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Zymeworks Inc (ZYME)
NASDAQ:ZYME
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Zymeworks
(NASDAQ:ZYME)
45Neutral
Positive Factors
Financial resources
ZYME ended with $324MM in cash, which combined with future milestones, provides financial runway into the future.
Regulatory approvals
Potential regulatory decisions in the E.U. and China for zanidatamab are expected, which could be significant value inflection points.
Negative Factors
Stock performance
Shares are down compared to the sector, due to limited internal catalysts and high expectations for zani's Ph3 trial in GEA.
Zymeworks (ZYME) vs. S&P 500 (SPY)
Market Cap
$820.72M
Dividend YieldN/A
Average Volume (3M)498.45K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth0.38%
EPS Growth6.94%
CountryUS
Employees277
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.62
Shares Outstanding69,576,880
10 Day Avg. Volume808,366
30 Day Avg. Volume498,454
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.12
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.86Price Target Upside78.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Zymeworks Business Overview & Revenue Model
Company DescriptionZymeworks, Inc. is a clinical-stage biopharmaceutical company, which engages in the discovery, development and commercialization of biotherapeutics. Its product, ZW25 and ZW49 are a bispecific antibody that cans two non-overlapping epitopes. The company was founded by Anthony Fejes, J. Haig deB Farris, Nick Bedford, Ali Tehrani, and Andrew S. Wright on September 8, 2003 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyZymeworks generates revenue through several key channels, primarily through strategic collaborations and licensing agreements with large pharmaceutical companies. These partnerships often involve upfront payments, milestone payments based on the achievement of development and regulatory goals, and royalties on potential sales of commercialized products. Additionally, Zymeworks may receive government grants and funding for research and development activities. The company's innovative technology platforms and promising pipeline attract interest from major players in the pharmaceutical industry, contributing to its earnings potential.
Zymeworks Financial Statement Overview
Summary
Zymeworks faces substantial financial challenges with consistent losses and negative cash flows. Despite a strong equity position and cash reserves, negative revenue growth and unfavorable profit margins highlight operational inefficiencies. Strategic shifts may be necessary for future profitability and growth.Income Statement
The income statement reveals significant challenges for Zymeworks. The company has experienced negative revenue growth and consistently negative net income, indicating persistent losses. Gross profit margins are also negative, and EBIT and EBITDA margins are unfavorable, highlighting operational inefficiencies. The lack of revenue in the latest reporting period exacerbates these issues.32
Negative
Balance Sheet
The balance sheet shows a strong equity base with a high equity ratio, demonstrating financial stability. However, the debt-to-equity ratio is moderate, and the company has maintained substantial cash reserves, improving liquidity. Despite these positives, the persistent negative net income impacts return on equity, which remains unfavorable.45
Neutral
Cash Flow
Cash flow analysis shows Zymeworks struggling with negative operating and free cash flows, indicating cash burn. The operating cash flow to net income ratio is insightful but negative due to losses. The company has managed investment activities prudently but needs to improve cash generation from operations to ensure long-term viability.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 76.30M | 76.01M | 412.48M | 26.68M | 38.95M | Gross Profit |
| 76.30M | -66.98M | 203.78M | -172.86M | -131.94M | EBIT |
| -137.11M | -138.05M | 130.53M | -215.63M | -187.47M | EBITDA |
| -137.11B | -120.70M | 147.24M | -206.09M | -177.17M | Net Income Common Stockholders |
| -122.69M | -118.67M | 124.34M | -211.84M | -180.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 225.78B | 374.33M | 492.23M | 252.61M | 426.35M | Total Assets |
| 463.09B | 580.88M | 648.73M | 389.13M | 538.38M | Total Debt |
| 18.48B | 26.72M | 28.11M | 32.33M | 8.64M | Net Debt |
| -47.63B | -130.84M | -372.80M | -169.53M | -233.39M | Total Liabilities |
| 124.32B | 116.07M | 155.77M | 140.04M | 128.45M | Stockholders Equity |
| 338.77B | 464.81M | 492.96M | 249.09M | 409.92M |
| Cash Flow | Free Cash Flow | |||
| -110.04B | -122.38M | 130.98M | -205.74M | -157.67M | Operating Cash Flow |
| -110.04B | -118.30M | 144.11M | -192.45M | -151.40M | Investing Cash Flow |
| 38.76B | -207.25M | -53.85M | 144.60M | -43.44M | Financing Cash Flow |
| -20.45B | 81.85M | 108.58M | 8.01M | 308.98M |
Zymeworks Technical Analysis
Negative
11.70
Price Trends
14.02
Negative
14.11
Negative
12.31
Negative
Market Momentum
-0.67
Positive
35.82
Neutral
13.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYME, the sentiment is Negative. The current price of 11.7 is below the 20-day moving average (MA) of 13.44, below the 50-day MA of 14.02, and below the 200-day MA of 12.31, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYME.
Zymeworks Risk Analysis
Zymeworks disclosed 81 risk factors in its most recent earnings report. Zymeworks reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zymeworks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.61B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
45 Neutral | $820.72M | ― | -30.54% | ― | 0.38% | 6.94% | |
42 Neutral | $110.00M | ― | -54.21% | ― | -78.55% | -0.92% | |
38 Underperform | $47.70M | ― | -88.91% | ― | ― | 30.37% |
* Healthcare Sector Average
Performance Comparison
ZYME
Zymeworks
11.70
0.95
8.84%
FATE
Fate Therapeutics
0.96
-6.68
-87.43%
BPMC
Blueprint Medicines
87.76
-2.84
-3.13%
ALXO
ALX Oncology Holdings
0.97
-10.63
-91.64%
Zymeworks Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -11.23% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected significant achievements in regulatory approvals and strategic partnerships, indicating strong progress and an optimistic outlook for Zymeworks. Despite some financial setbacks such as increased net loss and a program discontinuation, the company maintains a solid financial position and continues to innovate across its pipeline.Highlights
Approval of Zanidatamab
Zymeworks reported the approval of zanidatamab, marking a significant milestone in their clinical development strategy.
Strong Partnerships and Milestone Achievements
Zymeworks earned over $45 million from partnerships in the past 12 months, including a $14 million research milestone from GSK and various milestone revenues from Jazz and BeiGene.
Progress in Autoimmune and Inflammatory Diseases
Expansion into autoimmune and inflammatory diseases, highlighting their R&D focus and potential for innovation.
Strong Financial Position
Zymeworks reported $324.2 million in cash resources as of December 31, 2024, providing an expected cash runway into the second half of 2027.
R&D Day Announcements
Nomination of ZW209, a next-generation T cell engager, and ZW1528 for autoimmune and inflammatory diseases, showcasing continued innovation.
Lowlights
Increased Net Loss
Net loss for the year ended December 31, 2024 was $122.7 million, an increase from $118.7 million in 2023, primarily due to a $17.3 million non-cash impairment charge.
Revenue Stagnation
Revenue for the year ended December 31, 2024 was $76.3 million, showing minimal growth from $76 million in 2023.
Discontinuation of Zanidatamab Zovodotin Program
A $17.3 million non-cash impairment charge was recognized due to the discontinuation of the zanidatamab zovodotin clinical development program.
Company Guidance
During the Zymeworks Fourth Quarter and Year-end 2024 Results Conference Call, the company provided detailed guidance on its financial and strategic outlook. Zymeworks reported a net loss of $122.7 million for 2024, an increase from $118.7 million in 2023, mainly due to a $17.3 million non-cash impairment charge. Revenue for 2024 was $76.3 million, driven by milestone revenues from partnerships, including $25 million from Jazz Pharmaceuticals. The company achieved a $14 million research milestone from GSK. Operating expenses remained stable at $213.4 million, with a slight year-over-year increase of 0.3%. Zymeworks ended the year with $324.2 million in cash resources, providing a cash runway into the second half of 2027. The company also highlighted progress in its R&D pipeline, focusing on advancing its wholly-owned therapeutics in oncology and autoimmune diseases, and emphasized its strong global partnerships as key contributors to its strategic growth and innovation.Zymeworks Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Zymeworks Achieves FDA Approval for Ziihera®
Positive
Mar 5, 2025
Zymeworks reported its financial results for the fourth quarter and full year 2024, highlighting significant advancements in its product pipeline, including the initiation of first-in-human studies for ZW191 and ZW171. The company also announced the FDA’s accelerated approval of Ziihera® for HER2-positive biliary tract cancer, marking a major milestone for its partnered product. With a strong cash position and anticipated regulatory milestone payments, Zymeworks projects a cash runway into the second half of 2027, supporting its continued development efforts and strategic partnerships.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.