Zymeworks Inc (ZYME)
NASDAQ:ZYME
Top Page
Zymeworks
(NASDAQ:ZYME)
Select Model
Select Model
Rating:59Neutral
Price Target:
$28.00
▲(2.38% Upside)
Action:ReiteratedDate: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
Phase III clinical validation (zanidatumab)
Robust Phase III survival results strengthen the probability of regulatory approval and commercial uptake under partner-led launches. This durable clinical validation supports near-term milestone triggers and long-term royalty streams, materially improving partner credibility and Zymeworks’ future cash flow profile.
Negative Factors
Weak cash generation and persistent burn
Sustained negative operating and free cash flows mean the business consumes capital absent realized milestones or financing. Large TTM outflows elevate refinancing and runway risk; if milestone receipts or royalty financing are delayed, the company may need dilutive funding or operational cuts that impair long-term R&D and growth programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Phase III clinical validation (zanidatumab)
Robust Phase III survival results strengthen the probability of regulatory approval and commercial uptake under partner-led launches. This durable clinical validation supports near-term milestone triggers and long-term royalty streams, materially improving partner credibility and Zymeworks’ future cash flow profile.
Read all positive factors
Zymeworks (ZYME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend YieldN/A
Average Volume (3M)700.40K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth116.21%
EPS Growth43.93%
CountryUS
Employees299
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.55
Shares Outstanding73,749,600
10 Day Avg. Volume520,239
30 Day Avg. Volume700,396
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)7.39
Price to Sales (P/S)18.72
P/FCF Ratio-57.45
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue18.96
Enterprise Value/Gross Profit19.27
Enterprise Value/Ebitda-22.50
Forecast
1Y Price Target
$39.75Price Target Upside45.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.13
Revenue Forecast (FY)$294.64M
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 Phas...
How the Company Makes Money
Zymeworks makes money primarily through collaboration and licensing arrangements tied to its antibody engineering technologies and partnered drug programs. Under these agreements, revenue can include (1) upfront payments received when a partner li...
Zymeworks Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive clinical and commercial momentum centered on zanidatumab — a Phase III survival result (median PFS >1 year, median OS >2 years), regulatory progress, material near- and longer-term milestone and royalty economics, a $250M nondilutive financing structured to preserve long-term upside, and meaningful revenue growth (~39% y/y) with an improved net loss (≈34% reduction). Management reiterated cost discipline (targeting ~20% lower adjusted operating expense in 2026) and pipeline progress (ZW251 enrolling, INDs on track for 2026). Key risks include reliance on contingent milestone payments for runway, a ~16.5% decline in cash year-over-year, some near-term encumbrance of 30% of zanidatumab royalties to service the note, and remaining clinical/regulatory uncertainties (e.g., next OS interim and multi-year timelines for breast cancer readouts). On balance, the positive clinical validation, revenue/milestone upside, and strategically structured nondilutive financing materially outweigh the risks presented.Positive Updates
HORIZON-GEA-01 Phase III Results — Zanidatumab
Phase III HORIZON-GEA-01 (partners Jazz and BeiGene) showed median progression-free survival >1 year and median overall survival >2 years in first-line metastatic/locally advanced HER2-positive GEA, with benefit across clinically relevant subgroups irrespective of PD-L1. An additional planned interim OS analysis is expected by mid-2026. Jazz plans a supplemental BLA submission (RTOR) in 2026 and zanidatumab has Breakthrough Therapy designation for HER2-positive GEA.
Negative Updates
Reliance on Contingent Milestone Payments for Runway
The stated cash runway beyond 2028 assumes realization of an anticipated $440M regulatory milestone from Jazz and net proceeds from the royalty-backed note. Those inflows are contingent on regulatory outcomes and therefore introduce execution risk into the runway assumptions.
Read all updates
Q4-2025 Updates
Positive
Negative
HORIZON-GEA-01 Phase III Results — Zanidatumab
Phase III HORIZON-GEA-01 (partners Jazz and BeiGene) showed median progression-free survival >1 year and median overall survival >2 years in first-line metastatic/locally advanced HER2-positive GEA, with benefit across clinically relevant subgroups irrespective of PD-L1. An additional planned interim OS analysis is expected by mid-2026. Jazz plans a supplemental BLA submission (RTOR) in 2026 and zanidatumab has Breakthrough Therapy designation for HER2-positive GEA.
Read all positive updates
Company Guidance
Management reiterated near‑term regulatory and financial expectations: Jazz plans a supplemental BLA submission for zanidatumab in 2026 under RTOR with Jazz expecting U.S. approval/launch for first‑line GEA in H2‑2026 and an additional HORIZON‑GEA‑01 median‑OS interim analysis expected mid‑2026 (trial showed median PFS >1 year and median OS >2 years); EMPOWUR‑303 enrollment is expected to complete in 2027 with top‑line data late‑2027/early‑2028. Financially, 2025 revenue was $106.0M (vs $76.3M in 2024), operating expenses $198.5M (vs $213.4M), net loss $81.1M (vs $122.7M), and cash resources were $270.6M as of 12/31/2025 (vs $324.2M a year earlier); the company expects its cash runway to extend beyond 2028 assuming full execution of the $125M repurchase plan (≈$62.5M used to date), anticipated $440M in GEA regulatory milestones, and net proceeds from a $250M non‑recourse Royalty Pharma note (30% of zanidatumab royalties securitized, 70% retained). Management also highlighted additional upside of $89M for a third‑indication approval and up to $977.5M of commercial milestones (≈$1.5B total remaining milestones), tiered royalties from Jazz (10% to high‑teens up to $2B; 20% >$2B) and BeiGene (mid‑single to mid‑double digits up to $1B; 19.5% >$1B), an adjusted gross OpEx framework of ≈$300M over 2026–2028 with 2026 OpEx expected ~20% lower than 2025, and clinical program metrics including ZW251 Phase I (~100 patients, starting dose 3.2 mg/kg, DAR=4) and upcoming ZW191 data updates.Zymeworks Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
70
Positive
Cash Flow
22
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 | -34.53M | -113.11M | -122.38M | 130.98M | -205.74M |
| Operating Cash Flow | -33.01M | -110.04M | -118.30M | 144.11M | -192.45M |
| Investing Cash Flow | 26.66M | 38.76M | -207.25M | -53.85M | 144.60M |
| Financing Cash Flow | -18.56M | -20.45M | 81.85M | 108.58M | 8.01M |
Zymeworks Technical Analysis
Positive
27.35
Price Trends
23.80
Positive
24.30
Positive
19.80
Positive
Market Momentum
0.62
Negative
65.94
Neutral
82.20
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 27.35 is above the 20-day moving average (MA) of 24.49, above the 50-day MA of 23.80, and above the 200-day MA of 19.80, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 82.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZYME.
Zymeworks Risk Analysis
Zymeworks disclosed 70 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $2.03B | -12.03 | -26.00% | ― | 116.21% | 43.93% | |
56 Neutral | $2.92B | -7.25 | -65.77% | ― | -8.75% | -8.79% | |
53 Neutral | $1.68B | -5.04 | -64.21% | ― | 48.32% | -1.91% | |
52 Neutral | $1.04B | -5.55 | -38.79% | ― | ― | 4.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $832.62M | -4.22 | -141.99% | ― | ― | 31.16% | |
44 Neutral | $488.00M | -3.16 | -102.69% | ― | ― | -15.77% |
* Healthcare Sector Average
ZYME
Zymeworks
27.35
17.91
189.72%
RCUS
Arcus Biosciences
23.28
15.78
210.40%
REPL
Replimune Group
5.91
-1.01
-14.60%
ORIC
Oric Pharmaceuticals
10.38
6.07
140.84%
NRIX
Nurix Therapeutics
16.24
7.43
84.34%
SANA
Sana Biotechnology
3.12
1.59
103.92%
Zymeworks Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Zymeworks Monetizes Ziihera Royalties to Boost Liquidity
Positive
Mar 2, 2026
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 ...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Zymeworks Posts Strong 2025 Growth and Bolsters Liquidity
Positive
Mar 2, 2026
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 compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.