Zymeworks Inc. (ZYME) | Investment Case

1. Company Snapshot

1.a. 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 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.

Show Full description

1.b. Last Insights on ZYME

Zymeworks' recent performance has been positively driven by encouraging developments. The company reported a narrower-than-expected Q3 loss and provided an update on its pipeline, including encouraging Phase 1 data on ZW191. Additionally, Zymeworks achieved a $25.0 million development milestone from Johnson & Johnson Innovative Medicine and earned $1.0 million in royalties. A share repurchase program was completed, with $22.7 million in shares bought back. Zacks upgraded the stock to a Strong Buy, citing growing optimism about earnings prospects.

1.c. Company Highlights

Last Price	26.69
Change Percentage	0.64%
Open	26.68
Previous Close	26.52
Market Cap ( Millions)	2007
Volume	541008
Year High	28.49
Year Low	9.03
M A 50	19.78
M A 200	14.67

FCF Yield	-1135.17%
Dividend Yield	0.00%
ROE	-24.48%
Debt / Equity	5.91%
Net Debt / EBIDTA	207.42%
Price To Book	0.01
Price Earnings Ratio	-0.1
Price To FCF	-0.09
Price To sales	18.78
EV / EBITDA	1.98

2. Zymeworks' Q3 2025 Earnings: A Strong Milestone-Driven Performance

Zymeworks reported a significant increase in total revenue to $27.6 million for the third quarter of 2025, up from $16 million in the same period in 2024, primarily driven by a $25 million non-refundable milestone from Johnson & Johnson related to the clinical progress of pasritamig. The company's operating expenses decreased by 1% to $49.7 million, resulting in a net loss of $19.6 million, compared to a net loss of $29.9 million in the third quarter of 2024. The actual EPS came out at '-0.26', beating estimates at '-0.3'. Analysts estimate next year's revenue growth at 82.9%.

Publication Date: Nov -23

                                    📋 Highlights
                                    Revenue Surge::
                                                Total revenue jumped to $27.6M (up from $16M YoY), driven by $25M in milestone payments from J&J and $1M in royalties.
Net Loss Narrowing::
                                                Net loss reduced to $19.6M (vs. $29.9M in Q3 2024) despite $49.7M in operating expenses (-1% YoY).
Strong Cash Reserves::
                                                $299.4M in cash/cash equivalents as of Sept. 2025, projected to fund operations through mid-2027.
Pipeline Advancements::
                                                ZW191 (FRA ADC) showed promising Phase I safety/efficacy, while ZW251 (GPC3 ADC) initiated Phase I and reported favorable safety profiles.
Strategic Share Repurchases::
                                                $22.7M repurchased under buyback program, signaling leadership confidence and commitment to shareholder value.

                                

Financial Performance and Cash Position

The company's cash, cash equivalents, and marketable securities stood at $299.4 million as of September 30, 2025, expected to fund planned operations through the second half of 2027. Zymeworks completed share repurchases of $22.7 million under its authorized program, reflecting the leadership team's confidence in the company's outlook. With a P/S Ratio of 16.91 and an EV/EBITDA of 1.99, the market seems to be pricing in significant growth expectations.

Pipeline Progress and Partnerships

The company's pipeline continues to advance, with encouraging initial Phase I data from the ZW191 trial, showing a favorable safety profile and promising antitumor activity. ZW251, another ADC candidate, has dosed its first patient in a Phase I trial. Partnerships continue to provide encouraging data, with Jazz presenting updates on zanidatamab and J&J presenting findings on pasritamig. The CEO is optimistic about the upcoming top-line data from the HERIZON-G01 study on zanidatamab, expected to be practice-changing in its patient population.

Valuation and Growth Expectations

Given the significant revenue growth expected by analysts for next year, the current valuation metrics may be justified if the company continues to progress its pipeline and secure milestones from its partnerships. The P/E Ratio stands at -0.09, and the ROE is -24.48%, indicating that the company is still in a growth phase, investing heavily in its pipeline. As Zymeworks continues to advance its portfolio and leverage its partnerships, the market will be watching closely for updates on its pipeline programs and potential milestones.

Future Outlook

Zymeworks will have multiple catalyst events on its pipeline and plans to continue leveraging partnerships to bring in external capital and accelerate development. The company recently made changes to its Board of Directors and appointed Dr. Adam Schayowitz as acting Chief Development Officer to strengthen its partnership-driven strategy. The company's focus on creating a therapeutic window and developing effective treatments for challenging cancers is expected to drive its growth in the coming years.

3. NewsRoom

Zymeworks Inc. (ZYME) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

Zymeworks Announces Participation in Upcoming Conferences

Dec -02

Source: globenewswire.com

Critical Review: Acerus Pharmaceuticals (OTCMKTS:ASPCF) vs. Zymeworks (NASDAQ:ZYME)

Dec -02

Source: defenseworld.net

Zymeworks Announces Participation in Upcoming Investor Conferences

Nov -24

Source: globenewswire.com

Zymeworks: Adjusting My Levels After Ziihera's Phase III Data For GEA

Nov -21

Source: seekingalpha.com

Zymeworks: A Lot Of Moving Parts

Nov -19

Source: seekingalpha.com

Zymeworks Inc. (ZYME) Shareholder/Analyst Call Transcript

Nov -18

Source: seekingalpha.com

Zymeworks Appoints Scott Platshon as Acting Chief Investment Officer

Nov -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.55%)

6. Segments

Multifunctional Biotherapeutics

Expected Growth: 10.55%

Zymeworks' multifunctional biotherapeutics growth is driven by increasing adoption in oncology and immune-mediated diseases, strong pipeline of bispecific and multispecific antibodies, strategic partnerships, and expanding research in novel targets and indications, leveraging its Azymetric and EFECT platforms.

7. Detailed Products

Zanidatamab

A bispecific antibody targeting HER2-expressing cancers, including breast, gastric, and lung cancers.

ZW49

A bispecific antibody targeting HER2-expressing cancers, including breast, gastric, and lung cancers.

Azymetric Platform

A proprietary platform for the discovery and development of bispecific and multispecific antibodies.

EFECT Platform

A proprietary platform for the discovery and development of antibody-drug conjugates (ADCs).

8. Zymeworks Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zymeworks Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for cancer and other diseases.

Bargaining Power Of Customers

Zymeworks Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Zymeworks Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials and services.

Threat Of New Entrants

Zymeworks Inc. has a high threat of new entrants due to the growing demand for cancer therapies and the increasing investment in biotechnology research and development.

Intensity Of Rivalry

Zymeworks Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	5.44%
Debt Cost	3.95%
Equity Weight	94.56%
Equity Cost	9.66%
WACC	9.35%
Leverage	5.75%

11. Quality Control: Zymeworks Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Xeris Biopharma

A-Score: 5.2/10

Value: 6.2

Growth: 7.1

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Zymeworks

A-Score: 4.8/10

Value: 6.4

Growth: 5.3

Quality: 4.8

Yield: 0.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

MannKind

A-Score: 4.0/10

Value: 3.2

Growth: 8.7

Quality: 7.1

Yield: 0.0

Momentum: 2.0

Volatility: 3.0

1-Year Total Return ->

Actinium Pharmaceuticals

A-Score: 3.7/10

Value: 6.8

Growth: 5.9

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Syros Pharmaceuticals

A-Score: 3.5/10

Value: 8.2

Growth: 5.6

Quality: 7.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

OmniAb

A-Score: 2.7/10

Value: 7.7

Growth: 1.6

Quality: 4.6

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

33.30%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.35%

Zymeworks Inc. - US98985Y1082

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ZYME

1.c. Company Highlights

Average Quality

Medium Volatility

Average Yield

Earnings Miss

Average Growth

Stable Momentum

Earnings Beats

Fairly Valued

Lower Quality

Revenues Beats

Higher Growth

Strong Momentum

Revenues Miss

2. Zymeworks' Q3 2025 Earnings: A Strong Milestone-Driven Performance

Financial Performance and Cash Position

Pipeline Progress and Partnerships

Valuation and Growth Expectations

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.55%)

6. Segments

Multifunctional Biotherapeutics

Expected Growth: 10.55%

7. Detailed Products

Zanidatamab

ZW49

Azymetric Platform

EFECT Platform

8. Zymeworks Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Zymeworks Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.69$

Current Price

26.69$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA