Zai Lab (09688) shares are soaring 5.23% in Friday's trading session following the release of its annual financial results. The biopharmaceutical company's stock performance is drawing investor attention despite reporting a significant net loss for the fiscal year.

According to the company's financial report, Zai Lab's net product revenue increased to $397.6 million for the fiscal year. This substantial growth in revenue appears to be the primary driver behind the stock's positive movement, as investors focus on the company's expanding market presence and product adoption.

However, it's worth noting that Zai Lab also reported a net loss of $257.1 million for the same period. The market's positive reaction suggests that investors are prioritizing the revenue growth over the current profitability, potentially viewing the losses as a necessary investment in the company's future growth. This optimistic outlook likely stems from expectations of continued revenue expansion and a path to profitability as Zai Lab's product portfolio matures in the competitive biopharmaceutical market.