Zai Lab's stock plummeted 5.68% in early intraday trading on Friday.
The sharp decline came after the company disclosed its first-quarter financial results. Revenue for the quarter fell 6.5% year-over-year to $99.61 million, missing analyst expectations. The company reported a net loss of $51.02 million, with its adjusted operating loss widening by approximately 40% compared to the prior year period.
Increased spending contributed to the bottom-line pressure, with research and development expenses rising 8% and selling, general, and administrative expenses increasing 4%. The disappointing quarterly performance, characterized by declining revenue and expanding losses, is the primary driver behind the stock's negative price movement at the open.
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