Zymeworks (ZYME) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 590.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 116.21%
• EPS Growth: 43.93%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.55
• Shares Outstanding: 73,749,600
• 10 Day Avg. Volume: 648,491
• 30 Day Avg. Volume: 590,003
• PEG Ratio: 0.73
• Price to Book (P/B): 7.39
• Price to Sales (P/S): 18.72
• P/FCF Ratio: -0.06
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 16.79
• Enterprise Value/Gross Profit: 17.06
• Enterprise Value/Ebitda: -19.92
• 1Y Price Target: $37.86
• Price Target Upside: 52.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $273.05M

• Rating: 59 Neutral
• Price Target: $24.50 ▼(-1.21% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

Overall score reflects a strong earnings-call outlook (clinical validation, regulatory path, improved FY2025 performance, and nondilutive financing) offset by weak underlying financial performance (recent losses and ongoing cash burn) and neutral technicals; valuation remains challenged due to unprofitability (negative P/E).

Positive Factors

Clinical validation & regulatory path

Phase III survival results and a planned RTOR BLA materially de-risk the lead partnered asset. Durable regulatory momentum increases probability and timing of approvals, supports future milestone and royalty flows, and strengthens partner-led commercialization prospects over multi-year horizons.

Partnership economics & milestone upside

Robust milestone and tiered royalty arrangements create long-term, outsized upside without sole commercialization cost. These contractually defined payments diversify revenue sources, provide scalable upside tied to partner sales, and align incentives while preserving Zymeworks' capital efficiency over years.

Nondilutive financing strengthens runway

A $250M non‑recourse royalty-backed financing provides immediate, nondilutive liquidity that extends runway and funds optionality (buybacks, M&A, ops). By securitizing only 30% and retaining 70% of royalties, the deal preserves long-term upside while materially reducing short-term financing pressure through 2042 maturity terms.

Negative Factors

Weak cash generation & sustained burn

Persistent negative operating and free cash flow means the business consumes capital rather than self-funding growth. Over a multi-year horizon this elevates financing risk, increases dependence on partner milestones or financings, and constrains discretionary investment in R&D or commercial expansion if capital inflows delay or underperform.

Runway dependent on contingent milestones

Relying on regulatory and milestone receipts for multi-year runway introduces binary execution risk. Slips or unfavorable outcomes would force alternative financings, spending cuts, or program delays, undermining R&D continuity and commercial preparations and materially affecting long-term strategic plans if milestones don't materialize.

Royalty encumbrance reduces near-term cash

Pledging 30% of a key product's royalties to secure financing reduces near-term royalty receipts even if financing is nondilutive. This limits available cash for reinvestment or bolstering the balance sheet during the repayment period and modestly reduces the company's immediate capture of commercial upside until the encumbrance is cleared.

Zymeworks Business Overview & Revenue Model

Company Description

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company's lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, breast, and colorectal cancer; and ZW49, a biparatopic anti-human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; BeiGene, Ltd.; and Exelixis, Inc. It also has licensing and research collaboration with LEO Pharma A/S to research, develop, and commercialize bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was incorporated in 2003 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Zymeworks generates revenue through a combination of partnerships, collaborations, and licensing agreements with pharmaceutical companies. The company enters into strategic alliances to co-develop its drug candidates, which can result in upfront payments, milestone payments based on the achievement of development and regulatory targets, and royalties on future sales of partnered products. Additionally, Zymeworks may receive funding from government grants or research awards to support its development efforts. The success of its revenue model is bolstered by the therapeutic potential of its proprietary technologies and the strategic relationships it maintains with industry leaders.

Zymeworks Financial Statement Overview

Summary

Financials are mixed: the balance sheet is historically supportive with modest leverage (Balance Sheet Score 70), but profitability has deteriorated sharply with recent large losses and volatile revenue (Income Statement Score 18), and cash generation remains weak with sustained cash burn and very large TTM outflows (Cash Flow Score 22).

Income Statement

Profitability has deteriorated meaningfully: the company moved from strong profitability in 2022 (healthy operating and net margins) to large losses in 2023–2024, and TTM (Trailing-Twelve-Months) remains deeply unprofitable. Revenue has become highly volatile—near-flat in 2024 after a sharp decline in 2023, followed by a negative revenue figure in TTM—making the earnings profile hard to underwrite. The main positive is that gross profit margin is reported as strong in most periods (except 2020 and 2023), but it has not translated into sustainable operating profitability.

Balance Sheet

Leverage appears modest on a debt-to-equity basis across the annual periods (roughly mid-single digits), which is supportive for a biotech business with uneven earnings. However, equity has trended down from 2022 to 2024 alongside ongoing losses, and returns on equity are negative in most years (except 2022), signaling value dilution risk if losses persist. TTM shows unusually large debt alongside relatively small equity, which introduces uncertainty and is a key watch item despite the otherwise conservative historical leverage profile.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are consistently negative in 2020–2021 and again in 2023–2024, with only 2022 showing positive cash generation. While free cash flow broadly tracks net income (often near 1x in magnitude), the business is still consuming cash, and TTM (Trailing-Twelve-Months) cash outflows are extremely large, elevating financing and runway risk. The reported free cash flow growth in TTM is not a quality positive given free cash flow remains materially negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	105.97M	76.30M	76.01M	412.48M	26.68M
Gross Profit	95.17M	76.30M	-66.98M	412.48M	26.68M
EBITDA	7.65B	-108.62M	-120.70M	142.49M	-206.09M
Net Income	-81.13M	-122.69M	-118.67M	124.34M	-211.84M
Balance Sheet
Total Assets	346.53M	463.09M	580.88M	648.73M	389.13M
Cash, Cash Equivalents and Short-Term Investments	228.80M	225.78M	374.33M	492.23M	252.61M
Total Debt	18.27M	18.51M	26.72M	28.11M	32.33M
Total Liabilities	78.03M	124.32M	116.07M	155.77M	140.04M
Stockholders Equity	268.50M	338.77M	464.81M	492.96M	249.09M
Cash Flow
Free Cash Flow	-33.01B	-113.11M	-122.38M	130.98M	-205.74M
Operating Cash Flow	-33.01B	-110.04M	-118.30M	144.11M	-192.45M
Investing Cash Flow	26.66B	38.76M	-207.25M	-53.85M	144.60M
Financing Cash Flow	-18.56B	-20.45M	81.85M	108.58M	8.01M

Zymeworks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYME, the sentiment is Positive. The current price of 24.8 is above the 20-day moving average (MA) of 23.31, above the 50-day MA of 23.95, and above the 200-day MA of 18.38, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 85.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZYME.

Zymeworks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZYME	59 Neutral	$1.84B	-24.45	-26.72%	―	116.21%	43.93%
ORIC	57 Neutral	$1.39B	-5.55	-41.27%	―	―	4.29%
RCUS	56 Neutral	$2.78B	-7.25	-63.26%	―	-8.75%	-8.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NRIX	51 Neutral	$1.57B	-5.54	-49.63%	―	48.32%	-1.91%
REPL	47 Neutral	$581.31M	-3.16	-90.88%	―	―	-15.77%
SANA	46 Neutral	$910.02M	-4.22	-118.70%	―	―	31.16%

Zymeworks Corporate Events

Zymeworks Monetizes Ziihera Royalties to Boost Liquidity

On March 2, 2026, Zymeworks BC Inc., a subsidiary of Zymeworks Inc., sold 30% of its future royalty payments from the HER2-targeted cancer therapy Ziihera under its collaboration agreements with Jazz Pharmaceuticals and BeOne Medicines to a newly formed special purpose partnership for $250 million. The partnership simultaneously entered into a non-recourse, fixed-rate royalty-backed term loan with Royalty Pharma, also for $250 million, secured by that royalty interest and maturing no later than December 31, 2042, with repayment caps that translate to cumulative payments of roughly 1.65x to 1.925x principal, depending on timing.

Zymeworks retains 70% of Ziihera royalties and all regulatory and commercial milestone entitlements, including up to approximately $1.5 billion in potential future milestones, with full royalty rights reverting to the company once Royalty Pharma has received its agreed return. The transaction, which is non-recourse to Zymeworks outside the pledged collateral, strengthens the company’s balance sheet with non-dilutive capital intended to extend its cash runway beyond 2028, support its share repurchase program and provide firepower for strategic acquisitions, while tying Royalty Pharma’s returns to the long-term commercial performance of Ziihera in HER2-positive gastric and biliary tract cancers.

The most recent analyst rating on (ZYME) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Posts Strong 2025 Growth and Bolsters Liquidity

On March 2, 2026, Zymeworks reported that 2025 revenue rose 39% year over year to $106.0 million and its net loss narrowed by 34% to $81.1 million, ending the year with $270.6 million in cash, cash equivalents and marketable securities. The company has used $62.5 million for share repurchases and secured a $250.0 million non-recourse royalty-backed note from Royalty Pharma, pledging only 30% of Ziihera royalties, to fund buybacks, extend its cash runway beyond 2028 and support potential acquisitions, while preserving most future royalty cash flows.

Zymeworks outlined 2026 R&D priorities, including continued Phase 1 studies for ZW191 and ZW251, planned IND submissions for multispecific programs ZW209 and ZW1528, and a strategy to advance next-generation multispecific antibody and engineered-cytokine platforms with help from partnerships. On the partnered side, positive Phase 3 HERIZON-GEA-01 data reported in November 2025 support Ziihera as a potential new first-line standard of care in HER2-positive gastroesophageal adenocarcinoma, triggering a planned U.S. regulatory filing in early 2026, approvals in biliary tract cancer in Canada and the U.K., and positioning Zymeworks to earn up to $440.0 million in GEA-related milestones plus additional payments tied to further indications and tiered global royalties from partner Jazz.

The most recent analyst rating on (ZYME) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Shareholders Back Directors, Executive Pay and Auditor

On December 30, 2025, Zymeworks Inc. held its 2025 annual meeting of stockholders via virtual webcast, with approximately 83.86% of total voting power represented, constituting a quorum. Securityholders elected directors Carlos Campoy, Alessandra Cesano and Robert E. Landry to the board, approved on an advisory basis the compensation of the company’s named executive officers, and ratified the appointment of KPMG LLP as auditor for the fiscal year ending December 31, 2025, signaling broad shareholder support for the company’s current leadership, executive pay practices, and external audit arrangements.

The most recent analyst rating on (ZYME) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.