Zymeworks Inc. (ZYME)

Price$29.39Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe valuation looks balanced after a sharp rerating, with major Ziihera wins already reflected.

Zymeworks Inc. is confirmed as Nasdaq-listed ZYME. With roughly 71 million shares outstanding, the equity value is about $2.0 billion, near the upper end of its recent 52-week range after a strong one-year rise. That leaves less room for disappointment than earlier in 2026. Still, the market value is not excessive relative to cash, the newly triggered Ziihera milestone, future royalties, and pipeline optionality. Conventional P/E is not useful because the company remains loss-making.

Big pictureZiihera royalties can smooth results, but milestone revenue and biotech catalysts still make earnings uneven.

Second-quarter revenue fell to $4.6 million from $48.7 million a year earlier because prior collaboration milestones did not repeat, while the quarter produced a $45.0 million net loss. Royalty revenue was only $1.8 million, but the August approval triggered a $250 million payment from Jazz and leaves substantial additional milestone and royalty potential. Economic cyclicality is relatively low; the bigger cycle is clinical and regulatory, where approvals, launch uptake, trial readouts, and partner decisions can move cash flows sharply.

Business strengthLiquidity is meaningful, while nonrecourse financing and buybacks improve flexibility but consume future cash flows.

Cash, equivalents, and marketable securities were $322.5 million at June-end, while first-half operating cash use was $77.7 million, implying roughly two years of coverage at that simple run-rate before new milestone inflows or deal effects. A $250 million Royalty Pharma financing diverts 30% of certain Ziihera royalties until repayment and is nonrecourse to the parent. The planned Theravance purchase adds another $350 million ring-fenced note. Buybacks have reduced shares, but stock-based awards and continued spending could create future dilution pressure.

What could change the storyUpside needs strong Ziihera adoption and deal execution; downside comes from clinical setbacks or weaker royalties.

A bull case assumes Ziihera becomes a durable first-line standard, royalties climb toward higher contractual tiers as sales scale, Theravance closes and its roughly $60 million annualized YUPELRI cash flow grows, and pasritamig or ZW191 creates additional partnered value without major equity issuance. A bear case assumes slower Ziihera uptake, delayed overseas approvals, weaker acquired cash flows, integration problems, and pipeline failures that force renewed financing. The present valuation sits between those paths, supporting a Fair-priced call rather than a clear bargain or premium.

AI: News

Ziihera doublet hits survival goalAugust 31 data strengthened the case for Ziihera as a durable first-line HER2 therapy.

On August 31, Jazz and BeOne reported that Ziihera plus chemotherapy met the remaining primary endpoint in HERIZON-GEA-01, showing a statistically significant and clinically meaningful overall-survival improvement versus trastuzumab plus chemotherapy. Longer follow-up also continued to support the Ziihera, tislelizumab, and chemotherapy regimen. The result matters because stronger survival evidence can reinforce physician confidence and commercial adoption after the recent U.S. first-line approval.

FDA expands Ziihera first-line useAugust 25 approval broadened Ziihera's commercial opportunity and immediately unlocked a large partner milestone.

The FDA approved Ziihera-containing regimens for first-line HER2-positive advanced gastroesophageal adenocarcinoma on August 25. The decision triggered a $250 million milestone from Jazz. Zymeworks also remains eligible for up to $1.3 billion of additional Jazz milestones plus tiered royalties up to 20%, while the BeOne collaboration retains separate milestone and royalty economics. This converts a major regulatory risk into a nearer-term cash inflow and a potentially larger recurring royalty stream.

Second-quarter losses widenAugust 6 results showed weak milestone revenue, heavy losses, but substantial cash and lower R&D spending.

Second-quarter revenue was $4.6 million, down sharply because large prior-year collaboration payments did not recur. Net loss was $45.0 million, and first-half operating cash use reached $77.7 million. Against that burn, Zymeworks held $322.5 million of cash, equivalents, and marketable securities at June-end. R&D expense declined 20% year over year in the quarter, showing some cost discipline while the company continues to fund its internal pipeline.

Theravance deal reshapes cash flowsJune 29 agreement adds YUPELRI income, but acquisition financing ties part of future cash flow to debt.

Zymeworks agreed to acquire Theravance Biopharma for about $929 million in equity value, using cash consideration plus a contingent value right. The financing plan uses a $350 million nonrecourse note, Theravance's expected $360 million net cash, and roughly $219 million of Zymeworks cash. YUPELRI profit share and royalties were running near $60 million annually, but 75% of U.S. profit-share cash flows would service the note. Closing remained subject to customary conditions in the second half of 2026.

Loading local price history

Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$106.0M	$76.3M	$76.0M	$412.5M	$26.7M	$39.0M
Research & development	$137.0M	$134.6M	$143.6M	$208.6M	$199.8M	$171.2M
Operating expenses	$198.5M	$213.4M	$214.1M	$282.0M	$242.3M	$226.4M
Operating income	−$92.5M	−$137.1M	−$138.1M	$130.5M	−$215.6M	−$187.5M
Operating margin	−87.34%	−179.69%	−181.62%	31.64%	−808.22%	−481.29%
EBITDA	−$84.8M	−$128.4M	−$127.9M	$137.8M	−$209.1M	−$180.0M
EBITDA margin	−80.05%	−168.31%	−168.25%	33.40%	−783.74%	−462.00%
Net income	−$81.1M	−$122.7M	−$118.7M	$124.3M	−$211.8M	−$180.6M
Net profit margin	−76.56%	−160.80%	−156.13%	30.14%	−794.01%	−463.54%
Basic EPSper basic share	-$1.08	-$1.62	-$1.72	$1.91	-$4.11	-$3.58
Diluted EPSper diluted share	-$1.08	-$1.62	-$1.72	$1.90	-$4.61	-$3.58

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

32.17%of listed shares

EcoR1 Capital, LLC22.97M shares · Jun 30, 2026

View holders

Top 20 reported holders of ZYME
Holder	% owned
EcoR1 Capital, LLC	32.17%22.97M shares
NODELMAN OLEG	≈22.01%15.72M shares
Rubric Capital Management LP	9.80%7M shares
BlackRock, Inc.	5.95%4.25M shares
PERCEPTIVE ADVISORS LLC	5.86%4.18M shares
BVF INC/IL	5.11%3.65M shares
Assenagon Asset Management S.A.	3.51%2.5M shares
MORGAN STANLEY	3.12%2.23M shares
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	2.49%1.78M shares
VANGUARD CAPITAL MANAGEMENT LLC	2.18%1.56M shares
Nextech Invest Ltd.	1.56%1.11M shares
STATE STREET CORP	1.52%1.09M shares
DIMENSIONAL FUND ADVISORS LP	1.39%994.96K shares
CITADEL ADVISORS LLC	1.28%914.14K shares
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	1.25%889.8K shares
FMR LLC	0.98%702.57K shares
GEODE CAPITAL MANAGEMENT, LLC	0.97%692.41K shares
Prosight Management, LP	0.94%674.43K shares
Qube Research & Technologies Ltd	0.83%593.59K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	0.71%510.03K shares

Percentages use 71.41M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys37$108.04M disclosed value

Sells (SEC code S)15$6.01M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 12, 2026Form 4	Hollywood MarkEVP & Chief Operating Officer	SellCommon Stock	6.1K	$22.67	$138.7K	132.9K
Jan 12, 2026Form 4	Smith Jeffrey T LEVP & Chief Medical Officer	SellCommon Stock	9.3K	$22.67	$211.1K	26.7K
Jan 12, 2026Form 4	Moore Paul AndrewChief Scientific Officer	SellCommon Stock	9.6K	$22.67	$216.7K	48.5K
Jan 12, 2026Form 4	Galbraith KennethChair & CEO	SellCommon Stock	30.4K	$22.67	$689.7K	226.8K
Jan 5, 2026Form 4	Smith Jeffrey T LEVP & Chief Medical Officer	SellCommon Stock	10.5K	$25.10	$264.5K	18.4K