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Zai Lab Ltd·4

Mar 10, 4:08 PM ET

Du Ying 4

Research Summary

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Updated

Zai Lab CEO Du Ying Exercises Options, Sells 100,000 ADS

What Happened

  • Du Ying, Chairperson, CEO and a director of Zai Lab (ZLAB), exercised stock options to acquire 100,000 ADS (reported as ADS; 1 ADS = 10 ordinary shares) and immediately sold those 100,000 ADS in open-market trades. The exercises were recorded at $1.74 per ADS (total exercise cost ≈ $174,000). The sales raised approximately $1,922,400 in aggregate (50,000 ADS sold on 2026-03-06 at a weighted avg ≈ $19.4187; 50,000 ADS sold on 2026-03-09 at a weighted avg ≈ $19.0293).
  • The filing also shows two derivative-disposal entries at $0.00, which reflect conversion/cancellation of the underlying options upon exercise. These option grants vested in equal annual installments over five years beginning August 25, 2017 (footnote F5).

Key Details

  • Transaction dates and prices:
    • 2026-03-06: Exercised 50,000 ADS @ $1.74 (acquired, $87,000) and sold 50,000 ADS (weighted avg sale price $19.4187; range $19.04–$19.68; gross ≈ $970,935).
    • 2026-03-09: Exercised 50,000 ADS @ $1.74 (acquired, $87,000) and sold 50,000 ADS (weighted avg sale price $19.0293; range $18.78–$19.25; gross ≈ $951,465).
  • Total: 100,000 ADS exercised (total cost ≈ $174,000) and 100,000 ADS sold (total proceeds ≈ $1,922,400).
  • Shares owned after transaction: Not disclosed in the provided filing excerpt.
  • Notable footnotes:
    • F1: ADS are reported (1 ADS = 10 ordinary shares).
    • F2: Transactions were made pursuant to a Rule 10b5-1 trading plan adopted Nov 11, 2025.
    • F3/F4: Provide weighted-average sale prices and price ranges for the two sale groups.
    • F5: Vesting schedule for the options (annual over five years beginning Aug 25, 2017).
  • Filing: Form 4 filed March 10, 2026, reporting transactions on March 6 and March 9, 2026.

Context

  • This sequence (exercise of options followed by immediate open-market sales) is common when insiders exercise vested options and sell shares to cover exercise costs and taxes; it is often reported as an exercise (code M) plus a sale (code S).
  • The sales were executed under a pre-established 10b5-1 plan (footnote F2), which indicates the trades followed a predetermined program rather than ad-hoc timing by the insider.