Zai Lab Limited Unsponsored ADR (ZLAB) saw its shares leap by 14.7% in the last trading session, finishing at $33.18. This surge came with heightened trading volume, significantly exceeding typical levels. Over the past month, the stock has experienced a remarkable 42.3% increase.
Positive Drug Trial Outcomes Drive Stock Upwards
The spike in ZLAB’s stock price can be attributed to the company announcing a notable objective response rate of 74% from an ongoing global phase Ia/Ib study. This data was gathered across all tested dose levels of the investigational drug ZL-1310, intended for patients with recurrent extensive-stage small cell lung cancer (SCLC). ZL-1310 is positioned as a next-generation antibody-drug conjugate, and initial findings suggest it is generally safe and well-tolerated, with most side effects reported as mild to moderate. Encouraged by these results, Zai Lab plans to proceed with evaluations of ZL-1310, both as a standalone treatment and in combination therapy for SCLC.
Upcoming Earnings Report: What to Expect
Analysts anticipate that Zai Lab will report a quarterly loss of $0.74 per share, which reflects a year-over-year decline of 4.2%. On the upside, revenues are projected to reach $103.54 million, marking a significant 49.6% increase from the same quarter last year.
Market Movements and Estimates
While growth in earnings and revenue is vital, research suggests a strong link between earnings estimate changes and short-term stock price shifts. For Zai Lab Limited, the consensus estimate for earnings per share (EPS) has been revised downward by 3.7% in the past month. Historically, such negative revisions often do not lead to stock price increases. Investors should monitor ZLAB closely to determine whether this recent surge can be sustained.
Current Stock Position and Industry Context
Presently, Zai Lab holds a Zacks Rank of #3 (Hold). In the same industry, Adma Biologics (ADMA) finished its last trading session up 1.7% at $15.96, although ADMA has declined by 19.5% over the past month.
For Adma Biologics, the EPS estimate for the upcoming report remains steady at $0.13, representing a remarkable 1200% increase compared to the same period last year. Adma Biologics also shares a Zacks Rank of #3 (Hold).
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