Zai Lab to raise $250 million for drug development

Zai Lab has entered into an agreement to raise approximately $250 million through a private placement of 11.34 million American depositary shares (ADSs). The financing is expected to generate roughly $241 million in net proceeds after expenses.

The company intends to direct the majority of these funds toward the global development of zocilurtatug pelitecan, also known as zoci. This investigational antibody-drug conjugate targets Delta-like ligand 3 (DLL3) and is being developed for oncology and other areas of unmet medical need.

The placement is being led by TCGX, with participation from several institutional investors including abrdn World Healthcare Fund, ADAR1 Capital Management, Balyasny Asset Management, Cormorant Asset Management, Frazier Life Sciences, RA Capital Management, RTW Investments, Sirenia Capital Management LP, Wellington Management, and Woodline Partners. Leerink Partners is serving as the exclusive placement agent.