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Zymeworks Inc (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 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
$15.00
▼(-15.45% Downside)
Zymeworks' strong revenue growth and positive earnings call sentiment are offset by profitability challenges and cash flow issues. The technical analysis shows a bullish trend, but valuation remains a concern due to negative earnings.
Positive Factors
Revenue Growth
Zymeworks' significant revenue growth indicates strong demand and successful execution of its business model, enhancing its market position.
Regulatory Approvals
Regulatory approvals expand market access and potential royalties, strengthening Zymeworks' competitive advantage and revenue potential.
Partnership Success
Strong partnerships provide financial stability and access to resources, enhancing Zymeworks' ability to advance its pipeline and sustain growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues can hinder reinvestment in R&D and limit strategic flexibility, impacting long-term growth prospects.
Cash Flow Issues
Negative cash flows may constrain operational capabilities and necessitate additional funding, affecting financial stability and growth.
Product Development Challenges
Discontinuation of ZW171 reflects challenges in product development, potentially impacting the pipeline's breadth and future revenue streams.

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

Zymeworks Business Overview & Revenue Model

Company DescriptionZymeworks 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 MoneyZymeworks generates revenue primarily through a combination of collaboration agreements, licensing deals, and milestone payments from its pharmaceutical partners. The company partners with larger biopharmaceutical firms to co-develop drugs, receiving upfront payments and potential royalties on future sales. Additionally, Zymeworks may receive milestone payments upon the achievement of specific development and regulatory benchmarks. The revenue model is thus heavily reliant on successful partnerships and the advancement of its therapeutic candidates through clinical trials.

Zymeworks Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful regulatory approvals, and promising advancements in the clinical and preclinical pipeline, supported by robust partnerships. However, there were concerns about reduced revenue in specific areas and ongoing cash burn. Additionally, questions about potential delays in the HERIZON-GEA-01 study results were raised.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Total revenue was $48.7 million in Q2 2025 compared to $19.2 million in Q2 2024, primarily due to milestone payments and increased royalty revenues.
Zanidatamab Progress
Zanidatamab received conditional regulatory approvals in China and Europe for second-line HER2-positive biliary tract cancer, expanding international patient access and potential future royalties.
Expansion in Clinical Programs
IND clearance of ZW251, the second TOPO1 ADC candidate, was announced for the treatment of HCC, marking it as the third active Phase I trial in 2025.
Clinical and Preclinical Pipeline Developments
ZW171 and ZW191 are progressing in Phase I studies, and ZW1528 is being developed for COPD with promising preclinical data.
Partnership Success
Partnerships with companies like Jazz and J&J are generating milestones and royalties, contributing significantly to revenue.
Financial Health
Cash resources increased to $333.4 million as of June 30, 2025, ensuring funding for planned operations into the second half of 2027.
R&D Pipeline Momentum
Strong momentum observed in R&D pipeline, particularly with IND clearance of ZW251 and promising preclinical data for ZW1528.
Negative Updates
Reduced Revenue from Development Support
There was a reduction in development support and drug supply revenue from Jazz and other nonrecurring milestones compared to the second quarter of 2024.
Continued Cash Burn
Despite revenue increases, ongoing R&D expenses and cash burn remain challenges as the company advances its pipeline.
Delay Concerns
Questions were raised regarding the timing of the HERIZON-GEA-01 study results, which are now expected in Q4 2025, causing some concern about possible delays.
Company Guidance
During the Zymeworks Second Quarter 2025 Results Conference Call, several key metrics and updates were provided. The company reported a significant increase in total revenue, reaching $48.7 million, compared to $19.2 million in the same period of 2024. This increase was largely attributed to a $20 million milestone payment from BeOne and the recognition of $18.3 million in deferred revenue. Operating expenses decreased by 20% to $49.4 million, with net income reaching $2.3 million, a substantial improvement from a net loss of $37.7 million the previous year. As of June 30, 2025, Zymeworks' cash resources stood at $333.4 million, up from $324.2 million at the end of 2024. The company anticipates that its cash resources will fund operations into the second half of 2027. Key developments included IND clearance for ZW251, progress in the Phase I trials of ZW171 and ZW191, and conditional approvals for zanidatamab in China and Europe, which are expected to increase royalty revenues in the coming years.

Zymeworks Financial Statement Overview

Summary
Zymeworks is experiencing financial challenges with inconsistent revenue growth and persistent losses. Despite a strong equity position, the company faces cash flow pressures and operational inefficiencies.
Income Statement
45
Neutral
Zymeworks has experienced significant volatility in its revenue and profitability. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 90.5%, but the net profit margin is negative at -121.7%, indicating substantial net losses. Revenue growth has been inconsistent, with a notable decline from 2022 to 2023, although there was recovery in 2024. EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.
Balance Sheet
60
Neutral
The balance sheet reveals a stable equity base with an equity ratio of 76.4% in TTM, which indicates strong capitalization. However, the debt-to-equity ratio is low at 0.057, suggesting limited leverage use. Return on equity is negative due to net losses, pointing to inefficiencies in generating shareholder value.
Cash Flow
40
Negative
Cash flow analysis shows negative free cash flow in TTM, indicating cash burn. The operating cash flow to net income ratio is 0.65, suggesting cash flow challenges but better than net income. Free cash flow remains negative, affecting the company's ability to fund operations without external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.87M76.30M76.01M412.48M26.68M38.95M
Gross Profit116.52M65.11M-66.98M203.78M-172.86M-131.94M
EBITDA-60.80M-105.42M-120.70M147.24M-206.09M-177.17M
Net Income-73.67M-122.69M-118.67M124.34M-211.84M-180.55M
Balance Sheet
Total Assets408.38M463.09M580.88M648.73M389.13M538.38M
Cash, Cash Equivalents and Short-Term Investments281.38M225.78M374.33M492.23M252.61M426.35M
Total Debt18.68M18.51M26.72M28.11M32.33M8.64M
Total Liabilities73.88M124.32M116.07M155.77M140.04M128.45M
Stockholders Equity334.51M338.77M464.81M492.96M249.09M409.92M
Cash Flow
Free Cash Flow-68.51B-113.11M-122.38M130.98M-205.74M-157.67M
Operating Cash Flow-68.51B-110.04M-118.30M144.11M-192.45M-151.40M
Investing Cash Flow86.97M38.76M-207.25M-53.85M144.60M-43.44M
Financing Cash Flow-20.99M-20.45M81.85M108.58M8.01M308.98M

Zymeworks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.74
Price Trends
50DMA
16.17
Positive
100DMA
14.59
Positive
200DMA
13.65
Positive
Market Momentum
MACD
0.52
Positive
RSI
58.00
Neutral
STOCH
14.60
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 17.74 is above the 20-day moving average (MA) of 17.55, above the 50-day MA of 16.17, and above the 200-day MA of 13.65, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZYME.

Zymeworks Risk Analysis

Zymeworks disclosed 72 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
60
Neutral
$1.34B-19.89%95.94%35.69%
54
Neutral
$1.79B-50.34%6.07%-2.28%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
$817.27M-65.35%48.32%-1.91%
43
Neutral
$1.17B-43.82%-7.33%
42
Neutral
$647.86M-73.44%-1.07%
33
Underperform
$1.45B-109.12%7.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZYME
Zymeworks
17.74
4.81
37.20%
RCUS
Arcus Biosciences
17.31
0.99
6.07%
REPL
Replimune Group
8.80
-2.93
-24.98%
ORIC
Oric Pharmaceuticals
13.10
4.95
60.74%
NRIX
Nurix Therapeutics
11.09
-15.18
-57.78%
SANA
Sana Biotechnology
5.59
1.83
48.67%

Zymeworks Corporate Events

Business Operations and StrategyFinancial Disclosures
Zymeworks to Announce Q3 2025 Financial Results and Host Conference Call
Neutral
Oct 16, 2025

Zymeworks Inc. announced it will report its third quarter 2025 financial results on November 6, 2025, followed by a conference call and webcast to discuss the results and provide a corporate update. This announcement highlights the company’s ongoing efforts to advance its pipeline of therapeutic candidates and maintain transparency with stakeholders, potentially impacting its market position and investor confidence.

The most recent analyst rating on (ZYME) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Zymeworks Presents Promising Phase 1 Data for ZW191 at International Conference
Positive
Oct 13, 2025

Zymeworks announced the presentation of preliminary data from its Phase 1 trial of ZW191, an antibody-drug conjugate targeting folate receptor-⍺, at an international cancer conference. The data highlights ZW191’s potential in treating advanced solid tumors, including ovarian and lung cancers, and supports the company’s broader ADC portfolio. This development underscores Zymeworks’ commitment to advancing differentiated therapies for challenging cancers, potentially impacting its market positioning and offering new treatment options for patients.

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.

Business Operations and StrategyExecutive/Board Changes
Zymeworks Appoints New Acting Chief Development Officer to Boost Therapeutic Advancements
Positive
Oct 9, 2025

Zymeworks Inc. has appointed Dr. Adam Schayowitz as Acting Chief Development Officer to further advance its portfolio of therapeutic candidates and strengthen strategic partnerships. Dr. Schayowitz, with extensive experience in oncology drug development, will work closely with Zymeworks’ R&D and Business Development teams to accelerate the company’s efforts in bringing innovative therapies to market, enhancing its industry positioning and potential impact on patients worldwide.

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.

Business Operations and StrategyProduct-Related Announcements
Zymeworks Discontinues ZW171 Development Amidst Strategic Pipeline Focus
Negative
Sep 2, 2025

Zymeworks Inc. has announced the discontinuation of the clinical development of ZW171, a T cell engager targeting mesothelin-driven cancers, due to an unfavorable benefit-risk profile observed during the Phase 1 trial. Despite this setback, Zymeworks remains committed to advancing its broader product pipeline, including the ongoing trials for ZW191 and the upcoming trials for ZW251 and ZW209, reflecting the company’s disciplined approach to resource allocation and its focus on candidates with the greatest potential impact.

The most recent analyst rating on (ZYME) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Business Operations and Strategy
Zymeworks to Engage in Key Investor Conferences
Positive
Aug 19, 2025

Zymeworks Inc. announced its participation in several upcoming investor conferences, where management will engage in one-on-one meetings and fireside chats. These events provide an opportunity for Zymeworks to showcase its advancements and strategic initiatives, potentially enhancing its visibility and investor relations within the biotechnology sector.

The most recent analyst rating on (ZYME) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Earnings Call: Revenue Surge and Strategic Gains
Aug 13, 2025

The recent earnings call for Zymeworks showcased a robust financial performance, marked by a significant increase in revenue and a return to net income. The company’s strategic partnerships and clinical advancements have reinforced a positive business momentum, although there are some concerns regarding supply chain planning and the timing of clinical readouts.

Business Operations and StrategyExecutive/Board Changes
Zymeworks Strengthens Leadership with New Board Appointments
Positive
Aug 11, 2025

Zymeworks Inc. has announced the appointment of Greg Ciongoli and Robert E. Landry to its Board of Directors, enhancing its leadership with their extensive financial and strategic expertise. This move comes as Zymeworks advances its development programs and regulatory approvals, positioning the company for significant growth and value creation in the biotechnology sector. The appointments are expected to support Zymeworks’ long-term strategy and commitment to delivering innovative therapies to patients globally.

The most recent analyst rating on (ZYME) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Reports Strong Q2 2025 Financial Performance
Aug 8, 2025

Zymeworks Inc. is a clinical-stage biotechnology company focused on developing multifunctional biotherapeutics for challenging diseases such as cancer, inflammation, and autoimmune conditions. In its second-quarter 2025 earnings report, Zymeworks announced significant progress in its strategic partnerships and drug development pipeline, alongside a notable increase in revenue. The company reported $48.7 million in revenue for the quarter, driven by milestone achievements and existing partnerships, marking a substantial increase from the previous year. Zymeworks’ cash resources stood at $333.4 million, providing a runway into the second half of 2027. Key developments include the FDA clearance for ZW251 and international approvals for zanidatamab, enhancing patient access globally. The company also highlighted its strategic focus on leveraging its Azymetric platform and partnerships to drive long-term growth. Looking ahead, Zymeworks remains committed to advancing its R&D programs and strategic partnerships to enhance shareholder value and improve patient outcomes.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Zymeworks Reports Q2 Results and FDA Clearance
Positive
Aug 7, 2025

On August 7, 2025, Zymeworks Inc. reported its second quarter financial results, highlighting a revenue of $48.7 million and a cash reserve of $333.4 million as of June 30, 2025. The company announced the FDA clearance of an IND application for ZW251, with first-in-human studies planned for 2025, and noted international approvals for zanidatamab in biliary tract cancer. These developments, along with strategic partnerships, are expected to enhance Zymeworks’ long-term business strategy and financial stability.

The most recent analyst rating on (ZYME) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Zymeworks’ ZW251 Receives FDA Clearance for Clinical Trials in Liver Cancer
Positive
Jul 28, 2025

Zymeworks has announced the FDA clearance of its investigational new drug application for ZW251, a novel glypican-3-targeted antibody-drug conjugate (ADC) designed to treat hepatocellular carcinoma (HCC). This marks the second ADC from Zymeworks’ pipeline to progress into clinical development, highlighting the company’s confidence in its proprietary topoisomerase 1 inhibitor payload. Preclinical studies have shown promising anti-tumor activity and tolerability, with Phase 1 clinical trials expected to begin in 2025. The advancement of ZW251 underscores Zymeworks’ commitment to developing innovative treatments for challenging diseases and could potentially improve the standard of care for HCC patients.

The most recent analyst rating on (ZYME) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

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: Oct 23, 2025