Zymeworks (ZYME) investor relations material

Deal rationale and strategic fit

• Acquisition expands and diversifies cash flow streams with YUPELRI®, the only once-daily nebulized LAMA for COPD, and adds commercial, royalty, and development-stage assets.

• YUPELRI® is a cornerstone asset with long patent protection, immediate commercial cash flows, and a differentiated clinical profile.

• The deal brings additional value streams, including milestone payments, royalties from TRELEGY ELLIPTA® and VIBATIV®, and a pipeline of early-stage assets.

• $2.5 billion in Irish tax attributes offer significant tax efficiency and future planning flexibility.

• Acquisition supports diversification beyond oncology, leveraging expertise in COPD and enabling a self-sustaining capital allocation model.

Financial terms and conditions

• Total transaction value is approximately $929 million, with $17 per share offered and expected closing in the second half of 2026.

• Funded by $219 million in cash from the balance sheet, $350 million non-recourse financing from OMERS Life Sciences, and $300–360 million of cash acquired at closing.

• No equity issuance or shareholder dilution; OMERS financing is secured solely by YUPELRI® cash flows and carries an 8.25% coupon with maturity in 2036.

• Anticipated $100 million milestone payment from Royalty Pharma in Q1 2027 related to TRELEGY sales reduces net investment by about 50%.

• Net capital at risk is $219 million after factoring in milestone payments.

Synergies and expected cost savings

• Integration will include completion of Theravance's restructuring, reducing R&D and G&A expenses, and pursuing additional cost synergies.

• YUPELRI®'s commercial infrastructure will be largely preserved, maintaining efficient hospital promotion.

• Transaction expected to deliver mid-teens IRR, compounding value for shareholders.

• Additional cash flows provide more optionality for capital allocation to R&D, acquisitions, and share repurchases.