The Chinese-American biopharma company Zai Lab Ltd – ADR (NASDAQ: ZLAB) just rallied to a 16-month high after releasing positive new clinical trial results for its lung cancer treatment drug ZL-1310.
This treatment is utilized for small-cell lung cancer (SCLC) — an aggressive and deadly variation of the disease accounting for 10 to 15 per cent of all cases. Generally speaking, the five-year survival rate for small cell is only about 6.5 per cent.
In this case, the drug is being tested on patients who have already received chemotherapy treatment of no avail.
Through the Phase I study, Zai Lab most notably found that “anti-tumour activity” was observable in 74 per cent of the 19 patients assessed after at least one dose of the drug. Also, it was determined that the intravenous infusion treatment had a favourable pharmacokinetic and safety profile, indicating that further research will be worthwhile.
“Based on the encouraging preliminary findings from our Phase 1 trial, we look forward to continuing development of ZL-1310 and advancing this promising asset across lines of therapy as part of our global oncology pipeline,” President Rafael G. Amado said in a statement.
Results were presented at the EORTC-NCI-AACR Symposium in Barcelona, Spain. This oncology research event is organized by the European Organisation for Research and Treatment of Cancer, the National Cancer Institute and the American Association for Cancer Research.
“The preliminary results from the ongoing Phase 1 trial of ZL-1310 suggest that this next-generation antibody drug conjugate [ADC] therapy has the potential to deliver anti-tumour responses in the majority of patients with extensive-stage SCLC,” American oncologist, Dr. Alex Spira, said in a press release from Zai Lab. “With good tolerability.”
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Financial firms have bullish outlook for Zai Lab
Cantor Fitzgerald reissued its “overweight” rating for Zai Lab on Friday, indicating that the firm believes the stock is valuable.
Moreover, JPMorgan Chase & Co (NYSE: JPM) gave the same rating this week and raised its share target by US$6.00 to US$44.00.
Zai Lab reported a significant increase in its net product revenues during a conference call about its Q2 earnings in August. The biotech company generated over US$100 million during the quarter — a 45 per cent year-over-year spike.
This achievement was substantially linked to success with a drug the company launched last year for the treatment of the muscular disease myasthenia gravis. Namely, Zai Lab’s own variation of Vyvgart (efgartigimod alfa).
rowan@mugglehead.com
