Zymeworks (ZYME) investor relations material

Deal rationale and strategic fit

• Closed acquisition of 100% of Theravance, adding YUPELRI and its 35% U.S. profit share, an acquired R&D portfolio, Irish tax attributes, and an experienced commercial team.

• Adds high-visibility recurring cash flows and embedded royalty streams, diversifying revenue beyond milestone-driven income and supporting reinvestment, acquisitions, and shareholder returns.

• Combines commercial economics, R&D assets, and potential tax value; the opportunity was less suited to traditional royalty buyers because of hospital promotion responsibilities and the complexity of acquiring the operating company.

• Acquisition advances a strategy combining innovative R&D with commercial and royalty-based cash flows; Theravance adds commercial and near-commercial assets for internal development and partnerships.

Financial terms and conditions

• Acquisition financing includes a $350 million non-recourse, royalty-backed note with OMERS Life Sciences, an 8.25% coupon and 2036 maturity, secured solely by YUPELRI cash flows.

• During the note period, 75% of YUPELRI profit-share cash flows go to OMERS for interest and principal; residual cash flows are retained, and payments revert after repayment. Repayment timing was not guided.

• YUPELRI generated ~$60 million of annualized cash flows at current run rates; base-case underwriting anticipates a mid-teens long-term IRR, primarily from YUPELRI with a small VIBATIV contribution.

• Mid-teens IRR excludes ~$2.5 billion of Irish tax attributes, the acquired R&D portfolio, and potential milestones or business-development opportunities; tax-attribute use depends on taxable income, tax rules, and timing.

• 2026 guidance, excluding future transactions: revenue of $278 million–$292 million, adjusted EBITDA of $114 million–$128 million, and $25 million–$30 million in acquisition/restructuring costs; milestone and contingent royalty-sale payments were also anticipated.

Synergies and expected cost savings

• R&D and asset aggregation are expected to leverage commercial and development assets and create opportunities for partnerships and asset monetization.

• Retention of commercial talent and expanded technology, AI, data science, machine-learning, and IP leadership strengthen operating capabilities.

• Potential Irish tax-attribute value is not included in base-case IRR.