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William Lis, a director at Zai Lab Ltd (NASDAQ:ZLAB), recently sold 15,000 American Depositary Shares (ADS) of the company at a price of $32.98 per share. The transaction comes amid Zai Lab’s strong market performance, with the stock showing a remarkable 60% gain over the past six months and trading near its 52-week high of $36.60. This transaction, which took place on February 28, 2025, was conducted under a Rule 10b5-1 trading plan that Lis adopted on November 20, 2024. Following the sale, Lis retains ownership of 38,089 shares. Each ADS represents ten ordinary shares of Zai Lab, a pharmaceutical company based in Shanghai. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt and shows promising revenue growth prospects for the current year. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in our detailed Pro Research Report, available with an InvestingPro subscription.
In other recent news, Zai Lab has experienced a shift in its stock rating by BofA Securities. The firm downgraded Zai Lab from a Buy to a Neutral rating, while raising the price target from $29.00 to $36.10. This adjustment reflects BofA’s maintained revenue estimates for 2025-26 but an enhanced forecast by over 5% starting from 2027. The downgrade is attributed to the soft performance of Zejula/Optune, which has led to a tempered outlook for near-term growth. However, there is optimism surrounding the sales ramp-up of VYVGART and advancements in Zai Lab’s pipeline, including AUGTYRO for NTRK+ solid tumor indication.
BofA has made changes to its financial models for Zai Lab, including an updated beta and a revised weighted average cost of capital. Despite the downgrade, BofA acknowledges solid progress in Zai Lab’s pipeline, highlighting potential developments for Optune in pancreatic cancer, KarXT, and Bemarituzumab. These recent developments reflect the evolving landscape of Zai Lab’s product offerings and pipeline advancements.
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