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Zymeworks
(NASDAQ:ZYME)
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Rating:52Neutral
Price Target:
$29.00
▲(26.86% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial performance (volatile and sharply lower revenue, persistent losses, and negative operating/free cash flow). Offsetting this, the earnings call and corporate events highlight meaningful near-term regulatory catalysts with sizable potential milestones, a stronger cash position, and a pending acquisition aimed at adding recurring cash flows. Technicals are neutral-to-soft and valuation is constrained by negative earnings and no dividend yield.
Positive Factors
Strong Cash Position
The materially higher cash balance provides Zymeworks with a meaningful development runway and reduces near-term financing pressure. Management expects available funds, together with milestone receipts, to support operations beyond 2028.
Negative Factors
Volatile Revenue and Losses
The sharp revenue contraction and widening loss show that earnings remain dependent on irregular collaboration payments rather than recurring product revenue. Persistent operating losses could constrain strategic flexibility if expected milestones are delayed or missed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Position
The materially higher cash balance provides Zymeworks with a meaningful development runway and reduces near-term financing pressure. Management expects available funds, together with milestone receipts, to support operations beyond 2028.
Read all positive factors
Zymeworks (ZYME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend YieldN/A
Average Volume (3M)550.54K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-69.78%
EPS Growth-106.07%
CountryUS
Employees231
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.02
Shares Outstanding70,959,240
10 Day Avg. Volume388,506
30 Day Avg. Volume550,539
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$40.33Price Target Upside76.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.26
Revenue Forecast (FY)$298.07M
Zymeworks Business Overview & Revenue Model
Company Description
Zymeworks Inc. is a biopharmaceutical firm in the clinical development phase, dedicated to identifying, advancing, and bringing to market biological therapies aimed at combating cancer. Its pipeline features two primary experimental treatments: za...
How the Company Makes Money
Zymeworks generates revenue primarily through (1) collaboration and licensing arrangements and (2) any product-related income tied to partnered or out-licensed programs, typically structured as upfront payments, research funding or reimbursement, ...
Zymeworks Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but cautiously constructive picture: strong scientific and clinical progress (notably the zanatumab regulatory milestones, compelling ZW191 Phase 1 efficacy signals, and an advancing pan‑RAS ADC preclinical platform) and a materially improved cash balance supported by active buybacks and potential milestone upside. Offsetting this, near‑term GAAP performance showed a sharp revenue decline (‑91.1% YoY) and a widened net loss (≈+95.6%), and the company remains dependent on partner milestones and exposed to ex‑U.S. pricing pressures. Pipeline timing risks (e.g., ZW1528 delayed to 2027) and the need for partnerships to scale certain programs temper the near‑term outlook, but management presented credible funding and strategic plans tied to milestones and disciplined capital allocation.Positive Updates
Near-term Regulatory Catalysts for Zanatumab
PDUFA date set for 08/25/2026 in first-line GEA (U.S.) and sBLA filing completed in China, creating visible near-term commercialization pathway with partners Jazz and BeiGene and potential for meaningful milestone and royalty revenue.
Negative Updates
Sharp Revenue Decline Year-over-Year
Total revenue of $2.4M for Q1 2026 versus $27.1M in Q1 2025, a decline of approximately 91.1% YoY driven primarily by nonrecurring clinical milestones in 2025 and lower development support and drug supply revenue from Jazz.
Read all updates
Q1-2026 Updates
Positive
Negative
Near-term Regulatory Catalysts for Zanatumab
PDUFA date set for 08/25/2026 in first-line GEA (U.S.) and sBLA filing completed in China, creating visible near-term commercialization pathway with partners Jazz and BeiGene and potential for meaningful milestone and royalty revenue.
Read all positive updates
Company Guidance
The company reiterated near-term regulatory and operational milestones, including a U.S. PDUFA date of 08/25/2026 and an sBLA filing in China for first-line GEA, with near-term approval-triggered milestone payments of $250.0 million (U.S.) and $15.0 million (China) and management citing $440.0 million of anticipated regulatory milestones (U.S./EU/Japan/China) that, together with $403.8 million of cash, cash equivalents and marketable securities as of 03/31/2026 (up from $270.6 million on 12/31/2025), they expect to fund operations beyond 2028 assuming full execution of the $125.0 million repurchase plan; Q1 2026 revenue was $2.4 million versus $27.1 million a year ago, operating expenses were $49.5 million (Q1 2026) versus $52.7 million, and net loss was $44.2 million versus $22.6 million, while share repurchases have used ~$95.8 million of the $125.0 million program to buy ~3.93 million shares at an average $24.37 (total repurchases since 2024 ~ $155.8M for ~8.3M shares at ~$18.70, >10% of shares), leaving ~73 million common shares outstanding; clinical and R&D guidance included ZW191 dose‑optimization (≈60‑patient cohort fully enrolled) with median follow‑up ~7 months, ovarian ORR 56% (>=30% shrinkage in 68%, any shrinkage in 85%, DCR 94%) and at 6.4–9.6 mg/kg ORR 61% with disease control in all patients, endometrial ORR 40% (>=30% shrinkage in 50%, any shrinkage in 70%, DCR 80%) rising to ORR 57% at 6.4–9.6 mg/kg, responses seen from 3.2 mg/kg, ZW1528 IND now guided to 2027 (vs prior 2026), pan‑RAS ADC preclinical program delivered >117 novel inhibitors, three candidate ADCs (ZW439, ZW427, ZW418) were presented at AACR, DAR‑8 format was used, and the lead RAS ADC showed NHP tolerability with no body‑weight, skin or GI toxicity up to 120 mg/kg; additional data cadence was guided toward oncology meetings in 2026 (including ESMO GYN in June).Zymeworks Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
62
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.13M | 105.97M | 76.30M | 76.01M | 412.48M | 26.68M |
| Gross Profit | 32.59M | 105.97M | 76.30M | -66.98M | 412.48M | 26.68M |
| EBITDA | -139.93M | -68.64M | -108.62M | -120.70M | 142.49M | -206.09M |
| Net Income | -149.99M | -81.13M | -122.69M | -118.67M | 124.34M | -211.84M |
Balance Sheet | ||||||
| Total Assets | 396.96M | 346.53M | 463.09M | 580.88M | 648.73M | 389.13M |
| Cash, Cash Equivalents and Short-Term Investments | 270.70M | 228.80M | 225.78M | 374.33M | 492.23M | 252.61M |
| Total Debt | 268.64M | 18.27M | 18.51M | 26.72M | 28.11M | 32.33M |
| Total Liabilities | 316.60M | 78.03M | 124.32M | 116.07M | 155.77M | 140.04M |
| Stockholders Equity | 80.37M | 268.50M | 338.77M | 464.81M | 492.96M | 249.09M |
Cash Flow | ||||||
| Free Cash Flow | -120.04M | -34.53M | -113.11M | -122.38M | 130.98M | -205.74M |
| Operating Cash Flow | -119.06M | -33.01M | -110.04M | -118.30M | 144.11M | -192.45M |
| Investing Cash Flow | 92.50M | 26.66M | 38.76M | -207.25M | -53.85M | 144.60M |
| Financing Cash Flow | 107.53M | -18.56M | -20.45M | 81.85M | 108.58M | 8.01M |
Zymeworks Technical Analysis
Positive
22.86
Price Trends
24.32
Positive
25.09
Positive
24.46
Positive
Market Momentum
0.87
Negative
71.47
Negative
85.41
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 22.86 is below the 20-day moving average (MA) of 24.26, below the 50-day MA of 24.32, and below the 200-day MA of 24.46, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 71.47 is Negative, 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 Risk Analysis
Zymeworks disclosed 73 risk factors in its most recent earnings report. Zymeworks reported the most risks in the "Finance & Corporate" 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 |
|---|---|---|---|---|---|---|---|
58 Neutral | $1.71B | -66.37 | 442.91% | ― | 107.73% | 82.33% | |
57 Neutral | $2.07B | -12.81 | -28.66% | ― | -28.56% | 10.25% | |
56 Neutral | $1.65B | -5.29 | -29.99% | ― | 1495.93% | 53.66% | |
56 Neutral | $3.67B | -20.96 | -17.49% | ― | 101.28% | 2.49% | |
52 Neutral | $2.05B | -14.19 | -0.74% | ― | -69.78% | -106.07% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | $2.07B | -15.21 | -26.51% | ― | ― | ― |
* Healthcare Sector Average
ZYME
Zymeworks
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96.77%
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Zymeworks Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Zymeworks Posts Strong Q2 Results, Highlights Growth Catalysts
Positive
Aug 6, 2026
Zymeworks reported its second quarter 2026 results on August 6, 2026, highlighting a strong cash position of $322.5 million and ongoing share repurchases totaling $49.4 million under its 2026 program, as it continues its transition into a diversif...
Business Operations and StrategyM&A Transactions
Zymeworks to Acquire Theravance in Strategic Merger
Positive
Jun 29, 2026
On June 28, 2026, Zymeworks Inc. agreed to acquire Theravance Biopharma, Inc. through a merger in which Theravance will become a wholly owned subsidiary, with Theravance shareholders receiving $17 in cash per share plus a contingent value right ti...
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.