How did ZLAB's Q1 2024 EPS outperform forecasts?

Zai Lab's (ZLAB) Q1 2024 EPS outperformed forecasts due to strategic product launches and revenue growth, despite missing estimated earnings by a significant margin.

1. **Revenue Growth**: Zai Lab reported a 25% year-over-year increase in product revenue for the full year of 2023, reaching $266.7 million. This growth was driven by successful product launches and increased sales volumes, particularly for key products like ZEJULA and VYVGART.
2. **Product Performance**: ZEJULA, approved for certain ovarian cancer indications, contributed significantly to revenue. VYVGART, used for generalized myasthenia gravis, also made a substantial impact.
3. **Market Penetration**: Inclusion in China's National Reimbursement Drug List (NRDL) for VYVGART and other products enhanced market penetration and drove sales growth.
4. **Clinical Development**: Ongoing clinical trials and data presentations, such as those highlighting ZL-1310, a novel antibody-drug conjugate, indicate a strong pipeline that could sustain future growth.

Despite these positive factors, Zai Lab faced challenges including industry-wide anti-corruption enforcement efforts in China and increased sales rebates to distributors. Additionally, the company's financial performance was impacted by negative impacts from the COVID-19 pandemic.