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Zymeworks (ZYME)
NASDAQ:ZYME
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Zymeworks (ZYME) AI Stock Analysis

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ZYME

Zymeworks

(NASDAQ:ZYME)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
$27.00
▼(-2.88% Downside)
Action:Reiterated
Date:06/29/26
The score is held back primarily by weak financial performance (persistent losses and heavy cash burn) and limited support from standard valuation metrics (negative P/E and no dividend yield). Offsetting factors include a neutral technical picture and a more positive earnings-call backdrop driven by upcoming regulatory catalysts and potential milestone funding, albeit with execution and partner-dependence risks.
Positive Factors
Improved cash runway and milestone visibility
A materially stronger cash balance plus management’s cited $440M of anticipated regulatory milestones extends the firm’s runway through 2028 under base assumptions. This materially reduces near-term financing risk, allows sustained R&D and dealmaking capacity, and supports multi-year execution of clinical programs.
Negative Factors
Persistent negative operating cash flow and deep cash burn
Sustained negative operating and free cash flow implies ongoing funding needs absent material revenue inflection. Over multiple years this pressure can force dilutive financing, constrain R&D choices, or necessitate asset sales/partnerships, making long-term program execution contingent on external financing or milestone realization.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash runway and milestone visibility
A materially stronger cash balance plus management’s cited $440M of anticipated regulatory milestones extends the firm’s runway through 2028 under base assumptions. This materially reduces near-term financing risk, allows sustained R&D and dealmaking capacity, and supports multi-year execution of clinical programs.
Read all positive factors

Zymeworks (ZYME) vs. SPDR S&P 500 ETF (SPY)

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)
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% Change Since: |
Next Earnings Date:Jul 30, 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
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
Weak profitability and cash generation drive the score down: revenue is materially lower in the TTM period and results have been persistently loss-making with deeply negative margins, alongside deeply negative operating cash flow/free cash flow indicating ongoing cash burn. Offsetting this somewhat, annual balance-sheet leverage appears modest (low debt-to-equity), providing some financial flexibility, though negative ROE and the noted inconsistency in TTM balance-sheet figures reduce confidence.
Income Statement
18
Very Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue81.26M105.97M76.30M76.01M412.48M26.68M
Gross Profit76.72M105.97M76.30M-66.98M412.48M26.68M
EBITDA-94.32M-68.64M-108.62M-120.70M142.49M-206.09M
Net Income-102.66M-81.13M-122.69M-118.67M124.34M-211.84M
Balance Sheet
Total Assets478.21M346.53M463.09M580.88M648.73M389.13M
Cash, Cash Equivalents and Short-Term Investments364.73M228.80M225.78M374.33M492.23M252.61M
Total Debt17.04M18.27M18.51M26.72M28.11M32.33M
Total Liabilities314.63M78.03M124.32M116.07M155.77M140.04M
Stockholders Equity163.59M268.50M338.77M464.81M492.96M249.09M
Cash Flow
Free Cash Flow-76.90M-34.53M-113.11M-122.38M130.98M-205.74M
Operating Cash Flow-75.04M-33.01M-110.04M-118.30M144.11M-192.45M
Investing Cash Flow84.17M26.66M38.76M-207.25M-53.85M144.60M
Financing Cash Flow158.87M-18.56M-20.45M81.85M108.58M8.01M

Zymeworks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.80
Price Trends
50DMA
24.85
Positive
100DMA
25.00
Positive
200DMA
23.49
Positive
Market Momentum
MACD
0.57
Negative
RSI
55.24
Neutral
STOCH
85.54
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 27.8 is above the 20-day moving average (MA) of 24.56, above the 50-day MA of 24.85, and above the 200-day MA of 23.49, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$2.55B-6.62-64.21%-58.40%-31.99%
56
Neutral
$3.77B-9.17-68.97%67.38%24.05%
53
Neutral
$1.99B-18.82-37.79%-12.98%8.99%
52
Neutral
$932.63M-3.26-102.69%-9.27%
52
Neutral
$1.13B-7.46-35.33%23.91%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
$1.09B-4.11-161.87%-6.15%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZYME
Zymeworks
25.88
12.54
94.00%
RCUS
Arcus Biosciences
28.92
19.59
209.97%
REPL
Replimune Group
10.99
0.02
0.18%
ORIC
Oric Pharmaceuticals
10.85
-0.25
-2.25%
NRIX
Nurix Therapeutics
23.06
10.62
85.37%
SANA
Sana Biotechnology
3.85
-0.33
-7.89%

Zymeworks Corporate Events

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...
Business Operations and StrategyStock BuybackFinancial Disclosures
Zymeworks Authorizes 2026 Share Repurchase Program, Affirms Liquidity
Positive
May 14, 2026
On May 14, 2026, Zymeworks Inc. announced that its board had authorized a new 2026 share repurchase program allowing the company to buy back up to $125 million of its common stock, while terminating the prior 2025 authorization after repurchasing ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Zymeworks Reports Q1 2026 Results and Pipeline Progress
Positive
May 7, 2026
On May 7, 2026, Zymeworks reported first-quarter 2026 results and a corporate update, highlighting $403.8 million in cash, cash equivalents and marketable securities as of March 31, 2026, and noting it has deployed $95.8 million under a $125 milli...
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.Date of analysis: Jun 29, 2026