Zymeworks (ZYME) investor relations material

Strategic evolution and business model

• Evolved from a traditional biotech to a hybrid model combining royalty portfolio management with innovative R&D, leveraging IP and assets for long-term value without building a commercial entity.

• HERIZON-GEA-01 data was a catalyst, enabling a strategy focused on capital allocation and shareholder value through excess future cash flows.

• Chose not to split the company, instead integrating royalty streams and R&D to create synergies and maximize value.

• Maintains flexibility to invest in internal R&D, pursue partnerships, and buy back shares, enhancing shareholder returns.

• Now open to acquiring external assets for both royalty and R&D portfolios, aiming to replicate internal value creation at greater scale.

Competitive positioning and value creation

• Differentiates from pure royalty or R&D players by integrating both under one roof, allowing unique capital allocation and value extraction.

• Focuses on assets overlooked by others, leveraging strategic and R&D capabilities to unlock value.

• Seeks to achieve outsized shareholder returns by reducing share count and gaining market credit for both R&D and royalty streams.

• Demonstrated ability to identify and invest in high-potential assets before market recognition, as seen with Zymeworks and Rybrevant.

• Patiently holds royalties through commercialization, prioritizing long-term value over immediate monetization.

R&D portfolio and partnership strategy

• Built a diverse ADC portfolio with proprietary payloads and unique antibodies, aiming for best-in-class assets like ZW191.

• Considers partnerships for assets like ZW191 before pivotal studies, especially to access combination agents and share development risk.

• Early data for ZW191 shows strong activity across expression levels, potentially covering a broad patient population.

• ZW251 for HCC targets a fragile patient group, with early tolerability data supporting further development and potential combinations.

• Partnership decisions are driven by data maturity, competitive landscape, and capital allocation priorities.