Zai Lab misses revenue expectations, shares slip over 2%

Published 07/08/2025, 11:26
 Zai Lab misses revenue expectations, shares slip over 2%

SHANGHAI - Zai Lab Limited (NASDAQ:ZLAB) reported second quarter revenue that fell short of analyst expectations despite 9% year-over-year growth.

The company’s shares were down 2.30% in pre-markey trading following the announcement.

The biopharmaceutical company posted revenue of $110.0 million for the second quarter of 2025, missing the analyst consensus estimate of $124.95 million. However, Zai Lab reported earnings per share of -$0.04, significantly better than the expected -$0.41, representing a 28% year-over-year improvement in operating loss.

VYVGART was a bright spot in the quarter, reaching record patient utilization with sales of $26.5 million, up 46% from the first quarter. Meanwhile, ZEJULA sales declined to $41.0 million from $45.0 million in the same period last year due to "evolving competitive dynamics within the PARPi class," according to the company.

"Zai Lab is entering a pivotal period – defined by innovation, scale and strong execution," said Dr. Samantha Du, Founder, Chairperson, and CEO of Zai Lab. "We are making meaningful progress throughout our business – expanding patient impact, accelerating global innovation, and operating with financial discipline."

Despite the revenue miss, Zai Lab reaffirmed its full-year 2025 revenue guidance of $560-590 million, which aligns with the analyst consensus of $567.7 million. The company also maintained it is on track to achieve profitability in the fourth quarter of 2025.

The company highlighted positive clinical developments, including promising data for its ZL-1310 (DLL3 ADC) treatment, which showed a 67% objective response rate across all doses in second-line small cell lung cancer patients.

Zai Lab ended the quarter with $832.3 million in cash, cash equivalents, and short-term investments, compared to $857.3 million at the end of the first quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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