Charles Zhu, an analyst from LifeSci Capital, maintained the Buy rating on Zymeworks. The associated price target was raised to $34.00.
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Charles Zhu has given his Buy rating due to a combination of factors that highlight the potential for significant growth and value in Zymeworks’s stock. The recent announcement of the Phase 3 HERIZON-GEA trial results showed a highly significant and clinically meaningful improvement in progression-free survival (PFS) and overall survival (OS) for certain treatment arms. This achievement suggests a strong possibility for full approval of the zani+chemo combination, which could lead to substantial milestone payments and royalties for Zymeworks.
Moreover, the positive interim OS results, particularly for the zani+chemo+PD-1 combination, were unexpected and provide additional optimism for future outcomes. The safety profile remains consistent with previous findings, and the potential for regulatory milestones, especially with the $500 million tied to approvals across major markets, adds further financial incentives. Given these promising clinical outcomes and financial prospects, Zhu has increased the probability of success for zanidatamab in HER2+ mGEA to 95%, justifying the raised price target to $34.
In another report released today, Citi also maintained a Buy rating on the stock with a $35.00 price target.