Zymeworks’ Zanidatamab: Promising Potential in HER2-Positive Cancer Treatment and Strategic Market Positioning Justify Buy Rating

In a report released today, Brian Cheng from J.P. Morgan maintained a Buy rating on Zymeworks (ZYME – Research Report), with a price target of $18.00.

Brian Cheng’s rating is based on the promising potential of Zymeworks’ zanidatamab in outperforming existing treatments for HER2-positive gastric and esophageal cancers. The upcoming pivotal data for zanidatamab, particularly in combination with chemotherapy, is anticipated to surpass the current standard of care, trastuzumab plus chemotherapy, in progression-free survival (PFS). This potential success could significantly enhance Zymeworks’ position in the oncology market by replacing trastuzumab as a key anti-HER2 treatment.
Another factor contributing to the Buy rating is the geographical considerations in the HERIZON trial, which, despite not having U.S. sites, includes a substantial number of Japanese participants who historically perform better in overall survival metrics. Additionally, the strategic partnerships with companies like JAZZ and ONC provide further confidence in Zymeworks’ ability to capitalize on its innovations. Overall, the positive outlook for zanidatamab’s performance and the strategic positioning of the company suggest a favorable movement in Zymeworks’ stock price, justifying the Buy recommendation.

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.