Shares of ZAI LAB (09688) plummeted 7.49% in pre-market trading on Friday following the release of its disappointing third-quarter financial results. The biopharmaceutical company reported a larger-than-expected loss and missed revenue projections, raising concerns among investors about its near-term growth prospects.

ZAI LAB posted a quarterly adjusted loss of 30 cents per share, surpassing the average analyst estimate of a 26-cent loss. This performance also fell short of the company's results from the same quarter last year when it reported a loss of 42 cents per share. Adding to the disappointment, ZAI LAB's revenue came in at $115.36 million, marking a 13.3% increase year-over-year but significantly below the $143.60 million analysts had expected. The company reported a total quarterly loss of $35.96 million.

The weak earnings report comes amid an already challenging year for ZAI LAB. The company's stock has fallen by 26.8% this quarter and has lost 5.3% year-to-date, underperforming the broader market. Despite these setbacks, Wall Street maintains a generally positive outlook on the stock. The current average analyst rating is "buy," with a median 12-month price target of $55.00, representing a potential upside of about 54.9% from its last closing price. However, investors will be closely watching how the company addresses its financial challenges in the coming quarters to regain market confidence.