Zai Lab has entered into an agreement to raise approximately $250 million through a private investment in public equity financing, with proceeds primarily earmarked for the global development of its DLL3-targeting antibody-drug conjugate zocilurtatug pelitecan.
The financing is being led by TCGX and includes participation from abrdn World Healthcare Fund, ADAR1 Capital Management, Balyasny Asset Management, Cormorant Asset Management, Frazier Life Sciences, RA Capital Management, RTW Investments, Sirenia Capital Management, Wellington Management, and Woodline Partners.
Under the securities purchase agreement, Zai Lab will sell 11.34 million American Depositary Shares at a purchase price of $22.04 per ADS. Each ADS represents 10 ordinary shares of the company.
The transaction is expected to generate gross proceeds of approximately $250 million before placement agent fees and other offering expenses.
Zai Lab expects the PIPE financing to close on or around October 27, 2026, subject to customary closing conditions.
The company plans to use the net proceeds primarily to support continued global development of zocilurtatug pelitecan, also known as zoci. The investigational antibody-drug conjugate targets Delta-like ligand 3, or DLL3.
The financing provides Zai Lab with additional capital to advance the program while continuing its broader strategy of developing and commercializing therapies across oncology and other areas of significant unmet medical need.
Leerink Partners is serving as the exclusive placement agent for the financing, while Ropes & Gray is acting as legal advisor to Zai Lab.
The ADSs will be issued in a transaction that is not being conducted as a public offering. Zai Lab has agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the ADSs acquired by investors in the private placement.
Zai Lab is a commercial-stage biopharmaceutical company operating in China and the U.S. Its research and development efforts span oncology, immunology, neuroscience, and infectious disease, with a focus on therapies addressing significant unmet medical needs.
