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 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$20.00
▲(7.99% Upside)
Zymeworks' overall stock score is driven by strong revenue growth and promising clinical data, which are offset by profitability challenges and cash flow issues. The technical indicators suggest positive momentum, but valuation remains a concern due to negative earnings. The earnings call provided a positive sentiment, but highlighted some risks, including program discontinuation and cash burn.
Positive Factors
Revenue Growth
Significant revenue growth indicates strong market demand and successful partnerships, enhancing long-term financial stability.
Promising Clinical Data
Positive clinical data supports potential market success and strengthens Zymeworks' competitive position in oncology therapeutics.
Strong Financial Position
Robust cash reserves provide operational security and enable continued investment in R&D and strategic initiatives.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder long-term sustainability and limit reinvestment capabilities.
Cash Flow Management
Negative cash flow highlights operational inefficiencies and could impact the company's ability to fund future growth.
Program Discontinuation
Ending the ZW171 program may reduce future revenue streams and reflects challenges in product development.

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 through a combination of partnerships, collaborations, and licensing agreements with pharmaceutical companies. The company enters into strategic alliances to co-develop its drug candidates, which can result in upfront payments, milestone payments based on the achievement of development and regulatory targets, and royalties on future sales of partnered products. Additionally, Zymeworks may receive funding from government grants or research awards to support its development efforts. The success of its revenue model is bolstered by the therapeutic potential of its proprietary technologies and the strategic relationships it maintains with industry leaders.

Zymeworks Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a mix of strong revenue growth and promising clinical data that suggest a positive outlook for Zymeworks. However, the discontinuation of a key program and the decrease in cash reserves present challenges. The sentiment is largely buoyed by the revenue increase and positive clinical trial results.
Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for Q3 2025 was $27.6 million, up from $16 million in Q3 2024, primarily due to a $25 million milestone from J&J related to pasritamig's clinical progress.
Promising Clinical Data for ZW191
ZW191 showed encouraging Phase I data with a high objective response rate of 64% in certain doses and a favorable safety profile, supporting its potential as a best-in-class folate receptor alpha directed ADC.
Strong Financial Position
Despite a net loss of $19.6 million, the company maintains $299.4 million in cash and anticipates funding operations until the second half of 2027.
Progress in Partnered Programs
Milestone revenue recognition from partnerships and strong performance in partnered programs, such as the collaboration with J&J and trials with Jazz, highlight the strength of Zymeworks' collaborations.
Negative Updates
Discontinuation of ZW171
The development of ZW171 was discontinued due to not meeting internal thresholds for benefit-risk profiles as a monotherapy despite potential for mesothelin-directed therapies.
Decrease in Cash and Cash Equivalents
Cash resources decreased from $324.2 million at the end of 2024 to $299.4 million as of September 30, 2025, indicating ongoing cash burn.
Company Guidance
During the third quarter of 2025, Zymeworks reported significant financial and clinical progress. The company recognized a $25 million development milestone from its collaboration with Johnson & Johnson, contributing to a total revenue of $27.6 million, a substantial increase from $16 million in the same period of 2024. Operating expenses slightly decreased by 1% to $49.7 million, and the net loss narrowed to $19.6 million from $29.9 million the previous year. Clinically, Zymeworks made strides with its Phase I programs, dosing the first patient in the ZW251 trial and presenting promising initial data for ZW191, showing a 64% objective response rate in certain patient groups. The company also continued its share repurchase program, completing $22.7 million of the remaining $30 million, reflecting confidence in its long-term outlook. As of September 30, 2025, Zymeworks held $299.4 million in cash and equivalents, with expectations to fund operations into the second half of 2027.

Zymeworks Financial Statement Overview

Summary
Zymeworks shows strong revenue growth but struggles with profitability and cash flow. The balance sheet is stable with low leverage, but negative returns on equity and cash flow issues indicate financial instability.
Income Statement
45
Neutral
Zymeworks has shown significant revenue growth of 31.57% in the TTM, indicating a positive trajectory. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 94.83%, but the high operating losses are a concern.
Balance Sheet
55
Neutral
The company maintains a low debt-to-equity ratio of 0.056, suggesting low leverage and financial stability. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is healthy, indicating a strong capital structure.
Cash Flow
40
Negative
Zymeworks faces challenges with negative operating and free cash flows, and a declining free cash flow growth rate. The operating cash flow to net income ratio is extremely negative, highlighting cash flow issues. However, the free cash flow to net income ratio is close to 1, suggesting some alignment between cash flow and accounting profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue134.48M76.30M76.01M412.48M26.68M38.95M
Gross Profit134.48M76.30M-66.98M412.48M26.68M-131.94M
EBITDA-53.96M-108.62M-120.70M142.49M-206.09M-183.76M
Net Income-63.43M-122.69M-118.67M124.34M-211.84M-180.55M
Balance Sheet
Total Assets397.27M463.09M580.88M648.73M389.13M538.38M
Cash, Cash Equivalents and Short-Term Investments251.93M225.78M374.33M492.23M252.61M426.35M
Total Debt18.90M18.51M26.72M28.11M32.33M8.64M
Total Liabilities77.20M124.32M116.07M155.77M140.04M128.45M
Stockholders Equity320.06M338.77M464.81M492.96M249.09M409.92M
Cash Flow
Free Cash Flow-66.20M-113.11M-122.38M130.98M-205.74M-157.67M
Operating Cash Flow-64.25M-110.04M-118.30M144.11M-192.45M-151.40M
Investing Cash Flow15.08M38.76M-207.25M-53.85M144.60M-43.44M
Financing Cash Flow-8.46M-20.45M81.85M108.58M8.01M308.98M

Zymeworks Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.52
Price Trends
50DMA
17.40
Positive
100DMA
15.49
Positive
200DMA
13.98
Positive
Market Momentum
MACD
0.35
Positive
RSI
53.08
Neutral
STOCH
67.04
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 18.52 is above the 20-day moving average (MA) of 18.40, above the 50-day MA of 17.40, and above the 200-day MA of 13.98, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 67.04 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 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
56
Neutral
$2.47B-68.13%-8.75%-8.79%
54
Neutral
$1.46B-18.46%116.21%43.93%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
$1.23B-65.35%48.32%-1.91%
43
Neutral
$1.21B-39.73%-7.33%
42
Neutral
$709.13M-96.24%-15.77%
33
Underperform
$1.08B-96.11%31.16%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZYME
Zymeworks
18.52
3.61
24.21%
RCUS
Arcus Biosciences
20.07
5.64
39.09%
REPL
Replimune Group
8.99
-1.78
-16.53%
ORIC
Oric Pharmaceuticals
12.25
3.69
43.11%
NRIX
Nurix Therapeutics
12.80
-8.99
-41.26%
SANA
Sana Biotechnology
3.99
1.65
70.51%

Zymeworks Corporate Events

Zymeworks’ Earnings Call: Revenue Soars Amid Challenges
Nov 8, 2025

In the recent earnings call, Zymeworks presented a mixed yet optimistic outlook. The company showcased strong revenue growth and promising clinical data, suggesting a positive future trajectory. However, challenges such as the discontinuation of a key program and a decrease in cash reserves were also highlighted. Overall, the sentiment was largely positive, driven by increased revenue and encouraging clinical trial results.

Zymeworks Reports Q3 2025 Progress and Financials
Nov 7, 2025

Zymeworks Inc., a clinical-stage biotechnology company, focuses on developing novel biotherapeutics for diseases like cancer, inflammation, and autoimmune conditions. In its third quarter of 2025, Zymeworks reported significant progress with its antibody-drug conjugate (ADC) platform, including encouraging Phase 1 data for ZW191 and the commencement of a clinical trial for ZW251. The company also achieved a $25 million development milestone from Johnson & Johnson and earned $1 million in royalties from Jazz and BeOne Medicines. Financially, Zymeworks reported a revenue increase to $27.6 million, driven by milestone achievements, although it still faced a net loss of $19.6 million. Despite this, the company completed $22.7 million in share repurchases, reflecting confidence in its long-term growth. Looking ahead, Zymeworks aims to leverage its strategic partnerships and robust pipeline to drive sustainable growth and shareholder returns, with a projected cash runway extending into the second half of 2027.

Business Operations and StrategyStock BuybackFinancial Disclosures
Zymeworks Reports Strong Q3 2025 Financial Performance
Positive
Nov 6, 2025

In its third-quarter 2025 update, Zymeworks reported significant progress in its clinical trials and financial performance. The company presented encouraging Phase 1 data for ZW191, an ADC targeting folate receptor-⍺, and dosed the first patient in a Phase 1 trial for ZW251 targeting hepatocellular carcinoma. Zymeworks achieved a $25 million milestone from Johnson & Johnson and earned $1 million in royalties from Jazz and BeOne Medicines. The company also completed $22.7 million in share repurchases, strengthening shareholder value. Financially, Zymeworks reported a revenue increase to $27.6 million, driven by milestone revenues, and reduced its net loss to $19.6 million. With cash resources projected to fund operations into the second half of 2027, Zymeworks continues to focus on its partnership-driven business model and next-generation therapies.

The most recent analyst rating on (ZYME) stock is a Hold with a $20.00 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 with Investors at Key Conferences
Positive
Oct 28, 2025

Zymeworks Inc. announced its participation in upcoming investor conferences, including the Stifel Healthcare Conference in New York and the Jefferies London Healthcare Conference. These engagements reflect Zymeworks’ proactive approach to investor relations and its commitment to advancing its pipeline of innovative biotherapeutics. The company’s participation in these conferences is likely to enhance its visibility in the biotechnology sector and provide opportunities to discuss its strategic initiatives and recent developments with potential investors.

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 StrategyProduct-Related Announcements
Zymeworks Reports Promising Phase 1 Results for ZW191 in Cancer Treatment
Positive
Oct 23, 2025

Zymeworks announced promising preliminary results from its Phase 1 trial of ZW191, an antibody-drug conjugate targeting folate receptor-alpha, at the AACR-NCI-EORTC Conference. The study showed a 64% overall response rate in gynecological cancers at doses of 6.4mg/kg and above, with a manageable safety profile, indicating potential for ZW191 in treating advanced solid tumors. The company plans to initiate dose optimization in ovarian cancer by the fourth quarter of 2025, aiming to further evaluate clinical activity and safety, which could enhance its positioning in the cancer treatment market.

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 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.

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: Nov 13, 2025