Zymeworks’ Promising Clinical Developments and Strategic Positioning Justify Buy Rating

Stifel Nicolaus analyst Stephen Willey has maintained their bullish stance on ZYME stock, giving a Buy rating on May 30.

Stephen Willey has given his Buy rating due to a combination of factors that highlight Zymeworks’ promising developments and strategic positioning. The updated results from the Phase 2 trial of zanidatamab combined with chemotherapy in first-line HER2-positive gastric and esophageal adenocarcinoma (GEA) patients have shown impressive median overall survival rates, which bolster confidence in the ongoing Phase 3 HERIZON-GEA-01 trial. This data suggests zanidatamab’s potential superiority over the current standard-of-care, trastuzumab, in this patient population.
Furthermore, Zymeworks’ economic interest in JNJ’s pasritamig, a promising bispecific T-cell engager for metastatic castration-resistant prostate cancer (mCRPC), adds to the company’s growth prospects. The preliminary safety and efficacy data of pasritamig, including a notable median radiographic progression-free survival, indicate potential future milestones and royalties for Zymeworks. These factors collectively support the Buy rating, reflecting confidence in Zymeworks’ ability to navigate competitive landscapes and achieve significant clinical and financial milestones.

According to TipRanks, Willey is a 2-star analyst with an average return of 0.5% and a 37.45% success rate. Willey covers the Healthcare sector, focusing on stocks such as Abeona Therapeutics, Zymeworks, and Nurix Therapeutics.

In another report released on May 30, J.P. Morgan also maintained a Buy rating on the stock with a $18.00 price target.