Zymeworks (ZYME) stock rallied 29% on Monday, after the clinical-stage biotechnology company announced positive Phase 3 trial results for its gastric cancer drug Ziihera (zanidatamab-hrii). The results showed that Ziihera has the potential to become the preferred HER2-targeted treatment in first-line gastroesophageal adenocarcinoma (GEA).
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Zymeworks Impresses with Positive Phase 3 Results for Ziihera
Notably, Zymeworks revealed that both Ziihera plus chemotherapy and Ziihera plus BeOne Medicines’ (ONC) (formerly known as BeiGene) Tevimbra (tislelizumab) and chemotherapy showed highly statistically significant and clinically meaningful improvements in progression-free survival (PFS) compared to the control group, which received trastuzumab and chemotherapy.
The company added that, based on these results, its partner, Jazz Pharmaceuticals (JAZZ), intends to submit a supplemental Biologics License Application (BLA) in the first half of 2026. JAZZ stock jumped 20.6% in reaction to the encouraging trial results.
Top Analysts Raise Price Targets for ZYME Stock
Following the news, Leerink analyst Andrew Berens increased the price target for Zymeworks stock to $37 from $24 and reiterated a Buy rating, noting the company’s positive results in the HERIZON-GEA-01 study.
Likewise, LifeSci Capital analyst Charles Zhu increased his price target to $34 from $32 and reaffirmed a Buy rating. The 5-star analyst noted that since the HERIZON-GEA study qualifies for full approval based on “statistically significant” PFS results and a positive OS (overall survival) trend, he believes today’s update greatly increases the chances of approval for zanidatamab plus chemotherapy (with or without tislelizumab) as the first-line treatment for HER2+ GEA. Zhu added that this approval would also unlock major milestone payments.
In particular, Zhu highlighted that Zymeworks could receive up to $1.51 billion in milestone payments plus tiered royalties from Jazz Pharmaceuticals and BeOne Medicines. The analyst added that according to Zymeworks management, most of the $500 million regulatory milestones from Jazz depend on getting the first-line GEA approval in the U.S., European Union, and Japan.
Additionally, Jefferies analyst Akash Tiwari increased his price target for Zymeworks stock to $42 from $30 and reiterated a Buy rating. The 5-star analyst noted that the HERIZON-GEA trial evaluating Ziihera showed efficacy against adenocarcinoma, with the data hitting the company’s “bull case.” Tiwari expects zanidatamab to be standard of care in first-line GEA and sees an expansion opportunity.
Is ZYME a Good Stock to Buy?
With 10 Buys and one Hold recommendation, Wall Street has a Strong Buy consensus rating on Zymeworks stock. The average ZYME stock price target of $30.67 indicates 28.3% upside potential.
