10 Overlooked Growth Stocks to Buy Now

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6. Zai Lab Limited (NASDAQ:ZLAB)

Zai Lab Limited (NASDAQ:ZLAB) is one of the overlooked growth stocks to buy now. On April 1, Zai Lab and Amgen (NASDAQ:AMGN) entered into a global clinical trial collaboration to evaluate a combination therapy for extensive-stage small cell lung cancer/ES-SCLC. The study will pair Zai Lab’s zocilurtatug pelitecan (formerly ZL-1310), an antibody-drug conjugate/ADC targeting DLL3, with Amgen’s IMDELLTRA (tarlatamab-dlle), a DLL3-targeting Bispecific T-cell Engager/BiTE.

Amgen will sponsor and lead the global Phase 1b study, while Zai Lab Limited (NASDAQ:ZLAB) maintains full ownership of its ADC and provides the clinical supply. The rationale for this dual-targeting strategy lies in the complementary mechanisms of the two therapies. Zocilurtatug pelitecan is designed to deliver a potent cytotoxic payload directly into DLL3-expressing tumor cells, whereas IMDELLTRA activates the patient’s own T-cells to attack the same antigen. This combination aims to deepen clinical responses, address potential resistance pathways, and provide better intracranial activity for a patient population that currently faces a median survival of only 12 months.

Zocilurtatug pelitecan has already shown a high response rate and a tolerable safety profile in heavily pretreated SCLC patients during Phase 1/2 trials. It uses the TMALIN technology platform to reduce off-target toxicity and has received both FDA Orphan Drug and Fast Track designations. By combining this backbone ADC with the first-ever approved DLL3-targeting bispecific therapy, the companies hope to establish a new treatment paradigm for one of the most aggressive and lethal forms of solid tumors.

Zai Lab Limited (NASDAQ:ZLAB) is a biopharma company that develops and commercializes therapies addressing medical conditions with unmet needs in autoimmune disorders, oncology, infectious diseases, and neuroscience. The company’s products include Zejula, Optune, Qinlock, and Nuzyra.

While we acknowledge the potential of ZLAB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZLAB and that has 100x upside potential, check out our report about the cheapest AI stock.

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