This post was originally published on this site
Investing.com — Zai Lab Ltd (NASDAQ:ZLAB) shares have fallen 18% Wednesday, with JPMorgan saying it is in response to media articles concerning the H.R. 1155 bill, which imposes restrictions related to China’s Xinjiang Uyghur region.
The bill, which has been passed in the House and will go to the Senate, includes the prohibition of certain imports from Xinjiang and imposing sanctions on those responsible for human rights violations, in response to human rights violations.
Biopharmaceutical company Zai Labs is headquartered in Shanghai, China.
JPMorgan analyst Anupam Rama earlier in the day added the stock to the firm’s Analyst Focus List, saying the 50% decline for the year-to-date has created a “valuation disconnect.”
Rama talked with company executives at Zai. The company said it has no reason to believe it will be affected by the bill, which has led the analyst to say that weakness in ZLAB shares is “materially overdone.”
Rama reiterated an overweight rating and $136 price target on the stock.
