Zymeworks (ZYME) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: N/A
• Average Volume (3M): 767.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 116.21%
• EPS Growth: 43.93%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.26
• Shares Outstanding: 74,836,530
• 10 Day Avg. Volume: 1,105,887
• 30 Day Avg. Volume: 767,304
• PEG Ratio: 1.56
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 14.55
• P/FCF Ratio: -9.82
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 7.89
• Enterprise Value/Gross Profit: 7.89
• Enterprise Value/Ebitda: -19.67
• 1Y Price Target: $35.55
• Price Target Upside: 53.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $254.37M

• Rating: 50 Neutral
• Price Target: $23.00 ▼(-0.69% Downside)

The score is held back mainly by weak profitability and negative operating cash flow, with additional pressure from bearish/oversold technical signals. Offsetting these, the latest earnings call was meaningfully constructive—highlighting milestone-driven revenue growth, promising clinical updates, and a multi-year cash runway—supporting a more neutral overall outcome.

Positive Factors

Partnership-driven business model

Zymeworks’ collaboration model generates non-dilutive milestone and royalty income and accelerates commercial reach via partners. This diversifies funding, lowers standalone development cost, and creates durable revenue streams and validation for its platforms over multiple years.

Pivotal Phase 3 validation for Ziihera

Positive Phase 3 PFS and OS data for zanidatamab (Ziihera) materially de-risks regulatory approval and commercial adoption in HER2 GEA. This validates Zymeworks’ Azymetric platform, strengthens licensing economics, and supports long-term royalty and milestone potential across indications.

Material cash runway

A near-term multi-year cash runway provides time to advance clinical programs and pursue regulatory filings without immediate financing. That runway supports execution on pivotal filings and partner commercialization steps, preserving strategic optionality into 2027.

Negative Factors

Persistent unprofitability and negative operating cash flow

Ongoing negative EBIT and operating cash flow indicate the business has not yet proven sustainable internal cash generation. Over months this forces reliance on partnership milestones, asset monetization or capital markets, constraining reinvestment and strategic flexibility.

Declining cash reserves and cash burn

A material drop in cash over a single year highlights ongoing burn from development expenses. If product revenues or partner milestones don’t accelerate, the company may need to secure funding within the medium term, diluting stakeholders or delaying programs.

Pipeline execution risk from program discontinuation

Terminating ZW171 reduces near-term pipeline breadth and underscores clinical risk inherent to novel biologics. Fewer active programs amplify dependency on lead assets and partners, making long-term growth more sensitive to single-program outcomes and regulatory timelines.

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

Zymeworks shows strong revenue growth and a solid gross profit margin. However, the company struggles with profitability and cash flow management, as indicated by negative net profit and EBIT margins, and negative operating cash flow. The balance sheet is stable with low leverage, but operational inefficiencies need addressing.

Income Statement

Zymeworks shows a significant improvement in revenue growth with a 9.45% increase in the TTM period. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 96.55%, but the high net loss suggests operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.059, indicating conservative leverage. However, the negative return on equity (-24.48%) highlights challenges in generating returns for shareholders. The equity ratio is not provided, but the overall balance sheet suggests stability with low debt levels.

Cash Flow

Zymeworks shows a significant improvement in free cash flow growth (60.49%), but the operating cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in cash management despite ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.48M	76.30M	76.01M	412.48M	26.68M	38.95M
Gross Profit	134.48M	76.30M	-66.98M	412.48M	26.68M	-131.94M
EBITDA	-53.96M	-108.62M	-120.70M	142.49M	-206.09M	-183.76M
Net Income	-63.43M	-122.69M	-118.67M	124.34M	-211.84M	-180.55M
Balance Sheet
Total Assets	397.27M	463.09M	580.88M	648.73M	389.13M	538.38M
Cash, Cash Equivalents and Short-Term Investments	251.93M	225.78M	374.33M	492.23M	252.61M	426.35M
Total Debt	18.90M	18.51M	26.72M	28.11M	32.33M	8.64M
Total Liabilities	77.20M	124.32M	116.07M	155.77M	140.04M	128.45M
Stockholders Equity	320.06M	338.77M	464.81M	492.96M	249.09M	409.92M
Cash Flow
Free Cash Flow	-66.20M	-113.11M	-122.38M	130.98M	-205.74M	-157.67M
Operating Cash Flow	-64.25M	-110.04M	-118.30M	144.11M	-192.45M	-151.40M
Investing Cash Flow	15.08M	38.76M	-207.25M	-53.85M	144.60M	-43.44M
Financing Cash Flow	-8.46M	-20.45M	81.85M	108.58M	8.01M	308.98M

Zymeworks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 23.16 is below the 20-day moving average (MA) of 25.66, below the 50-day MA of 23.95, and above the 200-day MA of 16.35, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.27 is Positive, 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
RCUS	55 Neutral	$2.64B	-6.63	-68.13%	―	-8.75%	-8.79%
NRIX	54 Neutral	$1.86B	-6.38	-65.35%	―	48.32%	-1.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ORIC	51 Neutral	$891.11M	-5.86	-39.73%	―	―	4.29%
ZYME	50 Neutral	$1.75B	―	-18.46%	―	116.21%	43.93%
REPL	48 Neutral	$635.78M	-2.23	-96.24%	―	―	-15.77%
SANA	46 Neutral	$1.22B	-4.84	-96.11%	―	―	31.16%

Zymeworks Corporate Events

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.

Zymeworks Appoints Scott Platshon as Acting CIO

On November 16, 2025, Scott Platshon resigned from Zymeworks‘ board but was appointed as Acting Chief Investment Officer on November 18, 2025. The company announced a strategic initiative to optimize cash flows from its licensed products, including Ziihera, and authorized a $125 million share repurchase program, aiming to fund operations beyond 2028 and enhance shareholder value.

The most recent analyst rating on (ZYME) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Announces Positive Phase 3 Trial Results

On November 17, 2025, Zymeworks Inc. announced positive results from the Phase 3 HERIZON-GEA-01 trial, which evaluated Ziihera (zanidatamab-hrii) in combination with chemotherapy, with or without Tevimbra (tislelizumab), as a first-line treatment for HER2-positive locally advanced or metastatic gastroesophageal adenocarcinoma. The trial demonstrated significant improvements in progression-free survival and overall survival compared to the control arm, supporting Ziihera’s potential as the HER2-targeted agent-of-choice in this indication. These results are expected to lead to a supplemental Biologics License Application submission in the first half of 2026, reinforcing Zymeworks’ strategic partnerships and its position in the oncology market.

The most recent analyst rating on (ZYME) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Reports Strong Q3 2025 Financial Performance

In its third-quarter 2025 update, Zymeworks reported significant progress in its clinical trials and financial performance. The company presented encouraging Phase 1 data for ZW191, an ADC targeting folate receptor-⍺, and dosed the first patient in a Phase 1 trial for ZW251 targeting hepatocellular carcinoma. Zymeworks achieved a $25 million milestone from Johnson & Johnson and earned $1 million in royalties from Jazz and BeOne Medicines. The company also completed $22.7 million in share repurchases, strengthening shareholder value. Financially, Zymeworks reported a revenue increase to $27.6 million, driven by milestone revenues, and reduced its net loss to $19.6 million. With cash resources projected to fund operations into the second half of 2027, Zymeworks continues to focus on its partnership-driven business model and next-generation therapies.

The most recent analyst rating on (ZYME) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.