Zai Lab (ZLAB) with a small but unusual trade that caught my eye on 8/29 as 800 December $80/$95 call spreads were bought with shares at $44, a name that sees very little options activity. ZLAB shares are flagging under the falling 200-day moving average and a name that trade above $180 in early 2021. Zai Lab is already a fully integrated and leading biopharma company in China. China is the second largest and a fast-growing pharmaceutical market. ZLAB has a portfolio and pipeline of 28 products, including 11 that were internally developed and have global rights and four that are now marketed. ZLAB is active in therapeutic areas of cancer, autoimmune disorders, infectious diseases, and neurological disorders. ZLAB has a world-class portfolio in GI cancer and lung cancer, the two largest tumor types in China. ZLAB has a $4B market cap and trades 11.6X FY23 EV/Sales with the topline seen growing to $1.24B in 2025 from $144M in 2021, rapid growth. Looking at commentary from the recent earnings call, KarXT had a positive top line data readout, from its Phase III, EMERGENT-2 trial in schizophrenia. ZEJULA posted 46% Y/Y growth. Citi raised its target to $199 in August noting Zai could launch KarXT in the China schizophrenia market in 2025 following completion of bridging work in Chinese patients and ultimately sees KarXT achieving $280M in risk-adjusted peak China sales.