab licenses other companies’ drugs for commercialization in China. But high licensing costs have resulted in greater losses with greater revenue in recent years. To reverse that, the company has started to add more self-developed drugs by boosting its R&D staff and conducting more clinical trials to strengthen its independent drug-development capability. The company announced in March that it plans to launch at least eight additional products by the end of 2025, and is on track to become profitable.

Market Reaction: Zai Lab’s Hong Kong shares jumped on Wednesday, closing up 9.5% at HK$24.10 by the midday break. It currently trades near the lower end of its 52-week range.

Translation by A. Au

Have a great investment idea but don’t know how to spread the word? We can help! Contact us for more details.

To subscribe to Bamboo Works weekly free newsletter, click here