Overview

• Biotechnology firm's 2025 revenue rose 39% yr/yr, driven by clinical milestones

• Net loss for 2025 reduced by 34% compared to previous year

• Company utilized $62.5 mln for share repurchases under current program

Outlook

• Zymeworks expects adjusted operating expenses in 2026 to be 20% lower than 2025

• Company anticipates regulatory milestone payments to fund operations beyond 2028

• Zymeworks remains focused on timely execution of its novel strategy in 2026

Result Drivers

• MILESTONE ACHIEVEMENTS - Revenue growth in 2025 was primarily driven by significant clinical and regulatory milestones achieved through collaborations with partners such as J&J and BeOne

• ROYALTY TRANSITION - Transition of zanidatamab clinical activities to Jazz expected to reduce development-support revenue but increase royalty revenue over time

• ROYALTY-BACKED FINANCING - $250 mln royalty-backed note financing with Royalty Pharma to support share repurchases and potential acquisitions

Company press release: ID:nGNXc8SC3P

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Zymeworks Inc is $34.00, about 46% above its February 27 closing price of $23.29

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)