Zymeworks (ZYME) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic and financial highlights

• Achieved FDA approval for zanidatamab in first-line HER2-positive gastric cancer, marking a major clinical and commercial milestone.

• Projected peak sales for zanidatamab are estimated at $3–5 billion, with significant royalty and milestone streams expected.

• Repurchased 10.5 million shares since summer 2024, representing 14% of outstanding stock and $215 million in allocation.

• Raised $250 million through a royalty-backed financing, using proceeds for share buybacks and the Theravance acquisition.

• Maintains a strong balance sheet with over $300 million in cash and a disciplined capital allocation approach.

Pipeline and R&D updates

• Zanidatamab has additional phase III readouts expected in metastatic breast cancer by late 2027/early 2028.

• Pasritamig, a KLK2/CD3 T-cell engager partnered with J&J, will have its first phase III readout next year and is guided for $1–5 billion peak sales.

• Advanced a diverse, wholly owned R&D portfolio across oncology, hem-onc, autoimmune, and inflammatory diseases.

• ZW209, a trispecific T-cell engager targeting DLL3, is entering clinical trials, with a broader trispecific portfolio in development.

• ADC programs include ZW191 (folate receptor alpha, ovarian cancer), ZW251 (GPC3, HCC), and a next-generation pan-RAS inhibitor ADC platform.

Commercial and partnership strategy

• Focused on leveraging partnerships for global commercialization, notably with Jazz and BeiGene for zanidatamab.

• Theravance acquisition aims to add profit-sharing from YUPELRI and expand royalty streams.

• Actively exploring collaborations, spinouts, and external funding to advance the broad R&D pipeline.

• Maintains flexibility to integrate royalty streams and R&D innovation under a single corporate structure.

• Strategic use of Asian partnerships, especially in China, to accelerate clinical development and access new markets.