Analyst Andrew Berens of Leerink Partners maintained a Buy rating on Zymeworks, reducing the price target to $24.00.
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Andrew Berens has given his Buy rating due to a combination of factors, primarily focusing on Zymeworks’ strategic decision to discontinue the development of ZW171 and concentrate on their promising pipeline, particularly zanidatamab. Despite the setback with ZW171, the company’s decision to focus on zanidatamab’s pivotal trial for first-line HER2+ gastroesophageal adenocarcinoma (GEA) is seen as a positive move. This program, partnered with Jazz Pharmaceuticals, holds significant potential for revenue, with Zymeworks eligible for substantial royalties and milestone payments.
Furthermore, the potential for zanidatamab to achieve blockbuster status in the GEA market is a key driver of Berens’s optimism. The anticipated readout in the fourth quarter of 2025 could unlock a major revenue stream, with peak sales projected to be significantly higher in GEA compared to other indications. This strategic focus on high-value opportunities, coupled with the company’s robust pipeline, underpins Berens’s Buy rating for Zymeworks.
In another report released yesterday, Bloom Burton also maintained a Buy rating on the stock with a $19.50 price target.