Analyst Charles Zhu from LifeSci Capital maintained a Buy rating on Zymeworks (ZYME – Research Report) and keeping the price target at $30.00.
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Charles Zhu has given his Buy rating due to a combination of factors surrounding Zymeworks’ recent achievements and future potential. The conditional approval of Zanidatamab in China has triggered a significant $20 million milestone payment, which is a positive indicator of the company’s financial health and strategic progress. Additionally, Zymeworks stands to gain substantial royalties from net sales through its partnership with BeOne Medicines, further strengthening its revenue streams.
Looking ahead, Zymeworks is poised to benefit from up to $144 million in additional development and commercial milestones from BeOne Medicines, as well as significant regulatory and commercial milestones from Jazz Pharmaceuticals. The promising results from Zanidatamab in various clinical trials, particularly in breast cancer and gastric cancer, suggest a strong competitive advantage over existing treatments. These developments, coupled with the anticipated expansion opportunities in the HERIZON-GEA indication, underscore the potential for Zymeworks to achieve superior efficacy in its targeted therapies, justifying the Buy rating.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ZYME in relation to earlier this year.