Zymeworks (ZYME)
NASDAQ:ZYME
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Zymeworks
(NASDAQ:ZYME)
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Rating:51Neutral
Price Target:
$24.00
▼(-13.67% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak financial performance (persistent losses and significant cash burn, with revenue volatility) and bearish technical momentum. This is partially offset by a more constructive fundamental outlook from the latest earnings call and related corporate actions that improved liquidity and highlighted near-term regulatory catalysts and potential milestone upside.
Positive Factors
Clinical pipeline efficacy (ZW191)
Robust early efficacy signals in heavily pretreated ovarian and endometrial cohorts demonstrate Zymeworks' ability to generate clinically meaningful ADC activity. Durable response rates support the asset's standalone commercial potential or attractive partnering value, improving long‑term revenue optionality beyond near‑term milestone timing.
Negative Factors
Persistent negative cash flow
Sustained negative operating and free cash flow indicates the core business is cash‑consuming and reliant on external funding or milestone monetization. Over the next several quarters this elevates financing risk, constrains investment flexibility, and increases the company's dependence on milestone timing or strategic transactions to avoid dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Clinical pipeline efficacy (ZW191)
Robust early efficacy signals in heavily pretreated ovarian and endometrial cohorts demonstrate Zymeworks' ability to generate clinically meaningful ADC activity. Durable response rates support the asset's standalone commercial potential or attractive partnering value, improving long‑term revenue optionality beyond near‑term milestone timing.
Read all positive factors
Zymeworks (ZYME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.88B
Dividend YieldN/A
Average Volume (3M)621.88K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-12.98%
EPS Growth8.99%
CountryUS
Employees299
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.37
Shares Outstanding73,023,060
10 Day Avg. Volume674,208
30 Day Avg. Volume621,876
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-119.60
Enterprise Value/Revenue-2.77K
Enterprise Value/Gross Profit-2.94K
Enterprise Value/Ebitda2.03K
Forecast
1Y Price Target
$39.89Price Target Upside43.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.57
Revenue Forecast (FY)$309.60M
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:May 07, 2026
(Q1-2026)
| % 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
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
18
Very Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 81.26M | 105.97M | 76.30M | 76.01M | 412.48M | 26.68M |
| Gross Profit | 76.72M | 105.97M | 76.30M | -66.98M | 412.48M | 26.68M |
| EBITDA | -111.25M | -81.42M | -108.62M | -120.70M | 142.49M | -206.09M |
| Net Income | -102.66M | -81.13M | -122.69M | -118.67M | 124.34M | -211.84M |
Balance Sheet | ||||||
| Total Assets | 478.21B | 346.53M | 463.09M | 580.88M | 648.73M | 389.13M |
| Cash, Cash Equivalents and Short-Term Investments | 364.73B | 228.80M | 225.78M | 374.33M | 492.23M | 252.61M |
| Total Debt | 17.04B | 18.27M | 18.51M | 26.72M | 28.11M | 32.33M |
| Total Liabilities | 314.63B | 78.03M | 124.32M | 116.07M | 155.77M | 140.04M |
| Stockholders Equity | 163.59B | 268.50M | 338.77M | 464.81M | 492.96M | 249.09M |
Cash Flow | ||||||
| Free Cash Flow | -45.75B | -34.53M | -113.11M | -122.38M | 130.98M | -205.74M |
| Operating Cash Flow | -45.75B | -33.01M | -110.04M | -118.30M | 144.11M | -192.45M |
| Investing Cash Flow | 69.97B | 26.66M | 38.76M | -207.25M | -53.85M | 144.60M |
| Financing Cash Flow | 178.77B | -18.56M | -20.45M | 81.85M | 108.58M | 8.01M |
Zymeworks Technical Analysis
Positive
27.80
Price Trends
25.72
Negative
24.71
Positive
21.92
Positive
Market Momentum
-0.45
Positive
50.52
Neutral
78.26
Neutral
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 25.74, above the 50-day MA of 25.72, and above the 200-day MA of 21.92, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.26 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
55 Neutral | $2.95B | -5.29 | -68.97% | ― | 67.38% | 24.05% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.88B | -10.58 | -0.25% | ― | -12.98% | 8.99% | |
46 Neutral | $861.27M | -9.34 | -35.33% | ― | ― | 23.91% | |
46 Neutral | $1.81B | -5.04 | -64.21% | ― | 27.23% | -12.53% | |
43 Neutral | $405.43M | -3.16 | -102.69% | ― | ― | -13.96% | |
43 Neutral | $854.36M | -4.22 | -161.87% | ― | ― | -6.15% |
* Healthcare Sector Average
ZYME
Zymeworks
25.61
14.07
121.92%
RCUS
Arcus Biosciences
23.43
14.40
159.47%
REPL
Replimune Group
4.91
-3.44
-41.20%
ORIC
Oric Pharmaceuticals
8.32
1.97
31.02%
NRIX
Nurix Therapeutics
17.50
7.73
79.12%
SANA
Sana Biotechnology
3.07
1.07
53.50%
Zymeworks Corporate Events
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...
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.