Zai Lab Seeks Follow-On Offering of $133 Million Ahead of Potential Launch
In response to the announcement, shares in the drug developer slid in after-hours trading Wednesday.
Zai Lab Ltd. (Nasdaq: ZLAB) announced Wednesday evening that it seeks a follow-on public offering, sending its shares lower.
The Shanghai-based developer and distributor of medicines for cancer and infectious diseases said in a statement after markets closed today that it has begun the application process to sell up to 5 million of its American depositary shares. At yesterday's closing price of $26.65 per share, that would bring the offering amount to $133.25 million.
Zai Lab said the underwriters on the deal are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, and SVB Leerink LLC. They will have an option to purchase up to an additional 750,000 ADSs. All ADSs will be offered by the company.
The company ended the day in red on Wall Street Wednesday, dropping more than 2 percent to $26.05 per share. In after-hours, after it announced its follow-up offering, its stock slid an additional 29 cents.
In its financial report for 2018, Zai Lab said it had $263.3 million in cash, cash equivalents, and short-term investments as of Dec. 31. Its research and development expenses reached $120.3 million for all of last year. It had a net loss of $139.1 million, or $2.64 per share, compared with a loss of $50.4 million in 2017.
The Biopharma company reached commercial stage in 2018, launching two drugs, Zejula and Optune, in Hong Kong. Its niraparib's NDA submission is under review in China, according to a March statement. Zai Lab said it anticipates a potential launch in the second half of 2019.