5 Most Promising Biotech Stocks According to Analysts

1. Zai Lab Limited (NASDAQ:ZLAB)

Number of Hedge Fund Holders: 22

Average Upside Potential as of February 24: 162.73%  

Zai Lab Limited (NASDAQ:ZLAB) was incorporated in 2013 and is headquartered in Shanghai, China. The company develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience primarily in Mainland China and Hong Kong. It is one of the most promising biotechnology stocks to invest in. 

On January 30, Zai Lab Limited (NASDAQ:ZLAB)’s application for a new drug, sulbactam-durlobactam (SUL-DUR), was granted priority review by China’s National Medical Products Administration. The drug is designed to treat infections caused by Acinetobacter baumannii, including multidrug-resistant and carbapenem-resistant (CRAB) strains. Additionally, Innoviva, Inc. (NASDAQ:INVA) has filed an application for the same drug in the United States, which is also under priority review. This designation provides a shortened review period in both countries.

According to Insider Monkey’s fourth quarter database, Zai Lab Limited (NASDAQ:ZLAB) was part of 22 hedge fund portfolios, compared to 24 in the last quarter. Simon Sadler’s Segantii Capital is the largest stakeholder of the company, with 2.4 million shares worth $74.5 million. 

Here is what ClearBridge Investments International Growth ACWI ex-U.S. Strategy has to say about Zai Lab Limited (NASDAQ:ZLAB) in its Q4 2021 investor letter:

“Economies in Asia, meanwhile, are taking the opposite approach on stimulus, with China lowering its reserve requirement ratio for banks to support flagging growth in the world’s second-largest economy. Japan’s new government passed a large stimulus bill after its economy contracted in the third quarter. Despite these actions, sentiment remains decidedly negative in these regions. Our underweight to Japan proved beneficial during the quarter while our single holding in China – biotechnology company Zai Lab – sold off sharply mostly due to generally weak sentiment around Chinese health care stocks.”

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